13 0820 Session 1 Management Team

Cleantech Open2013 Webinar Series

Tuesday, August 20, 2013

2 Cleantech Open Confidential Information – All Rights Reserved

Welcome to the National Webinar Series

• With the Cleantech Open since 2007• National Event Chair 2007 - 2009• Programs Director 2010 - present

MC: Helen Lambert,Programs Director, Cleantech Open


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Thank You To All Our Sponsors!


The Summer Program – July – September 2013

Date Time (PDT)

Session I – Worksheets Time (PDT)

Special Topic Sessions

7/9 1:30 to2:30pm Business Model Canvas (Review) 2:45 to

4:00pm LaunchPad Central (Review)

7/16 1:30 to2:30pm Product/Market Fit 2:45 to

4:00pm Systems Review, PR 101

7/23 1:30 to2:30pm Markets and Getting to Them 2:45 to

4:00pm Term Sheets

7/30 1:30 to2:30pm Product/Technology Validation 2:45 to

4:00pmAlternative Sources of Funding - Grant Writing / Crowd Sourcing

8/6 1:30 to2:30pm Financials Analysis & Planning 2:45 to

4:00pm Review of Worksheets to date

8/13 1:30 to2:30pm Legal Environment, Issues and Risks 2:45 to

4:00pm Cap Tables

8/20 1:30 to2:30pm Management Team 2:45 to

4:00pm Working with the Utilities

8/27 1:30 to2:30pm Sustainability 2:45 to

4:00pmTell Your Story, Sell Your Story (Communicating value to stake holders)

9/10 1:30 to 2:30pm Last Chance For Questions 2:45 to

4:00pm

9/11 1:30 to2:30pm

Investor PresentationMentor Assessment

2:45 to4:00pm

Review of Mock Judging, Regional Awards, Global Forum


Session 1: Management Team

1:30pm – 2:30pm, PDT

• 30 year technology industry veteran, having run global businesses based in USA and Asia

• Practitioner Lead Faculty for Strategy in the School of Business

Speaker: Niraj Kohli President, CSC

Cleantech Open

Management Team: Execution and Team to Execute byNiraj Kohli – University of Phoenix

University of Phoenix webinars include content from businessmodelgeneration.com and from Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN: 978-0-470-87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright © 2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John Wiley & Sons, Inc. Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc. “(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as defined in the Agreement between Publisher and Apollo; (f) publish, distribute, or make available the Work, works based on the Work or which combine it with any other material, other than on the Sites as expressly permitted in this Agreement between Publisher and Apollo.

Cleantech Open Webinar 7 – Management Team

This webinar is a 60-minute meeting presented as part of the Cleantech Open and focuses specifically on concepts related to the execution and Core team.


Agenda

o Value Creation in context of Jobs to be Done and Team

o Management Team in context of People and Process

o Management Team in Context of Scaling and Solutions

o Summary and Questions

Management Team Worksheet and Judging Criteria

Worksheets

o What are Your 18-month Milestones?

o Who Will Execute Them?

o Skill Gaps on the Team

o Getting Whom You Need

o Leverage your value chain

o Worksheets – key to “scoring” well

Judging Criteria

o Is the current team credible, with relevant skills and appropriate connections for the product and its market(s)?

o Does the team know their skill gaps to reach 18-month milestones, and is it clear how they will attract the right people to fill them, cost-effectively


Value Creation by understanding Jobs to be done and Team


How to win with your Business Model?

Stay Focused on leveraging resources in effort to create Value!


(VP)VALUE

PROPOSITIONS

(CH)CHANNELS

(CR)CUSTOMER

RELATIONSHIPS

(CS)CUSTOMER SEGMENTS

(R$) REVENUE STREAMS (C$) COST STRUCTURE

(KP)KEY

PARTNERSHIPS

(KR) KEY

RESOURCES

(KA) KEY

ACTIVITIES

Customer view – Front StageOperations view- Back Stage

Economics view – Business Performance Stage

businessmodelgeneration.com


Are there any questions?

Management Team in context of People and Process

Jobs to be Done: 18 months

Skills and GapsWhat skills are missing from your team?

o Gaps:

Jobs to be done

Core building blocks

Knowledge or experience

Technical skills

Marketing or sales skills

Financial or business planning


Business Model / Customer Needs Drive Processes

What are you doing for the customer?

o How will you do it?

Design

Sell

Make

Deliver

Serve, fix, help, and train

Get paid

Learn: Follow up; get feedback


Processes Determine Skills Needed

Processes

• Municipal sales/site Selection• Site startup• Material processing• Pickup scheduling• Site reporting and management• Material sales• New product development• Supplier payment• Sales receipts• Franchise integration

Skill sets

• Site selection• Machine operation• Scheduling and planning• Logistics• Material sales• Product development• Payment and billing• Franchise


Skills Versus Team

PATRICK WILLIAM TIERNEY 7484 Norfolk Place Castle Rock CO 80108

(720) 733-0383 [email protected]

General Manager with proven ability to lead manufacturing operations, sales, marketing, and product development. 17+ years leading people and processes. Effective change agent. P&L experience in global settings.

JOHNS MANVILLE, 2004- 2005 A $2.5 B diversified Berkshire Hathaway company. Business Leader, HIGH PERFORMANCE NONWOVENS, Denver, Colorado 2004-2005 Led financial performance of a $62 million, 75-employee manufacturer of specialty nonwoven fabrics for construction materials, flooring and commercial furnishing applications, overseeing marketing, sales, and program management. Reversed shrinking sales from an annualized 38,000,000 run rate in Q2 2004 to 60,000,000 in 2005 while filling the business development pipeline with programs to double the business by 2008. Increased operating profit over 85% from $7 million in 2004 to over $12 million in 2005.

Operating Discipline: Initiated integrated order acceptance, scheduling and stocking plan, reducing product transitions,

improving on-time delivery and increasing effective capacity 10% in one year. Turnaround: Raised prices an average of 5% through increases and contract negotiations, securing over $5 million in

business through 2008 while improving profitability.

Crisis Management: Led Business team through sales recovery efforts after a fire in Q3 2004 threatened one month’s sales.

Business Development: Led business team through the development of three major new product programs and creation of a $5MM capital upgrade program. Negotiated three joint development partnerships and one joint development agreement.

EATON CORPORATION, 2002- 2003 A $7.2 B diversified Fortune 500 company (NYSE: ETN). Site Manager, EATON SAM MONACO, Monte Carlo, Monaco 2002-2003 Managed financial and operating performance of a $45,000,000, 250-employee manufacturer of precision pneumatic and hydraulic valves for automotive applications, overseeing design, manufacturing, human resources and finance. Deployed phase gate review process to manage new product portfolio. Used lean tools to reduce current capital by $1,500,000; reducing capital spend by 40% over two years. Increased profits 5% despite 8% decrease in sales, increasing cash flow return on gross capital from 18% to 20%.

Restructuring: Oversaw transfer of two opportunistic product lines to low labor cost countries to reduce costs and focus

factory on new strategic direction. Reorganized factory by customer product line to align activity with customer driven objectives.

Strategic Planning and Implementation: Led plant team to develop strategy, organization capability, budget, and

implementation plans to enable over 50% projected growth from 2004-2006. Developed Critical Success Factors, key objectives and deployed plans to drive improvements in cost, productivity, quality, product contamination, employee engagement and new product development.

DANAHER CORPORATION, 1999-2002 A $5 B diversified Fortune 500 company known for lean manufacturing excellence (NYSE: DHR). President, ANDERSON INSTRUMENT COMPANY, Fultonville, New York 2000-2002 Led financial and operating performance of a $17,000,000, 80-employee manufacturer of sanitary process instrumentation, overseeing design, manufacturing, marketing, and sales. Led team of functional heads in steering company direction and driving execution of strategic initiatives. Beat profit plan by 4%, increasing profitability from 33% to 35% of sales on 5% revenue growth.

Organic Growth: Grew international sales 59%. Grew bio-pharmaceutical sales 5%. Implemented value selling process and

funnel tracking procedures to grow overall sales 5%. Negotiated three year, $3,000,000 supply contract for radar sensors for new level sensing product.

















































DANAHER CORPORATION, 1999-2002 A $5 B diversified Fortune 500 company known for lean manufacturing excellence (NYSE: DHR). President, ANDERSON INSTRUMENT COMPANY, Fultonville, New York 2000-2002 Led financial and operating performance of a $17,000,000, 80-employee manufacturer of sanitary process instrumentation, overseeing design, manufacturing, marketing, and sales. Led team of functional heads in steering company direction and driving executio n of strategic initiatives. Beat profit plan by 4%, increasing profitability from 33% to 35% of sales on 5% revenue growth.



Skill sets

• Site selection

• Machine operation

• Scheduling and

planning

• Logistics

• Material sales

• Product

development

• Payment and billing

• Franchising


Gaps: Knowledge and Experience

o Thought Leadership, Knowledge or experience

Assessment

Knowledge

– Educational background

– Training and professional development

Experience

– Connections

– Ability to spot and solve problems


Gaps: Technical

o Specific Technical skills in context of Tasks that need to get done

Information technology

Product design

Science and engineering

Manufacturing


Gaps: Sales

o Marketing or sales skills

Understanding customer segments and how to market them

Developing marketing plans for customer segments

Sales plan

Sales force


Gaps: Planning, Finance, and Accounting

o Financial or business planning

Business Management

– Business Model Canvas mindset

Financing

– Financial Modeling

– Profit and loss

– Cash flow

Reporting: managing other people’s money


Filling Gaps

Hire

• Full-time• Temporary• Commission

Contract

• Training• PMOs and accounting firms• Credit cards• Distributors and MFR’s reps• Engineering firms and consultants

Partner

• Ancillary benefits• Fills gaps in partners portfolio

Do without

• Advisory Board *• Take the risk – How badly do you need it?• Can the customer do it? Web and self-service model

Less Cash

More C

ontrol

* May provide equity incentivePhoto: Operations Management for Competitive Advantage, Chapter 5. Richard B. Chase, F. Robert Jacobs, Nicholas J. Aquilano; The McGraw-Hill Companies, Inc. 2006


Gap Filling Framework Strategic Importance

+ Need for control

+ Availability of alternatives

+ Money and resources

+ Timing and permanence of need

= Team plan


Filling People Gaps

Filling Gaps:

o Board Members

o Advisors

o Consultants

o Team members

Hiring

Professional Engagement

– Conferences, seminars, or symposiums, designed to engage with customers.


Management Team in context of Scaling and Solutions

Teamso Leadership

Strategic planning

Broad company direction

“Big” decisions

o Startup

Level of autonomy to develop and market a new product

Conceive and execute experiments without excessive approvals

Cross-functional (i.e., representatives from all departments or areas)

o Management

Levels of management and the number of staff to be deployed per the first level of workforce management


Organizational Charto Roles

o Responsibilities

Organizational components

o Functionality

o Geography

o Evolution

Core TeamStart up phase OnlyRealign with Ops Steady StateFuture Function


Advisory BoardAn advisory board provides the following:

Skills to complement the team

Skills that are passing in nature

Background

Depth and expertise

Industry Contacts

Perspective


Team Building Planningo Identify how many employees and what type of employees you will need.

o Identify your current recruitment resources.

Consider factors such as motivation and turnover.

o Forecast the needs of your enterprise related to supply and demand.

o Identify gaps and skill sets.

Training and talent acquisition


Processes Also Drive Structure

Processes• Municipal sales and site selection• Site startup• Material processing• Pickup scheduling• Site reporting and management• Material sales• New product development• Supplier payment• Sales receipts• Franchise integration


Team Building Plano Brings it all together

Skills/organization

People

Pay

o Driven by activity as the company grows

Pick realistic drivers, not just the easy ones.

Project and track driver growth

Map staff to driver growth.

– For example: Engineering staff to parts/products developed

o Drives financial projections


Pay and Positionso Market rates for skills

o Pay structure

Hourly/salary

Benefits

Incentive comp

Ownership

Other: Flex / telecommuting / vacation

o Consider the Fair Labor Standards Act.

o Exempt vs. non-exempt positions

Salary vs. hourly

Wages, Salary and Benefits Table:

Employee TotalWage: Hourly

14Pay 27360 28560 28560Performance Bonus - 10% 2856Social Security 2513.28UI 120 120Health Insurance 3600 -1200 4800SEP/IRA 1200 1200 1200Total 34793 31416 34680


Activity Drivers• # part #s• NPD projectsEngineering

• Customers• # new customers• Jobs/projects

Sales

• # of employees• # hiring

Human Resources/IT

• Markets served• Products to support

Marketing/Prod Management

• # Suppliers• Product mixProduction


Human Resources Considerationso Legal

o Policies

o Hiring

o Benefits

Incentives such as profit sharing and bonuses

o Holidays, vacation, and sick time

Analyze workload while considering holidays, vacation time, etc. to determine staff level needs, including number and different types.

o Develop position descriptions for all staff.

Qualifications, job duties, and decision-making authority


Conclusiono Stay focused on building a Core Team, getting jobs done and creating value.

o Using Business Model Canvas with focus on People, Process and Solutions.

o Sustainable - People, Profits and Planet


What is your plan for a Management Team?

13 0820 Session 1 Management Team

Business

Transcript of 13 0820 Session 1 Management Team