Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future...

26
Copyright © 2009, SAS Institute Inc. All rights reserved. Company Confidential - For Internal Use Only

Transcript of Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future...

Page 1: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Copyright copy 2011 SAS Institute Inc All rights reserved

Keynote Identifying Your Companys Hidden Potential

Paul Nunes

Executive Director of Research for

the Institute for High Performance

Accenture

Copyright copy 2011 Accenture All Rights Reserved Accenture its logo and High Performance Delivered are trademarks of Accenture

Jumping the S-Curve

A cautionary talehellip

Some companies keep the hits cominghellip

Accenturersquos Definition of High Performance

Business

Performance

Time

First

Industry-Leading

Business

Second

Industry-Leading

Business

Third

Industry-Leading

Business

The Path of

High Performers

High Performance Consists of a Series of Climbs and Jumps Across S-curves

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 2: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Copyright copy 2011 SAS Institute Inc All rights reserved

Keynote Identifying Your Companys Hidden Potential

Paul Nunes

Executive Director of Research for

the Institute for High Performance

Accenture

Copyright copy 2011 Accenture All Rights Reserved Accenture its logo and High Performance Delivered are trademarks of Accenture

Jumping the S-Curve

A cautionary talehellip

Some companies keep the hits cominghellip

Accenturersquos Definition of High Performance

Business

Performance

Time

First

Industry-Leading

Business

Second

Industry-Leading

Business

Third

Industry-Leading

Business

The Path of

High Performers

High Performance Consists of a Series of Climbs and Jumps Across S-curves

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 3: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Copyright copy 2011 Accenture All Rights Reserved Accenture its logo and High Performance Delivered are trademarks of Accenture

Jumping the S-Curve

A cautionary talehellip

Some companies keep the hits cominghellip

Accenturersquos Definition of High Performance

Business

Performance

Time

First

Industry-Leading

Business

Second

Industry-Leading

Business

Third

Industry-Leading

Business

The Path of

High Performers

High Performance Consists of a Series of Climbs and Jumps Across S-curves

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 4: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

A cautionary talehellip

Some companies keep the hits cominghellip

Accenturersquos Definition of High Performance

Business

Performance

Time

First

Industry-Leading

Business

Second

Industry-Leading

Business

Third

Industry-Leading

Business

The Path of

High Performers

High Performance Consists of a Series of Climbs and Jumps Across S-curves

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 5: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Some companies keep the hits cominghellip

Accenturersquos Definition of High Performance

Business

Performance

Time

First

Industry-Leading

Business

Second

Industry-Leading

Business

Third

Industry-Leading

Business

The Path of

High Performers

High Performance Consists of a Series of Climbs and Jumps Across S-curves

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 6: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Accenturersquos Definition of High Performance

Business

Performance

Time

First

Industry-Leading

Business

Second

Industry-Leading

Business

Third

Industry-Leading

Business

The Path of

High Performers

High Performance Consists of a Series of Climbs and Jumps Across S-curves

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 7: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Nearly A Decade Of Research 31 Industry Peer sets grows to over 80

bull Began in Fall 2003

bull 5 dimensions of analysis 13 key metrics

Profitability

Growth

Positioning for the Future

Longevity

Consistency

Peer

Comp Longevity Profitability Growth FV Consistency

Avg

Score

3 Year

TRS

5 Year

TRS

7 Year

TRS

10 Year

TRS

3 Year

Spread 7 Year Spread

3 Yr Rev

CAGR

7 Yr Rev

CAGR Change Level

Rev

Growth Speed FV

Company 1 A B B B B A A B B B A A A A

Company 2 B C D B B A A C C C B C B A

Company 3 B- A A A A B C D D B C D D A

Company 4 B- B B B D C C C C B C C A A

Company 5 B- C C B C D C B B B C A D B

Company 6 B- B B A C C C C C B D A D C

Company 7 B- A A A B F F A A B D B F F

Company 8 C+ F F F F A A C D F A D A A

Company 9 C+ B A A A D D C B B D C F F

Company 10 C+ C D F D B B C D F C F A A

Company 11 C D D D D C C C D C C D B B

Company 12 C D D C B C C C C D D C A F

Company 13 C C A D F F F A A C D B F F

Company 14 C C C C B D D C C C D B F F

Company 15 C- C D C B C D D D C D F D D

Company 16 C- D F D D D C D D B D F C D

Company 17 D+ F D D C C D F D D D F B D

Company 18 D+ D C D D D D F F B D D F D

Company 19 D+ F F D F F D D F F F D F F

Detailed Scorecard (Example)

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 8: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

How Did They Do

HPB Companies comprise of the following 3M Adobe Apple Avon Products Best Buy Cisco Clorox Colgate-Palmolive Danaher General Electric The Home Depot Illinois Tool Works Intel JPM Chase Kellogg Nike Nintendo Nordstrom Novo Nordisk Pepsico Porsche Automobil Holding SE Procter amp Gamble Reckitt Benckiser Samsung Electronics Schlumberger Southwest Airlines Target Tesco Toyota Wal-Mart Wells Fargo Whirlpool Roche Holding

542

238

233

278

131

235

106

00

05

10

15

20

25

30

35

40

45

50

55

60

65

702 703 104 700 194 794 796 797 798 799 795 701 103 102 101 100 199 198 197 196 195

Hang Seng Index

Russell 3000 Index

Dow Jones Industrial Average

NYSE Composite Index

Average of HPB Companies

SampP 500 Index

FTSE All-Share Index (GBP)

Value of US$1 invested in Jan 1994

Value of US$1 invested in Jan 2004

264

113119

111

139

124

183

00

02

04

06

08

10

12

14

16

18

20

22

24

26

28

709 108 705 106 706 707 708 109 104 704 105 111 110 710 107

Average of HPB Companies

SampP 500 Index

Russell 3000 Index

Dow Jones Industrial Average

Hang Seng Index

NYSE Composite Index

FTSE All-Share Index (GBP)

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 9: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

The Imperative to Jump S-Curves Today

1 Stalling Usually Results In Stopping

2 Company Life Spans Are Growing Shorter

3 Global Competition Is Intensifying

4 Downturns Dont Lengthen Curves

They Shorten Them

Expected

Reality

Revenue

Time

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 10: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Building and Sustaining High

Performance Discovering the Hidden S-

Curves

Hidden S-curves

Competition

Capabilities

Talent

Financial performance curve

Copyright copy 2011 Accenture All Rights Reserved 10

Maturity

Time

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 11: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull The Elements of Successfully Climbing and Jumping

Building and Sustaining High

Performance

Hidden S-curves of competition

Continual market relevance Competition

Capabilities Early commitment to new capabilities

Talent Constant talent surplus

Superior market focus

Distinctive capabilities

Serious talent

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 12: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to ldquobig enough market insightsrdquo

Superior market focus

Competition

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 13: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

A Big Enough Market Insight (BEMI)

0

5000

10000

15000

20000

25000

30000

35000

40000

0

1

2

3

4

5

6

7

8

Percent of US population with Diabetes

Novo Nordisk Sales (DKK millions)

DKK

millions

2000 2030

Rank Country

People with

diabetes

(millions)

Country

People with

diabetes

(millions)

1 India 317 India 794

2 China 208 China 423

3 US 177 US 303

4 Indonesia 84 Indonesia 213

5 Japan 68 Pakistan 139

6 Pakistan 52 Brazil 113

7 Russian

Federation 46 Bangladesh 111

8 Brazil 46 Japan 89

9 Italy 43 Philippines 78

10 Bangladesh 32 Egypt 67

Percentage of Civilian Population with Diagnosed Diabetes United States 1980ndash2007

CDC Diabetes Program httpwwwcdcgovdiabetesstatisticsprevnationalfigbyagehtm

Novo Nordisk Annual Financial Reports

WHO Diabetes Care Vol 27 No 5 (May 2004)

wwwwhointdiabetesfactsendiabcare0504pdf

Estimated Cases of Diabetes

Diabetes in the US amp Novo Nordisk Sales

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 14: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 15: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

9-10

4-7 55

0

1

2

3

4

5

6

7

8

9

10

Early DisposableDiapers

Diaper deliveryservices (including

laundering)

PampGs Pampers

Cents per diaper (1960s)

Diaper Options

Disposable Diapers

PampG calculated that a retail

price of 62 cents per diaper

would stimulate mass

demand

Threshold Competence before

Scaling

73

76

78

58

61

63

50

55

60

65

70

75

80

Celsior (LS400) Mercedes 420SE560 SE

BMW 735i

Decibels of Noise

Luxury Cars

Lexus vs Top Competitors

at 124mph

at 62mph

Source Jeffrey K Liker ldquoThe Toyota Way 14 Management Principles from the Worldrsquos Greatest Manufacturerrdquo (New York McGraw-Hill 2004) pages 47-50

Sources David Mayle Managing Innovation and Change pg 142 Michael Porter Cases in competitive strategy pg 143

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 16: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Three Elements of Successfully Climbing

Building High Performance

Hidden S-curves of competition

Commit to big enough market insightsrdquo

Superior market focus

Competition

Capabilities Distinctive capabilities

Build threshold competence before scaling

Talent Serious talent

Become worthy through shared high expectations

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 17: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Worthy of Serious Talent

Reliability Through a culture of honor

Predictability Through mutual accountability

Capability Through pervasive competence

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 18: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 19: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Edge-Centric Strategy

Edge of control Make strategy planning a continuous

exercise but not a permanent process

Edge of organization Pay attention to insights that arise from

the periphery of the organization

Edge of market Go beyond traditional sources of

information to gain crucial market insights

19 Copyright copy 2011 Accenture All Rights Reserved

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 20: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities

Evolve top team early to build new capabilities

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 21: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Top Teams that Change Ahead of the Curve

bull Seek to evolve continually not just to replace

bull Create the right candidate for the right moment

Establish a Pattern of Early Renewal

Balance the Top Team for a Foot in Today and

Tomorrow

Organize to Avoid Overload

bull Get creative to balance vision and execution

bull Guarantee diversity of viewpoints not just people

bull Never underestimate the power of small changes

bull Create top teams within top teams

bull Manage down the time spent managing

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 22: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Three Elements of Successfully Jumping

Sustaining High Performance

Hidden S-curves of competition

Define and execute edge-centric strategy

Continual market relevance

Competition

Capabilities

Early commitment to new capabilities Evolve top team early to build new capabilities

Talent

Constant talent surplus

Create a ldquohothouserdquo of talent

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 23: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bull Hire for long-

term fit not short-term needs

bull Donrsquot stop choosing after hiring

Hothouses of Talent

Establish ldquoHotbedrdquo Conditions

to create a surplus of talent

Hire for life Create strength from stress

Cultivate hardiness through variety

bull Give people

assignments rather than jobs

bull Simplify

essential processes

bull Clear a path to the top step by step

bull Get employees

out more

bull Make sure theyrsquore all in it together

Provide room to grow

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 24: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Your S-Curve Is Likely Shorter

Than You Think

Cloud Computing

Consumers in Emerging

Markets

Mobility

Global Talent Scarcity

Smart Infrastructure

Solutions

Sustainability

Business Analytics

Digital Marketing

Disruptive Forces

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 25: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

bullHow will you learn of important new trendsmdashand what role will strategy analytics play

bullHow can customer analytics help you determine the exact thresholds of competence you need to successfully launch a new offering

bullHow worthy of serious talent is your company really and how can you know

bullHow can analytics bring ideas and opportunities from your periphery to your center

bullHow can talent analytics help you determine who should be on your top team both today and tomorrow

bullHow can you better know and allocate the talent you have and see how much more you really you need to jump the S-curve

Questions to Consider

Copyright copy 2011 Accenture All Rights Reserved 25

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only

Page 26: Copyright © 2009, SAS Institute Inc. All rights reserved ... · Positioning for the Future Longevity Consistency Peer Comp. Longevity Profitability Growth FV Consistency Avg. 5 Year

Copyright copy 2009 SAS Institute Inc All rights reserved Company Confidential - For Internal Use Only