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Competing in a Hyper-Competitive Global Market

Membership Value PropositionMembership Value Proposition

1. Ownership-level Strategic Plan: Defining your shareholder agenda

2. Ideas that Impact: World class education3. Next Generation Entrepreneurship: Skill

assessment and professional development path4. Peer based learning and benchmarking:

Affinity groups and networking5. On-line learning: Monthly Webinars

6. Implementation Support: Ownership, Board, Management levels

7. Resources: Morgan Stanley, Price Waterhouse Coopers, Saul Ewing, Creative Financial, AUA Capital, SJU

The Scariest Three Words for North American Business Leaders

The

ChinaPrice

Q. Does your ownership group want to be in harvest mode or growth mode? Discuss both scenarios.

Q. Are you intentionally building new assets and value streams or are you milking old assets? Is this good or bad?

Q. What are the issues and criteria for deciding if you are in a harvest mode…or a growth mode?

Harvest Strategy Growth Strategy

EXERCISE: Ownership Strategic ThinkingWhat is your family’s long term wealth creation strategy?

Key Concept: “It is fine to be in harvest or growth mode as long as it is an intentional strategy and everyone understands the ramifications of your choices.”

© Institute for Family Enterprising

TodayNews Headline:

Supporting Points:

•

•

•

•

•

•

Ten YearsNews Headline:

Supporting Points:

•

•

•

•

•

•

A vision for the future: Write a news headline and give four or five points that would be made in the article for Today and what you would like it to be Ten Years from now.

EXERCISE: Your Future Vision Where are you … Where do you want to be?

© Institute for Family Enterprising

Managerial Entrepreneurial

Operational

Financial

OwnershipMindset

StrategicMethods

Family Enterprising

Domain

Acceleration

Preservation

Tran

sgeneration

al

Gen

erat

iona

l

The enterprising challenge is to get family groups to think like strategic investors and act like entrepreneurs. This means family members must move beyond their generational and preservation thinking and adopt the strategies of transgenerational entrepreneurship to accelerate their wealth creation opportunities. Our goal is to enhance long-run family enterprising.

Family Enterprising Domain:Family Enterprising Domain: The family as the unit of analysisThe family as the unit of analysis

© Institute for Family Enterprising

Actions

Family

Outcomes

Actions

Firm

Outcomes

Actions

Individual

Outcomes

Resourcef

Capabilitiesf

Resourcef

Capabilitiesf

Resourcef

Capabilitiesf

Strategic Performance Model For Family-Influenced Firms

© Institute for Family Enterprising

Familiness

“Familiness” is the unique bundle of

resources a particular firm has because of the

interaction of the family, its individual family members, and the business with one

another.

DEFINING FAMILINESSDEFINING FAMILINESS

© Institute for Family Enterprising

Resource f

CapitalDecision MakingReputationAlliancesLeadership

f

f

f

Sum of “f” = Familiness

f

f

IDENTIFYING THE “f” FACTORIDENTIFYING THE “f” FACTOR

© Institute for Family Enterprising

CompetitiveAdvantage

CompetitiveDisadvantage

DistinctiveFamiliness

ConstrictiveFamiliness

Question: Where is your family onthis advantage / constraint continuum?

- +

MANAGING YOUR FAMILINESSMANAGING YOUR FAMILINESS

© Institute for Family Enterprising

ResourcesTangible Intangible

Strategies

Manage and Invest in Resources

Alliances

Communication

Lower costs

Leadership

Advantage

© Institute for Family Enterprising

Exercise: A Test for the Fainthearted

Do you have what it takes to lead beyond today’s reality?

VisionReality

What is reality in themarketplace?• Macro-economic• Competitive• Financial • Operational / Processes• Human Resources

What is your vision for tomorrow? • Ownership• Markets• Revenues• Profits• Operational efficiency• Human Resources

Key Concept: “Will today’s reality define your vision…or will your vision define tomorrow’s reality?”

Succeeding in a Hyper-Competitive Global Market

Michael Cardone IIICardone Industries

Robert Healey JrViking Group

Robert Santiago IIIPara-Plus

Membership Value PropositionMembership Value Proposition

1. Ownership-level Strategic Plan: Defining your shareholder agenda

2. Ideas that Impact: World class education3. Next Generation Entrepreneurship: Skill

assessment and professional development path4. Peer based learning and benchmarking:

Affinity groups and networking5. On-line learning: Monthly Webinars

6. Implementation Support: Ownership, Board, Management levels

7. Resources: Morgan Stanley, Price Waterhouse Coopers, Saul Ewing, Creative Financial, AUA Capital, SJU

Next time:

June 4: Jeffersonian Dinner with Chris LowneyHeroic Leadership: Best Practices from a 450-Year Old Company that Changed the World

Religion Philadelphia Factory Family Meritocracy

ManagementImplementation:

Board of DirectorsOversight:

Shareholder GroupCommitment:

© Institute for Family Enterprising

Managerial Values, Vision, Mission Geographic constraints Union relationships Accountability and professionalization

Shift opens with 10 minute prayer Chaplains oversee 15 ethnic groups50% less turnover 25% greater efficiency

Values-Driven Leadership: Your first responsibilityValues-Driven Leadership: Your first responsibility

Values-Driven Leadership: Your first responsibility

Our Values: Our People Our Work Our Word Our Witness

Shareholder GroupValues:

ManagementImplementation:

Board of DirectorsAccountability: Leadership

accountability Profitability / Planning Shareholder value

Our Corporate Objectives Honor God in all we doHelp People DevelopPursue ExcellenceGrow Profitably

ManagementImplementation:

A living wage w/ health care A soccer field on premises for lunch-time gamesShift opens with 10 minute prayer Executive Learning and Bible study at lunch Chaplains support culture within15 ethnic groups 40% of corporate giving directed by employees- 782 different recipients throughout region Case:

Paula from Guatemala Peter from Albania

Making it Real

The Bottom Line • 50% lower turnover rate:

50 fewer per month @ $5,000 cost to hire and train = $250,000 / month savings

• ROI on Chaplains: $2,000,000 savings on $500,000 investment annually• Higher Productivity ( revenue per employee) • Higher Morale• Commitment to Continuous Improvement• Breaking the cycle of poverty

• Never had a strike of their UAW workers!

Some auto-parts companies have it worse than Cardone Industries Inc. Delphi Corp., the giant parts maker spun off from General Motors Corp., is in bankruptcy protection, and on Wednesday announced a massive employee buyout plan. Another big one, Dana Corp., filed for bankruptcy protection March 3. Cardone's biggest competitor, American Remanufacturers Inc. of Anaheim, Calif., was liquidated last November, putting its 1,650 employees out of work. Cardone picked upPublished on 2006-03-26, Page A15, Philadelphia Inquirer, The (PA)

Large Auto-Parts Firms Faring Badly vs. China

Philadelphia Inquirer