Lead Generation Team

1. Lead Generation Team Week of June 1, 2010

2. Current Situation • Industrial Team Situation • Need 300 days to make the year • Team is heavily deployed, little time for BD • Challenges • What can we do to drive additional leads? • Horizontal growth with current clients • Supplier referrals • Networking with known contacts, friends, business associates, past co-workers, etc • Dig through the “Rolodex” • How to convert “inquiries” or brand exposures • Conference attendees & webinar attendees • Prospect Companies • Cold calling to companies of interest

3. Our Assignment • Test the concept of a kaizen week for lead generation • Objectives: • General cold call sales training • Create standard “cold call” process for consultants • Generate list of qualified leads to grow the lead pipeline for industrial / F&B • Immediate opportunities (close 300-day gap) • For opportunities over the next six months

4. Proposed Agenda

5. Team

6. Relevant Research McGladrey Manufacturing Study TBM VOC & Benchmarking Research Helpful insights to understand pressing business issues in manufacturing and executives expectations’ of consulting relationships

7. RSM McGladrey 2009 Manufacturing Survey • The top four 2009 growth strategies cited in the survey: • 1) acquire new customers, • 2) increase sales in domestic markets, • 3) increase sales to current customers and • 4) increase brand recognition. • 95 percent of companies surveyed have plans to innovate products or processes, with new product development and product line extensions reported most frequently. • Companies that innovate plan to enhance their customers’ experience through better products, decreased lead times and lower costs • With current inventories at low levels, companies need to ensure supplier disruptions are minimized. • The survey found that companies are responding to the current economic conditions by implementing lean principles and streamlining operations. In order to strengthen business & competitive position as we climb out of the recession. • Many are planning capacity modifications this year. Twenty-six percent plan to reduce capacity and 25 percent plan to consolidate operations, while only 15 percent plan to expand capacity. Companies have right-sized yet concerned & focused on supporting growth, don’t want to spend their way back to prosperity making lean a good fit

8. TBM Primary Research (2010) • Conducted in-depth interviews among company executives to understand: • Why they use outside consultants • How they find and select them • Top benefits of using consultants • How they measure success • What they would change about consulting engagements

9. Methodology • January 20 – February 10, 2010 • 12 phone interviews completed • Sample provided by TBM • Friends and associates • Many have existing relationships with TBM (while not preferred, this was the quickest way to gather insight) • Executives have extensive experience managing consulting engagements (not just TBM)

10. Interviewees

11. Findings… • Why partner with a consultant: • For technical or industry expertise • A framework & structure to help client internalize and sustain gains / changes made from consulting engagement • Expectations • Relationship & trust are critical • We have to generate results

12. Expertise • Specific technical expertise • Industry expertise • Robust client list • Industry best practices & benchmarking data • Track record and past successes • Senior people with experience running a business • Strategic business and financial acumen • Outside perspective based upon experience and/or data • Matching personalities & culture fit: energetic, focused, good listener, approachable, not arrogant, problem-solver, passionate, creative, good communicator, people-oriented Source: TBM Benchmarking Research Study 2010

13. Framework & Structure • Uncover and quantify opportunities • Roadmap for implementation and long-term success • New processes • Framework leadership can adopt • Disciplined methodology that can be left behind • Short cycle specific engagements • Well scoped • Clear deliverables • Accelerate implementation & internal development • Train the trainer • Bring experience our employees can learn • Drive / facilitate management ownership and buy in • Introduce and implement metrics to measure success • Frequent evaluation of project and consultant leadership and value Source: TBM Benchmarking Research Study 2010

14. Relationship & Trust • Must establish and maintain a senior-level management relationship (senior to senior) • Staying through execution • Long-term personal relationship built upon trust • Frequent touch points • Consistent team at all levels • Consistency of quality people / uniform quality is very rare • Establish relationships at all levels of organization • Must understand the situation of the company, management and the organization • Focus on the client’s business need first – align consulting engagement to the business issues • Deliver unfiltered message - “tell the truth” Source: TBM Benchmarking Research Study 2010

15. Generate Results • Measurable top- and bottom-line results • Positive ROI • Implemented hard savings • Cash, EBITDA • Sustainment • Continuous evaluation • Benefits that last and take a foothold • Know when you are backsliding • Meet the original engagement objectives Source: TBM Benchmarking Research Study 2010

16. From Prospect to Opportunity Taking a lead through the funnel

17. Identify Suspects Qualify Prospects Generate Leads Convert Opportunities

18. Who are suspects? • People we think might benefit from our services. • Suppliers or customers of lean companies • A company you heard about that has a problem we could potentially solve • Someone you know who was at a lean company who was recently promoted or moved to a new job / company that may not be lean • Someone you met / got a business card / connected with in some way • Companies that did something with us (webinar, conference, white paper download) but did not immediately ask for assistance These are the most unqualified and require cold calls with good listening skills and the ability to probe with questions that get people to open up / direct you to decision maker.

19. Who are prospects? • People who called in, filled out a form, contacted us in some way asking to learn more about TBM or requested help with something These are warm leads that require further qualification. They are generally in the early stages of a decision but we need to quickly understand their needs and their decision time frame. We need to get to know them better-quickly / convey our capabilities / build rapport and trust / find common ground.

20. Who is a qualified lead? • You’ve spoken with them, understand their need, ready to proceed to EOV, meeting, visit, etc. Hot!

21. What is a converted opportunity? • This can vary: • Get the EOV • Respond to a request for proposal • Vision session We have a high probably of close when we get to this point.

22. Potential Opportunity Segments • “Level 3” Lean: • Already doing lean, getting good results • Wants to expand lean process into new areas • Opportunities might include: • Horizontal growth • Participate in an SML session • Targeted projects – come in an help us fix a specific problem (could be many things) • Lean supplier management • Lean product development • Value innovation / voice of customer • Acquisition integration • Sales force effectiveness • Strategy Deployment implementation & execution / Dploy Solutions introduction • Target for Executive Exchange • Possible host for CEO Boot Camp?

23. Potential Opportunity Segments • “Level 2” Lean: • Some CI capability in place, might be haphazard • Not getting sustainment, potentially has poor alignment of lean journey with strategic vision • Opportunities might include: • When is their strategy session / possible SML? • Strategy deployment, implementation & execution • Tailored training for CI resources • Establish / re-establish CI office, certification • MDI training / SLR training • Lean leadership assessment, organization design, coaching • Target for CEO Boot Camp Attendance • Possible attendee at Executive Exchange (if you can get the senior guy) • Send team to Lean Sigma Global Summit (9/14-17)

24. Potential Opportunity Segments • “Level 1” No Lean: • Heard about lean / wants to know about lean • Wants to understand what’s required to establish a lean transformation • Opportunities might include: • An opportunity for you to visit the plant, learn more, meet with the executive team, short EOV • Attend the August 4-5 LLG with Anand • Send relevant case examples • Arrange a reference site visit (Personalized Vision Tour)

25. Customized Training? Common challenges: • Our business is changing and we have much work to do and no dedicated resources to drive improvements • We are practicing continuous improvement in disconnected parts of our business but there is no formal program in place – as a result, we utilize individual lean or Six Sigma tools but we don’t have a consistent approach across the entire company • We have lots of people with good CI background using a wide variety of “home-grown” content but lack a best-practices approach for the entire company.  We need to either build our own library of training materials or we need to secure a stable of established training content from a proven service provider. • We want to train our own trainers so they can implement our continuous improvement program consistently across the enterprise.  And, they’ll need the tools, training and certification to make it happen quickly. • We have a Six Sigma program in place but it is internally-focused, takes forever to generate results, and doesn’t really help us better satisfy our customer requirements.

26. Helpful InformationResources Available

27. For Doing Company Research • Hoovers: online database to research companies • URL: www.hoovers.com • Username: ascenna@tbmcg.com • PW: marketing1 • IBIS World: Industry Research • www.ibisworld.com • Username: ascenna@tbmcg.com • PW: automobile • Other resources • Company web site • If public – investor call notes are helpful / hint of CI focus • Bloomberg Business Week Company Insight Center: • Go to Google and type in: Company Name, Stock Quote, Business Week (lots of info on public companies) – look for a listing like this:

28. Business Week Investing Web Site

29. Don’t forget Linked-In • Create a profile for yourself • Link with people you know to get access to their contacts • Connect to the TBM Linked-In page • www.linkedin.com

30. Resources You Can Access • TBM Web Site • www.tbmcg.com • White Papers • LeanSigma in Service • Policy Deployment • Effective CI Office • Raw Material Yield (F&B Industry) • Supply Chain responsiveness • Progressive 5S • Role of training • Human capital asset management

31. New Case Studies Available • Supports business development / info packs / web content • Other case studies in process: Garware, Semco, Freescale/Semi-conductor, LinkBelt

32. Managing Times 1Q issue highlights • Lean in pharmaceutical laboratories • Leader standard work • Dploy testimonial • New executive insights feature • Lessons from Toyota • Government funding

33. Byline Articles • Chief Executive Magazine: Lean Manufacturing’s Next Life • Manufacturer Magazine (UK): Sharma / monthly column “Business as Unusual” / also published in MX • Jan: Are you geared up for growth • Feb: Strategy Deployment: Real change starts here • Mar: Shoot Me Now—Leadership vision has to come from somewhere • Apr: Can Toyota get fanatical about quality again • May: Standard work is anything but standard

34. Other Articles of Interest • Tampa Bay Biz Journal / ConMed feature • Industry Week, Sharma, Sizing up the Elephant • Perfect Engine Award about Mattel • AME Target Magazine, The Truth behind Lean Success, it’s Messy • USA Today, Lean Companies Survive Recession (about Sealy)

35. Upcoming Events

36. Planning a Cold Call

37. Pre-Call Standard Work • Plan a block of uninterrupted time • Schedule similar types of calls all at once (keeps you in the same mindset) • Research the company (Hoovers, Business Week, Annual Report, Investor Call, WSJ article, etc) • Look for issues that you can ask about • Look for common friends (LinkedIn, trade associations, former business associates, like companies / same industry) • Plan your opening / how to introduce yourself • Referral from shared acquaintance, client, friend • Check out the person you are calling on LinkedIn! • Why are you calling – introduce yourself, you recently attended a conference we sponsored, I heard you might want to learn about lean, thought you might be interested to know what XXX is doing, I will be in your area, I understand your company recently (did something) XXX and thought it might be appropriate to introduce myself / TBM to you • Think about how you might open the discussion---ask about some recent event, something you learned, are you currently using lean / continuous improvement as part of your strategy for growth and profitability? • Plan ahead by thinking of a similar type of client, mention of similar industry work, experience helping manage through recession, ability to support growth initiatives with lean product development, etc – have a case in mind or an anecdotal story you might use • Prepare for a potential close – are you going to ask for a meeting, a chance to visit their facility, a referral to someone else in the company (this may change during the conversation but have something in mind.)

38. Lists we have / can create HAVE • Chief Executive Webinar attendees • Industry Week Best Plants attendees • Clients with work on the calendar in 2009 & 2010 CREATE • Companies in heavy equipment, aerospace, wood-related / building products • Seek supplier lists from key clients • Business cards you’ve gathered • Others?

39. Next Steps • Set goals for the week • Build target prospect lists • What do you need to get started?