"The significant problems we face cannot be solved at the same

1. "The significant problems we face cannot be solved at the same level of thinking we were at when we created them." — Albert Einstein

2. Why Enterprise Value • POSITION: Strategy must consider market driven value dimensions in order to meet the objectives of each stakeholder group. • POSITION: Leadership Teams, equipped with the knowledge of “what drives value” make better strategic decisions. • POSITION: Whether exit is tomorrow, 10 years, or never, building enterprise value should be the overarching goal for every Leadership Team.

3. The Typical Planning Process • Is done “TO” the Leadership Team rather than “WITH” the Leadership Team • Does not consider what the market place says drives value in the company • Does not consider the positions of all the stakeholders • Leaves out critical consensus building and validation steps • Is “Un-Action-Able”

4. The Process Getting Started RFI, Interviews, Self Assessment

5. The First Thing We Do ….Defining the goals and objectives of the leadership • Form core team • Interview and get to know the heart of the leadership • Collect historical data / strategic plans / background information (RFI) • Orient the leadership on the Value Building Process

6. The Process Determine the need for a Corporate Valuation effort

7. Enterprise Value Drivers Scores (example) • Complete a ‘preliminary’ valuation • Establish the baseline of value • Determine the ‘value drivers’ for the business • Using 90 Key Areas for 14 Value Driver Categories

8. Internal Contour Map Financial Performance & Mgt. Corp. Structure, Ownership & Legal Leadership, Management & HR Info Systems & Internet Asset Base Business Management Product/Service Development Delivery

9. External Contour Map Customer Support Market & Marketing Customer Base Sales & Channel Mgt. Product/Service Offerings Pricing

10. The Process Validate the Value Drivers, Conduct Visioneering, Gap Analysis and creation of TI’s

11. Develop the Value Building Strategy • Leadership engages in a 2 day facilitated workshop that: • Validates the Value Baseline • Validates the Value Drivers • Establishes a clear Vision • Determines Gaps • Defines the Transformational Initiatives

12. Visioneering

13. Organigraph Example BUSINESS DEVELOPMENT Bus Development Referral Call Partners Work Expansion Deliver Services Market Survey Competitive Analysis Pre-Proposal Preparation Write Proposal Write Proposal RFP Meet With Customer Marketing Leads Contract Partners Enabling Services Partner Tip Technical Director Customer Value Finance & Accounting Effective Employee Great Benefits Security Program Managers Develop Core Competencies Human Resources Phone Screening Referrals Partner Tip Train & Develop Staff Examine Skills Monster Resume Requisition Interviewing Staffing Agency Resume Publish to Management PR Contact RECRUITING Employee Transfer LEADERSHIP

14. Leading Change … Through Transformational Initiatives • "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.“ --- Machiavelli (1532) • Verb … Object … that/which …meets a specific business need …In a specific timeframe … with the goal of impacting a key management indicator

15. Schedules, Facts and Figures • The value building process (pre-execution) typically takes between 6-10 weeks to complete based on the size of the business and scope of engagement • The cost of the process varies based on the size of the organization and the complexity of the business

16. Preparation

17. Value Building Workshop

18. Value Building Workshop (Building the TI’s)

19. Value Building Workshop - Validation

20. Building Enterprise Value Marty O’Neill Corsum Consulting, LLC 240-432-3358 marty.oneill@corsum.com www.corsum.com