IntelliVen Business Overview

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Business Architects for Growing Firms

• IntelliVen Business Overview

September 1, 2004
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IntelliVen helps move your business from
Start-Up to Credible phase of operations
KEY ELEMENTS

• Plan
• Leadership
• Drive

• Going concern

• Routine

• First clients
• First employees
• Revenue

• Concept
• Money
• Team

• Get Started

• Execution
• Growth
• Performance

• Payoff
• Managing growth

• New Growth

• Proof
• Survival
• Focus

KEY CONCERNS
0
³ 1MM
³ 10 MM
³ 50 MM
³ 250 MM
REVENUES
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You need IntelliVen when

• Headcount has leveled off, and you are having
  trouble developing the next generation of leaders
  to help carry the firm to the next tier
• Your team is proud of its low-structure approach,
  but effectiveness has slipped in the face of
  growth in scale and complexity
• It is hard to figure out where you are in terms
  of key performance measures, such as available
  cash and operating profit, and you want to know
  where you are going to be so you can do things to
  get where you WANT to be
• You chase opportunities that come along, but you
  are not going out and finding work that suits you
  best
• Results, progress,or culture are held up, or held
  captive, by a strong individual who is not a
  long-term fit with the firm but whose services
  you otherwise feel are critical, and you want to
  end this dependence
• You are bringing on a new leader and want to make
  sure they are set up for success
• You feel adrift and need to get on a solid track
  for long term growth and performance

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IntelliVens recent successes

• Took a six-year old, 25-person strategy and
  management consulting services firm that had
  leveled off at 3-5M _at_ breakeven for years to
  25M _at_ 12 EBITDA and on track to 50-100M _at_ 12
  with a 500 increase in valuation in just three
  years
• Pulled a 20M IT contract services division out
  of a 400M corporation and stood it up as a
  successful independent venture in just six months
• Guided a 30-person non-profit organization from
  chaos to order by implementing people and
  financial controls and processes, assuring a
  platform for increased impact and growth in scope
  and scale of operations in just 6 months
• Removed very strong, but incompatible leaders,
  from services firms with no drop in performance
  five times

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IntelliVen works with you to

• Build top team that is clear about the business
  model, their roles in achieving it and with
  incentives to do so
• Crystallize areas of focus (i.e., whose problem
  does the firm solve and how?)
• Develop
• Financial business model,
• Dashboards to track progress, and
• Strategic plan including long-term goals, short
  term targets, and key initiatives
• Hone key operating processes
• Sales,
• Delivery
• Human resources,
• Supply chain,
• Financial,
• Administrative,
• Governance, and
• Financing

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IntelliVen approach

• Migrate leadership model from personality-based
  to systems-based
• Instead of 20 to 50 people helping the
  founder/leader, the leader helps 20 to 50 people
  be successful individually and together
• Progress from startup to credible or sustainable
  operations
• Set goals based on industry standards and unique
  value proposition
• Document vision, strategy, and operating plan
• Form and develop executive committee and senior
  leadership team
• Organize roles, responsibilities, and incentives
  to best use strengths of players on board
• Identify and recruit missing leaders eliminate
  bad blood impeding growth
• Migrate sales approach from product-based to
  customer-based
• Understand how offerings are viewed by customers
• Build a compelling message and sales approach to
  targeted buyers
• Add/upgrade key financial and personnel
  management practices
• Operate to maximize cash flow and establish a
  regular rhythm of projecting and reporting
• Set weekly, monthly, quarterly executive meeting
  schedules and agendas

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Start by recognizing that no one does it alone
and that the best results come through win-win
synergy from a few strong players
The most effective leaders of organizations of
any size (i.e. 20 to 200,000) get a very small
group of very strong people all pulling hard in
the same direction for an extended period.

• All of them
• Seek to accomplish the same thing
• Have immense desire, drive, capacity, and
  competence
• Complementary skills and compatible orientations
• An instinct and innate drive to work with the
  others
• Always give all the credit for any success to
  everyone else in the organization

A3
A2
B1
A1
A
B2
B
B3
C
C1
C3
C2
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Sharpen focus

• Get clear about the problem you solve, for whom,
  and how specifically
• Who exactly has the problem you solve?
• How important is it for them to solve it?
• Do they have resources to do so?
• Will they work with you?
• What do you need to do to get to them?

Customer (Who)
Solution (How)
Problem (What)
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Create near and long-term demand systematically
Market Positioning and Thought Leadership
Development
Market Communications and Capability Development
(i.e., How do we get the word out?)
(i.e., How do we back up what we know to be
true?)

• (Re)Positioning Plan
• Market Themes
• Best Practice Research
• White Papers
• Press / Analyst Briefings
• Speaker Development

• Marketing Machine Design
• Marketing Plan
• Program Design
• Program Execution Coaching

Market-Driven Strategy Formulation
Service Offering Development
(i.e., Who are we and what do we do?)
(i.e., What do we sell to who?)

• Value Proposition Definition
• Core Competencies
• Channel Strategy
• Executive Alignment

• Market Play Development
• Target Account Identification
• Key Messaging
• Sales Materials

Business Development Process Improvement
Strategic Partner Relationship Management
(i.e., How does management guide what goes on?)
(i.e., What do we count on from other firms?

• Strategic Partner Selection
• Partner Relationship-Building Programs
• Joint Account Planning

• Account Prioritization
• Account Planning
• Account Reviews
• Lead Management Process and Tools Development

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Develop a Point of View Marketing Plan as part
of an overall demand creation and fulfillment
strategy
Customer Value Proposition
Overarching Value Message
A consulting firms choice of the business
problem they solve, their core beliefs about the
marketplace, and their chosen verticals
Market Theme
Market Theme
Market Theme
Market Theme
Marketing Message
Marketing Message
Marketing Message
Marketing Message
Thought Leadership Research and Point of Views
Financial Services
Pharma / Biotech
High Tech Mfg
Others TBD
Thought Leadership Research
Thought Leadership Research
Thought Leadership Research
Thought Leadership Research
A series of research-supported viewpoints about
more specific business problems that a consulting
firm solves that reinforce the firms CVP
Point of View Keystone Report
Point of View Keystone Report
Point of View Keystone Report
Point of View Keystone Report
POV Marketing Plans
Financial Services POV Marketing Plan
Pharma POV Marketing Plan
High-tech POV Marketing Plan
Point of View Marketing Plan
A series of plans designed to maximize the market
potential of each POV and drive demand for
services
Prospect-to-Partner Pipeline
An organization-wide set of capabilities that
allow a consulting firm to successfully bring
multiple Points of View to market and meet the
demand generated by these activities
Prospect
Partner
Financial Services POV Marketing Plan
Capability Development Initiatives
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Focus on the Attract and Capture stages of the
Prospect-to-Partner Pipeline
Retain
Deliver
Convert
Capture
Attract
Financial Services Point of View Marketing Plan

• Introduce the largest number of potential
  buyers/influencers to your expertise/services

• Engage in interactive discussions on POV and
  establish new personal contacts

• Close high percentage of consulting leads and
  structure engagements for mutual success

• Create vehicles for keeping clients in
  value-adding relation-ship and spawning new work,
  approaches, etc.

• Generate client results by executing on expertise
  and approaches laid out in POV create strong
  client references

Firm Goal

• Shop for new, effective approaches to addressing
  current opportunities/problems

• Further assess ideas and the people/firm behind
  them in an educational (not sales- pressured)
  environment

• Choose the right consulting firm for the job

• Continue to learn about emerging issues related
  to those of the original consulting project(s)

• Meet project plan goals on time/on budget and
  generate results

Prospect Goal

• Thousands

• Dozens or hundreds

• 10-20 or more

• Dozens

• Client executives

Target Execs
Program Management, Progress Monitoring, and
Executive Alignment Management
Together, these initiatives generate demand for
your firms services and further enhance your
capabilities to meet this demand
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Structure
Add just enough structure to achieve maximum
effectiveness in the face of increasing
operating scale and complexity
Effectiveness
Add just enough structure to maintain or increase
effectiveness
High
IBM Accenture
High
Low
Dot.Com
Federal Government
Low
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Implement dashboards to monitor progress
towards key performance targets
Profit Loss Operating Income
Labor Assignments
Personnel Change Report
Cash Flow
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Manage by target performance measures
When do you need to know how you are doing on a
key metric at a given moment in time?
After
Before
Then
Moment In Time
Time
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Implement the Virtuous Projection Cycle
Compare observed result to projected result
Goal Achieved?
Start
Define measure of success
Annual Cycle
Observe and measure results compared to
expectation
Are things as expected?
Set what to track along the way to achieving
overall success
Monthly Cycle
Correct it
No
Perform so as to achieve/exceed projection
I.e. specific result, or series, in a timeframe
based on industry standards for similar
organizations performing similar functions on a
similar scale adjusted for stage of maturity
No
Are observations correct?
Yes
Set goal for chosen measures
Exception Process
Revise when necessary
Yes
Quarterly Cycle

• Determine why it is different from projection.
• Generally
• Bad projection
• Something went wrong in execution
• Mistaken calculation

Verify goal is still right
NOW WHAT?
WHY?
SO WHAT?
May be too high or too low depending on
performance over time
Project Next
Differently going forward?
Determine significance and impact
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Upgrade financials and financial processes

• Objective Cultivate fiscal competence and
  responsibility at the most senior levels and
  ensure access to resources needed to carry out
  programs and achieve goals
• Develop a strategy and plan to ensure that net
  assets grow in proportion to operating expenses
• Provide better financial reporting to
• Senior management so that it can monitor and
  manage finances at a high level and see the need
  to take action well in advance of potential
  trouble spots
• Program managers so that they have the
  information they need to run their programs and
  hit their financial targets.
• Improve financial operations to optimize cash
  flow
• Manage cash and credit line responsibly
• Develop operating plans that cap supporting
  services as a percent of revenue/funds-in (e.g.
  20) and manage to them

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Organize in accord with core principles
The organization that will work is the one a
group decides to make work, after much study and
debate, despite its flaws. It is easy to make any
organization fail. What is hard is to make one
work. The group that bands together to design its
own future and that then signs up to make it work
every day in the field of play is the one that is
most on track to success.
There Is No One Right Organization
It is often better to make small moves than to
make wholesale changes. Organization change is
hard on people. It also helps to go slow, and to
keep everyone clear about what is going on, why
it is going on, and what is needed from them to
succeed.
Organizations Change Slowly
Each organization is just one step along the way
to the next. When an organization is put in place
jt is a good time to also think about what might
be next because it wont be long that adjustments
will be needed to stay on track to success.
No Organization Is Forever
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Address key people processes

• For each
• Review what is now in place
• Review what others do
• Come up with what you might do next
• Present to senior staff, revise accordingly, and
  roll out.

• Human resource management
• Performance reviews
• Salary reviews
• Incentive compensation
• Job functions, levels, promotions
• Resource management (who works on what)
• Internal communications
• Project and program reviews
• Knowledge management
• Policies and procedures

• Key Principles
• Add enough structure to improve effectiveness but
  no more.
• Keep it simple!

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Upgrade people processes

• Objective Improve effectiveness with minimal
  added complexity and overhead
• Establish performance plans and incentives for
  senior staff and key project and function
  managers
• Implement annual performance reviews for all
  staff
• Conduct regular reviews of all projects,
  programs, and areas to
• Make them as successful as possible
• Identify lessons that can be applied elsewhere
• Encourage senior staff to share personnel across
  areas more readily
• Identify essential skills and tailor an approach
  to professional development to propagate them
• Document and distribute employee policies and
  procedures

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Design and schedule governance meetings

• Advisory board
• Owners and investors
• Executive operating committee
• Senior leadership team
• All-Hands briefings
• Revenue and opportunity reviews
• Project and program reviews
• Practice and Business Unit reviews
• Administrative operations review

• Budget and reforecast reviews
• Personnel performance reviews
• Salary reviews
• Goals and incentive rewards
• Talent and knowledge management
• Resource management reviews
• Service area reviews
• Communities of practice
• Action committees

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IntelliVens advisory consulting terms

• Join advisory board and/or assume a senior
  advisor role in your firm
• Work for the Chief Executive Officer or Chairman
  of the Board
• Annual compensation scaled according to FTE
  involvement and roles filled
• Modest equity scaled according to size and time
  frame, generally in the range of 1-3 over 3
  years with a buy-out provision when growth goals
  are met
• Fill line roles with trained, proven IntelliVen
  executives up to a full-time basis until ready to
  turn over to long-term executive
• Chief Operations Officer
• Chief Financial Officer
• Human Resources Director
• Chief Marketing Officer

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Select Client References
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Built on 25 years of experience, IntelliVens
methods work