Ceo vision dave power

Why Growth Companies Stop Growing… …and what to do about it!

Dave Power

CEO Vision

Gazelles Drive The Economy

Startups

Mid-Market

All Companies

Net New Jobs

Global 2000 Gazelles

© Power Strategy Inc, 2014

4 years @ 20%

The $30 Million Ceiling

% of All So(ware Acquisi2ons

< $10

$30 -‐ $40

$10 -‐ $20

$40 -‐ $50

> $100

36%

3%

11%

18%

16%

70% Acquired With <$30M In Revenues

$50 -‐ $60

6%

$60 -‐ $100

4%

$20 -‐ $30

6%

~ Annual Revenue When Acquired (millions)

Source: Shea & Company


“Not growing fast enough”

“Not developing great new products and services”

“No 2me”

“No process”

(No vision)

What’s The Problem?


Five Messages For Growth Company Leaders

1.  Every business model follows the S-‐Curve

2.  You can (and must) stretch the Curve… but not forever

3.  To sustain growth you need to find the next S-‐Curve

4.  To sustain growth predictably you need an innovaMon process

5.  Leaders make innovaMon possible



1.   Every business model follows the S-‐Curve

2.  You can (and must) stretch the Curve… but not forever





Planning for Success

Time

Revenue

$10M Early Success!

Growth Plan


The Tyranny of the S Curve

Time

Revenue

$10M

$30M


0

50000

100000

150000

200000

250000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Lojack Revenues

Hot Growth Company

InternaMonal Expansion: Boomerang AcquisiMon

Dealers InstallaMon Plan

LoJack: 1992-2007

1992 2007


Lojack: 1992 -‐ 2007

0

50000

100000

150000

200000

250000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Lojack Revenues

Hot Growth Company

InternaMonal Expansion: Boomerang AcquisiMon

Dealers InstallaMon Plan

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Lojack Annual Growth Rates

Gazelle

1992 2007


Lojack: 1992 -‐ 2012

0

50000

100000

150000

200000

250000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Lojack Revenues

-‐40.0%

-‐30.0%

-‐20.0%

-‐10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Lojack Annual Growth Rates

Market SaturaMon Declining Car The^s GPS CompeMtors (OnStar)

1992 2012

LoJack: 1992-2012


$0

$5

$10

$15

$20

$25

$30

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 1995 2000 2005 2010

LoJack Stock Price




2.   You can (and must) stretch the Curve… but not forever





Stretch The S-Curve

Time

Revenue


Chobani


Market Penetration New Geographies New Segments Pricing and Packaging Rollup

Ways To Stretch The S-Curve





3.   To sustain growth you need to find the next S-‐Curve




Find The Next S-Curve


$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Apple “Computer”


$-

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Music


$-‐

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Phones and Tablets


Private Label Socks

Darn Tough Vermont High Performance Socks

Cabot Hosiery Mills





4.   To sustain growth predictably you need an innova^on process

5.   Leaders make innova^on possible


Innovation Process

Innovation Is Not A Fire Drill

?


Innovation Power Tools


“Build It”

“Ship It”

Technology In Search Of A Market


•  What are your top priorities these days? •  What are you most worried about? •  How could you improve things? •  What if….?

Listening to Customers


Your Job: Listen with empathy § What would it be like to be your customer? § What problems are worth solving?

Design


Apple Fidelity Starbucks Amazon Nordstrom Tesco Cesna Rackspace Virgin Atlantic Dyson Ritz Carlton Zappos

Design

Customer Experience is the New IP


Design

Customer Journey Planning Shopping Purchasing Learning Using Support


+ Customer Experiences

-

Design




Design


Doing? Saying?

Thinking? Feeling?



- -------------------------------------------------------------------------------------------------------------------------------------- Opportunities for Improvement

Design



?

MVP and Pivot

MVP

Pivot © Power Strategy Inc, 2014

Innovation Game Plan?









3-Year Vision

2017

Customers Geographies

Products Services Partners People Results


3-Year Vision

2017



Where We Are

Today?

2014


3-Year Vision

2017



Where We Are

Today?

2014

?


Gap Analysis

2016 2013

$

2014 2015

The Innovation Imperative


Annual Operating and Innovation Rhythm

Quarterly Operating Reviews

Quarterly Innovation Reviews

Innovation Rhythm




2.   You can (and must) stretch the Curve… but you can’t forever





The Book


Email: [email protected]

Website: www.powerstrategy.com

Twiber: @WDavidPower

Continue the Dialogue


Date post:	18-Jan-2015
Category:	Economy & Finance
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Ceo vision dave power

Economy & Finance