Going Out of Your Mind to Create ValueTodd S. Greenberg, PresidentTSG Advisors, LLC todd@tsgadvisorsllc.comwww.tsgadvisorsllc.com

Why Value?

If…“To the market, every business has an

intrinsic value determined by performance.”

Then…“Business performance is the ultimate driver

of economic return and value.”

Value & Enhancement…

Value is the ability of companies to consistently grow cash flows by increasing revenues and improving returns on capital.

Enhancement is the net positive impact of leadership and organization practices on revenue growth and improved returns.

You May Be Here…

The Challenge(s)…

“The task of leaders is to get their people from where they are to where they have not

been.” Henry Kissinger

”the genius of and…” Jack Welch

Leadership + Mindset

Journey to Value…

LEADERSHIP MINDSET/VISION

TEAM

ALIGN

OFFERING

TRANSLATE

ENGAGE

PARTNER

Leadership (In)Tangibles…

Market & strategic clarity Organization alignment

Data useFinancial understanding

Mindset & intent

Business Performance

What is Mindset?

Mindset

Behavior

Formative

Manifest

Autopilot

Mindset in Action…• Brain defaults to easiest…

Is sufficient data in hand?

• Law of overconfidence…Is my assumption accurate?

• Prediction by matching…Is the past still relevant?

• Planning fallacy…Is my forecast reasonable?

TOOLS: ANALYSIS + EXECUTION

Single Financial Period…

Metric 2010

Net Revenue $13,451,040

COGS $9,550,238

COGS % 71%

Gross Profit $3,900,802

Gross Profit% 29%

SG&A $3,362,760

SG&A% 25%

Operating Income $538,042

Operating Income% 4%

Financial Trends…Metric 2010 2011 2012 Trend

Net Revenue $13,451,040 Plateau

COGS $9,550,238 Increase 

Gross Profit $3,900,802 Decrease 

SG&A $3,362,760 Increase 

Operating Income

$538,042 Decrease 

Organization Practices…

ValueEnhancement

Drivers

MarketsCustomersProducts

Growth Engine

Technology +Innovation

Structure +Processes

PeopleCulture

OperationalEfficiency

Strategic Clarity +Plan Execution

Non-Financial Value Driver Data…

People

Culture

Customer

Operations

Markets

Strategy

Innovation

Growth Engine

0

5

Execution Funnel…

Low

Valu

e I

mp

act

Hig

h V

alu

e I

mp

act

Low Organization Urgency High Organization Urgency

Value Game Changers

Monitor

Disregard Investigate

Manage the Execution Gap…

Lead Indicators

Optimal Launch

Actual Launch

Time

Response time* is key to value preservation and enhancement.

*Launch as close to changes in Lead Indicators as possible.

Final Thoughts…

• Leadership is (r) evolutionary• Know your mindset and stretch it• Vision gets the ball rolling• Alignment + Translation + Engagement keep

it in play• Data = financial + non-financial elements • Execution = focus + urgency +

accountability

TSG Advisors

• TSG Advisors, LLC collaborates with business owners to improve economic returns and build value in their companies.

• For more information contact:

Todd S. Greenberg, President @ 617.922.2128 todd@tsgadvisorsllc.com www.tsgadvisorsllc.com

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