Growth Excellence Matrix

Driving Top-line Performance to the Upper Right

Presented by:

Ryan Sherring: Regional Head of Africa

Richard Lee Nash: Project Manager

Growth Implementation Solutions

14th May 2013

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Today’s Presenters

Ryan brings a wealth of experience in

designing and implementing corporate growth

strategies across the African continent.

Particular expertise in:

• Strategy Design & Implementation

• Business Optimisation

• Business Transformation

Ryan has over 7 years of consulting experience

with a strong education

• MBA

• BCom: Finance & Economics

Ryan Sherring

Head of Africa

Growth Implementation

Solutions

Frost & Sullivan

Richard Lee Nash

Project Manager

Growth Implementation

Solutions

Frost & Sullivan

Richard brings experience across multiple industry

segments, organizational structures, cultures and

regions. Particular expertise in:

• Growth initiative identification and prioritization

• Strategy Development and Implementation

• Business Transformation

• Innovation and Sustainability

Richard has over 7 years of consulting experience

with a education including:

• BCom honours (Financial Analysis & Portfolio

Management)

• BCom: Finance, Economics & Statistics

Focus Points

Introduction

Executive Management’s Key Challenges

Growth Excellence Matrix

Overview

Purpose & Benefits

Key Metrics

Methodology

Example Outputs

Questions

Challenges Faced by Executive Management

In Frost & Sullivan’s 2013 Corporate Strategy & Corporate Development Priorities Survey

executives challenges and priorities for driving further organisation growth were identified.

Key Challenges Identified:

1. Balancing demands for short term profit with long term strategic goals

2. Embedding insights from future trends into strategic planning

3. Aligning division level strategies with corporate strategy

Misalignment Leads to

Sub-Standard Growth

The Growth Excellence Matrix (GEM): Clarify, Align, Focus

Priorities identified

opportunities for

implementation

GEM Defined

A survey-based tool that helps executive teams improve top-line performance

Benefits

A GEM engagement offers a process and roadmap for time-oppressed executive teams to

concentrate on and solve the issues most likely to improve top-line results. GEM adds rigor

to the strategic planning process, gets key people on the same page, prioritizes limited

resources, highlights improvement opportunities, and reveals future growth potential.

Purpose

Clarify executive

team’s growth

priorities

Identify areas of

executive team

misalignment

Pinpoint areas for

focused

improvement

Clarify Identify Pinpoint Prioritise

5

GEM: Assessing Key Growth Capabilities

GEM assesses 20 drivers critical to successful top-line growth:

Strategy Formulation

• Growth Benchmarking

• Growth Pipeline Creation

• Growth Pipeline Evaluation

• Business Environment Understanding

• Visionary Platform Establishment

• Vision Alignment of Executive Team

• Strategy and Vision Congruence

• Key Growth Process Capabilities

Assessment

• Risk Assessment

Strategy Implementation

• Operational Alignment and Planning

• Resource Alignment

• Measurement Systems Establishment

• Strategic Plan Communications

• Incentive Alignment

• Sales Effectiveness

• Marketing Impact

• Finance Execution

• Research & Development

Accomplishment

• Customer Alignment

• Leadership Change Readiness

Propelling Your Firm to Increased Revenue

Survey is

conducted

Executive team’s

top priorities are

revealed

Methodology

Effectiveness score is

provided for each driver (with

challenge areas pinpointed)

Areas of executive

team misalignment

are highlighted

Focused improvement

recommendations are

made

Report provided

to client

GEM workshop is

conducted with

improvement-oriented

action plans

developed

7

Importance of Growth Strategy Formulation Drivers to

Company Leaders

Source: Frost & Sullivan

The table below depicts the relative value your executive team places on proven growth strategies. Your team values

identifying and evaluating new growth opportunities above other approaches.

Strategy Drivers by Rank of Importance Percentage

1. Growth Pipeline Creation 67%

2. Key Growth Process Capabilities 56%

3. Growth Benchmarking 53%

4. Growth Pipeline Evaluation 49%

5. Business Environment Evaluation 46%

6. Visionary Platform Establishment 44%

7. Strategy and Vision Congruence 38%

8. Risk Assessment 35%

9. Vision Alignment of Executive Team 32%

8

EXAMPLE

Growth Strategy Formulation Effectiveness

Each of the growth strategy formulation drivers depicted below is defined through five individual activities that a company

should perform. The aggregated score of those five activities gives an individual index score per growth driver. The

findings indicate a need to formalize the process for creating growth ideas; similarly, the firm might benefit from a broader

use of growth levers.

Strategy and Vision Congruence

Growth Benchmarking

Risk Assessment

Vision Alignment of Executive Team

Visionary Platform Establishment

Business Environment Understanding

Growth Pipeline Evaluation

Key Growth Process Capabilities Assessment

Growth Pipeline Creation

Growth Strategy Formulation Effectiveness

9

EXAMPLE

Growth Strategy Formulation Drivers Alignment

The extent of agreement on growth strategy formulation drivers between members of the executive team is depicted

below from highest misalignment on the left to greatest alignment on the right. The taller the bar, the greater the

misalignment. Additionally, it is useful to compare the CEO’s responses (yellow circles) to the rest of the team’s.

Adheres to a

Great Extent

Does Not Adhere

to At All

Adheres to

Some ExtentG

row

th

Ben

ch

mark

ing

Gro

wth

Pip

elin

e

Cre

ati

on

Gro

wth

Pip

elin

e

Ev

alu

ati

on

Bu

sin

ess

En

vir

on

men

t

Un

ders

tan

din

g

Vis

ion

ary

Pla

tfo

rm

Esta

blish

men

t

Vis

ion

Alig

nm

en

t o

f

Execu

tiv

e

Team

Str

ate

gy a

nd

Vis

ion

Co

ng

ruen

ce

Key G

row

th

Pro

cess

Cap

ab

ilit

ies

Assessm

en

t

Ris

k

Assessm

en

t

Executive Team Alignment (Highest Misalignment to Tightest Alignment)

Median

Value

CEO

Lowest

Response

Highest

Response

Middle

67% of

Responses

10

EXAMPLE

Growth Strategy Formulation Effectiveness Deep Dive:

Growth Pipeline Creation

There is a significantly negative view of the firm’s ability to generate new business ideas and share/communicate the most

effective approach to doing so.

Idea

Generation

Techniques

Idea

Contribution

Incentives

External

Idea

Capture

Knowledge

Management

System

Widespread

Knowledge

of Approach

Activities Effectiveness (Highest to Lowest Median)Adheres to a

Great Extent

Does Not Adhere

to At All

Adheres to

Some Extent

Median

Value

CEO

Lowest

Response

Highest

Response

Middle

67% of

Responses

11

EXAMPLE

Key Take-Aways

– The 20 key drivers can be used to examine your company’s strategy

formulation and implementation processes and capabilities

– Understanding your companies growth drivers is essential to drive revenue

growth

– The Growth Excellence Matrix structures executive inputs to generate

insights into the strength, weaknesses across 20 key growth capability

metrics to pinpoint areas for improvement

– The Growth Excellence Matrix compliments your strategic planning by identify

gaps in strategy, implementation capabilities, and executive alignment

– The strategic roadmap developed will significantly improve your company’s

growth capabilities across the key driver to significantly improve revenue

growth

Next Steps

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Ryan Sherring

Head of Africa

Growth Implementation Solutions

Frost & Sullivan

T: +27 (0)21 680 3564

Ryan.Sherring@frost.com

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Tel: +27 (0)21 680 3260

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