mike kuryla star stories (situation, task, action, response)

Mike Kuryla STAR Stories (Situation, Task, Action, Response)

1978-1995 Ryder System1.Activity Based Costing (ABC) 2.Consumer Rental Decision Analysis3.Line of Business Valuation4.National Urban League Restructuring5.Simplified Asset Management (SAM)6.Customer Safety Rask Force7.Competitive Intelligence8.Market Value Pricing9.Private Carriage Market Study

1996-1997 New York Life10. Workplace Life Insurance

1997-2002 Automatic Data Processing11. CFO – ADP Canada12. Facility Integration Plan13. Money Movement I14. Annual Price Increase15. Money Movement II16. Strategic Market Planning

2003-2005 Budget Truck Rental17. Yield Management Strategy18. Automatic Vehicle Locator System19. Dealer Locator System

2005-2005 Cartasite20. Initial $1 Million Capital Raise21. Commercial Vehicle Telematics

2005-2008 UNIFI Capital Management22. $500 Million LBO Initiative23. Dignitas Low Income Housing24. Sage connex Telephony Business

2006-2013 WSI Marketing4theWeb25. Internet Marketing Franchisee

2011-2013 Strategic Pricing Solutions26. New Product Pricing for Services27. Pricing Diagnostic for Manufacturer

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1. Activity Based Costing (ABC)

SITUATION1. Ryder System was aggressively consolidating the North American commercial truck leasing and

rental business and required a reliable acquisition valuation tool2. Then current vehicle information systems only included average vehicle data 3. Acquisition premiums were often too high because the acquisition candidates’ fleet were

typically older than average TASK or PROBLEM

1. Development of more accurate vehicle cost estimates was needed to improve acquisition candidate valuations

2. New models were needed to accurately and quickly turnaround initial acquisition premium estimates and to support actual price negotiations

3. Traditional IT processes could not be diverted from core business applicationsACTION

1. Used high level language (APL) to develop flexible vehicle level acquisition analysis model to develop more accurate cash flow-based purchase premiums

2. Developed statistical techniques to derive running cost curves by unit age, type, location, make, etc.

3. Managed acquisition analysis process to support pre-screening and live deal negotiations RESULT

1. Deal makers were provided with accurate view of NPV from a set of assets and contracts2. Ryder System completed consolidation of over 100 truck leasing firms in the 1980s3. Shareholders were rewarded with a 4x increase in the stock price

Return to Table of Contents

2. Consumer Rental Decision AnalysisSITUATION

1. Revenue growth from Ryder’s trademark yellow Consumer Truck Rental division had stalled because category leader U-Haul had re-focused on its core business

2. Ryder’s core commercial truck rental business was being cannibalized by its sister Consumer Truck Rental division and severe internal competition ensued

3. An acceptable solution to this long-standing problem had not been developedTASK or PROBLEM

1. The Ryder associates from each division felt terrific animosity toward each other 2. Too many Ryder rental trucks were chasing the same customers via different channels3. Excess assets and sub-optimal pricing was negatively impacting shareholder value

ACTION1. A project was approved to develop options to resolves these internal conflicts to enable focus

on the market 2. Leveraged Strategic Decision Group consultants to identify and quantify a set of distinct

strategic options to resolve these issues using decision analysis techniques 3. Distinct strategic options were developed and the associated the risk and return quantified for

presentation to senior management RESULT

1. The decision makers understood the key drivers for the strategic options and the risk and rewards inherent in each

2. As the conflict inherent in running a consumer and commercial business with overlapping infrastructure appeared intractable, it was decided to sell Consumer Truck Rental

3. The Consumer Truck Rental division was sold to a competitor for an attractive price and the commercial truck rental business was able to better focus on its customers


3. Line of Business Valuation

SITUATION1. In the 1980s, Ryder System experienced rapid growth driven by consolidating the truck

leasing business with over 100 truck leasing acquisitions2. To keep up a high growth rate, in the early 1990s Ryder System diversified into aviation

services with the acquisition of four major aviation business3. The Company’s growth rate, however, stalled and the market punished the stock price

accordinglyTASK or PROBLEM

1. Assess the corporations' strategy and develop strategic options to regain shareholder value2. Engage senior business line managers in a disciplined strategic planning process3. Assess the present and projected market value of each business

ACTION1. Working with Corporate HR, trained the top 200 executives to perform competitive analysis

based on Michael Porters process2. Created cash flow based valuation models based on each businesses’ key value drivers,

unique cost of capital and five year plan 3. Developed business valuation presentation for CEO to deliver at the annual “Summit

Meeting” with the Board of Directors to review strategic optionsRESULT

1. Identified gap between “book” returns (ROA and ROE) and cash flow based valuations to forecast each business’ impact on the stock price

2. Introduced the concept of Economic Value Added (before it became popular)3. Ryder System divested its non-core aviation businesses, Auto Carrier Division and

Consumer Truck Rental business to focus on its core commercial businesses


4. National Urban League Restructuring

SITUATION1. The National Urban League (NUL) was spending more than 50% more than its resources2. Existing NUL leadership required assistance to identify and take the take the steps necessary

match spending with revenue3. The new NUL Chairman, also the CEO of Ryder System, elected to help the organization non-

profit take steps to remain viableTASK or PROBLEM

1. The NUL CFO was considered not strong enough to manage the situation2. The NUL NYC headquarters and eight regional offices lacked proper fiscal controls3. No NUL budgeting process existed

ACTION1. Ryder executives attended the NYC NUL board meeting and agreed to work with NUL

leadership to work out an ongoing financial management solution 2. Actual spending was analyzed in comparison with funding levels and specific cost reduction

actions were identified3. CFO candidates were identified, interviewed and a new CFO was hired

RESULT1. NUL leadership was strengthened2. Financial controls and budgeting processes were installed and expense cut in line with

available resources3. The NUL mission was clarified and set up to operate within its means


5. Simplified Asset Management (SAM)SITUATION

1. The processes for administering and controlling Ryder’s $250 million annual used truck sales were inefficient and ineffective

2. The processes for managing Ryder’s 150,000 vehicle fleet were not standardized nor optimized among its 600 locations

3. Ryder’s core asset management competency had not been invested inTASK or PROBLEM

1. Identify the benefits and costs associated with alternative options for improving Ryder’s assets management capability

2. Establish consensus between a wide cross section of stakeholders in the field and at HQ on the best way to proceed

3. Secure management approval and funding to improve the asset management processes and execute

ACTION1. Established the vision for leveraging the information inherent in automating the used truck sales

process with pricing data to support asset management processes 2. Worked with the various stakeholders to achieve common buy-in to automating asset

management processes and training the field associates to follow them3. Proposed and received approval for a $10 million multi-year project and led the team to set the

requirements, staff the project, develop the systems and train the field usersRESULT

1. The multi-functional team of Ryder employees and consultants developed and implemented SAM in 600 field locations to begin optimizing asset management practices

2. Field managers for the first time had access to revenue and margin information on a client-server relational data base cut by customer, location, vehicle, and product line

3. SAM helped Ryder earn a record $80 million 1995 gain on the sale of equipment and was subsequently re-named Strategic Asset Management


6. Customer Safety Task ForceSITUATION

1. Ryder efforts to improve safety and workers compensation insurance claims management practices for internal employees met with great financial success

2. The Company desired to duplicate this success by applying the knowledge gained from improving internal safety management to customer safety management

3. All divisions ( Highway Transportation and Aviation) were asked to participate and to share best practices

TASK or PROBLEM1. Indirect costs and customer value enhancements associated with inadequate customer

safety practices were not clearly identified as safety-related 2. Little communication between the different Ryder businesses on customer safety3. Customers incurred significant physical and financial damage due to accidents

ACTION1. Ryder’s chief legal officer was made the Customer Safety Task Force Czar and Fleet

Controller was asked to coordinate with representative from each business2. A cross business and cross-functional kick-off meeting was held in Miami which identified

many best practices 3. Quarterly updates describing efforts and results by business were instituted to keep the

pressure on an efforts that were inherently difficult to measure and motivate RESULT

1. Best safety practices were shared and some were implemented 2. Safety initiatives requiring capital spending (decals on school buses or “lights on for

safety”) were deferred due negative impacts on ROI and bonuses3. After a flurry of activity for two years, the task force was shut down


7. Competitive IntelligenceSITUATION

1. Beginning in the early 1990s, key Ryder’s competitors began gaining market share 2. Traditional financially-oriented backward-looking competitive intelligence reporting was

infrequently produced and not widely distributed3. Anecdotal evidence from the business units suggested that the competitive environments were

getting tougherTASK or PROBLEM

1. Identify options for effectively addressing the gap between what was known and what should become known about existing and future competitive threats

2. Engage senior staff and line managers in ascertaining the competitive threats3. Regularly communicate key competitive findings to senior managers to inform decisions

ACTION1. Identified SCIP (Strategic and Competitive Intelligence Professionals) as the leader in the

skilled use of intelligence to enhance business decision-making. 2. Hired SCIP president as Manager of Competitive Intelligence to staff the function3. Established regular in-depth monthly review of one key competitor with all officers

RESULT1. Shifted competitive perspective from retrospective and anecdotal to prospective and fact based

to enable a common in-depth understanding major competitive threats2. Achieved access to competitive intelligence community and their ethical practices 3. Identified selected acquisition and divestiture targets based on competitive analysis


8. Market Value Pricing (MVP)SITUATION

1. In 1993, the $ 5 billion US heavy truck leasing market had consolidated into four major players and price competition was increasingly fierce

2. Ryder had 40% market share but was losing share to an aggressive GE-backed Hertz-Penske 3. Ryder needed to regain market share momentum while maintaining its strong profitability

TASK or PROBLEM1. Ryder’s cost-plus pricing was inadequate because it priced too low for high-value deals and

priced too high on some positive contribution margin deals and lost them2. The 600-plus strong sales force were too internally focused on costs3. There was no reliable and consistent approach to understanding customer value and

competition on a deal by deal basisACTION

1. Developed a new pricing program called Market Value Pricing (MVP) that reflected the three “C’s” of pricing: Customer Value, Competition and Cost. It was.

2. Implemented MVP as a client-server application that delivered the three “C’s” of pricing to each sales persons’ PC and, as a by-product, automated the sales-order process

3. Trained the sales force on the new MVP process with day long road shows in four venues where about 200 people attending each presentation

RESULT1. The sales force readily accepted MVP and its external focus largely because the new sales

commission plan was based on the implicit cash flow profitability2. The entire 600 person sales force was upgraded and trained on new technology laptops3. Ryder improved its market share while ensuring that incremental sales were priced above the

cost of capital while referencing customer value and competitive pricing


SITUATION1. Ryder System needed to clearly understand the facts and trends in the private carriage

market in the post de-regulation of highway transportation environment 2. A 40 page survey was completed by 10,000 businesses and the results compiled3. Senior managers expected a clear analysis of the data to help inform decisions

TASK or PROBLEM1. Massive amounts of data had to be sifted and analyzed to develop useful conclusions2. Staff had no experience interpreting a large and complex set of primary research3. In many instances, research results conflicted with long held beliefs based on anecdotal

evidence and were viewed with suspicion by line managersACTION

1. Analyzed and developed critical set of fact-based observations and conclusion using this unique proprietary data on the private carriage market

2. Developed presentation of key findings to the Board of Directors including apparent price pressure and the opportunity to deliver better value to large customers

3. Streamlined national sales process to enhance focus on critical large customer segmentRESULT

1. Ryder began to take steps to recognize that it was in a hostile pricing environment2. Management began to evaluate radical options like using anticipated cost reductions in its

pricing assumptions3. Over time, the Company’s the cost structure was radically reduced to remain viable

9. Private Carriage Market Study


10. Workplace Life InsuranceSITUATION

1. Ryder System VP-level executive elects to take a severance package and works through the out-placement process to identify a new opportunity

2. Accepts job as a life insurance agent with New York Life (NYL) to leverage his Ryder System sales experience and need for Baby Boomers to prepare for retirement

3. The opportunity to sell workplace marketing of life insurance to Ryder System is pursued as a way to lock in an attractive long-term income

TASK or PROBLEM1. Entry level NYL agents were not allowed to offer workplace marketing life insurance

products2. Ryder System Human Resource executives were unaware of the opportunity to provide

additional value to their employees with little cost or risk3. Focusing time and effort on workplace marketing detracted from traditional product sales

effortsACTION

1. Secured permission to work with NYL workplace marketing group to target 45,000 employee Ryder System

2. Established contacts and convinced Ryder executives to entertain the idea3. Facilitated proposal presentation by lead NYL workplace marketing agent

RESULT1. Ryder System executives were convinced that workplace life insurance was a good idea2. Ryder System executives were uncomfortable with the lead NYL agent and elected to

pursue options with other insurance companies 3. High expectations were met with disappointment and the decision was made to take an

opportunity to return to corporate finance


11. CFO – ADP Canada

SITUATION1. New ADP Canada CFO assumed responsibility for the 132 associate Finance department that

was in disarray because the company had just quadrupled in size with two acquisitions2. People and systems could not talk to each because integration work remained to be done3. The finance department lacked credibility and was treated as the scapegoat

TASK or PROBLEM1. Support new systems: Oracle GL, multiple product platforms and financial systems2. Reset priorities as wrong things were being worked on and many right things were left undone3. The Finance department was poorly led, poorly staffed and people felt overwhelmed

ACTION1. Reorganized, hired key managers and took action to retain key associates2. Simplified and consolidated monthly financial report into a single “Red Book” 3. Held monthly meetings with all Finance associates with anonymous Q&A’s

RESULT1. Talented teams were put in place and the integration work was completed 2. A single consistent set of accurate monthly reports restored confidence in Finance3. Finance associate morale and performance improved with frequent and open communication with

the entire team


12. Facility Integration Plan SITUATION

1. ADP Canada had recently quadrupled to $130 million with the acquisition payroll businesses from the Bank of Nova Scotia and the Royal Bank of Canada

2. Achieving the promised economics required the consolidation and integration of the facilities, production equipment and personnel

3. Spending approval was required by the CEO of ADP, Inc. for this unplanned acquisition-related expenditure

TASK or PROBLEM1. Identify the detailed integration and consolidation plan2. Clearly document the $20 million spending required for new production facilities, computers,

printers and administrative offices 3. Develop a compelling communication package that reflected the economics

ACTION1. Coordinated with the ADP Canada region offices, IT, HR, and Corporate Facilities to detail

the plan to reduced the facility count from 32 to 162. Created a tabbed book which included ten sections, including an executive summary,

economic impact description, spending analysis and descriptions by region3. Presented the capital expenditure request to the ADP CEO, President and CFO

RESULT1. After some intense probing by the senior ADP executives into the detail, particularly in to the

“run rate” impact, the $20 million Facility Integration Plan was approved2. The project was executed on time and within budget3. The ADP president requested that the presentation format developed for this project be

used by other ADP units when requesting approval for large capital projects


13. Money Movement ISITUATION

1. ADP Canada doubled in size to $130 million with the 1997 acquisition of Royal Bank’s payroll business 2. Royal Bank’s general ledger system was used to control its $30 billion annual payroll flow and ADP would

incur a $1 million per month penalty if it was not off within 18 months3. ADP’s US money movement center, however, was not willing to take on this business because of poor

experience with the Bank of Nova Scotia acquisition completed a year earlierTASK or PROBLEM

1. Safely migrate off Royal Bank’s GL in 8 months while meeting the 99.99% accuracy required to control cash inflows and the 2 million payments per week

2. The ADP Canada IT staff was very busy integrating other elements of the acquisition and did not have the resources available to develop and implement a solution

3. The finance associates administering ADP’s money movement operations were familiar with existing processes but had to be trained on a new process using new technology

ACTION1. Collaborated with Deloitte Consulting to propose modifying Oracle Financial Suite to replace Royal Bank’s

GL with a new Canadian money movement system 2. Received approval to lead and implement a $7 million project made up of ADP associates from Finance, IT

and HR and 12 programmers and functional analysts from Deloitte Consulting3. Created innovative techniques to train the ADP associates including a “Screen Cave” depicting the

process flow and “Click-by-Click” documentation for each associateRESULT

1. ADP associates were trained and ready to go when we went live2. The new Money Movement System was implemented successfully with no penalty3. The funds flow was reconciled to the penny on a daily basis to ensure perfect accuracy


14. Annual Price IncreaseSITUATION

1. In late 1997, ADP Canada had quadrupled revenue to $130 million with the acquisition of the payroll businesses of Bank of Nova Scotia and Royal Bank

2. The people, processes and technologies that came with these acquisitions had not been integrated to support consistent billing practices

3. Revenue plan targets required an average 8% price increase to meet objectivesTASK or PROBLEM

1. Identify the customer billing data base challenges and consolidate them into one2. Establish a strategy and process to increase customer prices appropriately 3. Execute in a timely and accurate fashion

ACTION1. Worked with IT to divert the resources needed to understand the pricing data and implement

the price increases (i.e. bigger increases for clients with lower prices)2. Communicated plans to customer service regions and trained them to access data3. Implemented the systems and processes needed to effect the price increases

RESULT1. Implemented price increases required to meet profit objectives and max bonus2. Communicated rationale to customer service so they could effectively handle customer

concerns3. The project was executed on time and within budget


15. Money Movement IISITUATION

1. Successful implementation of Money Movement I project accommodated half of ADP Canada’s requirements on a bare-bones basis to avoid onerous penalties

2. ADP’s U.S. money movement operations preferred to off-load all the ADP Canada requirements to reduce complexity, costs and serious reconciliation problems

3. Many opportunities to enhance efficiency and expand the capability to offer new products were identified but deferred during the initial Money Movement I project

TASK or PROBLEM1. Resources unavailable to develop options and deliver new money movement system2. ADP Corporate demands for more profit from ADP Canada3. Ongoing U.S. trust accounting reconciliation problems with previous ADP Canada

acquisition required information system investment for effective resolution ACTION

1. Expatriate CFO elected to remain in ADP Canada as VP Money Movement to deliver next phase of money movement project

2. Built business case and secured capital expenditure approval for Money Movement II3. Defined business requirements and hired permanent staff and consultants from two firms

(about 50 FTEs) to develop, build and execute new money movement systemRESULT

1. Continued to manage money movement operations with perfect trust accounting during new system development process

2. Transitioned to new VP Money Movement prior to taking new assignment in US3. New money movement system successfully accommodated ADP requirements and was

subsequently leveraged for other international ADP subsidiaries


16. Strategic Market PlanningSITUATION

1. The highly profitable $2 billion ADP Major Accounts Division needed to reverse its declining growth rate which had declined over 5 years from double digits to slightly negative in 2002

2. ADP Major Accounts Division (100 to 1000 employees per customer) is ADP’s cash cow and it was facing increasingly stiff competition from Paychex which had previously focused only on smaller customers

3. To make the situation worse, ADP MA was not allowed to counter this Paychex threat in the 50 to 100 segment which was under-sold and under-serviced by its sister Emerging Business Services division

TASK or PROBLEM1. Paychex was coming up-market with a no-frills low-price offering targeted at the 50 to 1000 mid-market niche, but

because its sales volume was still relatively small, it was not yet viewed as a serious threat2. Turf battles and internal politics prevented ADP from effectively addressing the critical 50 to 100 market segment

and senior management refused to re-open the issue because they were tired of talking about it3. The sales force and regional management were becoming increasing disenchanted with what they viewed as poor

decisions by the leadership at HQ

ACTION1. Ascertained that Paychex was a serious competitive threat with research and working through the classic industry

analysis process developed by Michael Porter of Harvard2. Held cross-functional meetings with field and HQ associates to confirm that beating Paychex and competing

effectively in the 50 to 100 segment were the most serious issues facing the business 3. Raised these issues in the Issues & Options phase and the Strategic Plans presentations to corporate management

RESULT1. Actions plans were developed and executed to counter the Paychex threat 2. Major Accounts was finally allowed to service and sell into the 50 to 100 market segment3. Division and corporate managers developed a better consensus on the key strategic issues facing ADP


17. Yield Management

SITUATION1. Budget Truck Rental was spending too much transferring trucks to meet demand while still missing

out on many peak period rentals2. Lack of cooperation and misunderstandings between regional profit centers3. No consensus on how to properly allocate and price the fleet by season

TASK or PROBLEM1. Develop a common understanding of the economics associated with transferring trucks2. Eliminate the management distraction associated with turf battles and internal politics 3. Optimize the fleet distribution and pricing to maximize profitability

ACTION1. Worked with staff and line stakeholders to develop a consensus on revenue management

objectives and strategies2. Drafted revenue management strategy for presentation and agreement by line managers3. Established weekly processes to communicate fleet pricing and movement decisions

RESULT1. Reduced fleet transfer expense $ 2 million from $12 million to $10 million2. Set target fleet plans based on agreed-upon strategies by region and season that resulted in

record 2004 revenue and $50 million profits 3. Incorporated new yield management strategy into comprehensive proposal to install new

technology point of sale system combined with on-board GPS-cellular devices


18. Automatic Vehicle Locator SystemSITUATION

1. In late 2003, telecommunications and mapping technology became available to cost-effectively track vehicle location in real time

2. Vehicle location was a key input into Budget Truck Rental systems, but 20% of the location data was inaccurate and untimely because of one-way rental transactions

3. The new senior management team elected to evaluate the opportunity to leverage telematics technology to “change the game”

TASK or PROBLEM1. Many technology options and a very skeptical car rental oriented parent2. Limited analytical, operational and capital resources available in recently bankrupt entity3. Operational staff taxed to manage fleet with existing business practices with little capacity to

accommodate parallel technology enhanced processesACTION

1. Identified telematics vendors, evaluated proposal options and selected vendor with best mix of functionality for the lowest cost.

2. Created request for capital expenditure for parent’s approval to run a pilot program with the telematics installed on 1,000 units with projected 20% IRR.

3. Ran 4 month pilot with shared resources and evaluated actual pilot unit benefits regarding utilization, pricing, lost and stolen vehicle recovery and adherence to existing policies utilizing geo-fences

RESULT1. Strict evaluation of pilot benefits did not show clear ROI because operations was unable to

manage two fleet inventory management processes in parallel2. Parent declined to invest in proposals for enhanced yield management system and web-based

point of sales systems that leveraged telematics location–based data3. Web-based point of sales system eventually implemented even though the truck rental

business was merged with car rental which had its own POS systemReturn to Table of Contents

19. Dealer Locator SystemSITUATION

1. Objective to grow the Budget Truck Rental (BTR) dealer count while culling low performing dealers and replacing them with new dealers in high potential locations

2. Field management had inconsistent anecdotal information about existing and potential dealer locations and relative market share

3. New geographic information system tools became available associated with the Automated Vehicle Location System pilot project

TASK or PROBLEM1. Convince the BTR senior management team that using technology would help them reach

their dealer count expansion and revenue growth objectives2. Develop the relevant data and integrate it into the new map-based technology3. Deliver the new technology to 200 field managers and train them how to use it

ACTION1. Created proposal for using Microsoft MapPoint CD-based software to display data 2. Developed the database of relevant location and performance information including market

share and market opportunity by ZIP code3. Presented tools to all-hands meeting, loaded the software on 200 PCs and attended a

series of regional meetings to vet and improve the actual implementation processRESULT

1. Field management became comfortable with the new geographic information system tool and used it to plot their plans to open and close dealers

2. Demand for more information at the dealer level resulted in significant improvement to dealer performance reporting systems

3. Dealer growth and revenue growth targets were exceeded


20. Initial $1 Million Capital RaiseSITUATION

1. Cartasite, founded in 2004, needed to raise additional capital to grow its vehicle telematics business

2. The Company's vehicle telematics service was road tested with its 1,000 vehicle pilot project with Budget Truck Rental and ready to support additional customers

3. The new CFO was charged with managing the financial and legal aspects of raising the first $1 million to fund additional sales, financial, operations and technical staff

TASK or PROBLEM1. Coordinate with existing angel investors and investment bankers to negotiate and share

valuations for successive tiers of new investors2. Refine initial documentation, financial models and banking to support new capital raise

process3. Develop and maintain cash controls and a weekly cash management process

ACTION1. Maintained equity share documentation and recommended valuations per share as

additional capital was contributed2. Maintained the cash controls and forecast need for additional funds3. Communicated with investors as required

RESULT1. Initial $1 million was raised2. Documentation and investor relations activity completed 3. As hiring and other spending ramped up faster than cash was coming in from investors, the

board demanded a 50% cut in expense reduction cut in senior staff


21. Commercial Vehicle TelematicsSITUATION

1. Cartasite was poised to support rapid revenue growth in its core vehicle telematics offering but needed a marquis customer to establish scale and credibility

2. Cash flow constraints required staff reductions including the newly hired VP Marketing and CFO and other staff

3. The former CFO negotiated an agreement to share the margin dollars generated from a potential contract with transportation industry leader Ryder System

TASK or PROBLEM1. Identify and develop relationships with the key Ryder System telematics decision makers

and understand and influence their business requirements 2. Qualify to participate as one of the final four candidates (out of 25 considered) in Ryder

System’s evaluation of telematics suppliers3. Establish agreement with Cartasite management to support proposal to Ryder System with

necessary operational, financial and technical resourcesACTION

1. Established good relationships with the key Ryder executives and convinced them to set their telematics business requirements so that Cartasite’s offer was competitive

2. Developed Cartasite proposal and presented it to Ryder as one of the final four suppliers selected out of a set of 25

3. Worked with technical and operational Cartasite resources to implement a telematics pilot on four Ryder System tractors

RESULT1. Cartasite resource constraints combined with decisions to focus on other opportunities to

resulted in an unsuccessful implementation of the pilot project 2. Cartasite was not selected by Ryder to provide telematics services 3. Relationship with sales consultant targeting Ryder was discontinued


22. $500 Million LBO InitiativeSITUATION

1. New SVP Finance joined Budget Truck Rental (BTR) with the understanding that it would be spun off as a separate entity by its parent Cendant to focus of car rental

2. Instead, Cendant elected to keep the very profitable BTR and run it as part of its AVIS/Budget Car Rental operations to offset low-than-expected car rental profits

3. Separated from BTR, the former SVP Finance elected to take a run at buying BTR from Cendant with LBO financing combined with existing BTR management

TASK OR PROBLEM1. Make a compelling argument to key stakeholders 2. Raise the debt and equity3. Convince Cendant that it was in its best interest to sell

ACTION1. Partnered with UNIFI Capital Management to developed the strategic argument and financial

forecast describing an attractive LBO opportunity 2. Secured agreement with Lehman Brothers and CIT to provide equity and debt financing and

agreement with key BTR management to support the offer3. Sent compelling strategic argument for Cendant to sell BTR because of the incompatibility of

operating and marketing truck rental with car rental businessesRESULT

1. Cendant CEO agreed to take the LBO proposal to their Board of Directors, but did not follow through as promised

2. Negotiations between UNIFI Capital and Cendant were not successful as Cendant went dark and UNIFI negotiators became distracted with other opportunities

3. BTR’s Denver HQ was closed and these functions were integrated into the AVIS/Budget Car Rental in NJ


23. Dignitas Low Income HousingSITUATION

1. UNIFI Capital Management developed a proposal for the design, development and financing of an innovative way to deliver 2,000 housing units in Atlacamulco, Mexico

2. Angel investors were supporting this project which included staff in Denver, CO and 10 people in the Mexico City office about sixty miles from

3. The layout, architecture and legal agreements for the Atlacamulco, Edo. De Mexico housing development were in progress

TASK or PROBLEM1. The financial models developed for the project were unwieldy and did not meet investor

requirements to understand projected cash flows and ROI2. The financial manager that developed the financial models resided in Mexico, had limited

investment banking experience and had limited English speaking ability3. Contractual agreements with US and Mexican stakeholders were in a state on continual

revision ACTION

1. UNIFI elected to leverage its partner in an LBO proposal to cleanup the Dignitas financial models and supplement the skills of the staff in Mexico

2. A new model designed to meet investor requirements to understand projected cash flows was developed and repeatedly revised to reflect changing assumptions

3. Visited Mexico for a week to evaluate the staff and form relationships with key influencers and local Dignitas stakeholders

RESULT1. Incorporated investor oriented financial models into stakeholder presentations 2. Negotiations broke down over unsatisfactory legal agreements and liability issues3. The project was deferred pending establishment of satisfactory agreements


24. Sage connex Telephony BusinessSITUATION

1. Sage connex (Sage) held an innovative patent (pending) on using telephone numbers as Internet domains and had plans to develop an “online butler” function by domain

2. UNIFI Capital Management entered into a managing partnership relationship with the Sage founder to raise financing, operate the business and secure the patent

3. A large amount of product development documentation had been developed, but the Sage value proposition and business case remained unclear

TASK or PROBLEM1. The Sage founder believed that the documentation he developed was clear and should be adequate

to raise the resources needed to implement the project2. Resources were required, but unavailable, to develop a compelling value proposition, strategic plan

and the associated financial models3. Additional capital was needed to complete and file the patent, complete product development work

and fill out the organizationACTION

1. UNIFI elected to leverage its partner in an LBO proposal to lead the Sage strategic planning effort and develop the associated business case and financial models

2. Ongoing financial analysis support of Sage managing partner presentations to prospective investors in the U.S., Saudi Arabia, Mexico and Spain

3. Agreed to act as Sage CFO and participate in business requirement definition and project management once financing has been secured

RESULT1. While Sage management and ownership agreements fluctuated over time, financial modeling and

presentation support were delivered as requested in short time frames 2. As of early, 2013 Sage has not secured agreement for the price demanded for rights to its patent, but

the principals are continuing their efforts3. Sage principals elected to support their financial analysis requirements themselves


25. Internet Marketing FranchiseSITUATION

1. Corporate downsizing drove need to replace income formerly earned from previous executive positions in the Denver, CO

2. Opportunities for executive positions in the Denver area were not forthcoming3. Internet marketing was identified as a growing vertical which could be penetrated by executives

with a background in IT, finance and marketingTASK or PROBLEM

1. Evaluate options for entering the Internet marketing business, gain approval to become a franchise and secure financing

2. Learn the business, identify suitable small and medium size business prospects, understand their needs and close profitable sales

3. Deliver Internet marketing services by leveraging suppliers and completing the work with internal resources

ACTION1. Selected national franchise with WSI Internet Marketing as the best option because of its

worldwide network of 1,500 franchisees and purportedly strong vetted suppliers2. Completed the WSI training in late 2006, attended conferences and learned by delivering

optimized websites, online advertising, social media and email services3. Grew business and leveraged the WSI supplier network and internal resources, including

employees, to deliver appropriate services and track performanceRESULT

1. By 3Q 2008, the sales funnel was full and 2 to 3 deals were closed each month, but the Great Recession brought sales to a virtual halt

2. Expenses were cut and financial and pricing consulting work supplemented income3. Sales efforts did not produce growth, delivery by WSI suppliers was problematic and most work

shifted to internal resources and away from unreliable WSI suppliers


26. New Product Pricing - ServicesSITUATION

1. A large business information collection and reporting company requested help with setting its pricing strategy for a new product offering targeted at a new segment

2. Company desired to set premium pricing strategy for its using proprietary data instead of the commodity pricing used for existing core products and services

3. Internal disagreements over which option was the best market entry and distribution strategy for a new proprietary product in development for over two years

TASK or PROBLEM1. Understand the customer value proposition and how best to prove it prospects2. Develop consensus of the optimal market entry strategy 3. Assemble market pricing for competitive offerings and set pricing strategy

ACTION1. Interviewed key staff members from IT, sales, pricing, marketing and operations2. Made compelling recommendation to select strategy to target and penetrate highest value

segment first and use this price as a reference for other lower value segments3. Drafted price cubes by customer size and segment referencing customer value and

existing market alternatives for similar but less valuable offeringsRESULT

1. Product line leadership and sales accepted strategy recommendation and entered into testing with selected high value prospects to establish customer value

2. Analytical complexities and significant prospect resource commitments combined with uncertain benefits made it impossible to develop quantifiable value estimate

3. Management , under investor pressure, elected to defer investment in this project and the team moved on to other assignments


27. Pricing Diagnostic - ManufacturerSITUATION

1. A venture capital group purchased a bankrupt $500 million revenue firm, took steps to reduce capacity and costs but found it still needed to inject cash to keep it running

2. Pricing responsibility was moved to the CFO who requested outside help to evaluate the existing pricing group and processes and recommend ways quickly increase cash flow

3. Decision was made to decentralize pricing authority to plant operators and sales had instead of the “center of excellence” pricing plan previously recommended by BCG

TASK or PROBLEM1. Understand existing poorly organized pricing processes, systems and data bases and help

the existing overwhelmed pricing staff to sort out the facts2. Management could not identify which customers were losing money and which customers

would likely tolerate the price increases needed to get cash positive3. Operating management preferred to make pricing decisions on an incremental plant by plant

basis which resulted in sales and customers getting multiple bids per orderACTION

1. Interviewed staff and line managers to understand the business and their challenges2. Assembled deal by deal pricing and variable cost data for 21 months into a data base

designed to sort by customer, product line, product, plant, region, salesperson, etc.3. Calculated deal and customer level data to display price changes, margin dollars, and a

comparison of core products and pricing between customers RESULT

1. Recommended price increases based on price indexes calculated by deal and customer compared with an “allowable” price increase strategy set by the client

2. Management used margin dollar information by customer to set action plans to “eliminate” negative contribution margin customers

3. Management expected to use the price increase recommendation process later


mike kuryla star stories (situation, task, action, response)

Documents

ryder rental trucks

acquisition candidates

truck leasing firms

budget truck rental17

pricing diagnostic

strategic pricing solutions26

new product pricing

average task