paciv how startups can accelerate growth by partnering with large corporate partners

© 2005-2015 PACIV. All Rights Reserved. www.paciv.com 1

A Global Leader in Industrial Automation Solutions

Industrial Automation | Instrumentation | Validation (C&Q/CSV)Industrial Automation | Instrumentation | Validation (C&Q/CSV) Puerto Rico | United States | EuropePuerto Rico | United States | Europe

We become your partner…

How Start-Ups can accelerate How Start-Ups can accelerate growth through partnering with growth through partnering with

clientsclients


Our Vision


Ignorance is Bliss

“The relentless pursuit of an opportunity without regard for the resources currently control “

– HBS Definition of Entrepreneurship


Our Results

$2M

$63K

$16M

$8M

$14M

$5M

$15M


Background


Pay Your Dues

BSEE,1985-89

1989-93

1993-97

MBA, 1994-96


Window of Opportunity

Client “Pain” (Need) is GLOBAL

Solution must be GLOBAL (Replicable) (makes the solution even more “efficient”and “effective”)


Our Market Segment

1997 - 2002 2003 - 2008 2009 - 2015

PACIV–UKPACIV–PR

PACIV–USA

1997 2003 2007

PACIV–IRELAND

2011

http://www.pfizer.com/

http://www.zimbio.com/go/K_jgHDW-_8P/http:/www.bullishbankers.com/wp-admin/just-how-much-does-size-matter

http://www.roche.com/

http://abbott.com/index.cfm

http://www.amgen.com/

http://www.genetech.com/

http://www.aes.com/aes/index?page=home

http://www.kraftrecipes.com/home.aspx

http://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAQQjRw&url=http://www.dailypipette.com/News.html&ei=huFaU8ypFcaayQHwzoGQBQ&bvm=bv.65397613,d.aWc&psig=AFQjCNEgawhGlkiWc8axM8qmWQWYoqt0Qg&ust=1398551302377945

https://www.google.com.pr/imgres?imgurl=http://ndia.multiview.com/userlogo/ndia/12768v6v1.jpg&imgrefurl=http://nationaldefensemegadirectory.com/Listing/Index/Environment_and_Energy/Waste_Disposal/135/125&docid=wxBZP078PC_p_M&tbnid=DPWSjfJMZWQIUM&w=338&h=168&ei=I-FaU-OdBLLLsQSjzIDQCA&ved=0CAMQxiAwAQ&iact=c

https://www.google.com/imgres?imgurl=http://www.womensfund.org/files/image/CEG_Logo.jpg&imgrefurl=http://www.womensfund.org/map&docid=b_NgQbUze3bA9M&tbnid=OvTm1aQs1VusVM:&w=1969&h=522&ei=4y1cU_-NLarJsASb1oDoDw&ved=0CAIQxiAwAA&iact=c

https://www.google.com.pr/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAMQjRxqFQoTCO2MnZv3gscCFYZpPgodQ4cDtQ&url=https://en.wikipedia.org/wiki/File:Gilead_Sciences_Logo.svg&ei=qSK6Va2UIIbT-QHDjo6oCw&bvm=bv.99028883,d.cWw&psig=AFQjCNEpU8Mge6wf5py0N9zIVV_efqx8Sg&ust=1438348329569836


Start small, think big


Articulate Your Vision


Vision


Our Vision

“To be a global leader in industrial automation solutions for the life science’s industry.”


Our Purpose

Be a global leader of industrial automation solutions by being a one source provider of instrumentation, control systems and regulatory compliance services

for our global clients’ manufacturing sites in the life sciences’ industry

by applying our unique combination of technical competency, commitment culture and trusted brand.

We achieve customer trust through honesty, integrity, and accurate responses to clients’ needs with cost-effective and reliable solutions

while being a great company in which to work and a valuable corporate citizen to our communities.


Our Purpose – In Reality

$3M

$1M

$7M

$6M






http://www.kraftrecipes.com/home.aspx



Know Who You Are


Who You Are


Who We Are


Who We Are

Who you are

Who you servedetermines

Who you serve

Who you aredetermines


Who You Are

Protects you from Scud Missiles


Strategy Before Execution(Think before Acting)


“Strategy is the purposeful creation of a

favorable inequality in a landscape of

changing conditions.”

- Alexander D. Ferguson, HBS OPM37 Alumni

Strategy


What is Strategy

Strategy is an integrated set of choicesabout:- where a company will play,- how it will play,- what it wants to accomplish..

- Cynthia Montgomery, HBS Strategy Professor


Our Strategy

Differentiator: Customer Intimacy


Our Strategy

Customer Perspective

Customer Intimacy

Delight the customer

Product/Service Attribute

competitive pricing quality of resources

agile responsetechnical

knowledge

Relationship

exceptional service; committed to client needs, partnership

recognize associates and clients loyalty

Image

trusted brand

Technical Competency Commitment CultureTrusted Brand

Differentiator: Customer Intimacy


Our Strategy

Corporate Citizen

• CSR• Industry voice•PACIV CSR

• Technical Competency • Relationship Management• Turnkey• International

Automation.Inst/Validation

• Multi-level sales• Resource Utilization• Controls • Recruiting/Training• Benefits

Customer Perspective

Customer Intimacy

Company’s revenue Company’s net margin

Increase PACIV and its clients value

Financial Perspective

Revenue Growth Strategyunderstand customer needs and differentiate accordingly

Productivity Growth Strategymaximize the use of existing assets; reduce total delivery cost

Enhance Customer Value Expand Revenue Opportunities

reduce company’s cost structure

Maximize employees productivity

Delight the customer

Product/Service Attribute

competitive pricing quality of resources

agile response technical knowledge

Relationship

exceptional service; committed to client needs, partnership

recognize associates and clients loyalty

Image

trusted brand

Internal Process Perspective

Innovations Customer Value Operational Excellence

Associates Competencies Technology Corporate CultureLearning and Growth Perspective

• Dvlp. Skills on Automation/Inst/Validation• Training• Associates integrated view of company

• Vision, Mission, Value• Family culture, Transparency• Strategy

• Client’s survey * Social Media• CRM/NetSuite

Strategic Map

• New Business Models• Alliances• Social Media• Marketing/Sales

• Org. Struct.• P&P• Communication• Marketing Tools


Our Strategic Overview

To Be the Preferred Solution Provider of our Business Partners' Industrial Automation needs

Excellence and innovation in

all we do

Honesty and integrity are

the foundation of who we are

Relentless commitment to serve

Is our way of life

Listen to our clients and

associates needs

We are a family; respect, loyalty

and teamwork is our company culture

We are an integral part of the

communities in which we live

Associates Competency and Growth

Create, Capture and Sustain Value

Operational Excellence and Corporate Culture

associates' integrated

view of company

training, technical, leadership and

service

differentiated market position

identify client needs

policies, procedures, organizational structure

trusted brand, marketing

individual accountability and ownership at all times

maximize productivity

cost effective, increase volume

administrative and financial

controls

communication, transparency and

open book management

integrity, honesty, discipline and ethical behavior

increase automation and instrumentation

market share

tier 1 subcontracting

joint accountability and stake in success

accessible, lean, agile and flexible

attract, retain and motivate high quality talent

exceptional service

measurement of results

recognize, enjoy and celebrate

industry voice

RESOURCES CUSTOMERS ORGANIZATION


Our Business Model

The How

Our Business Model (Needs BasedOur Business Model (Needs Based))

The Situation The Need


Our Positioning

Variety-Based

One Service Excellently

Produce a subset of an industry’s products/services. For most customers,

the product/service will only meet a subset of their needs.

EXAMPLE:To be the BEST AUTOMATION services provider for

complex and regulated manufacturing processes that demand engineering excellence by …


What Not To Do - Strategy

Sign on a Photocopies Store in Boston

We will deliver your project

Fast, Accurate and Cheap

(Pick any two)


Alignment(The Biggest Challenge)


Alignment – Our Biggest Challenge

RESOURCES

Tech

nology P

eople C

apab

ility

BUSINESSES

ORGANIZATIONStructure Systems Processes

VISION

GOALS & OBJECTIVES

Coordination

Competitive Advantage

Control

Are the resources important to competitive advantage in the businesses?

Is the infrastructure in place to enable a firm’s resources to be effectively deployed in its business?

Can the individual businesses be effectively monitored and controlled within the corporate infrastructure?


Know How You Make Money


Source: HBR, “Putting the Service-Profit Chain to Work”, July-August, 2008

Internal Service Quality

Associates Satisfaction

Associates Retention

Associates Productivity

External Service Value

Customer Satisfaction

Customer Loyalty

Revenue Growth

Profitability

workplace design job design employee selection and development employee rewards and recognition tools for serving customers

service concept: results for customers

service design and delivered to meet targeted customers’ needs

retention repeat business referral

Operating Strategy and Service Delivery System

Service Profit Chain


Leadership Practices Hire for attitude Train for skills Provide excellent support systems Allow for latitude (within limits) to delver results Ensure accountability

Practice “no surprises” management; meet expectations for: quality of leadership and associates, personal development quality of feedback, latitude on the job, reasonable compensation Foster transparency in the workplace

Internal Quality High trust workplace

High “internal quality”

Employee Attitudes and Behaviors High employee satisfaction

High employee loyalty High employee commitment

High employee “ownership” High trust customer relationship High organization productivity

External Service Value High quality Low cost

Meeting or exceeding customer expectations for: Results Quality of service experience Reasonable price Overall value

Customer Attitudes and Behaviors High customer satisfaction High customer loyalty High customer commitment High customer “ownership”

Financial Results Rapid growth High margins High profitability

Service Profit Chain 2.0

Source: HBS, “What Great Service Leaders Know & Do”, Len Schelsinger


Execution


Execution – What Not To Do

Like 5 year old soccer games…


Execution – What To Do

…instead like professionals

Emotional: Passion, team work, action, enjoyment, energizing, engage…

Analitical: Strategy, positioning, ability to identify “white space”, capabilities, goals, performance, metrics, excellence, returns…


Style(The How Matters)


Leadership Style


President, Architect of Organizational Purpose

The installation of purpose in place of

improvisation and the substitution of planned

progress in place of drifting are probably the

most demanding functions of the president.(Business Policy: Tezt and Cases, Christensen, Andrews, Bower, Irwin Press, 1978)


Leadership StyleLeading

“Transforming”

Managing“Executing and Delivering Results”

Internal“Organization”

External“Strategy”

Capability Builder& Mentor

Operator &Performance Monitor

Innovator

Relationship / Partnership Builder

75%

25%50%

25%


Go to the Balcony

“In the dance floor some details are

evident, and there are a lot that you

can learn, but it is not until you get out

of the dancing multitude and you move

to the balcony that you can observe the

complete view. Patterns becomne

evident, and a new perspective

emerges, and with it, new oportunities

to make diferent – and in many

ocassions, better decisions.”

(see: Leadership Can Be TaughtSharon Daloz Parks)


Communicate, Communicate, Communicate

Communication


Meetings to discuss operational aspects of all three offices and any administrative issue that impacts entire organization.(1)President overview/pending issues(2)Business Development effort per region(3)New projects per region (Proposed, Granted, Not Granted, Pending)(4)Existing projects per region (any major issues)(5)Major Administrative Issues – HR, Acc., Admin., Marketing, Trade Shows, Training(6)Pending Issues/Feedback Lead Team/Associates

Tri-weekly, Wed. 9:00-10:00 am (PACIV. Conf. Room – via Conf. Call)

FEEDBACK from “Staff Meetings” and “Local Administrative Meetings”

Directors’ Meeting

Monthly Director’s Meeting Lead: President & CEO Participants: Directors (and Dept. Leads when needed)

Week 1

Local meetings VP’s and Administration to discuss local office administration aspects Accounting HR- Budget - Perf. Evaluation- PO Status - Trainings- P&L per Project - Associates’ Issues- Proposal List - HR Initiatives- Acc. Receivables

Administrative Meetings 1

Monthly Administrative Meeting Lead: Accounting/HR LeadParticipants: Acc., HR Lead and VP’s

Monthly, PACIV Conf. Room

FEED FORWARD information from Directors’ Meeting and FEEDBACK from Staff Meetings

Local meetings between VP, Site/Project Leads, HR and Acc Leads to discuss local project and administrative issues - Feedback for Directors Meeting- Feed forward administrative matters- Project’s issues

Staff Meetings

Monthly Staff Meeting Lead: VP’sParticipants: Acc./HR Lead, Site/Project Leads

Monthly, PACIV Conf. Room

FEED FORWARD information from Directors’ Meeting and Administrative Meeting and FEEDBACK from Site/Project Meetings

Local meetings Site/Project leads and it’s team to discuss project status and issues

Site or Project Meetings 2

Monthly Site or Project Meeting Lead: Site/Project LeadParticipants: Team members

Monthly, Project/Site Area

FEED FORWARD information from Staff Meeting and solicit FEEDBACK from associates

Week 2





Week 2

Week 3

Feedback Feedback

Feedback


“Marketing is Everything, Everything Else is Cost” – John Deighton


Create Awareness

Build Understanding

IncreaseAcceptance

Ensure Participation

Impa

ctIm

pact

TimeTime

• Newsletters• Events• e-Cards• PIA News• Social Media - Facebook - Linkedin - Twitter• Website

• Quality Committee• Annual Meeting• Directors’ Meeting• Government Committee• Competitiveness

Committee• Quarterly Meeting• Social Capital Committee

Personal

Mass

Marketing (Communication)


Marketing Tool

Newsletter

e-Cards

Social Media

Articles

Events

News

Informative Paper DocumentsBrochure

Fact SheetPress Releases

LinkedInFacebook

TwitterWebsite

TechnicalBusiness

Regulatory Conference

Annual Meeting


Marketing ToolNewsletterNewsletter•Associate•Customer

PACIV NewsPACIV News• Continuing Growth

e-Cardse-Cards• Welcome New Associates• Happy Birthday• Happy Anniversary• Interesting Fact• Did you know• Events/Meeting/Activities• News

StationariesStationaries•Business Cards•Envelopes•Letterhead•Creed

Social MediaSocial Media•Facebook•Linkedin•Twitter

WebsiteWebsite

IntranetIntranet•Employee Directory•Departments

• Procedures•PACIV’s Policies•Forms•PACIV’s Templates•Vendors Directory•Calendar•President’s Blog

GadgetsGadgets•Backpacks•Screwdrivers•Pens•Key Change•Post-Its

BrochureBrochure• Press Releases

• Global Supplier of the Year• 20 Best Employers• HBS Case Study• PACIV/Rockwell• Informational Folder• Fact Sheet

UniformUniform•Shirts•Helmets•Glasses•Vest

ArticlesArticles•Technical Articles•Business Articles

DisplaysDisplays•Booth•Table Top•Stand Up Banner

Client SurveyClient Survey

NetSuite CRMNetSuite CRM e-mail Signaturee-mail Signature


Levels of Audience


Audience Segmentation

Associates

Business Partners/Clients

General Community/Prospect ClientsFriendsCollaborators

Instrumentation Validation Automation General

Executive Clients

VP Lead

Validation Clients

VP Lead Field

Automation Clients

VP Lead Field

Instrumentation Clients

VP Lead Field


Samples


Industry Voice


Trusted Brand

Branded Product

BrandedClient

identityDifferentiation

Reputation

Success measured by the growth of the “brand equity”

IdentidadDiferenciacion

Reputacion

Success measured by the growth of the “customer equity”

Branded Product

BrandedClient


Nothing Happens until a Sales Happens


Linking Sales to Strategy

Less than 50% of employees say they understand their firm’s strategy and the % decreases with Sales/Service employees

On average, firms deliver only 50-60% of the financial performance their strategies and sales forecasts promise [Marakon study]

In a survey of more than 1,800 executives, 56% say their biggest challenges are making daily decisions in line with strategy and allocating resources in a way that supports the firm’s strategy [Booz & Company]

SG&A has increased as % of firms’ total costs in the past decade while production costs decreased [McKinsey]



What is causing the problem?

No Strategy (vs “Initiatives . . . Mission . . . Purpose . . . Vision”)

Typical Corporate Planning Process vs Sales/Buying Realities

Lack of Communication of Strategy due to “Competitive” Issues

Changes in the Composition of the C-Suite: Fewer GMs

Sales Metrics and Compensation Plan Incentives

Stereotypes about Selling and Salespeople



What is required to get better?

1.Shared Vision: Do sales efforts align with our stated strategic goals? Do we, as a leadership team, have a common understanding of strategy? [Leadership and Strategy]

2.Linking Price and Value: Are selling efforts driven by Customer Value in each target segment? [Value Propositions]

3.Opportunity Management: Does the sales force focus on and win the right customers and projects? [Business Model]

4.Productivity: Do we continuously improve sales productivity by doing the above? [Sales Management Practices]



1. Shared Vision Dialogue

• Articulate your strategy in ways that your customer-contact personnel understand and respond to.

• Specify in your strategy discussions where you play (and don’t play) in your markets.

• Discuss the implementation requirements with the relevant set of cross-functional managers in the firm.

• Make clear the implications of your business strategy for selling objectives, behaviors, and metrics.



2. Pricing and Value



3. Pricing and Value (cont’d)

• Metrics: Focus on Maximizing Profits, Not Just Volume

• Train Sales People in Negotiation and Access to Right Buyers

• Institute Regular and Disciplined Account Management Reviews (After Action Reviews as a useful model)

• Cost Products and Services and Orders Accurately

• Look for Incremental Value/Price Opportunities . . . Constantly

• Remember: Value Differs By Customer Segment and Application



3. Pricing and Value (cont’d)



4. Does the sales force wins the right deals?

• Key Strategic Decision that Impacts: - Operating Costs and Margins- Organizational Skills and Capabilities - Opportunity Costs: Money, Time, People

• Effective Customer Selection Requires: - Clarity About Customer Value, Strategy, and Market Selection Criteria (Where We Do and Don’t Play)

• Internal Communication and Aligned Visions

• Ability to Distinguish Between and Manage “Transaction” vs. “Relationship” Customers & Projects



4. Does the sales force wins the right deals? (cont’d)


Sales

Manage Market

Manage Segments

Manage Clients within Segment

Market A


Sales

Good Old Boy to Good Old Boy(GOB to GOB)


Sales

I have never close a deal from my desk


Sales (B2B)

Decision Making Unit (DMU)

DMU

Initiator – recognize value in solving an issue and

search for solutionsInfluencer – provide input

Decider – make the choice

User – consume the product

Purchaser – consummate the transaction


Humanistic

• People

• Field

• Customization

• Discretion/Latitude

• Motivation

Industrialized

• Machine

• Factory

• Standardization

• Procedure

• Processes

Service vs Product


• Dilemmas:o The consumer buys only a promise of performanceo Consumer collaborates in the production activityo Quality is inconsistento Service can not be inventoried

• Take off the “service part” of the service:o The skills are in the people not in the businesso Reduce probability of variability among peopleo Mechanize the service portion, reduce people’s attitudes

Service Dilemma


What Gets Measure Gets Done


Metrics – Navigation System


KPI’s


Glocalization


The world is not flat.

Glocalization - Challenges


Temporal Distance Geographical Distance Psychological Distance

Distance is distance, it will never change.

Market Segment Distance

1. Distance Matters


Culture

Intellectual Property Labor Laws Ethics

Religion

2. National Context Differences


Imbalance Larger Space

Bigger Competitor

3. Resource’s Asymmetry


Same Brand Experience

AssimilateBusiness Cycles

Act Global, Execute Local


Policies & Procedures Technology

GOB to GOB Cross - Pollination

Glocalization – Execution Toolbox


Glocalization - Benefits

Local Differentiation Set Apart – Perceived Bigger

Best Defense is Your Offense Increase Brand Trust

Bigger Market

Diversify


Our Lesson Learned

“People do business with people they

like and trust”- Jorge L. Rodriguez


Our Final Thought

“Have patience toward all that is unsolved in your heart.

Try to love the questions themselves. Do not seek

for the answers that cannot be given to you… because

you would not be able to live them. And the point is

to live everything. Live the questions now.”

- Rainer Maria Rilke, Letters to a Young Poet

paciv how startups can accelerate growth by partnering with large corporate partners

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