Reviewing the Stage VI Plan - Focusing on Investments - Scott Geller

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Scott Geller - “The CFO Perspective”
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IBGR.Network - PROFIT Radio. Everything a business owner needs to start, grow, or exit a business. Grow With Us.
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1. (WHAT YOU NEED TO KNOW) 
   • The reinventions core - is it about the offer, the process, or both?
   • If it's the offer = can you use existing processes and equipment or it must be new?
   • If it is the process = what are the benefits to the organization (quality, quantity, cost, time) & externally (features, quality, price)?
   • What can we use the current platform, equipment and people, what has to upgraded, what has to be replaced and with what?
2. Improvements identified in the Stage V review that were not implemented;
   • Capacity vs Sales
   • 4 Questions
     • Does our current Product and Service Lines need an upgrade to remain competitive?
     • Does our current Product and Service Lines need an upgrade to gain more market share?
     • Does our current Product and Service Lines not match what the customer would buy today or in the near future?
     • Does our current Product and Service Lines fail to compete against new offers from competitors?
     • Based on #1 - #4, prioritize your list of upgrades or new offers that must happen for greater market share and penetration.
   • ​The Decision
     • Results of your decision
     • Are you seeing the anticipated financial impact
3. You are not just 'disrupting the market', you are disrupting yourself;
   • Forcing change and innovation
4. The ability to upgrade your current platform to handle the new...Offer and/or Processes;
   • Tech, people, manufacturing, service
5. What is the potential impact on current employees - how many might not make it through the reinvention - old timers and newcomers.
   • Discussed making decisions around staffing for Stage V and now absolutely necessary
   • Reductions and promotions or expanded responsibilities

In business, you cannot do everything so you prioritize using the information available

1. Types of information
   • Market
   • Competitors
   • employee
   • financial
   • analytics
   • Product or pricing
2. Scale to make decisions
   • Slow and deliberate with as much information as possible
     • Large impact
     • Change in ownership
     • Hiring executives of consultants
     • Close product line
   • Fast and recover
     • Agile - act, learn, and react
     • New directions
     • Innovation
     • Product and pricing
     • Hiring consultants and advantage of a fractional approach
3. Return to our prioritization list from Stage V session
   • Update with new
   • Assess remaining
   • Make decision again for disruption

WHAT YOU NEED TO DO

1. What if the reinvention is based on a new offer - what will you provide to whom?
   • Long: Full product, market, pricing, and market study
   • Agile: Decide on the product and price; introduce to small targeted market
2. What if the reinvention is based on upgrading an existing offer - what will you provide to whom?
   • Long: Full product, market, pricing, and market study
   • Agile: Use existing knowledge for minor and quick changes
3. If you create a new offer - how will it be produced or delivered?​
4. If you upgrade an existing offer - how will it be produced or delivered?
5. What is the impact on your platform - current or unused features?
   • Investment in build or buy
6. What expertise or talent are you missing that needs to be hired?
7. Decisions need capital or investment
   • Internal capacity
   • Cash and sufficient working capital
   • External sources: credit, funding, partnership

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