1	Charting Your Course International Lama Registry January 30, 2007
2	Seminar Overview Discuss the purpose and value of strategic decision making Identify the drivers of change for the Llama industry Review the results of the membership research study Define the strengths, weaknesses, opportunities and threats for the Llama industry and the ILR Develop segment-specific growth strategies Discuss opportunities for improving your individual businesses
3	Ice Breaker Directions:
4	Charting Your Course The Purpose and Value of Strategic Planning
5	What is a Strategy? The many definitions of strategy found in the management literature fall into one of four categories: plan, pattern, position, and perspective. According to these views, strategy is: A plan, a "how," a means of getting from here to there. A pattern in actions over time; A position, that is, it reflects decisions to offer particular products or services in particular markets. A perspective, that is, a vision and direction, a view of what the company or organization is to become.
6	What is Strategy? “Strategy is a deliberate search for a plan of action that will develop a business’s competitive advantage and compound it.” Bruce Henderson Founder, Boston Consulting Group
7	Good Strategies are Unique? Strategy: A unique approach to serving the needs of a defined group of customers
8	Benefits of Strategic Decision Making “Strategic decision-making is a tool to evaluate and select opportunities, clarify existing priorities, and learn to say no to the distractions that can blow you off course.” Caryn Spain and Ron Wishnoff, Strategic Insights
9	Strategic Planning Overview Components of a sound strategic plan: The what: “What business(es) should we be in?” The who: “Who should we target as customers?” The which: “Which products or services should we offer?” “Which initiatives should we pursue?”
10	Strategic Planning Overview “I used to spend most of my time worrying about the how – how we did things, how we operated, how efficient we were. Now I spend much of my time worrying about the what – what opportunities to pursue, what partnerships to form, what technologies to back, what experiments to start.” Leading the Revolution, Gary Hamel Quote from anonymous CEO
11	Strategy is about choices “Strategy is about making choices, trade-offs; it’s about deliberately choosing to be different.”- Michael Porter
12	Keys to Making Sound Decisions
13	Making Great Decisions “Nothing is more difficult, and therefore more precious, than to be able to decide.” Napoleon Decidere – (Latin) “to cut off”
14	Making Great Decisions “Most of us will do just about anything to avoid uncertainty. We might defer decisions endlessly (thus surrendering what power we do have to control our own destinies) or, like ripping off a Band-Aid, pull the trigger all at once. Making a call takes guts. It means inviting uncertainty into your home, offering it a drink, and asking it to stay for dinner. Uncertainty is a creepy houseguest, but not your captor.”
15	Making Great Decisions There’s a big difference between a wrong decision and a bad decision. A wrong decision is…. A bad decision is….
16	The Winds of Change Keys to Managing Change
17	Capitalizing on the Winds of Change One ship drives east and another west While the self-same breezes blow Tis the set of the sail and not the gale That bids them where to go
18	The Dynamics of Change In the words of Jack Welch, former CEO of General Electric . . . “I’m convinced if the rate of change inside an organization is less than the rate of change outside the organization, the end is in sight.”
19	The Dynamics of Change
20	The Challenge of Change “Either take change by the hand or it will take you by the throat!” Winston Churchill
21	A Lesson from Microsoft “IBM was more dominant than any company will ever be in technology, and yet they missed a few key turns in the road. That makes you wake up every day thinking, “Hmm, let’s try to make sure today’s not the day we miss the turn in the road.” - Bill Gates, Microsoft
22	Confronting Reality “To confront reality is to recognize the world as it is, not as you wish it to be, and have the courage to do what must be done, not what you’d like to do.” - Larry Bossidy and Ram Charan, Confronting Reality
23	Who Moved My Cheese? As you watch this video consider: What can we learn about anticipating and responding to change from these four characters?
24	Key Trends and Implications Exercise: Break into small groups as directed and use the worksheet provided to record your answers to the following questions: 1) What are the primary drivers of change impacting the Llama industry? (What) 2) What are the specific implications of those trends to individual breeders and the ILR? (So what)
25	Break
26	Understanding the Trade Winds Results of Research Study
27	"Insert Market Research Slides" Insert Market Research Slides
28	SWOT Analysis Breakout Exercises
29	SWOT Analysis “Strategy is concerned with matching a firm’s resources and capabilities to the opportunities that arise in the external environment.” - Robert Grant, Contemporary Strategy Analysis
30	Identifying Strengths and Weaknesses Break into groups as instructed by your facilitator Select a group facilitator and a scribe Brainstorm a list of the strengths, weaknesses, opportunities and threats facing the Lama industry and the ILR. Record your answers on four separate flipchart pages
31	SWOT Analysis STRENGTHS: What are the inherent strengths of the the Llama industry that make it attractive for people to become involved? What are the biggest strengths of the ILR? WEAKNESSES: What are the most troubling weaknesses within the Llama industry and the ILR?
32	SWOT Analysis OPPORTUNITIES: What opportunities exist to grow the Llama industry and improve your registry? THREATS: What industry issues or competitive threats could threaten the growth/success of the Llama industry or your registry?
33	Lunch
34	SWOT Analysis Debrief
35	Setting Our Sail Components of a Successful Growth Strategy
36	Developing a Growth Philosophy “There is no such thing as a growth industry. There are only companies organized and operated to create and capitalize on growth opportunities.” Theodore Levitt
37	The Cirque du Soleil Story Background: Created in 1984 by a group of street performers In less than 20 years, Cirque du Soleil has achieved a level of revenues it took Ringling Brothers and Barnum & Bailey more than 100 years to attain. This growth was achieved in a declining industry in which traditional strategic analysis pointed to limited potential for growth!
38	The Cirque du Soleil Story Situation Supplier power on the part of strong performers was strong Alternative forms of entertainment took greater portions of a families entertainment budget There was increasing sentiment against the use of animals in circuses The industry was suffering from steadily decreasing audiences and declining revenue and profit
39	The Cirque du Soleil Story The Solution Cirque du Soleil did not win by taking customers from the already shrinking circus industry It created uncontested market space that made the competition irrelevant Offered customers the fun and thrill of the circus and the intellectual sophistications of theater Focused not only on circus customers, but on adult theater customers Did away with star performers, animals, three rings and pushy concession salespeople Added non-circus factors like a story line, artistic music and dance
40	The Cirque du Soleil Story Results Invented a new form of entertainment. Eliminated many of the costly elements of the circus and dramatically reduced the cost structure One of Canada’s largest cultural exports Cirque’s productions have been seen by almost 40 million people in 90 cities around the world
41	Defining Critical Issues To catch up, you need to ask the right questions To get ahead, you need to find the right answers to the right questions To stay ahead, you need the right answers to the right questions at the right time - Louis Patler, Don’t Compete…Tilt the Field
42	Strategy Development Exercise Step 1: Review the list of issues we identified Step 2: Consider ILR’s strengths, weaknesses, opportunities and threats Step 3: Write 1 – 2 critical questions/issues you believe the board should address in order to improve the ILR and grow the Llama industry think about relationships to explore/strengthen, internal competencies to develop, new customers/segments to serve, new services/programs to develop, assets to acquire, etc. consider using words like: strengthen, capitalize, improve, increase, leverage, develop, invest, grow, communicate, collaborate, investigate, explore, etc.
43	Critical Questions What customers are we trying to serve? How can we strengthen/enhance our value proposition? Where do the greatest growth opportunities exist? What strategies can we deploy to grow our industry/registry?
44	Defining your target market(s) “Strategy 101 is about choices: You can’t be all things to all people.” - Michael Porter
45	Define Your Target Market Can a business be successful if it… Deliberately targets customers whose household income is less than $20,000 per year? Puts its stores in small towns and low-income urban areas? Sells half of its items for just $1 each and offering nothing that costs more than $35? Caters to customers who spend, on average, less than $8 on any given visit to the store?
46	Defining your target market(s) “Strategy is about the basic value you’re trying to deliver to customers, and about which customers you’re trying to serve.” - Michael Porter
47	Understanding Your Customers Creating customer value begins by understanding: Your individual market segments The needs/values of each segment The value of each segment to your business Understanding the answers to these questions will assist you in developing and implementing programs/services that meet the needs of specific types of customers/members
48	What is Segmentation? Segmentation is dividing large groups of individuals into smaller groups that share common qualities
49	Segmentation Approaches DEMOGRAPHICS How they “look” Size Age Education PSYCHOGRAPHICS How they think What they value How they make decisions LIFETIME VALUE Their value to your business Current volume Profitability level Growth potential
50	Benefits of Segmentation Understand needs Clear, focused customer orientation Greater creativity & flexibility to meet changing needs Target customers Improved efficiency Decreased costs Better allocation of resources Tailor solutions Increased customer satisfaction Increased market share Increased profitability Long-term growth – even in mature markets
51	Segment-specific Marketing (Case Study) American Skiing - Challenge A Maine-based owner and operator of nine resorts across the country Accounts for 10% of everyone who tried either skiing or snowboarding in the U.S. in 1998-99 Battles a numbers game Only 16% of first-time skiers/snowboarders are converted into repeat customers
52	Segment-specific Marketing (Case Study) American Skiing – Solution Developed the “Discovery Center” Newcomers sip hot chocolate/coffee Seasoned pros are able to assess athletic ability Class watches action-packed ski video After the lesson, they reconvene beside a roaring fire to debrief the skiing experience
53	Industry Segmentation What is the most appropriate way to segment your industry/registry? Where members live? How many llamas they own? How they use their llamas?
54	Defining segment-specific marketing opportunities Breakout Exercise: Split into groups as instructed and select a facilitator and a scribe. 1) Name your segment and provide a few descriptors of the type of people within this segment 2) Estimate the current size of this segment 3) Indicate whether this segment is growing, shrinking or remaining stable 4) Define the primary needs and values of this segment 5) Identify some specific strategies ILR could deploy to grow this market segment 5) Brainstorm some strategies individual breeders could deploy to generate more interest/business from this segment
55	Breakout Exercises
56	Small Group Debrief
57	Improving Your Own Business
58	Begin with a Vision/Mission
59	Vision “The world makes way for the man who knows where he is going.” Ralph Waldo Emerson
60	Vision Vision: The vision of an organization is a concise word picture of the organization at some future time, which sets the overall direction of the organization. It is what the organization strives to be. A vision is something to be pursued, while a mission is something to be accomplished.” Jeffrey Abrahams The Mission Statement Book
61	Vision vs. Goals A vision conveys the “big picture.” It’s a general, idealistic view of where you’d like to go. Goals are specific, realistic lists of what you intend “to do” to propel you to your vision
62	Vision Statements Vision “To become a preferred supplier of honest, predictable genetics together with information and services that add value to profit-oriented, progressive cattle operations while simultaneously supplying high-quality, source-verified feeder cattle to Ochsner Tenderlean Beef.”
63	Guiding Principles We will achieve our vision by: Understanding our customers’ needs Committing ourselves to excellence Utilizing our individual, God-given talents Managing our land and livestock responsibly Supporting our community Living our faith
64	Points to Ponder Brainstorm a list of words/phrases you would include in your own vision statement? What core values will drive your decision making within your llama business?
65	Create Differential Value
66	Creating Differential Value The art of Differentiation: “Differentiation is the act of designing a set of meaningful differences to distinguish the company’s offering from competitive offerings.” - Philip Kotler
67	How will you choose to differentiate yourself?
68	Dare to be Different Differential Advantage: “A benefit or set of benefits that meaningfully and favorably distinguishes you from your competitors.” “Fifty years ago, Richard Sears made his catalog smaller than Montgomery Ward’s so that people would stack the Sears catalog on top of Montgomery Ward’s. His concept was that whatever catalog was on top would be used more often.” Guy Kawasaki How to Drive Your Competition Crazy
69	Creating Differentiated Value Value: the estimated worth of something.
70	Creating Differentiated Value The Value Equation Are you a numerator or denominator marketer?
71	"Product" Product Focus
72	"Solution" Solution Focus
73	Points to Ponder How do you currently deliver value to your customers? What else can you do to differentiate your operation?
74	Develop and Strengthen Your Brand
75	What It Was The concept of a brand began years ago when ranchers warded off cattle rustlers by branding the hides of their livestock with a unique mark of ownership… in essence, their signature.
76	What It Is Today Walter Landor, one of advertising’s greats once said: “Simply put, a brand is a promise. By identifying and authenticating a product or service, it delivers a pledge of satisfaction and quality.”
77	"“A" “A brand is the most valuable real-estate in the world… …a corner of the customer’s mind.”
78	Branding Focus
79	Points to Ponder What is the current “brand image” of llamas? What do you want your personal brand image to be with your customers? What can you do to better communicate your brand?
80	Commit to Continuous Learning and Growth
81	Commit to Continuous Learning and Growth “In times of drastic change, it is the learners who inherit the future. The learned usually find themselves equipped to live in a world that no longer exists.” - Sign on the wall of Jules Trump, CEO of Northern Automotive Corp.
82	Playing to Win Are you ready to be a “Tiger”?
83	Points to Ponder What is one thing you have learned during this program that you can apply in your own Llama operation? Identify one thing you want to change/improve in your own operation in the coming year.
84	Achievement through Innovation