keith mc farland presentation

GHTA 2009

The Breakthrough Company

•Analysis of 7000 + private companies over

a 22- year period

5-Year Study

The Breakthrough Company

•Analysis of 7000 + private companies over

a 22- year period

•Top 9 performers compared to 9

comparison companies

5-Year Study

The Breakthrough Company

•Analysis of 7000 + private companies over

a 22- year period

•Top 9 performers compared to 9

comparison companies

•Field studies in 53 companies

5-Year Study

Revenue Growth

0

1

2

3

4

5

6

7

8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Revenue

5- Year Study

ROE: 2 x

Industry Average

ROS: 3 x

Industry Average

$1 Invested in 6 Public Companies

$-

$50.00

$100.00

$150.00

$200.00

$250.00

1 2 3 4 5 6 7 8 9 10 11 12 13

Years after IPO

S& P 500

6 Public Breakthrough Companies

Who are these companies?

Company

ADTRAN

Chico’s FAS

Express

Fastenal

Intuit

Paychex

Polaris

SAS

Staubach

Inc 500

92

89

88

82

90

82

86

82

85

Begin. Rev

$42.6 mil.

$ 6.2 mill

$50.0 mil

$3.7 mil

$18.7 mil

$14.4 mil

$90.0 mil

$10.1 mil

$ 2.8 mil

Status

Public

Public

Private

Public

Public

Public

Public

Private

Private

Location

Huntsville, AL

Fort Meyers, FL

Oklahoma City, OK

Winona, MN

Mountainview, CA

Rochester, NY

Medina, MN

Cary, NC

Addison, TX

A Curious Surprise

Some Principles of Bounce

1. Embrace the Bounce

Disruptive

Change

Steady State

DisintegrationReintegration

New Steady State

The Good Times The Tough Times

Tale of Two Companies

Superball

Inc.

The Xmas

Ornament

Group

2. Manage the Anxiety

Convert A1 to A2

A1

The fear of

what might

happen to us

A2

The fear of

what will happen

If we DO NOT

CHANGE

3. Manage the Mental Factors

Managing the Mental Factors

• See things as they really are

• Get people involved in thinking

through the issue

• Involve outsiders

Managing the Mental Factors

• Treat causes not symptoms

Managing the Mental Factors

• Drive “We Control” vs. “They Control”

thinking

Managing the Mental Factors

• Hold hands in traffic

Growth Companies Peformance Lab

The RED™ Process