business planning – phase 2
DESCRIPTION
Business Planning – Phase 2. A Blueprint for Transformation. Business Plan - Loomis. WHAT’S CHANGING Co . Background – n/a Culture/Brand – morale declining Products/Services –not much, slowly increasing ATM line, little emphasis on marketing - PowerPoint PPT PresentationTRANSCRIPT
Business Planning – Phase 2
A Blueprint for Transformation
Business Plan - LoomisHISTORY
Co. Background -rich history to 1905Culture/Brand -solidProducts/Services -90% armored transport, 5% ATM, 5% CMS, commodity pricing, service standards lightCustomer Base -banks, retail, mostly local, little concentrationCompetition -Brinks, WF, many smallerOperations -70 branches,emp turnover 50%,wages low (loomis slightly higher), old fleetTechnology -n/aRisk -cost of insurance low, many accidents, robberies, internal theftLeadershipFinancial -4% growth, horrible bottom line, limited capital
WHAT’S CHANGINGCo. Background –n/aCulture/Brand –morale decliningProducts/Services –not much, slowly increasing ATM line, little emphasis on marketingCustomer Base –banks change from unitary to branch, ATM expansionCompetition –WF heavily to ATM, very low pricing, use of one-man crews, wage/benefit cutsOperations – n/aTechnology -n/aRisk –insurance premiums skyrocket, several major incidentsLeadershipFinancial –new private equity investors
Business Plan - LoomisACTIONS – MANAGING CHANGE ESTABLISH GOALS/OBJECTIVES
10 Cubed
IPO 1996
Going Home
Business Plan - LoomisACTIONS – MANAGING CHANGE
Culture/Brand –intense emphasis, recapture history, branch visits, clean, BTS, what we stand for, Bus StrategyProducts/Services –Redefined as risk mgmt co., dramatic rate increases, added ATM capacity but slowlyCustomer Base –Fired ‘emOperations –Maintained 2-man crew minimum(3 for ATM), comp/benefits, establist strict PM programTechnology –not much . . . yetRisk –strict hiring stds, training, communication, accept higher risk retentionLeadership – A LOT (BMCredo, Keys to Success, clear decks . . Intense focus)Financial -
ESTABLISH GOALS/OBJECTIVES
10 Cubed
IPO 1996
Going Home
RISK
TIME
REVENU
ECOST
Intense focus on risk management at all levels of our team
Insist that our customers pay fair rates & we deliver the service quality to earn it
Manage costs responsibly, neither too much . . . nor too little
Never forget that our success resides in our people and our actions must always prove that commitment
What HappenedLoomis Business Strategy
Business Plan - LoomisACTIONS – MANAGING CHANGE
Culture/Brand –intense emphasis, recapture history, branch visits, clean, BTS, what we stand for, Bus StrategyProducts/Services –Redefined as risk mgmt co., dramatic rate increases, added ATM capacity but slowlyCustomer Base –Fired ‘emOperations –Maintained 2-man crew minimum(3 for ATM), comp/benefits, establist strict PM programTechnology –not much . . . yetRisk –strict hiring stds, training, communication, accept higher risk retentionLeadership – A LOT (BMCredo, Keys to Success, clear decks . . Intense focus)Financial -
ESTABLISH GOALS/OBJECTIVES
10 Cubed
IPO 1996
Going Home
Loomis, Fargo & Co.Turnaround of Loomis Armored
(1991-1996)
-4
-2
0
2
4
6
8
10
92 93 94 95 96
Op
In
co
me
($
millio
ns
)
40
50
60
70
80
90
100
110
120
130
140
Re
ve
nu
e (
$m
illio
ns
)
Loomis, Fargo & Co.Operating Results Trend
-5
-3
-1
1
3
5
7
9
11
13
15
92 93 94 95 96
Op
Inco
me
($ m
illio
ns)
0
20
40
60
80
100
120
140
Reve
nue
($m
illio
ns)
0
5
10
15
20
25
30
35
40
97 98 99 '00 '01 '02
Op In
com
e ($
mill
ions
)
300
320
340
360
380
400
420
440
Reve
nue
($m
illio
ns)
Turnaround of Loomis Armored (1992-1996)
Merger,Turnaround & Growth of LF&Co. (1997-2002)
So What HappenedOperating Results
(EBITA)
-10
0
10
20
30
40
50
92 93 94 95 96 97 98 99 '00 '01 '02 '03
Op
In
co
me (
$ m
illi
on
s)
0
50
100
150
200
250
300
350
400
450
500
Reven
ue (
$ m
illi
on
s)
Op I ncome
Revenue
“I am what I am and that’s all that I am”
- Popeye the Sailor Man
Foundation of Planning
HISTORY FUTUREGOALS/OBJECTIVES
Foundation of Planning
HISTORY
Co. Background
Culture/Brand
Products/Services
Customer Base
Competition
Operations
Technology
Risk
Leadership
Financial
FUTUREGOALS/OBJECTIVES
Foundation of Planning
HISTORY
Co. Background
Culture/Brand
Products/Services
Customer Base
Competition
Operations
Technology
Risk
Leadership
Financial
FUTUREGOALS/OBJECTIVES
Be profitable
Be wildly profitable
Create wealth/ exit strategy for ownersAcquisition (target or acquirer)Provide stability for successorsCreate opportunity for employees
Altruistic things
Foundation of Planning
HISTORY
Co. Background
Culture/Brand
Products/Services
Customer Base
Competition
Operations
Technology
Risk
Leadership
Financial
FUTUREGOALS/OBJECTIVES
Be profitable
Be wildly profitable
Create wealth/ exit strategy for ownersAcquisition (target or acquirer)Provide stability for successorsCreate opportunity for employees
Altruistic things
ENVIRONMENTAL CHANGE
MANAGING CHANGE
CHANGE
“The purpose of a business plan is to … MANAGE CHANGE”