pi nov 18 05 revisedagain-ss.21.11files.investis.com/tfi/reports/211105.pdf · business analysis...

21 November 2005

InformaPerformance Improvement

New and Growing

www.informa.com21 November 2005

PI: Informa’s Newest Medium

• Our PI brands• What is meant by “PI”• Diversified revenues• PI business structure• Loyal and diverse clients• Barriers to entry• Opportunities and initiatives


The PI Industry’s Top Brands

• Program Management & Consulting

• Project Management

• Contract Management

• Leadership Training

• Sales Force Effectiveness

• Branded Customer Experience

• Financial Services Training

• Presentation & Communication Skills


PI Industry Evolution

• Thought leaders – Kevin Daley, Neil Rackham, Linda Richardson,

Jack Zenger

• Books and materials• Training courses• Assessment, customization, reinforcement,

measurement• ROI• Full solution


Improving Performance,Transforming Results

Consulting Assessment Customisation

TrainingReinforcementMeasurement


Solution Mix by Business

R-G, Forum Huthwaite ForumHuthwaite

ALL (except R-G)

Bundled vs Extra $Level 1 - 4

Consulting Assessment

Training

Customisation

ReinforcementMeasurement


Revenue Streams

• Consulting and customisation• Direct delivery

– Corporate training• Materials and products

– T3 / Certification• Licences

– Rights to Use• Public Courses• Royalties / franchise revenues


2004PF Rev

Business Split

Note: Pro forma for 12 months of Robbins-Gioia

Robbins Gioia 28%ESI 27%

AchieveGlobal 23%

Forum 9%

Huthwaite 5%

Omega 5%

Communispond 3%


Structure of the Businesses

• Sales • Marketing • Subject Matter Experts

– Consultants– Product managers– Instructors

• Instructional Designers• Customer Liaison

– Program / Engagement / Project Managers– Customer Service


Customer Analysis

• Diversified client base

• 78% of Fortune 100

• 90% client retention

• 104% retained value


Barriers to Entry

• IP

• Brand power

• Online blended

solution

• Global reach


Opportunities & Initiatives

• International expansion• Further penetration into US market• Renewed focus on IP development• eLearning expertise from Informa• PI books published by T&F • PI potential cost savings

– Warehouse consolidation– Back-office centralization

• Further acquisitions

Presenting ESI InternationalA New Brand for Informa PLC

John Elsey – President ESI International

Company Description Markets Served

AGENDA

Who is ESI International?

Industry’s largest provider of training solutions in:Project Management Contract Management Business Analysis

Solutions delivered:At our customers locationsAt our facilitiesOver the internet

Building talent to drive business results:4,660 sessions in 200588,000 people280+ clients around the worldIn Partnership with GWU

CompanyDescription

CompanyDescriptionWhat is Performance Improvement?

Transactional Training Strategic Consulting

High

Low

Strategic Importance

Scalability

PI

Go to Market Strategy

Major clients and Government AgenciesDirect Sales organization (regions / verticals)Integrated marketing campaigns for lead generation, brand building and positioningChannel partners in key geographies

Individuals and small enterprisesTelesalesDirect marketing

Integrated businessSales and Marketing organizationsProduct mixesDelivery channels

CompanyDescription

CompanyDescriptionEngaging Clients – Organizational Results

Successes

"ESI is the only vendor that showed a

comprehensive global end to end approach for working with clients"

CompanyDescriptionTeaching New Skills – Creating Talent

CompanyDescriptionCase Study

SuccessesDepartment of Veterans Affairs

OMB began to require a business case and a certified project manager on all projects

A three level certification program designed to teach the skills and gain the certification

100% approval of business cases submitted

Problem

Solution

Outcome

“VA aces business case exam”

Markets Served

Sector Distribution

Government 120

IT 36

Financial Services 65

Telecommunications 25

Pharma/Healthcare 38

Aerospace & Defense 17

Professional Services 30

Energy 20

Manufacturing 35 Entertainment/Media

13

# - Number of Clients in Sector

MarketsServed

ESI’s Exceptional Customer Loyalty

95% top 100 retention rate112% retained valueTop 15 2004 clients average tenure: 6 years

10 years

9 years

6 years

10 years

MarketsServed

Strategy for Growth

Differentiation and Building Value

Building International Revenues

Acquiring US Market Share & Product

Rev

enue

Gro

wth

Expanding US penetration and acceptance

CompanyStrategy

2005 IIR Holdings, Ltd. All Rights Reserved. The Forum Corporation of North America, Authorized Licensee.

Forum Corporation21 November 2005

Forum: Where Learning Means Business

Helping clients around the world achieve their strategic intent through research-based learning

Valued expertise in:– Deploying strategy rapidly throughout an enterprise– Building organizational capability to execute – Improving top line growth– Creating loyalty-building customer experiences

Our Brand Promise:To deliver insightful learning solutions that fit our clients’ unique business needs and produce measurable business impact. We deliver on this through our Organized to Customize™ methodology.

Capability Development

Direct Sales

DeliveryInsight

Go to Market Strategy

Marketing

Executive Consultants

Design

Operating Around the World

Asia andPacific Rim:Hong KongSingaporeMelbourneSydney AucklandWellingtonTokyoSeoul

Europe:LondonScandinaviaWestern EuropeEastern Europe

North America:AtlantaBoston ChicagoDallasLos AngelesNew YorkSan FranciscoWashington, D.C.Toronto

Latin America:Central AmericaSouth America

350 Staff members

195 Active clients

5,000 days of deliveries

Forum’s World Class Capabilities

Learning strategyGlobal network of facilitatorsIntegrator/general contractor

Organized to Customize™Research-based contentContent alliancese-LearningBlended solutions

Behavior changeBusiness impactFinancial resultsResults contractsQuality measurement

Needs assessmentBusiness caseCompetency mapping

Return onInvestment

SeamlessExecution

TargetedSolutions

RapidDiagnosis

Forum’s Organized to Customize™Approach

Research-based IP

Client-Specific Learning Solution

Design and Implementation

Processes

Client Business

Issue

Marketplace Business

Issue

Case Study

More than 10-year relationship

Partner-driven, enterprise-wide engagement

Client relationship skills—covering 9 years from new hire to partner

28 programs, 41 days of content

Leveraged sales and leadership IP

Large annual licenses to print and use

Dedicated Forum faculty

Life time value: US +$10M

An Enviable Client List

Regions Served

Revenue by Region (2004 Data)

North America71%

Europe20%

Asia*9%

*Gross Distributor Revenue

Markets Served – North AmericaIndustry by % of Revenue (Number of Clients)

Government (5)30%

Pharma / Healthcare (11) 3% Medical Equipment (7)2%

Telecommunications (5)2%

Food & Beverage (4)5%

Consumer Products & Services (9) 3%

Manufacturing (14)5%

Professional Services (14)7%

Financial Services (32)10%

Energy (9)33%

Solutions Delivered – North AmericaRevenue by Capability

Other6%

Customer Experience

23%

Sales27%

Leadership44%

Building Blocks for Growth

Capitalize on global client wins

Leverage success with US Government

Expand into new North American & European markets

Strengthen IP in leadership, sales, customer experience

Target our marketing efforts

21 November 2005

Performance Improvement& Consulting

A review of PI internationally including current state and future opportunities

Tariq Zaidi, President, PI International


Agenda – PI International…

• Current state:

– PI operations around the world– Informa PI partners– Wholly-owned and partner revenue – Difference between the US and international operations

– Growth rationale and expansion potential

• Future opportunities:

– Potential brand expansion opportunities

– Focus for 2006


PI Operations in 43 Countries Outside the US

ArgentinaAustraliaAustriaBahrainBeneluxBermudaBrazilCanadaChileChinaCzech RepublicDenmarkFinlandFranceGermanyGreeceHong KongHungaryIndiaIndonesiaIrelandItaly

JapanMalaysiaMexicoNetherlandsNew ZealandNorwayPhilippinesPolandPortugalRomaniaRussiaSingaporeSouth AfricaSouth KoreaSpainSwedenSwitzerlandTaiwanThailandUKVenezuela

Europe: 21 Asia: 11Americas: 7Australia/NZ: 2Middle East: 1Africa: 1


Wholly Owned & Partner Operations By Region

• 76 Operations – 18 wholly owned - 58 partners

• 42% of operations in Europe, 29% in Asia and 17% in the Americas (outside the US)

0

20

40

60

80

AMERICAS ASIA AUSTRALASIA EUROPE AFRICA TOTAL

4

9

132

203

5

9

23

18

58

1

76

1

32

8

22

Partner

Wholly owned


International Operations

• Wholly owned:– Circa 40% of intl. rev

• Partners:– Circa 60% of intl. rev– Pay royalty fees (10-20%) on revenue they sell for the PI business

(i.e. they pay a royalty % on PI ‘Street Sales’) – Have a royalty minimum they must achieve each year– Get product, marketing and sales support from PI parent company

• Franchise:– Trade under PI brand name– Dedicated sales team

• Distributor:– Trade under own company name– Can represent more than one line of business


Wholly Owned Revenue

Wholly owned revenue by region:

• Europe 77% (60% in UK)

• N. America (i.e. Canada) 14%

• Australia/New Zealand 7%

• Followed by Asia and South America

Wholly owned revenue by PI brand:

• ESI 30%

• AG 26%

• Forum 26%

• Omega 15%

• Communispond & Huthwaite make up the rest


Partner Revenue (Street Sales) By Region and Country

Partner Revenue (Street Sales) by Country

19% Japan17% Australia

8% Canada 8% Korea

48% Other 37 countries

24% Europe

44% Asia

19% Australia/NZ

8% North America

Partner Revenue (street sales) by Region

5% ROW


Partner Revenue (Street Sales) by Brand

0%

20%

40%

60%

80%

AG ESI FORUM

70%

21%

9%


US vs. International

• Clients:– US: mainly Fortune 500 / FTSE 250– Non-US: mainly Fortune 500 / FTSE 250. Varies within each region

• Solutions:– US: complete consulting and coaching solutions demanded by the

market– Non-US: training engagements don’t need to be “book-ended”

• Pricing:– US: Premium priced– Non-US: Premium priced based on local market

• Selling strategy:– US: direct prospecting with targeted marketing– Non-US: local targets some multinational cross selling


US vs. International

• Competition :– US: local boutiques/consultancies with US-centric focus– Non-US: local boutiques/consultancies with a local focus

• Global reach :– Competitors struggle to build a global network

• Cost of entry is high• US businesses which lead PI are typically less internationally

focused


Growth Rationale

• Customers want global reach

• Global delivery is a true competitive differentiator

• We want to build on our current geographically disbursed sales force

• We have barely touched on growing our non-US businesses


Expansion Potential

• Corporations spend a higher percentage of payroll expenses on training than U.S.

• Rely more heavily on outside providers

• Engage in a higher level of soft-skills training as a proportion of their size than U.S.

The American Society for Training and Development (ASTD) market study found that in most non-U.S. markets:


Future Opportunities

• Leverage current informa infrastructure in Europe,Middle East, Asia and Australia to launch PI where appropriate

• Use the international AG partner infrastructure(38 countries) to sell additional PI brands


Focus of 2006…

• Model expansion based on our current successes

• Acquire partners if and where appropriate

• Grow regional hubs

• Assure worldwide consistency of brand, sales and client experience

• Instigate appropriate incentives for growth

• Develop more efficient product/solutions for global use and cultural adaptation

• Leverage marketing campaigns internationally


And Finally…

Our firm intention is to grow all our PI brands globally to make informa:

• The largest

• Most profitable • Internationally respected performance improvement

business in the world


Thank you.

Any questions?


Appendices

• Other PI Business Units– Robbins-Gioia– AchieveGlobal– Huthwaite– Omega– Communispond

• IPI Organizational Structure


• Acquired: July 2004• HQ: Alexandria, VA (USA)• 600 staff• 83% of 2004 revenues from US Government & Agencies• Long-term customers = loyal advocates• Mission Statement: “We enable customers to achieve results and

improve performance through program management disciplines.”

Robbins-Gioia

R-G pioneered the program and project management consulting industry, bringing process-based solutions to high-risk, complex initiatives in top government agencies and Fortune 500 companies.


AchieveGlobal

• Acquired: 2000• HQ: Tampa, FL (USA) • 390 staff• Offices in 42 countries• Franchise partners operating in 70 countries• Specialize in leadership, customer service & sales effectiveness• Mission Statement: “We help organizations translate business

strategies into results by improving the performance of their people.”

Clients worldwide rely on AchieveGlobal's proven expertise in leadership development, customer service, and sales effectiveness.


Creators of SPIN® Selling, Huthwaite is the acknowledged thought leader in the continuous sales performance improvement industry.

• Acquired: 2000• HQ: Sterling, VA (USA)• 69 staff• Customized and blended on-line solutions• IP founded on 12-yr research study, of 35,000 sales calls, in 23

countries• Mission Statement: “We help organizations meet their business

objectives by dramatically improving sales effectiveness and productivity, and ultimately increasing profits.”


Omega Performance sets the standard for improving the performance of financial services professionals, helping them achieve and maintain unsurpassed service quality, enhanced credit risk management, increased profitability, and competitive superiority.

• Acquired: 1999• HQ: Charlotte, NC (USA)• 85 staff• Financial Services industry-focused• Credit, sales & customer service training • Mission Statement: “Omega Performance supports results-driven

leaders in financial services by providing performance improvement solutions that are practical, proven, customizable, and measurable.”


Communispond offer a comprehensive suite of solutions to help any organization’s key people deliver the right message, to the right audience, the right way.

• Acquired: 2002• HQ: New York (USA)• 33 staff• Specialists in presentation, sales & communications skills• Alumni include 62 board chairmen, 362 company presidents and

3100 sales executives • Mission Statement: “We are the resource of choice for any

population that must hold its own in high-stakes communications situations.”


IPI Organizational Structure

Jonathan EarpChief Information Officer

Informa USA

Kevin DonagherChief Financial Officer

Informa USA

Julia BlairDirector of Administration

Informa USA

Tom EtterGeneral CounselInforma USA

John ElseyPresident

ESI

Jim LetoPresident

Robbins Gioia

Sharon DanielsPresident

Achieve Global

Ed BoswellPresidentForum

Kevin KearnsPresident

Huthwaite

Mario BerardPresidentOmega

Bill RosenthalPresident

Communispond

Tariq ZaidiPresident

PI International

Ken BohlinChief Executive Officer

Informa Performance ImprovementIInforma USA

pi nov 18 05 revisedagain-ss.21.11files.investis.com/tfi/reports/211105.pdf · business analysis...

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