Strategic Positioning in the New Normal EconomyA Thought Leadership Presentation by Definity Partners

Business Environment Entering 2011

Competition Remains Fierce Innovation is the key to growth

Maintaining quality is no longer good enough.

Cost reduction is saturated. Focus is now on increasing sales.

Hiring is anemic. Government’s ability to change the playing field

instigates uncertainty.

Characteristics of the New Normal Economy

Global Competition The reliability gap between

emerging nations and industrialized ones has closed.

Balance Sheet Stress The availability of private capital

is skittish. Government funding is ample,

but comes with a stigma.

Characteristics of the New Normal Economy

Constrained and Concerned Consumer Consumer confidence has been

crushed and expectations of the future are riddled with uncertainty.

Immediate Access to Information The rapid development of social

networking and blogs means the dissemination of information is almost instantaneous.

Operational Strategy for the New Normal Economy

Develop standardized systems and processes for the front-line. Their input matters; they know how to make their job

better. Facilitate intra-departmental communication. Make strategic plans for scheduling and capacity.

Based on information from sales and operations teams. Execute tasks flawlessly.

Use daily huddles to communicate best practices and review what went right, what went wrong, what needs improvement.

Leadership disengagement from daily activities to focus on innovation and growth opportunities.

Process of Continuous Improvement

Peak Performance Time Assessment

Ask yourself: How much time do you spend in the day to

day operations? How much time do you spend on analyzing

market trends? How much time do you spend with

customers and suppliers? Are those conversations driven by reactive

mistakes or proactive improvements? How much time do you spend working on

new product opportunities?

Peak Performance Time Analysis

Thinking of your previous answers, ask yourself the following questions. Where can your time be used more effectively? What will it take to get you in the correct

position? What can you start doing now so that 2011 is

better for your company than 2010?

Peak Performance Time Analysis

What is

What can be

Summary

The New Normal Economy is characterized by intense competition, increased connectivity and financial limitation.

The Process of Continuous Improvement is an important strategy tool for production execution, efficient communication and effective planning – solutions for the challenges of the New Normal.

Summary

After gaining confidence in the front-line, leaders can then spend their time focusing on transformational improvements and innovation.

Companies with innovative products that enter new markets and engage new customers are the best positioned for success in the New Normal Economy.