Guiding Principles
OUR GUIDING PRINCIPLES
Fundamental principles to help guide you in the decision-making process.
PRODUCT SEGMENTATION
1. Focus on non-sticky products 2. CORPS + Top 20 3. Product segmentation governance to drive focus on work 4. Data-driven hypothesis 5. Focus on margin, but keep in mind margin isn’t everything or exact based on the current state or cost accounting. 6. Confidentiality with a margin with sales/firewall
Outcomes 1. Increased K, S, and A’s in adjacent disciplines.
2. Improved strategic focus/knowledge company wide. 3. Identify hypothesis to test via intentional sale strategies 4. Campaigns/engagement to drive more sales/margin - Strategic focus based on data 5. Support life cycle / cull-end of life growth (digital marketing) 6. Support growth YMB 7. Stop being used/competitors/dealers
PRODUCT SEGMENTATION cont.
Product Segmentation - Governance - Portfolio Optimization - Std-per-spec - Culling 1 Product Segmentation - Governance - Portfolio Optimization - Std-per-spec - Culling 1
Internal
Future Product Development
5
Future Product Development
5
Marketing/Sales Tools - Battle Cards - Look Book 3 Marketing/Sales Tools - Battle Cards - Look Book 3
Pricing & Margin
3*
Pricing & Margin
3*
External
Customer Segmentation - Core (SC, NIK, HW, HNI, KI) - Next 20 Customer Segmentation - Core (SC, NIK, HW, HNI, KI) - Next 20 1
Competitive Landscape
2
Application Indo/Group
Competitive Landscape
2
2
1
Research
5
Application Indo/Group
2 Distribution Channel
4
Research
5
Distribution Channel
4
SUPPLY CHAIN
1. Eliminate waste. 2. 80/20 strategic/product segmentation. 3. De-resk (multiple sources) domestic import. 4. Loyal. Legacy supplies incumbent mindset. 5. Performance-based. 6. Value-based. How we do business is important. 7. Highly transparent & collaborative. 8. Consistently fair across all suppliers. Ethics.
9. No favoritism. 10. Supplier agreements. 11. Lifecycle. 12. Governance. VAVE monthly re- engineering the supply chains. 13. G/Y/R transparency 14. Proposal based process to make changes in the supply chain. 15. China strategy - Developing new suppliers. 16. Raceway - terminal assemblies/ existing plastic/products. 17. Negotiate tariff with Byrne Asia.
• Trust: Invest in relationships • Direct communication • Agility • Efficiency • Continuous improvement • Digitize • Competition
TARGET PRICING
1. Legal. 2. Good faith. 3. Target pricing. 4. Not based on lowest competitive partner. 5. Analysis of total cost. Target is to be within 10%. 6. Lifecycle/launch/growth/mature/decline. 7. Marketing pricing and reference. 8. Decouple business decision from target pricing. Purchasing must negotiate independent of GTM and GM function to provide best decision. 9. Marketing/Sales/Purchasing collaborate on TP.
METRICS
1. Results driven. Drive behavior. 2. Goal must be on the document or tool. 3. Context should be included in the footnote. 4. Automate when possible. 5. Trend line. 6. Should be a leading indicator that drives action. 7. Data Integrity. Should be valid and relevant. 8. Self-Evident. KISS concept. Crystal clear.
ONBOARDING
1. Orientation should be completed by HR. 2. Lunch should be provided on the first day. 3. The new hire should be given a people tour. 4. New hires should be involved in event planning, CSMs, and important cross-functional efforts whenever possible.
HIRING DURING A RECESSION
1. Top Grade 2. Acquire talent even if we don’t have a position. 3. We selectively hire someone that has been downsizes/rewards of RIFF. 4. Avoid hiring/rehiring based on philanthropic intent. 5. Follow best practices. 6. Encourage going outside.
SALES INCENTIVES
1. Fair, honest, flexibility (review every six months). 2. Drive behavior. Reward behavior that drives outcomes/impacts and not just activities. 3. Align to product/market/customer segmentation strategies. 4. Stretch but achievable SMART. Distribution of Incentive 1. Audited financials. 2. On a consistent schedule. 30 days from the last day of the quarter. How
Outcomes 1. Increase sales, margin, stickiness/embeddedness/annuity, brand value/ awareness, new product sales. 2. Customer/market/product diversification . 3. Customer loyalty & wallet share. 4. Challenge, motivate, achievement recognition. Collaboration with peers. Drivers between Groups Should be Consistent 5. CSS, performance, CRM.
3. Ethical, earned via disciplined sales process. 4. Realtime feedback loops and transparency.
CUSTOMER SWAG
1. Byrne Brand = Powerful Design 2. The reasons for giving a Byrne gift to a customer are: • To delight our customers • To further connect them to the Byrne brand
3. Think seasonally 4. Be beyond trend 5. Be budget-conscious, but don’t be a tight-ass (re: the right gift could push a million-dollar sale over the edge.) 6. Customer Segmentation / Gift Segmentation (Think in tiers, what level of customer receives what level of gift? 7. Less is more; a few brilliant ideas are better than a dozen mediocre meaningless ton of crap 8. Deliver Delightfully
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