2. Sustained superior corporate performance is based on the
ability to manage tension between two symbiotic forces :
1. the need for on going in improvement operational
performance and productivity through constant
rationalization in existing activities, and
2. the need for growth and expansion through
continuous revitalization of strategy ,organization
and people
No company can achieve radical performance
improvement without transforming resource productivity
no company can achieve such results only through
improvement in in operating efficiencies
Lessons from case studies of companies
www.creatingdemand.org
Case studies of companies Lessons
Copyright 2013-2014 Presentation by: Sachin Bansal
3. The sweet and sour cycle : Radical performance
improvement by improving resource productivity
(sour) and Creating and exploiting new opportunities
(sweet)
Improving resource productivity (sour):
1. Portfolio choice( eliminating low return activities)
2. Improving labor productivity ( revenues and profits
per employee)
3. Improving operating efficiency ( speed reducing
waste)
4. Improving capital productivity (return on capital
employed)
Cooking sweet & sour
www.creatingdemand.org Copyright 2013-2014 Presentation by: Sachin Bansal
Cooking sweet & sour Radical performance
4. Creating and exploiting new opportunities (sweet)
:
1. Growth opportunities (new products and markets;
expanding share)
2. Building competencies( new capabilities and
resources)
3 Organizational capabilities ( revitalizing organization
and people)
Cooking sweet
www.creatingdemand.org
Cooking sweet Creating and exploiting new opportunities
Copyright 2013-2014 Presentation by: Sachin Bansal
5. The downward spiral of Rationalization
• Spiral is to be set right by solving underlying problems
Poor Performance
Cut Resources; sell businesses,
close factories, sack people
Temporary Improvement in results
Underlying problems not solved
Performance declines again
Cut Again
www.creatingdemand.org Copyright 2013-2014 Presentation by: Sachin Bansal
The downward spiral of Rationalization
6. Vicious Spiral of Unprofitable Growth
• ROIC and WACC ?
Growth Unprofitably
ROIC < WACC
Increased Debt to generate cash(D/E )
Decreased Financial degrees of freedom
( less funds,more expensive rates)
Decreased ability to support growth
Lack of cash, loss of strategic freedom
Decreased attractiveness to investors
Lower share prices, higher D/E, higher WACC
www.creatingdemand.org Copyright 2013-2014 Presentation by: Sachin Bansal
Vicious Spiral of Unprofitable Growth
7. Virtual Spiral of Profitable Growth
• Spiral of betterment
Grow Profitably
ROIC> WACC
Increased attractiveness to investors
higher share prices,lesser D/E, Lesser WACC
Increased financial degrees of freedom
(Lower cost of capital
Increased ability to support growth
Investment potential, strategic freedom
Generate internal cash for growth,
Lower D/E
www.creatingdemand.org Copyright 2013-2014 Presentation by: Sachin Bansal
Virtual Spiral of Profitable Growth
8. Why people resist change?
Would life be easier or more comfortable if the pace of
the change is slower?
Is a new way of doing things necessarily better way ?
Should we change simply for sake of change?
Does it take courage to change? To resist change?
Should we try to predict change - or simply react to it
when it happens?
Is it useless to try keep with the tremendous
technological changes of today?
Are such technological Changes hopelessly in conflict
with an individual’s desire for peace- of- mind and a
frantic way of life ?
Attitude towards Change
www.creatingdemand.org
Attitude towards Change Why people resist
Copyright 2013-2014 Presentation by: Sachin Bansal
9. Change is the only constant. We can not ignore it.
review and re-evaluate our priorities on a regular
basis.
Why to Change or Reform ourselves and our Organization?
www.creatingdemand.org
Change or Reform Ourselves and our organization
Copyright 2013-2014 Presentation by: Sachin Bansal
10. Reputation to overall gains
www.creatingdemand.org Copyright 2013-2014 Presentation by: Sachin Bansal
Strategically connected with clients, engaging and
involving them:
•How to get closer to customers?
•To build brand awareness and enhance loyalty?
•To position new products and services for the effective
market penetration?
•To fulfill what customers really desire?
Specialties
Brand Strategy, business entry & planning, product
development, internet marketing, trade distribution,
public private partnerships, sustainable tourism
management and investment promotion.
Crafting, Operationalizing and
Implementing Growth
Strategies to maximize
opportunities in emerging
geographies;
experience as my strong
resource and capability
Sachin Bansal
Enhancing business profitability
11. SACHIN BANSAL- Chief Explorer
INDIA : +91 97111 90192
sb@creatingdemand.org
www.creatingdemand.org
facebook.com/creatingdemand
DELHI LONDON MELBOURNE NEW
YORK ITALY
www.creatingdemand.org
Enhancing business profitability….
Copyright 2013-2014 Presentation by: Sachin Bansal
