1. Strategy For The 21 st Century Prometheus Process venturist ® incorporated Prometheus Strategy John A. Warden III President, Venturist, Inc. An IP Framework: Strategy—The Key To Success

2. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Why Strategy Make Success More LikelyReduce Risk And Cost Align People Across The Organization: Move Faster, Control Time, And Save Resources

3. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Prometheus Strategy Applications Nations: Win Wars (Or Win Without War!)Nations: Win Wars (Or Win Without War!) Companies: Achieve More Despite Changing Political And Economic CircumstancesCompanies: Achieve More Despite Changing Political And Economic Circumstances IP Owners And Practitioners: Build Winning Offensive And Defensive IP PlansIP Owners And Practitioners: Build Winning Offensive And Defensive IP Plans Product And Project Teams: Plan And Execute Smart OperationsProduct And Project Teams: Plan And Execute Smart Operations Individuals: Become Happier And More ProductiveIndividuals: Become Happier And More Productive Applies: From The Board To The FieldApplies: From The Board To The Field

4. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved The Tactically Focused Organization

5. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved The Strategically Focused Organization

6. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Where do we want to be at some future point in time? FUTURE PICTURE What are we going to apply your resources against? CENTERS OF GRAVITY How much time can we afford for execution? SHORT IS GOOD How will we deal with strategic mistakes, failure and successes? EXIT PLANS Think Strategically Answer These Questions

7. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Plan and Operate In The Open Smartly

8. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Open Planning

9. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved WHERE The Future Picture Inspiring Beacon Toward Which All Are SteeringInspiring Beacon Toward Which All Are Steering Clear, Compelling, MeasurableClear, Compelling, Measurable Meaningful Enough To MotivateMeaningful Enough To Motivate High ResolutionHigh Resolution Timeframes (Short is Good)Timeframes (Short is Good)

10. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved CORPORATE CULTURE/Operating System FINANCIAL POSITION OUTSIDER PERCEPTION INNOVATION CORPORATE CITIZENSHIP WORKFORCE CHARACTERISTICS MARKET POSITION INSIDER PERCEPTION BRAND INCENTIVE PHILOSOPHY BUSINESS AREAS OWNERSHIP Building The Future Picture Luncheon of The Boating Party, Renoir, 1881

11. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved How Much Time? Answer: Not Much! How Much Time Do You Have To Realize Your Future Picture?How Much Time Do You Have To Realize Your Future Picture? –Internal Reaction Time? –Adverse Financial Reaction Time? –Market Reaction Time? –Legal Reaction Time? Short Is Good, Long Is BadShort Is Good, Long Is Bad

12. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Planning From The Future Creating A Dramatically New World Future Picture TIME Picture As Of ~1935

13. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved What? Change Systems To Realize Future Picture External Market System Internal (Organization) System Your Future Picture Break Big, Complex Problems Into Manageable Strategic Components

14. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Dealing With Big, Complex Systems Aircraft 750 Shooters 200 Support Bases 24 MOBS 30 Dispersal Air Defense Well Developed State of Art Radars, Missiles, AAA Surface To Air Missiles SCUDS Chem-Bio Weapons Over 200,000 Potential “Targets” In Iraq

15. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Simplifying Complexity Step 1

16. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Simplifying Complexity Step 2--The Five Rings Processes Infrastructure Population Action Units Leadership

17. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Systems Have Centers Of Gravity The Leverage Points In The Systems Between You And Your Future Picture Have Disproportionate Impact High Return On Energy Investment Resources Limited? Attack Centers Of Gravity

18. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Those Elements Of A System That Try To Move It In A Particular DirectionThose Elements Of A System That Try To Move It In A Particular Direction –CEO –COO –CFO –Board Of Directors –Key Media –Key Politicians –Kings –Key Financiers –Key Thought Leaders The Leadership Ring Ring 1

19. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 1 Geopolitical Leadership Byzantine Emperor Marcian Hired Assassins To Kill Attila— Prevents Hun Invasion By Removing Only Leader Able To Do It

20. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 1 Business Leadership John D. Rockefeller Created And Led The Industry Which Gave The World Mobility And Wealth

21. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Those Elements Of A System That Convert Energy From One Form To Another; A “Set Of Interrelated Tasks That, Together, Transform Inputs Into Outputs.” (Wikipedia)Those Elements Of A System That Convert Energy From One Form To Another; A “Set Of Interrelated Tasks That, Together, Transform Inputs Into Outputs.” (Wikipedia) –Power Generation –Communication –Innovation –Recruiting –Financing –Planning High Leverage!High Leverage! The Processes Ring Ring 2

22. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 2 Geopolitical Processes Spartan Blockade of Athenian Supply Process – Prevents Athens From Functioning (Surviving) And Leads Athens To Unconditional Surrender 405-404BC

23. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 2 Business Processes Massive, Horizontal Hydraulic Fracking Process Transformed The Petroleum And Gas Industry And Raised US To Top Producer

24. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Process Center Of Gravity Examples External (From A Company Standpoint)External (From A Company Standpoint) –Beer Market Changed By Pasteurization and Refrigeration Processes—Budweiser ~1890s –Fast-food Market Changed By The Drive-Thru Process—Jack-In-The-Box To McDonald’s –Financial Markets Changed By Creation Of Collateralized Mortgage Obligations (CMO’s)— Salomon Brothers And First Boston 1983 InternalInternal –Invention And Adoption Of Six Sigma Process Revitalizes Motorola Products and Business 1986 –Mass Manufacturing Process Helps Ford Motor Company Dominate The Auto Industry

25. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved The Infrastructure Ring Ring 3 Those Elements Of A System That Are Relatively Stationary And Constant And That Serve Multiple Parts Of The SystemThose Elements Of A System That Are Relatively Stationary And Constant And That Serve Multiple Parts Of The System –Buildings –Roads –Wires And Cables –Standards –Laws –Standard Operating Procedures

26. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 3 Geopolitical Infrastructure Sherman’s Destruction Of Massive Southern Infrastructure: Key Part Of Confederate States Made Incapable Of Supporting The War Effort

27. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 3 Business Infrastructure Darden Builds New Office Building To House Multiple Functions In One Place To Improve Company Collaboration And Effectiveness

28. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved The Population Ring Ring 4 The Demographic Groups That Categorize The People Who Are Part Of A System And Who Tend To Respond To Similar Stimuli (Publications, Messages, Rewards)The Demographic Groups That Categorize The People Who Are Part Of A System And Who Tend To Respond To Similar Stimuli (Publications, Messages, Rewards) –Profession –Gender –Age –Class –Interests

29. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 4 Geopolitical Population British Separate Population Supporters From Communist Fighters, Malayan Emergency 1950’s – Prevents Support And Aid

30. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 4 Business Population Conservation Group Targets Fishermen Population For Contributions

31. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Those Elements System That Do The Tactical Jobs. They Are Important But Are Difficult To Change And Keep Changed So Leverage Tends To Be Low For Overall System ChangeThose Elements System That Do The Tactical Jobs. They Are Important But Are Difficult To Change And Keep Changed So Leverage Tends To Be Low For Overall System Change –The Fighter Squadron –The Retail Outlet –The Sales Force –The Accounting Department The Action Units Ring Ring 5

32. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 5 Geopolitical Action Units German Destruction Of Polish Military, 1939, Contributes To Defeat Of Poland

33. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Ring 5 Business Action Units Gulf Sales Team Doubles Its Sales

34. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved First Gulf War Centers of Gravity LeadershipProcessesInfrastructurePopulationAction Units Saddam Hussein National Communications Railroad military officers Air Defense Key Baathists Electrical System Bridgesshiites Air and Missile Offense Ministry of Defense Petroleum System sunnites Weapons of Mass Destruction Program middle class tikritis clerics George Bush Communications Key Buildingsown peopleUS Police National Leaders US Transportation other citizensUS Military US CongressUS Research and Development US Intelligence

35. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Centers of Gravity Disneyland Market And Company LeadershipProcessesInfrastructurePopulationAction Units ABC TV Market Communications Roadsparents Air Lines Famous Actors Actresses FinancingZoningchildren Travel Agencies Los Angeles Times Vacation Planning travel agents reporters Walt Disney CommunicationsWeeniesengineers MX Group Roy Disney ConstructionLand cast members Sub- Contractors Ride Design artists

36. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Normal Leverage By Ring Leadership Ring 1 Processes Ring 2 Infrastructure Ring 3 Population Ring 4 Return On Investment Low High Action Units Ring 5

37. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Control Time With Parallel Attack Parallel Attack Results Results In Days—Not Months or Years Low Cost in Blood and Treasure System Elastic Limits Broken No Competent System Response Parallel Effects Achieved

38. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved For All Things There Is A Time Exits There Is A Time To Begin And There Is A Time To End

39. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Upfront Exit Planning Imperative -Life Cycle Emotions- +$ 0 -$ Optimistic & Apprehensive Rational Thought Phase Visions Of A Google IPO Exuberance Phase This Will Last Forever. Confidence Phase Anomaly—Will Get Better Soon Denial Phase Need To Do Something Now! Irrational Phase Plan Here For Events Here Scared, Scarred, And Broke No Options Phase Don’t Wait Until Events Here

40. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved A Cardinal Rule: Stay Out of the Balkans! “Balkans” Absorb Command Time and Resources Without Regard To Their Value“Balkans” Absorb Command Time and Resources Without Regard To Their Value If In The Balkans, Leave! If Not In The Balkans, Don’t Go!

41. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved The Road To Strategic Success Leadership Processes Infrastructure Population Action Units Future Picture Realized Discounted Future Value Conditions Met Reward/Risk Ratio

42. Strategy For The 21 st Century Prometheus Process venturist ® incorporated Questions? Additional Thoughts? jwarden@venturist.com334-272-9800

43. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved ExerciseExercise LeadershipProcesses Infrastructure PopulationAction Units Assad Communicati ons (social media) internet Western people Guys in Toyota pickup trucks Al Baghdadi Oil and Gas Money changing network refugees PutinRecruiting World banking system Captive people Headquarter s Taxation (Governing) ObamaFinancing UN Jihad process Occupation

44. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Strategic Impact Plans Old (Or Non-Existent) COG Transitions To New Future State/Desired Effect Future State(s)/Desired Effect(s) The Time Frame For The Future State(s)/Desired Effect(s) Strategic Measurement That Proves The Future State(s)/Desired Effect(s) Strategic Impact Plan Note: No Mention Of The “Hows” —The Tactics Or Mechanics Of Producing The Desired Effect

45. Strategy For The 21 st Century venturist ® incorporated Copyright Venturist®, Inc. 2001-2010– All Rights Reserved Action Plans The Tactics/Steps Needed To Satisfy The Strategic Impact Plan