1. 1 Cloyses Partners, LLC Managing the Defining Moment

2. 2 Cloyses Partners, LLC Core Message… Our experience is that there are only 3-5 critical imperatives that really matter. Our experience is that there are only 3-5 critical imperatives that really matter. A company that has “multiple conflicting priorities” cannot succeed! A company that has “multiple conflicting priorities” cannot succeed!

3. 3 Cloyses Partners, LLC Competition For Focus and Alignment A Typical Day at the Office Cash Management Lender Management Labor Costs Vendors Driving Revenue Corporate Infighting Financing Challenges Product and Service Validation and Obsolescence Limited or No Pricing Power Unhappy and Increasingly Demanding Customers Union Demands Avoidance of Negative Publicity Legal and Regulatory Issues Quality Control and Maintenance

4. 4 Cloyses Partners, LLC 1. Triumph of Unforgiving Markets Signs of the Times – Survey Says… Globalization is causing unprecedented competitive pressure. If you are waiting for the economy to recover, you may not be around. Get used to short product cycles, unrelenting cost pressures, and uncertainty

5. 5 Cloyses Partners, LLC 2. Information Overload Signs of the Times – Survey Says… Less and less time, to evaluate more information than has ever been available. Loss of focus on “What’s really important”.

6. 6 Cloyses Partners, LLC 3. Lack of Single Source Accountability Signs of the Times – Survey Says… Who really owns the initiative for your Performance Critical activities? If more than one person is “accountable”, it’s likely no one is.

7. 7 Cloyses Partners, LLC 4. Manager/Employee Entitlement Signs of the Times – Survey Says… “I Deserve a Bonus/Raise/Promotion!” (…regardless of the company’s performance).” “Everyone Else is Getting Theirs”

8. 8 Cloyses Partners, LLC 5. Alignment and Focus Signs of the Times – Survey Says… If you list 3 imperatives for the next 6-9 months, would your staff all be working toward them? Probably Not.

9. 9 Cloyses Partners, LLC Early Warning Signs The organization lacks alignment The organization lacks alignment Lack of accountability for results Lack of accountability for results Spending is increasing while financial results are mediocre or worse Spending is increasing while financial results are mediocre or worse Layers of management, layers of spending, elongated approval process Layers of management, layers of spending, elongated approval process Sales may be increasing but the A/R collection cycle is increasing and cash flow is decreasing Sales may be increasing but the A/R collection cycle is increasing and cash flow is decreasing

10. 10 Cloyses Partners, LLC What should be done? Step back and understand how important the alignment issue is. Get your organization in alignment with a clear understanding of the imperatives. Get rid of multiple conflicting priorities. Step back and understand how important the alignment issue is. Get your organization in alignment with a clear understanding of the imperatives. Get rid of multiple conflicting priorities. Realize that at the end of the day someone has to have that “single source accountability”. If more than one person is responsible then typically no one is. Realize that at the end of the day someone has to have that “single source accountability”. If more than one person is responsible then typically no one is. Spend money where the expenditure creates productivity, focus on the imperatives. Spend money where the expenditure creates productivity, focus on the imperatives. Decide what “victory” looks like and communicate it throughout the organization. Decide what “victory” looks like and communicate it throughout the organization.