1. MANAGEMENT

2. Evergreen Project – What really works? Objectives: Why do some companies consistently outperform their competitors? Which business tools and techniques help a company become great? Process: 160 companies - 4 similar companies in each industry group Market cap between $100m to $6b Ten year data - two 5 year periods Classification – Winners, Climbers, Tumblers, Losers The 4 + 2 Mantra Primary Management Practices Strategy Execution Culture Structure Secondary Management Practices Talent Innovation Leadership Mergers and Partnerships

3. Winning Strategy

4. Understand your customer / Think like your customer  Dollar General (merchandise selection, store location)  Stapes (store layout, easy button) Clear & Consistent  Wal-Mart (everyday value)  Target (good value & experience)  The Limited (Express, the Limited, Lerner)  HP (goal-shifting - competing with Dell on price, then service) Continuous evaluation and fine-tuning  Intel (memory chip to microprocessors)  Gillette (launch of sensor shaving system) Communicate your strategy  Poor employee communication can undermine the best laid strategy

5. Execution Process, Models, Challenges and Examples

6. Execution 99% of the effort/energy goes into executing the strategy Keys to getting the job done  Develop a model for execution  Choose the right metrics  Don't forget the plan  Assess performance frequently  Communicate HP turnaround led by Mark Hurd  Operating margin increased from 4% to 6.9% Southwest Airlines  No baggage transfers, Serves no meals, No boarding passes, Uses one type of airplane, Faster turnaround at the gate

7. Discussion Questions What does the "What Really Works" article, combined with the Drucker article tell us about effective management? Why 4+2 ? Do you agree with the Primary/Secondary practices? Personal experiences related to strategy/execution How to compete with Starbucks?

8. Competing with Starbucks 11000 locations Revenue: $6.4b

9. Source: http://www.sba.pdx.edu/faculty/tomg/marseille/Starbucks/sld004.htmhttp://www.sba.pdx.edu/faculty/tomg/marseille/Starbucks/sld004.htm

10. Green Mountain Coffee Roasters Be Green (organic coffees) Focus on office business Sales of organic lines grew by 51% www.greenmountaincoffee.com HQ: Waterbury, VT Year Founded: 1981 2005 Revenue: $162m

11. Coffee Bean & Tea Leaf Keep innovating Invented ice-blended coffee drink Popularized chai latte Rapid growth in Israel www.coffeebean.com HQ: Los Angeles Year Founded: 1963 Outlets: 400 2005 Revenue: $150m

12. Costa Coffee Head East (India, China & Middle East) Adapted menu to Indian tastes www.costa.co.uk HQ: London Year Founded: 1971 Outlets: 617 2005 Revenue: $270m

13. Peet’s Coffee Go upscale Half the sales comes from whole beans www.peets.com HQ: Emeryville, CA Year Founded: 1966 Outlets: 120 2005 Revenue: $175m

14. Caribou Coffee Sell a lifestyle Company’s motto – “Life is short. Stay awake for it.” Frontier and Maxjet airlines serve Caribou coffee www.cariboucoffee.com HQ: Minneapolis Year Founded: 1992 Outlets: 416 2005 Revenue: $198m