The Upside – Down Organization“Connecting the Dots” for Sustainable Profitable Growth

ContentsIntroduction1. External Demand2. Internal Support3. Money Flow4. Identification5. Justification6. Development7. Creation8. Fulfillment9. Summary10. Team Grid

Introduction• A proven concept, in a new context.

• Transform the concept into an actionable process by “connecting the dots”

• Focus on revenue generation and (to some extent) profit

• The process is a sub-set of the strategic plan

• Assumption: Market analysis, a strategic plan and an annual budgeting process are already in place

1. External Demand• Most complex model…encompassing the

dynamics of the B2C world and “channel partners”

• Process is demand-driven by the value for a product or service

• Market segmentation is a sub-set of end-user categories

• Demands for value also exist elsewhere within the process.

• Consumer space consists of retailers and e-tailers = Re-sellers

• Smaller firms have Reps…Global firms have Distributors

TAKEAWAY: Management of the model lies with the “captive” personnel (Company’s Marketing AND Sales people)

2. Internal Support

• Representative model: Ops/Mnfg/Logistics, Legal, Senior Management/Own

• Marketing on top of the model because it should be closest to external world

• This I believe…“Marketing Runs the Place” (MRP)• Bottom line : the Internal Support portion of the

model is all cost.TAKEAWAY: Know one is writing the company

any checks!

3. Money Flow• Without revenue from the external

world, the internal world can go home (and so can the “captive” members of the external world)

• Products/services must provide greater value to the End Customer than the competitors can or nothing else on the graphic matters

• TAKEAWAY: The dog (End Customer) has got to like our

“dog food”. S/he better like it more than the other guy’s

4. Identification• Definition – Thoroughly understand the

wants and needs at every level of the external Money Flow. This enables us to create a winning value proposition/ competitive advantage at each level

• Process – Utilize formalized and standardized Market Research tools

• Team Leader – Market Research• Team Members – Product Marketing,

Product Development, Marketing Communications, Sales

• TAKEAWAY: Avoiding the “NIH” syndrome later in the process

5. Justification• Definition – A set of new product development

opportunities are identified (for the End Customer) and presented by Product Marketing for consideration in the portfolio

• Process – Assessment of the competitive advantage, sales volume, price and margin potential (by product). This generates a “Revenue Roadmap” for the entire portfolio, which is then presented to Senior Management for approval

• Leader – Product Marketing• Team Members – Market Research, Finance and

Product DevelopmentTAKEAWAY: Senior Management now can decide

where to place the companies “bets” based on the data presented. The agreed-to “Revenue Roadmap” provides the foundation for the budgeting process.

6. Development• Definition – Ensure those agreed to new

products can be manufactured to the specifications, volumes, costs and timelines requested by Product Marketing

• Process – Capacity Analysis, “Phase Gate”, etc.

• Leader - Product Development• Team Members – Product Marketing,

Finance, Operations, Marketing Communications and HR

TAKEAWAY: Manufacturing variables may require an adjustment to the “Revenue Roadmap”/budget

7. Creation• Definition – Communicate the value proposition

for the new product/portfolio to every level of the external Money Flow, thereby creating an enormous demand, while supporting the brand

• Process – Develop a plan that is within budget and considers all elements of the potential marketing communications “mix”, including a Sales training program

• Leader – Marketing Communications• Team Members – Product Marketing, Sales, IT,

Market ResearchTAKEAWAY: Incumbent upon Marketing Communications to incorporate appropriate data from the original Market Research in all communications/ training / sales presentations

8. Fulfillment• Definition – “Deliver” (aka Launch) the product

back to our Channel Partners and the End Customers, satisfying the demand identified at the beginning of the process

• Process – Marketing conducts Sales training for the “captive” Sales and Customer Service teams. They in turn conduct Sales training for the Channel Partners, emphasizing our product’s superior value to them (vs. the competitors). Appropriate party presents the new products/ portfolio to End Customers in the context of the market research, the communications plan and its value creation for the End Customer (User)

• Leader – “Captive” Sales• Team Members – All Marketing Functions,

Customer Service and Channel PartnersTAKEAWAY: Selling becomes the critical last step in the marketing process.

9. Summary• Key is to “get it right” with the End Customer• Critical to provide value at all levels of the Money

Flow• Buy-in (within all functions/at all levels) to

“Marketing Runs the Place”• Where we place our “bets” requires commitment

from all leaders• Quality and ease of doing business are key

elements to value/brand• End Customer research needs to be included in all

communications• Alignment and communication to the external

world needs to be consistent• Each “touch point” in the process reflects and

impacts the brand• Internal continuity/buy- in must occur at each step

of the process ( see chart on next slide)

Team GridIdentification

Justification

Development

Creation Fulfillment

Mktg Research

Leader X X X

Product Mktg X Leader X X XProduct Dev X X LeaderMktg Comm X X Leader XSales X X LeaderFinance X XOperations X XIT XHR XSenior Mgmt X