www.sandyblahaperformanceconsulting.com

The 5 Keys

to a

Failsafe Exit Strategy

How to Dramatically Improve

Business Valuation

through Effective Exit Planning

© 2009 Sandy Blaha Performance Consulting 2

Performance Drivers

The primary driver of performance

and value in a business

is talent and the effectiveness

of your management team.

McKinsey, 1997

© 2009 Sandy Blaha Performance Consulting 3

5 Keys Value Building System

1. VISION: Define, map owner’s future

2. ASSESS: Identify and assess top talent

3. LEADERSHIP MINDSET: Build the leadership team

4. STRATEGY: Performance planning

5. REWARD: Performance compensation

© 2009 Sandy Blaha Performance Consulting 4

Results of a Successful

Value Building Process

A Winning Team Delivers on Average

• 30 to 50% sales growth

• 90% retention of top talent

• Attraction of A Level Talent

• Freedom: 30% reduction in owners’

involvement in operations

• Increased shareholder value

• Business continuity

• Trust and engagement

© 2009 Sandy Blaha Performance Consulting 5

Case Study: H2 Architects

H2 Goals

Within 12 months leadership team:

• Handle operations

• Profit of 20%+

• Employee satisfaction

• Develop understudies

• Become stockholders

© 2009 Sandy Blaha Performance Consulting 6

H2 Architects: Owner’s Time in 2004

© 2009 Sandy Blaha Performance Consulting 7

Owner’s Roles in 2007

Highest value activities:

• design

• business development

• 3 week vacation

© 2009 Sandy Blaha Performance Consulting 8

Results of H 2’s Transition

2004 Year End 2007 Year End

Project Size 150,000 SF 200,000 SF

Revenue $2.4 million $3.6 million

Profit $250,000 $1 million

Stockholders 1 6

Repeat Clients 72% 82%

Industry Awards 1 4

Rev per employee $109,000 $120,000

© 2009 Sandy Blaha Performance Consulting 9

Case Study: Authority Sharing

© 2009 Sandy Blaha Performance Consulting 10

Case Study

Tie Role Responsibility to Performance Benchmarks and Incentive Pay

© 2009 Sandy Blaha Performance Consulting 11

Take These Steps, Use These Tools

1 - VISION:

Define & Map Owner & Company Future

© 2009 Sandy Blaha Performance Consulting 12

Take These Steps, Use These Tools

2 - ASSESS:

Identify and Assess Top Talent

© 2009 Sandy Blaha Performance Consulting 13

Prepare the Foundation

Look at your business

through the lenses of your buyers

© 2009 Sandy Blaha Performance Consulting 14

Take These Steps, Learn These Skills

3- LEADERSHIP MINDSET:

Build the Leadership Team

© 2009 Sandy Blaha Performance Consulting 15

The Behaviors of Trust

• Talk straight

• Create transparency

• Deliver results

• Get better

• Confront reality

• Clarify expectations

• Practice accountability

• Keep commitments

The Speed of Trust

Stephen M.R. Covey

© 2009 Sandy Blaha Performance Consulting 16

Crucial Conversations

Decision-Making and Crucial Conversations® Skills

Debating assumptions and making trade-offs openly in a group builds leadership team effectiveness.

© 2009 Sandy Blaha Performance Consulting 17

Conflict and Productivity

Conflict Management

• 19 to 26% of management time is spent resolving

conflict

• Conflict management skills result in improved:

‒ Decision quality

‒ Job satisfaction

‒ Employee retention

© 2009 Sandy Blaha Performance Consulting 18

Your brain’s

functioning…

when you are not

stressed or upset.

You Are Normally Rational

© 2009 Sandy Blaha Performance Consulting 19

Learn to Avoid…

Your brain’s

functioning…

during a crucial

conversation.

© 2009 Sandy Blaha Performance Consulting 20

Your brain’s

functioning…

when you use

Crucial Conversations ®

skills.

Get the Results You Want

© 2009 Sandy Blaha Performance Consulting 21

Conflict and Success

The measure of success is not

whether you have a tough

problem to deal with, but whether

it is the same problem you had

last year.

John Foster Dulles

© 2009 Sandy Blaha Performance Consulting 22

Essential Team Conversations

• Improvement in company performance

• Delegation and sharing of authority

• Career path and role-changes

• Individuals’ performance

© 2009 Sandy Blaha Performance Consulting 23

Take These Steps, Use These Tools

4 STRATEGY:

Performance Planning

© 2009 Sandy Blaha Performance Consulting 24

4 Decisions

4 Decisions All Growth Companies Need to Get Right

© 2009 Sandy Blaha Performance Consulting 25

Review: 4-3-2-1 Results

© 2009 Sandy Blaha Performance Consulting 26

Cash

Cash Conversion Cycle

© 2009 Sandy Blaha Performance Consulting 27

One Page Business Plan

© 2009 Sandy Blaha Performance Consulting 28

Performance Compensation

Role Clarity & Key Performance Indicators (KPIs)

© 2009 Sandy Blaha Performance Consulting 29

Multi Rater Feedback

© 2009 Sandy Blaha Performance Consulting 30

Achieve These Results

5 REWARD:

Performance Compensation

© 2009 Sandy Blaha Performance Consulting 31

Strategic Leadership Assignments

Leadership Enhancers

• Tough assignments

• Failure and rebound

Leadership Derailers

• Not open to feedback

• Lack of introspection

• Need to be right

© 2009 Sandy Blaha Performance Consulting 32

“Motivation is highest when the probability of success is 50%.”Judith Bardwick

Creating an Organization of Winners

ENTITLEMENT FEAREARNING

I HAVE IT

COMING

I DID THE BEST

I COULD

I LIKE THINGS

JUST THE WAY

THEY ARE

HAVE YOU

THOUGHT IT

THROUGH?

LET’S GO FOR

EXCELLENCE!

SHOOT

FOR THE

BIG ONE!

YOU CAN

NEVER LET UP

WATCH OUT!

MAKE ME

SAFELow High

High

Anxiety

Pro

du

ctivity

© 2009 Sandy Blaha Performance Consulting 33

5 Keys Value Building System

1. VISION: Define, map owner’s future

2. ASSESS: Identify and assess top talent

3. LEADERSHIP MINDSET: Build the leadership team

4. STRATEGY: Performance planning

5. REWARD: Performance compensation

© 2009 Sandy Blaha Performance Consulting 34

Expect Results

© 2009 Sandy Blaha Performance Consulting 35

Expect Results

Results

• Leadership Mindset™= skilled management, role clarity,

performance, accountability, execute strategy

• Shared vision: from “me” to “we”

• 2X valuation

© 2009 Sandy Blaha Performance Consulting 36

Foundation for Success

© 2009 Sandy Blaha Performance Consulting 37

Sandy Blaha Performance Consulting

Sandy Blaha Performance Consulting provides comprehensive

organizational effectiveness that grows value for exiting and next-

generation owners:

• Talent Assessment

• Exit planning

• Leader development

• Performance management

• Strategic planning, consulting, training and coaching

www.sandyblaha.com

303-260-6480