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Why Business Transformation?
• We are doing well, but we can do better• Alignment—internally and with sales leaders• Focus our resources on growth initiatives
Pharmanex — S2, g3, LifePak nano Nu Skin — ProDerm Big Planet — Photomax Geographic Investments
• Identify, create and sustain competitive advantages • Simplify
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Business Transformation
• Not all work is created equal
• Left unabated, compliance and business essential work overwhelms the more important competitive and competitive enabling work
Competitive process
Competitive enabling process
Business essential process
Non-essential process
Compliance
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4 Core Business Processes
Competitive process Business essential processCompetitive enabling process
Strategy Development
Product DevelopmentDemand Creation (Distributor Success)
Supply Chain
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Great Companies Choose One Core Process Where Competitive Work is Done
• Product Development – Apple / Intel• Demand Creation – Nike / Starbucks
• Supply Chain – WalMart• Strategy – Berkshire Hathaway
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Strategy Development
• What is our strategic intent?
• What will we do differently than all of our competitors?
Strategic Intent
Strategic Means
Strategic Action
Resource Allocation
and Execution
Strategy Making and Plan Process — two to five years
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Pro
duct
Opp
ortu
nity
Cul
ture
Our Community -
A better way of life
Nu Skin Enterprises - Pillars of Success6
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Characteristics of our Opportunity
Historically:• Leadership focused• Generous comp plan• Global/Seamless
Today:• Distinct product brands, plus
Q: What do we do differently (competitive advantage)?
A: We will become best at developing successful leaders
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Characteristics of our Products• Innovative• Premium Quality• Proprietary• Product Integrity — Substantiation• All of the good, none of the bad
Q: What do we do differently (competitive advantage)?
A: “The Measurable Difference”A: We apply a higher level of technology to each of
our product categories: Scanner, ProDerm, Photomax
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Characteristics of our Culture
• Force for Good• Integrity• Fun• Encourage our partners to make a difference in the
world
Q: What do we do differently (competitive advantage)?
A: Nourish the Children: Force for good baked into the business model
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Distributor Success Process
• Our most important asset is our distributor partners; therefore, this is our most critical process and where our major competitive work takes place
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Distributor Success Process
Consumption& Duplication
SponsoringLeadership
Development
Trained Distributor (with 100 pts)
Successful Distributor(active, sponsoring, duplicating, advancing)
Retained Distributor Consuming and Duplicating (sponsored 3 active distributors)
Active Consumer (ordering every 3 months)
Consumption
Engaged consumer (who places the 1st
order)
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Three Competitive Components of the Distributor Success Process
• Sponsoring
• Consumption/Retention
• Leadership Development
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Sponsoring
• Ensure opportunity creates demand
• Focus on easy, frictionless signup process
• Ensure process to qualify for commissions is clear, simple and standardized
• Create an amazing support experience for a new distributor
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Consumption/Retention
• Provide a consistent focus on retention of both consumers and distributors
• Provide partners with tools necessary to immediately begin the business duplication process
• Create incredible first experiences (first check, first order, etc.)
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Leadership Development
• Focus our time and resources on the most valuable stage of your business; leadership advancement, leadership skills and recognition
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DSP Strategies
DistributorSuccessStrategies
• Execute: simple story effectively communicated
• Implement frictionless sign-up process
• Develop and implement DRM programs
• Align core global programs (ARO, Scanner etc)
• Implement aligned technology strategy
• Introduce success roadmap
• Develop and execute leadership programs
• Make culture pervasive throughout organization
• Implement global recognition standards
Eliminate sign-up barriers
Strengthen consumption and duplication processes
Improve leadershipeffectiveness
Core Strategies Key Tactics/Actions
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Overall Conclusion
While each NSE market may require localized business strategies, there are core overarching Distributor Success Processes that apply to all markets…
Identifying and implementing these core and enabling processes will result in growth and savings
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Product Development (PD) Core Processunique distinctive brands
Ideation Design/Product Story
Formulate & Testing
Development Manufacturing LaunchProduct
Management
Viable innovativeproduct idea
Business caseproduct concept
Preliminaryformula
Final productSpecifications –Product integrity
and quality
Productinventory
Incrementalrevenue
Brand growth&
Improved profits
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• Developing innovative products to drive the business opportunity• Number of scientists (including external thought leaders) in Multi Disciplinary teams to discover products with a measurable difference
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CorporateDevelopment
Jack Peterson
CEOTruman Hunt
ProductDevelopment
Joe Chang
DistributorSuccess
Dan Chard
Finance
Ritch Wood
HumanResources
Claire Averett
Legal
Matt Dorny
Growth Opps Sponsoring Acquisitions Big Planet
Nu Skin PDPharmanex PDProduct MgmtSupply Chain
Geographic Mgmt.Sponsoring/Reten/Leadership DevDistributor TrainingCompensation PlanProduct Mktg/SalesRecognitionEventsCreative ServicesNew Markets
FinanceITAdministration
Business TransEmployee EventsFFG Culture
Gov’t RelationsDistrib DisciplineDistrib. Policies& Procedures
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Distributor Success
Dan Chard
Americasand Europe
Scott Schwerdt
North Asia
Robert Conlee
AsiaPacific
GlobalCoordination
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North AmericaSouth AmericaWestern EuropeEastern Europe
Distributor EventsRecognitionCommissionsCreative ServicesNew Market Development
JapanKorea
Greater ChinaSoutheast AsiaAustralia/NZ
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What’s Next?
$2.5 billion in annual revenue
AND $1 billion of annual
commissions!
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