2. Have you gotten the
most out of the
housing downturn?
(some might say, CRISIS?)
3. Can you see your way
to making 10% pre-tax
margins?
(are you making them now?)
4. Are you positioned to
make the most of an
eventual recovery?
(given current inventory levels, it
won’t take much of one to have a
significant impact on the industry)
5. Have you used the
downturn to invest in
your people, processes
and systems?
(“hunkering down” doesn’t count
as an investment strategy)
6. Can you see your way
to becoming the lowest
cost customer to each
of your trade partners?
(are you there already?)
7. What if your chief
competitor could
answer YES to each of
the preceding questions
sometime in the next
six months?
12. if the time your
people spend
firefighting was a
fraction of what it is
today,
13. and instead, they were
able to focus almost
strictly on work that
adds value in the eyes
of your customers?
14. Can’t say for sure, but I
think it would look
something like
15. t Lo
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k a
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a
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peti Dominance ry
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to Talent ho s
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to Cu alue” om d e P
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16. I mean, we could be
talking about the likes
of . . .
25. Over the past 40 years, Toyota share price has
9,000%
outperformed Ford by nearly 17X!
8,100%
7,200%
6,300%
5,400%
4,500%
3,600%
2,700%
1,800%
900%
0%
Dec-72 Dec-75 Dec-78 Dec-81 Dec-84 Dec-87 Dec-90 Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08 Dec-11
TM F .SPX
26. And, one of America’s
most successful
manufacturers
27. Over the past 15 years, Danaher stock has outperformed
its peers by 764% and the S&P by 800%!
1,000%
900%
800%
700%
600%
500%
400%
300%
200%
100%
0%
97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
DHR GE SI MMM JMHLY TYC PHG .SPX
29. Since the inception of its Lean efforts in the
24,000%
mid-80’s, Danaher’s stock has outperformed
21,000%
that of its peer group and the S&P
18,000%
by more than 21,000%!
15,000%
12,000%
9,000%
6,000%
3,000%
0%
Feb-85 Feb-87 Feb-89 Feb-91 Feb-93 Feb-95 Feb-97 Feb-99 Feb-01 Feb-03 Feb-05 Feb-07 Feb-09 Feb-11
DHR GE SI MMM TYC PHG .SPX