The playbook for success in a slow growth

1. Recap: They Playbook for Success in a Slow Growth Economy
Table of Contents:
I. The Playbook for Success in a Slow Growth Economy, Terry Peltes,
Technology & Healthcare Services leader
II. Economic Trends Update from Garry E. Meier, TeXchange State and Houston
Chairman, Ephor Group Chairman
III. About TeXchange.

2. About Terry Peltes
Terry Peltes is a noted Technology & Healthcare Member
Adjunct Professor, Daniels College of Business,
Business Services executive and leader. University of Denver
Denver Metro Chamber of Commerce, Health
Currently,
Currently Terry is actively involved in Care Committee, Chair
consulting with national healthcare Healthcare Financial Management Association
services companies and healthcare (HFMA)
focused private equity groups where he American College of Healthcare Executives
helps companies clarify strategy and align (ACHE)
operations, accelerate revenue and profit  The Strategic Account Management Association
growth and increase enterprise value. (SAMA)
American Institute of Certified Public Accountants
Terry s
Terry’s clients are noted to achieve market dominance (AICPA),
(AICPA) Illinois CPA Society (ISCPA) Colorado
(ISCPA),
Society of CPA’s (CSCPA)
through specific strategies designed to out-market, out-sell,
and out-service the competition. Six Sigma Champion and Six Sigma
Green Belt
Terry is Six Sigma and Lean Certified as well as a member of Certificate in Corporate Strategy from
Harvard Business School Alumni, Healthcare Financial Management the MIT Sloan School of Management
Association (HFMA), American College of Healthcare Executives
Stanford Graduate School of Business,
(ACHE), The Strategic Account Management Association (SAMA) , Executive Program for Growing
and numerous non-profit, private and public company boards. Terry Companies (EPGC)
is l
i also currently an Adj
tl Adjunct P f
t Professor, D i l C ll
Daniels College of B i
f Business,
University of Denver.

3. The Playbook for Success in 2012
For the P&L Income Statement to Outperform the Competition:
• Revenue Growth = a function of a “Portfolio of Actions and Activities”
Marketing including: Brand Awareness, Internet Marketing / Social Media Marketing, Lead Generation
from multiple sources and channels, and Community Marketing.
Distribution including Direct Sales, Channel Distribution, Partnering, and New Client Referrals.
“Steroid” resumes need to part of your Advisory process to attract the “Right” attention
develop as a branded sector leader
leader.
Acquisition: M&A requires outside help (deal professionals) beyond accountants and lawyers
Timelines ↑
Failure Rates ↑
Structures are more Complex and require deal professionalism and expertise
• ↑ Need for timely Operational Management Information: Timely and Effective Tactical
Decisions.
•Financial Engineering/Fund Raising is a perpetual need and an ongoing process
Needs to be done by professionals from the Investment community
Optionality needs to be ongoing activity for growth oriented company

4. The Playbook for Success in 2012
Clarity Established
Around Strategy
About who the Customers should be
Performance/Objectives
Roles, Goals, and Agendas
Culture
Expectations
Outcomes and Successes
Change and Change Management
Leadership and Management Effectiveness
Performance Calculators drive “Dial-In Performance” as a result of the a
“Portfolio of Activities.”
Operational Calculator
1% ↑ Potential effect on = ↑ EBITAD
↑ 2% Productivity
↓ Client Turnover
All Performance Indicators Improvement > Meaningful Impact.

5. The Playbook for Success in 2012
It is not the strongest of the species
that survives, nor the most
survives
intelligent, but the most adaptive to
change.
change
Charles Darwin

6. Q&A Recap from The Playbook for Success
Q: What should we learn from breakaway companies and what can pack leaders to
outperform and breakaway?
A: First, use “Migration theory” to validate growth strategies. Every year new
products/customers/services should represent 15%+ of revenues. But also collaborate
with other breakaways.
Q: How do you balance clarity and commitment versus adapting to change?
A: Get everyone involved in the refinement and communication of the customer value
proposition. Cannot spend enough time on this.
Q: How do you grade performance? What metrics do you use?
A: Start with benchmarks with Industry Comparables, plus leaders from alternative
industries. And be sure to put in place a “minimum professional standard” that is
acceptable.
Q: How do you avoid price discussions and commoditization?
A: Innovation. Get everyone involved.

7. Q&A Recap from The Playbook for Success
Q: How does David beat Goliath?
A: Build a better customer value proposition (segment as required), which takes multiple
iterations to perfect. Also, through better, and more nimble execution.
Q: What tools can we use to get employees on board?
A: Email me tpeltes@thepeltesgroup.com or bedard@ephorgroup.com for a packet for
workshop exercises for executives to use with their management teams.
These are practical exercises and tools for leaders to lead; which means getting
employees moving in the aligned, right direction. In our slow growth economy, there
exists a minimum level of sophistication and standards required to outperform the
competition. Challenges to overcome in a slow growth economy include: a) slow
growth,
growth b) delayed decision making c) rampant and widespread mediocrity, d) noise
making, mediocrity noise,
and how-to rise above the social media and advertising noise, e) reduced margins, f)
rising costs, regulations, complexities, g) increased local and global competition, and
h) bias against innovation and adaption and response to new client demands. Growth
in a slow growth economy requires adaption to customer needs For your customers
needs.
solve both gaps: performance gaps and opportunity gaps.

8. About Garry E. Meier
Garry is highly recognized as an industry thought leader in the
technology services arena as well as outsourcing sectors. He is a
noted speaker on strategic effectiveness, value creation, industry
trends, useful capital, performance improvement, outsourcing and
customer satisfaction. Additionally, he is an advisor to private
equity and venture firms on their investment strategies and
portfolio companies and has been a small business advocate to
the US Senate.
Senate
Mr. Meier currently focuses on providing board, institutional and
C-level guidance to maximize strategic, operational, and equity
effectiveness for technology and service companies.
Garry E. Meier who founded the Ephor Group to apply the
performance improvement methodologies and shareholder value
enhancement processes he and his associates developed over
his thirty plus year career to a diverse group of technology and
service companies.

9. Economic Trends State of the Union
 Uncertainty in 2010/2011 Created Bifurcation into Laggards versus Leaders
Leaders.
• Uncertainty stems from
• Slow Growth Economy, Debt troubles, Debt hangovers, Global crisis, Political election
• Rising Costs & Complexities = rising costs across healthcare, labor, and regulatory compliance costs of
doing business. The US g
g government continues to p on new regulations, 40,000 p g worth j
pile g pages just went
into effect on the first of January. The most significant will be the IRS 1099 reporting
requirement. Obamacare still creates uncertainty and is driving up healthcare costs.
• Small business squeezed by big government and big business.
• Forecast: Earnings expected to grow by 12% against a 2 to 5% GDP growth rate.
• Takeaway: Get big or create a defensible nitch
nitch.
 Capital & Financial Engineering has limited availability.
• Credit facilities will be asset based lending only.
• Venture continues to ride the wave of “Consumerism ”
Consumerism.
• Mezzanine lenders remain eager to put capital to work with transaction structure and pricing relatively flexible.
• Access to growth capital for the very best business models only.
• A third of corporate and financial corporate development buyers said they would be buying in 2010 and 2011,
versus nearly 95% intended to acquire with 42% intending to acquire 3 or more deals in 2012 (SEQ 2012 Survey
results).
results)
 Growth will occur for companies that have lowered their costs of sales compared to
competitors, reduced their overall cost structures, and have a portfolio plan for
growth and expansion
expansion.

10. Houston, Texas Economic Trends
Texas' economy is moving more into recovery with job growth and higher than expected tax
higher-than-expected
revenues, but the slow growth economy is still prevalent and uncertainty looms.
• Texas added more jobs in the 2011 fiscal year than any other state, and had the highest
job growth.
• Houston led Texas in job growth last year, accounting for one in every three jobs created in
the state. The 10-county Houston metro area added 75,800 jobs, a 3.0 percent increase
over the previous year. The state created 205,100 jobs, a 2.0 percent increase.
• Nine of 11 sectors in Houston added jobs last year. Only two—information and
government—reported losses
• A changing demographic market: Within the next few years, Latino market will be as big as
any other market.

11. Houston TeXchange Mission
“To provide a relevant resource and knowledge
p g
network to enable executives of technology
businesses in the creation of wealth and
shareholder value by creating sustainable
business models.”

12. 2012 Houston TeXchange Curriculum
Houston TeXchange Content & Event Dates for 2012:
• 2012 Networking Cocktail Kickoff with a benefit for Justice for Children: Jan. 26thth
• Economic Trends & The Playbook for Success: February 23rd
• Revenue & Opportunity Management
– Marketing Technology Trends & Tactics: April 5th
– Sales Strategies for Growth in 2012: May 17th
• Capital & Financial Management: August 16th
– Financial & Expense Management including Useful Capital Financing
• Leadership & Management:
– Leadership Effectiveness, September 13th
– Management Effectiveness, October 25th
Effectiveness
• Holiday Event, December 6th
*All events are located at The Briar Club @ 2603 Timmons Lane Houston, TX 77027

13. 2012 Houston TeXchange Curriculum
TeXchange Curriculum for 2012:
• Economic Trends & The Playbook for Success in 2012 and Beyond: February 23rd
Focus to include: The state of the union for technology businesses as well as the macro and micro influencers and how
to succeed in the new economy. y
– Attributes of a Successful Business Model in a Slow Growth Economy
• Trimester #1: Revenue & Opportunity Management:
Focus to include: Effective revenue models, sales strategies, marketing tactics, branding and social media strategies for
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today’s world.
– Marketing Technology Trends & Tactics: April 5th
– Sales Strategies for Growth in 2012: June 7th
• Trimester #2: Capital & Financial Management:
Focus to include: How do advisors, external resources and useful capital providers enable wealth creation. Also, the
hallmarks of effective financial management including financial controls and reporting practices as well as management
science for top performing organizations.
– Financial & Expense Management including Useful Capital Financing , Summer TBD
p g g p g
• Trimester #3: Leadership & Management:
Focus to include: Business strategy practices for our “Twitter” world, management processes and leadership practices.
– Leadership Effectiveness, September 13th
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– Management Effectiveness, October 25th

14. Who We Are: Leadership
Houston Chapter Board
• Chairman, Garry E. Meier, Founder and Chairman, Ephor Group
• President, Jeff Brown, Vice President, Corum Group
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• Treasurer, Mike Goodwin, Co-Founder Technology Entrepreneur's Exchange
• Secretary, Charles Bedard, Growth Practice Leader, Ephor Group
Table Leaders Sponsors
• Mike Patton Aventine Hill Partners Inc Oracle
www.aventinehillinc.com www.oracle.com
• John Younkers
• Scott Clingan Ephor Group LLC Weaver LLP
• Jeff Brown www.ephorgroup.com www.weaverllp.com
• Joe Barber
Fizer, Beck, Webster, Bentley,
• Mike Goodwin Scroggins
www.fizerbeck.com

15. Vision for the Houston Chapter
• TeXchange is critical to the economic growth, job
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creation and prosperity of the Houston technology
oriented business community. We are working to create
“special interest groups” and in-depth events to help
special groups in depth
members deepen their knowledge and achieve even
greater value from their membership.
• Thank You for Your Support and Patronage
Garry Meier: TeXchange Chairman

16. TeXchange Membership Profile
 Houston Entrepreneurs and Executives of Technology-
Oriented Businesses
 Company size must be relevant and growing generally
 Executives/Members must be a Learner and Networker
 Wants to Learn versus be Entertained at the Chapter
Meetings

17. Our Next Event, Thursday April 5th
Event special focus: Marketing Tactics for 2012: Technology, Tools, Tips.
• Panelist: Bret Starr, The Starr Conspiracy
• Panelist: Daniel Lynton, LyntonWeb
 Revenue & Opportunity Management with special focus on
Marketing Technology Trends & Tactics.
• This seminar will focus on effective revenue models, sales strategies, marketing
tactics, branding and social media strategies for today's world. Panelists will
address the following questions:
– What t h l
Wh t technology and tactics should every software and service company be employing in 2012 t
d t ti h ld ft d i b l i i to
drive leads and generate revenues?
– What is the most cost effective program or strategy for generating new clients?
– How do firms create consistent, predictable, sustainable results from marketing that generates
sales?

18. Our Next Event, Thursday May 17th
Event special focus: Sales Strategies for Growth in 2012.
 Revenue & Opportunity Management Focus on Sales Strategies for Growth
in 2012.
• This seminar will focus on effective revenue models, sales strategies, marketing
tactics,
tactics branding and social media strategies for today's world Panelists will
world.
address the following questions:
– What are the best strategies for sales in 2012 for B2B?
– What surefire tactics, Referral Selling, Principal Selling, etc, are most effective today?
– What business development and channel including alliances and partnership success stories can
you share with us that apply to technology oriented businesses in 2012 and beyond?

19. Key Contacts
• MEMBERS AND GUESTS
Charles Bedard
713.401.9647
bedard@ephorgroup.com

20. Houston TeXchange 2012 Sponsors