GGOB Basics // Critical Number Heather Reinkemeyer Darin Bridges - - PowerPoint PPT Presentation

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GGOB Basics // Critical Number Heather Reinkemeyer Darin Bridges - - PowerPoint PPT Presentation

Jun 05, 2023 384 likes •831 views

GGOB Basics // Critical Number Heather Reinkemeyer Darin Bridges Crew & Community Relations Manager Vice President GGOB Internal Coach The Great Game of Business Vital Farms Springfield, MO Springfield, MO Agenda Introductions

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GGOB Basics // Critical Number

Darin Bridges Vice President The Great Game of Business Springfield, MO Heather Reinkemeyer Crew & Community Relations Manager GGOB Internal Coach Vital Farms Springfield, MO

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Agenda

  • Introductions
  • Define
  • Benefits
  • Choosing
  • New Practitioner Story
  • Old Practitioner Story
  • Rolling it Out
  • New Practitioner Story
  • Old Practitioner Story
  • Other Examples
  • Call to Action
  • Questions
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Introductions

Darin Bridges

  • Pre-Med
  • Mfg./Dist.
  • GGOB Fail
  • SRC
  • GGOB for Real

Heather Reinkemeyer

  • Kansas
  • Optometry
  • GGOB
  • Vital Farms
  • Internal Coach
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Critical Number Definition

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The Critical Number™

An operational or financial number that represents a weakness or vu vuln lnerabilit ity that, if not addressed and corrected, will neg egatively im impact the overall performance and long-term security of the business.

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The Critical Number™

If you don’t address & measure, bad stuff can happen.

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The Critical Number™

If you do address & measure, good things should happen.

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The Critical Number™

A Rallying Point!

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The Critical Number™

  • It’s ‘The One Thing’ …

that at any given time, is going to have the greatest impact on your business

  • It’s ‘The One Thing’ …

you must achieve or nothing else you achieve really matters much

  • It’s ‘The One Thing’ …

that clearly defines winning!

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Critical Number Benefits

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The Benefits

  • Provides a ‘Focus’ around

what’s most important & critical to success

  • Rallies everyone around a

‘Common Goal’

  • ‘Educates’ the team
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Creates Line of Sight

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Grower Support Operations Finance, Accounting, & IT Sales & Marketing Talent Supply Chain

Vital Farms

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FINANCE ACCOUNTING IT GROWER SUPPORT COMPLIANCE SALES

1st shift 2nd shift 3rd shift Shipping Maintenance

MARKETING

Content Brand Ambassadors Food Service

TALENT SUPPLY CHAIN OPERATIONS

Innovation Recruiting HR Crew Experience

Vital Farms

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The Benefits

  • Clydesdale effect
  • All pulling ‘Together’ the same direction
  • Exponentially greater power than alone
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Choosing a Number

“New Practitioner Story”

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Choosing a Number

  • The Appraisal Pro

rocess

  • Employee Perspectives
  • Management Perspectives
  • Financial Analysis
  • Industry Comparisons
  • The High-Involvement Pla

lanning Pro rocess 1. Sales & Marketing (Market, Competition, Strategy) 2. Prepare Projected Financials 3. Analyze Projected Results 4. Identify Critical Number 5. Design Incentive Plan

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Choosing a Number

People le support what they help lp create!

Mag agic Number? The real magic isn’t in the number, it’s in the process of getting to the number.

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Choosing a Number

“Where do you start?” By confronting the brutal facts… A searing scientific debate - With smart, tough-minded people ex examin inin ing hard fa facts and de debating what th those fa facts mean. The point isn’t to win the debate, but rather to to co come up up wit ith th the bes best an answers.” – Jim Collins

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Vital Farms Number

Going to back to your “why”

  • Educate your crew
  • Actions, attitudes, and behaviors moved the

needle

  • Build a financial foundation

. . .

Cost per Dozen $$

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Choosing a Number

“Old Practitioner Story”

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SRC Heavy Duty Number

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SRC Heavy Duty Number

  • End

d of f 2017

  • Have gro

rown fro from $25M to to $85M

  • 240% in

in 7 Years

  • Fue

ueled by by Passion

  • Ja

Jack ste teps in in as as our ur VP

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SRC Heavy Duty Number

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SRC Heavy Duty Number

  • Two Large Contracts
  • Projecting $90M fo

for 2018

  • Well

ll on our way to to $100M Goal

  • But

ut we e were not Suc uccessful

  • Bec

ecause, we e were not t Profitable

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SRC Heavy Duty Number

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  • The Appraisal Pro

rocess ✓ Employee Perspectives ✓ Management Perspectives ✓ Financial Analysis ✓ Industry Comparisons

  • The High-Involvement Pla

lanning Pro rocess ✓ Sales & Marketing ✓ Prepare Projected Financials ✓ Analyze Projected Results

  • Identify Critical Number
  • Design Incentive Plan

“What can we do to make $?”

SRC Heavy Duty Number

Co Confi nfidence in n the the mark rket, , stra strategy, sale sales plan plan, ope pera rations & our ur cap capabilities (Pr (Previous Sli Slide) (PB (PBT = = 5% 5% - 10 10%)

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SRC Heavy Duty Number

  • Set

et a a pla lan to to make $3.5 .5M in in Profit

  • Set

et a a goal to to make $5.5 .5M in in Profit

  • In

Ince centive ba based on an anything ove ver $3.5 .5M

  • How to

to get et th there?

  • Note:

: W We wer ere tra trackin ing 3% Net et Pro rofit it by by YE2017

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SRC Heavy Duty Number

  • Se

Set a pla lan to to make $3.5 .5M in in Pro rofit

  • Se

Set a go goal to to make $5.5M in in Pro rofit

  • How to

to ge get t th there?

Inc ncre rease Ne Net t Pr Profit Marg rgin? $90 90M @ 6% 6% Ne Net t Pro Profit Marg rgin Re Redo

  • Sales

Sales Pla Plan? $125M 125M @ 4% 4% Net Net Pr Profit Marg rgin

  • r
  • r

(We had an aggressive team)

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Rolling it Out

“New Practitioner Story”

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Rolling The Critical Number Out

  • 1. Leverage your design team
  • 2. Explain the why and then the how
  • 3. Connect the dotted lines by starting on

their side of the table

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Vital Farms Number

Cost per Dozen $$ → On Time In Full (OTIF)

→

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Rolling it Out

“Old Practitioner Story”

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SRC Heavy Duty Number

6% PBT (N (Net Profit Mar argin)

“People tend to support what they help create”

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SRC Heavy Duty Number

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Creates Line of Sight

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SRC Heavy Duty Number

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SRC Heavy Duty Number

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Critical Number Other Examples

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Other Number Examples

  • 2010 – Ear

arnin ings

  • 2011 – Ret

eturn on Assets

  • 2012 – Ear

arnin ings & Sale les / / Emplo loyee

  • 2013 – Ear

arnin ings & On-Time Delivery

  • 2014 – Ear

arnin ings & Net Promoter Score

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Other Number Examples

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Call to Action

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Call to Action

  • New Pra

ractit itioner

✓ What’s the link that connects your business to your people? ✓ How will it educate your teams to move the needle? ✓ What’s your why?

  • Experie

ienced Pra ractit itioners

✓ Think outside the box, get creative ✓ Use line of sight to refresh the game ✓ Connect to HIP, what’s your long-term strategy?

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Questions?