1. Who are the shareholders and what do they want?
Ellen Bright, the new CEO, her job is to make DAP achieve 12% return on capital employed (ROCE) and a growth rate faster than the industry’s. She wants all of the DAP people to do three things: grow, become customer intimate, and must be operationally excellent, so that they can regain their high-quality position and grow their revenues and their contribution to the parent company.
Joe, the new CFO, designed a simple economic model to pinpoint the critical economic drivers for the goal of a 12% ROCE. He wants to increase their top-line revenue by 50% through innovation and customer relationships, better utilize their capital assents from 65% utilization on old assets to 90% utilization on an upgraded asset base, and minimize their total cost structure, getting to the lowest-cost quartile to compete.
Michael Milton, vice president of manufacturing, wants they to get more creative and bring new and improved products to market. However, first of all, they need to do a lot of internal things better. He wants supplier management and manufacturing as well as product delivery to be better coordinated, on time and on spec to get the opportunity to sell new products, better managing the supplier pipeline and the raw materials, and to balance their intense focus on cost cutting with the need to make investments in process improvements and new and upgraded equipment.
David Dillon, head of distribution, wants to streamline their distribution process and position themselves as a strong business partner to attract and retain profitable customers.
Mary Stewart, vice president of marketing and sales, wants to position themselves in the market for the right targeting customers to be viable and improve their distribution as well, delivering products to those key customers on time and on spec.
Rita Richardson, vice president of research and development, wants some of their marketing staff to spend time in the R&D