Merging Financial Control and Strategic Intelligence: Optimizing the Strategic Positioning (OSP™)

Most efficient strategic segmentations result from the confrontation between given business characteristics and corresponding markets.

This is why, on the business side, financial control (the P&L) weight the relevant components to each strategic segment. Here comes the Funnel Technique™ role, a simple contribution analysis, whose heart is the contributions of each segment to total quantity, revenue, gross margin and EBITDA or net income. Yet, behind the volume of each segment are all related costs, i.e., varying by business type, direct labor, amortization, material… and, beyond the business, are the market segments, with their own contributions to volume, value and net income. Whether the large or the small orifice of the funnel is oriented to the net income makes all the difference.

On the market side, its quantification it is an absolute must and most B2B businesses are struggling doing it. Here comes the Cross-Matrix Technique™. The method summarizes into a few key principles: use a top-bottom approach, multiply the matrices, develop both quantity and value to avoid stupid prices, translate any qualitative information into quantitative data, renounce accuracy where it is useless…

Once all matrices iteratively match, the market is known with enough precision to develop a strategy.

 

To develop a strategy by segment, now OSP™ comes into play, with a visual graph of the strategic segments on a most synthetic matrix “net margin x market share” and past/future growth, by which each segment’ possible strategy emerges. In the back office, all strategic actions directly transpose into the P&L.

Key Takeaways

  • Strategic segmentation is inescapable
  • Any industrial B2B market can be quantified
  • A visual graph of a strategic positioning eases efficient and consensual decision making


Speaker Profile


Dr. Bruno Bérard received degrees in international commerce, business administration and modern & contemporary history. He started his career as export sales engineer in thermal regulation (Jaeger Regulation), then as international operation manager in aerospace hydraulics & pneumatics (Titeflex). He then moved to senior positions in Saint-Gobain advanced material division as business manager (8 business units) and as global marketing & sales director, for 10 years. After a few years as consultant in strategy and operations for Swiss, US and German groups (engine components, thermal spay, orbital welding…), he joined the aerospace industry leader Alcoa Fastening Systems (now Howmet Fasteners) as VP product management, then Director Strategy & Development along with positions of CEO and board member of subsidiaries, for 10 years. Since 2009, he is consulting in strategy & acquisition for many companies, mostly in aerospace (Lisi, PCC/SPS, Boeing, Pattonair, Align, ALA, PWC…). He currently coordinate Vernet Group’s strategy.


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