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					KEY FINANCIAL MANAGEMENT
          TOOLS



  PRESENTED AT MASTER BUILDERS’
          FIRST ANNUAL
   REGIONAL ECONOMIC OUTLOOK
                &
       MANAGEMENT FORUM
                  BY
          ALLEN & ASSOCIATES
             Future Focus


• Companies are going to have to unlearn a
  lot of their past - and also forget it.
• The future will not be an extrapolation of
  the past.
     • From “Future Thinking”
  Illiteracy - Yesterday and Today

• The illiterate of the future are not those who
  cannot read or write
• They are those who cannot learn, unlearn,
  and relearn
     • Alvin Toffler
                      A New Paradigm

• Old school - Control information
• New school - Share information
KEY TOOL AREAS


    FINANCIAL
    OPERATIONS
    SALES
    MANAGEMENT
        TOOLS COVERED
            TODAY

   BALANCE SHEET
   P&L
   BENCHMARKING
   BREAKEVEN ANALYSIS
   JOB & PRODUCT COSTING/PRICING
   JOB & CUSTOMER CONTRIBUTION
        THE TWO KEY
      FINANCIAL TOOLS


   BALANCE SHEET


   PROFIT & LOSS STATEMENT
       BALANCE SHEET

   SNAP SHOT OF THE COMPANY’S
    FINANCIAL HEALTH
    • CURRENT PERIOD
    • LAST YEAR
    • VARIANCE
    • WORKING CAPITAL
    • RATIOS
    • DSOs
    UNDERSTANDING THE
     BALANCE SHEET
       THREE MAJOR SECTIONS
ASSETS (CURRENT & FIXED)

LIABILITIES ( CURRENT & LONG TERM)

NET WORTH (EQUITY/BOOK VALUE)

            MODULE III: SESSION 1 - 0H   11
        TYP IC AL BALA NCE S HEET
            CU RREN T ASS ETS


             ASSETS                               199 8            19 9 7     Chg         % CHG

CU RREN T AS SETS
CASH                                                  $4 5 9          $36 0        $9 9     27 .4 %
SH ORT T ERM INVESTMENTS                              $3 9 8          $66 2    ( $26 4)    -39 .9 %
NET ACCOUN TS RECEIVAB LE                          $ 2,68 0        $ 1,50 1   $ 1, 18 0     78 .6 %
OTH ER REC'BLES                                          $8             $5         $3       52 .1 %
INVENT ORY                                            $9 0 6       $ 1,03 5    ( $12 9)    -12 .5 %
PR EP AID EXP                                          $4 6            $4 6        $1        1. 6 %
NOTE REC'B LE                                             $0          $35 0    ( $35 0)   -1 00. 0 %
DEDUCTIONS                                                $0            $0         $0         0. 0 %

TOTAL CU RREN T ASS ETS                            $ 4,49 8        $ 3,95 9     $53 9        13 .6 %


                          M O D U L E III : S E S S IO N 1 - 0 H                          1 00
               TYP IC AL BALA NCE S HEET
                     F IXED ASS ETS
FIXE D A S S E T S                                           1998              1997             Chg              % CHG

LA N D                                                           $ 94 6            $4 23            $5 22         1 2 3 .4 %
S &G B A N K                                                     $ 25 7            $2 57               ( $0)        - 0.0 %
LA N D IMP R V                                                     $2 8              $ 28                $0              0.0 %
B U ILD IN G                                                     $ 55 5            $4 01            $1 54          3 8 .3 %
MA C H IN E R Y & E Q U IP T                                  $ 9 ,7 6 5        $ 8 ,5 1 3       $ 1 ,2 5 2        1 4 .7 %
T R U C KS & A U T O S                                        $ 6 ,1 6 0        $ 4 ,3 2 2       $ 1 ,8 3 8        4 2 .5 %
O F F IC E F U R N & F IX                                        $ 11 5            $1 06                 $9              8.5 %
LE A S E H O LD IMP R V                                            $9 2              $ 92                $0              0.0 %
C O N S T R UC T IO N IN P R O G R E S S                         $ 13 3              $ 90             $ 43         4 7 .3 %
T O T A L P R O P E R T Y & E Q U IP ME N T                 $ 1 8 ,0 5 0       $ 1 4 ,2 3 3      $ 3 ,8 1 8        2 6 .8 %


A C C U M U LA T E D D E P R E C IA T IO N                 ( $ 1 1 ,0 9 2 )    ( $ 9 ,6 5 1 )   ( $ 1 ,4 4 1 )     1 4 .9 %


N E T P R O P E R T Y & E Q U IP ME N T                       $ 6 ,9 6 0        $ 4 ,5 8 3       $ 2 ,3 7 7          5 1.9%
                                      M O D U L E III : S E S S IO N 1 - 0 H                                      1 01
        TYPICAL BALANCE SHEET
             OTHER SSETS
OTHER ASSETS             1998      1997     Chg      %CHG

NOTE REC'BLE                $949    $721     $228    31.6%
SECURITY DEPOSITS             $2      $2       $1    53.1%
LONG TERMINVESTM  ENTS       $15     $15       $0     0.0%
OTHER REC'BL ES             $248    $248       $0     0.0%
DEFERRED STARTUP COSTS       $10     $10       $0     0.0%
ORGANIZATION COSTS            $1      $0       $1       NA
RESTRICTIVE COVENANTS       $137      $0     $137       NA
GOODWILL                    $220      $2     $218 10916.5%
TOTALOTHER ASSETS         $1,583    $998     $585    58.6%


TOTALASSETS              $13,040   $9,540   $3,501    36.7%
          TYPICAL BALANCE SHEET
            CURRENT LIABILITIES


           LIABILITIES       1998     1997     Chg      % CHG

CURRENT

ACCOUNTS PAYABLE             $1,454    $682     $772 113.1%
NOTE PAYABLE                  $489     $299     $190    63.5%
CURRENT PORTION - L/T DEBT   $1,982   $1,204    $778    64.6%
ACCRUED EXP                   $173     $107      $65    61.2%
OTHER PAYABLES                   $0      $19    ($19) -100.0%

TOTAL CURRENT LIABILITIES    $4,098   $2,312   $1,787    77.3%
         TYPICAL BALANCE SHEET
          LONG TERM LIABILITIES

LONG-TERM

            E
NOTES PAYABL BANK                $6      $13     ($7) -55.4%
            E
NOTES PAYABL OTHER           $4,032   $3,262    $771   23.6%
            E     HOL
NOTES PAYABL STOCK DERS        $243    $283     ($40) -14.3%
MORTGAGE PAYABLES            $1,813    $830     $983 118.4%
SUBORDINATED DEBT            $1,527   $1,581    ($54)  -3.4%

TOTALLONG TERMLIABILITIES    $7,621   $5,968   $1,653   27.7%

TOTALLIABILITIES            $11,719   $8,280   $3,439   41.5%
          TYPICAL BALANCE SHEET
                  EQUITY

EQUITY
                                1998       1997       Chg      %CHG
   M
COM ON STOCK                        $68        $68       $0      0.0%
RETAINED EARNING                 $2,155     $2,155       $0      0.0%
ACCUM ULATED ADJ                  $693       $631       $62      9.9%
TREASURY STOCK                  ($1,595)   ($1,595)      $0      0.0%

TOTAL EQUITY                     $1,321    $1,259       $62      5.0%

TOTAL LIABILITIES & NET WORTH   $13,040    $9,539     $3,502    36.7%
        TYPICAL BALANCE SHEET
                RATIOS

                         1998     1997    Chg    %CHG
       RATIO SUMMARIES
CURRENT                    1.10     1.71     ($1) -35.9%
QUICK                      0.77     0.81     ($0)  -4.9%
WORKING CAPITAL           $400    $1,648 ($1,248) -75.7%
ASSET TURNOVER             1.19     1.10    0.09    8.2%
DEBT/EQUITY                8.87     6.58    2.29   34.9%
ROA                      -0.4%      1.6%   -2.0% -125.0%
ROE                      -4.3%     11.9% -16.2% -136.1%
AR DSO                       62       52      10   19.2%
        PROFIT & LOSS
         STATEMENT
   MOTION PICTURE OF A COMPANY’S
    SALES, COSTS & EARNINGS OVER A
    PERIOD OF TIME:
    • VARIABLE AND FIXED COST
      CATERGORIES
    • DOLLARS
    • PER CENT TO SALES
    • COST PER UNIT
    • VARIANCE FROM PLAN
               COSTS

   VARIABLE COSTS DEFINED AS:
    COST INCURRED WHEN A SALE IS MADE

TYPES:
 MATERIAL

   PLANT
   DELIVERY
                COSTS

   FIXED COSTS DEFINED AS:
    COSTS FIXED IN RELATION TO TIME


   TYPES:
   DIRECT
   SALES
   G&A
    VARIABLE & FIXED COSTS
$2,500




$2,000




$1,500




$1,000




 $500




   $0
                             TIME/VOLUME

         FIXED COSTS   MATERIAL       DELIVERY   PLANT
KEY COMPONENTS OF A READY MIX P&L
  •   REVENUES
  •   VARIABLE COSTS
  •   MARGINAL CONTRIBUTION
  •   DIRECT FIXED COST
  •   OPERATING PROFIT
  •   SG&A
  •   PRE-TAX PROFIT
  •   OTHER INCOME
  •   INCOME BEFORE TAX
  •   EDITDA
  •   TAXES
  •
                  MODULE III: SESSION 1 - 0H   20
      NET INCOME
       TYPICAL READY MIX P&L

                TOMBSTONE READY MIX
          PROFIT & LOSS ( INCOME) STATEMENT

 YARDS SOLD (000)                                   500
                                                          YTD
                                               $ (000)    UNITS     % SLS
 SALES

1 CONCRETE                                    $26,980     $53.96     97.7%
2 ADDED VALUE                                    $375      $0.75       1.4%
3 MISC SALES (SAND,GRAVEL, ETC)                  $405      $0.81       1.5%
4 OTHER CHARGES (MINIMUM LOAD,ETC)               $275      $0.55       1.0%
5 DISCOUNTS & ALLOWANCES                        ($425)    ($0.85)     -1.5%
6 NET SALES                                   $27,610     $55.22    100.0%

                    MODULE III : S ESS ION 1 - 0H                     21
        TYPICAL READY MIX P&L
           VARIABLE COSTS
                                                                   YTD
                                                        $ (000)   UNITS    % SLS
 7   MATERIALS:
 8   CEM ENT                                             $7,998   $16.00    29.0%
 9   FL Y ASH                                              $366    $0.73     1.3%
10   FINE AGGREGATE                                      $2,370    $4.74     8.6%
11   COARSE AGGREGATE                                    $3,453    $6.91    12.5%
12   ADMIXTURES (FI BER/COL OR, ETC.)                      $467    $0.93     1.7%
13   OTHER(ICE/SPECIAL AGG,ETC.)                            $65    $0.13     0.2%
14   TOTAL MATERIALS                                    $14,719   $29.44    53.3%

15   PLANT COSTS:
16   PLANT LABOR                                           $543    $1.09         2.0%
17   F RINGES                                              $115    $0.23         0.4%
18   REPR. & MAINT. (PARTS & LABOR)                        $250    $0.50         0.9%
19   UTILITIES & OTHER                                     $221    $0.44         0.8%
20   TOT AL PLANT COS TS                                 $1,129    $2.26         4.1%
                        MODULE III : S ESS ION 1 - 0H                       22
      TYPICAL READY MIX P&L
    VARIABLE COSTS & CONTRIBUTION
                                                          YTD
                                               $ (000)   UNITS    %SLS
21 D     RY
    ELIVE COSTS:
22 LABOR                                        $2,347    $4.69     8.5%
23 FRINGES ( H&W, PENSION, ETC)                   $576    $1.15     2.1%
24 REPR.& MAINT. (PARTS & LA BOR)                 $792    $1.58     2.9%
25 FUEL & OIL                                     $523    $1.05     1.9%
26 TIRES                                          $135    $0.27     0.5%
          S
27 SUPPLIE & OTHER                                $125    $0.25     0.5%
28 TOTAL DE LIVERY                              $4,498    $9.00    16.3%

     TA
29 TO L VARIABLE COSTS                         $20,346   $40.69    73.7%
30 MA    AL
     RGIN CON  TRIBUTION                        $7,264   $14.53    26.3%

                     MODULE III : S ESS ION 1 - 0H                    23
          TYPICAL READY MIX P&L
       DIRECT FIXED COSTS & OPERATING PROFIT
                                                                  YTD
                                                   $ (000)       UNITS     % S LS

     FIXED COSTS

31   DIRECT FIXED COS T:
32   T RUCK MIXER DEPRECIAT IO N                          $675     $1.35       2.4%
33   PLANT & EQUIP MENT DEPRECIAT IO N                    $410     $0.82       1.5%
34   EQUIPM ENT LEASES                                    $375     $0.75       1.4%
35   DI SPATCH                                            $275     $0.55       1.0%
36   LICENSES & PERMIT S                                  $201     $0.40       0.7%
37   TES TING(Q A/ QC)                                    $197     $0.39       0.7%
38   FLEET INS URANCE                                     $190     $0.38       0.7%
39   ENVIRONMENTAL EX PENSES                              $126     $0.25       0.5%
40   ALL OTHER EX PENSES                                  $105     $0.21       0.4%
41   TO TAL DIRECT F IX ED COST S                       $2,554     $5.11       9.3%

42 OP ERATING PROFI T   MODULE III : S ESS ION 1 - 0H   $4,710     $9.42      17.1%
                                                                             24
                           SG&A FIXED COSTS

                                                                   YTD
                                                      $ (000)     UNITS     % SLS
43   S ALES EX P ENS ES :
44   S AL ES S AL ARIES                                  $ 320     $0. 64     1 .2%
45   T RAV EL & ENT ERT AI N.                            $ 265     $0. 53     1 .0%
46   ADV ERT IS ING                                       $59      $0. 12     0 .2%
47   AUT O EX P ENS ES                                    $46      $0. 09     0 .2%
48   T O T AL S A LES EX P ENS ES                        $ 690     $1. 38     2 .5%


49   G EN ER AL & ADMINIS TRATIVE:
51   EX ECUT IV E & O F F IC E S AL ARI ES               $ 978     $1. 96     3 .5%
51   BA D DEBT S                                         $ 410     $0. 82     1 .5%
52   P RO F ES S IO NAL F EES                            $ 249     $0. 50     0 .9%
53   I NT ERES T EX P ENS E                              $ 243     $0. 49     0 .9%
54   F RING ES                                           $ 205     $0. 41     0 .7%
55   O F FICE S UP PL IES                                $ 115     $0. 23     0 .4%
56   T ELEP HONE & CO M M UNICA TIO N                      $97     $0. 19     0 .4%
57   AL L OT HE R INS URANCE                               $78     $0. 16     0 .3%
58   AL L OT HER DEP R & AMO RT I ZA TIO N                 $75     $0. 15     0 .3%
59   A L L O T HER                                         $50     $0. 10     0 .2%
60   T O T AL G &A                                     $2, 500     $5. 00     9 .1%

61 T O T AL S G &A            MODULE III : S ESS ION 1 - 0H 191
                                                          $3,      $6. 38         25
                                                                             11 .6%
   TYPICAL READY MIX P&L
       BOTTOM LINE SUMMARY


                                                       YTD
                                            $ (000)   UNITS   % SLS


 2T T L IXD OT
6 OA F E C S                                  5 4 1.4
                                             $,75 $1 9          0%
                                                               2.8

 3T T L OT
6 OA C SS                                    2,01 5.1
                                            $6 9 $2 8           4%
                                                               9.5

 4NT C M
6 E INO E                                     11
                                             $,59       34
                                                       $.0      .5
                                                                5%
 5OH RNE E T C M
6 T E I T RS &INO E                            15
                                              $0        01
                                                       $.2      .4
                                                                0%
 6P E A C M
6 R T XINO E                                  12
                                             $,64       35
                                                       $.2      .9
                                                                5%
                 MODULE III : S ESS ION 1 - 0H                   26
                 EDITDA




   EBITDA   =    $2,952 $5.90   10.7%
       BENCHMARKING

   ASSISTS IN HELPING TO
    ANALYZE THE COST OF DOING
    BUSINESS
   ASSISTS IN HELPING TO
    ANALYZE THE EFFICIENCY OF
    AN OPERATION
                             Ready Mixed Concrete Production
                                                                                                    372

                          40 0


                          35 0
Millions of Cubic Yards




                          30 0


                          25 0


                          20 0


                          15 0


                          10 0


                           50
                                 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98
Average Price of Ready Mix per Yard
                                                     (1984 - 1998)
                 $80                               Average Price         NRMCA Data




                                                                                                                               63.56
                                                                                                               59.88
                 $70




                                                                                                                        60.8
                                                                                                       57.9
                                                                                             52.3
                                                                                           48.9
                 $60




                                                                                                    52.1
                                                                                         50.0
                                                                  47.6
                                                           47.5




                                                                                46.6
                                                    46.9




                                                                         46.1



                                                                                       48.0
                                            46.7
                              46.5

                                     46.9
                       45.3
Price per Yard




                 $50

                 $40

                 $30

                 $20

                 $10

                 $0
                        84     85     86     87      88    89     90      91    92     93    94     95        96       97      98

                                                   MODULE III: SESSION 1 - 0H                                                       48
             Cement Prices vs Ready Mix Prices
                     Portland Cement Prices                                  Ready-mix concrete prices
                     Linear (Portland Cement Prices)                         Linear (Ready-mix concrete prices)




70




55




40   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1   3   1




                                     1st Quarter of 1980 to 2nd Quarter of 1996
                  Average Ready Mixed Concrete
                      Profit as a % of Sales
                                                                                        5.8 7.3
             6
                                                                      5.4
                                                                                  4.8
             5
                                       4.1                                  4.2
             4 3.7
                     3.2 3.1 3.4 3.4
% of Sales




             3
                                             2.0
             2
                                                                0.9
             1
                                                          0.1 0.4
             0                                     -0.5

             -1
                  84 85 86 87 88 89 90 91 92 93 94 95 96 97 98
                           U.S Ready Mixed Concrete Production vs Profit
                    400                                                                             $6.00



                    350            US PROD       PROFIT/YD
                                                                                                    $4.00
Millions of Yards




                    300




                                                                                                              $ per yard
                                                                                                    $2.00

                    250


                                                                                                    $0.00
                    200



                    150                                                                             ($2.00)
                          1975   1977 1979   1981 1983   1985 1987   1989 1991   1993   1995 1997
    1998 TYPICAL YARD OF CONCRETE
            AVERAGE SELLING PRICE $63.56




               MATERIAL 54.6% $35.25




                                        PROFIT 7.1% $4.61


DELIVERY 16.6% $10.73
                                FIXED 15.7% $10.13
          PLANT 5.2% $3.34
                             OTHER 0.8% $0.50
                VOLUME DROPS
            AVERAGE SELLING PRICE $63.56




              MATERIAL 54.8% $35.25




                                        PROFIT 3.3% $2.10



DELIVERY 17.1% $11.00            FIXED 17.9% $11.50
            PLANT 6.2% $4.00   OTHER 0.8% $0.50
                PRICE DROPS
          AVERAGE SELLING PRICE $61.56




            MATERIAL 56.3% $35.25




                                      PROFIT 0.5% $0.31


                                FIXED 18.4% $11.50
DELIVERY 17.6% $11.00     PLANT 6.4% $4.00
                                OTHER 0.8% $0.50
     MATERIAL COSTS INCREASE
         AVERAGE SELLING PRICE $61.56




          MATERIAL 58.0% $37.25




                                  FIXED 17.9% $11.50

DELIVERY 17.1% $11.00     PLANT 6.2% $4.00
                                  OTHER 0.8% $0.51
NON PROFIT YARD OF CONCRETE


          MATERIAL 55.0%




                             FIXED 20.0%
  DELIVERY 20.0%       PLANT 5.0%




        MODULE III: SESSION 1 -
                 0H                        39
      IDEAL YARD OF CONCRETE



                    MATERIAL 46.8%




DELIVERY 14.7%


   PLANT 3.9%                        PROFIT 19.7%

                 FIXED 14.9%




            MODULE III: SESSION 1 -
                     0H                             40
           1998 MATERIAL COSTS
         AS A PERCENT OF MATERIAL COSTS @ $35.25/YD




                     CEMENT 53.4% $18.84




                                           OTHER 1.9% $0.67
FLY ASH 2.8% $0.98
  ADMIX 3.1% $1.08

                       AGGREGATE 38.8% $13.68
              Typical Variable Costs
                    Materials
                              1997                     1998
Cement                        $17.68                  $18.84
Flyash & Other Cementitious   $0.77                    $0.98
Admixtures                    $1.12                    $1.08
Coarse Aggregate              $7.67                    $8.21
Fine Aggregate                $5.10                    $5.47
Total                         $33.10                  $35.25




                                 Note: Cost figures are not adjusted for inflation
                          Raw Material Cost Growth
                                             (Cumulative)
                                 Cement/Admix          Coarse Aggregate
                                 Fine Aggregate
                    0.6

                    0.5
Perce nt G row th




                    0.4

                    0.3

                    0.2

                    0.1

                     0
                      1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998


                                                                Note: Cost figures are not adjusted for inflation
1998 VARIABLE DELIVERY COSTS
    AS A PERCENT OF DELIVERY COSTS @10.73/YD




                 LABOR 50.9% $5.47




                                     OTHER 4.5% $0.48

FRINGES 16.9% $1.82                     TIRES 2.4% $0.26
                                 FUEL 8.7% $0.93
                      R&M 16.6% $1.78
                   Variable Costs
                     Delivery
                                1997                         1998
Driver Salary                  $5.29                         $5.47
Benefits & Taxes               $1.50                         $1.82
R&M                            $1.59                         $1.78
Fuel & Oil                     $1.02                         $0.93
Tires                          $0.25                         $0.26
Other                          $0.62                         $0.48
Total                         $10.26                         $10.73

                                    Note: Cost figures are not adjusted for inflation
         1998 VARIABLE PLANT COSTS
           AS A PERCENT OF PLANT COSTS @ $3.34/YD




                            PLT/YD LBR 36.2% $1.21

FRINGES 10.5% $0.35




        R&M 28.1% $0.94           OTHER 25.1% $0.84
                   Variable Costs
                   Plant and Yard
                                             1997               1998
Plant and Yard Salaries                     $1.38               $1.21
Fringes                                     $0.42               $0.35
R&M                                         $0.90               $0.94
All Other Variable Plant Expenses            $1.80              $0.84
Total                                       $3.78               $3.34




                                    Note: Cost figures are not adjusted for inflation
            Variable Costs
 Materials            $35.25
 Delivery             $10.73
 Plant and Yard       $ 3.34

Total Variable Costs $49.32
Marginal Contribution $14.24   22.4%
(Margin)
                1998 FIXED COSTS
            AS A PERCENT OF FIXED COSTS $10.13




                      DIRECT FC 52.8% $5.35




SELLING 10.6% $1.07

                                 G&A 36.6% $3.71
                   Direct Fixed Costs
                                     1997                                1998
Truck and Plant Depreciation         $2.38                               $2.14
Dispatch/Clerical Compensation       $0.62                               $0.63
Truck & Equipt Leases                $0.45                               $0.41
Taxes/Licenses                       $0.45                               $0.42
Fleet Insurance                      $0.31                               $0.30
QC                                   $0.30                               $0.26
Environmental                        $0.06                               $0.06
All Other Direct FC                  $0.97                               $0.98
Total                                $5.54                               $5.35

Operating Profit                     $8.12                               $8.88
                                   Note: Cost figures are not adjusted for inflation
             Selling Expenses
                                1997    1998
Salaries plus Fringes           $0.72   $0.68
Auto/Travel/Entertainment       $0.18   $0.18
Advertising/Marketing/Promotion $0.11   $0.10
All other Sales Expenses        $0.11   $0.10
Total Sales Expenses            $1.12   $1.07
                      G&A Expenses
                               1997    1998
Executive Salaries             $0.61   $0.63
Office Salaries                $0.67   $0.56
Interest Expense               $0.33   $0.40
Fringes                        $0.31   $0.41
Office Supplies                $0.18   $0.19
Communications                 $0.14   $0.14
Legal & Proff                  $0.19   $0.21
All Other Insurance            $0.13   $0.12
All Other Depr &               $0.19   $0.24
Bad Debts                      $0.15   $0.13
All Other G&A                  $1.03   $0.68

Total G&A                      $4.00   $3.71
         The Bottom Line - 1997 vs 1998

                                 1997                           1998
Total Sales                       $60.80                       $63.56
Total Variable Costs              $47.14                       $49.32
Margin (Marginal Contribution)    $13.66                       $14.24

Total Fixed                      $10.67                         $ 10.13
Total Expenses                   $57.80                         $59.45
Other Income                      $0.51                           $0.50
Net Income Before State/Fed. Taxes $3.51/5.8%                      $4.61/7.3%
                                           Note: Cost figures are not adjusted for inflation
     FOOD FOR THOUGHT
n AFTER TAX PROFIT/YD            $2.78
n AVG PROFIT PER 7 YD LOAD      $19.36
n AVG PROFIT PER 3 LDS/DAY      $58.07
n AVG PROFIT/HR PER 10HR/DAY     $5.81
n @ 5000 YDS/YR                $13,900
n @ 4000 YDS/YR                $11,120
    1998 Typical Ready Mixed
      Concrete Company
ü   4 Plants
ü   44 Trucks
ü   200,000 Cubic Yards
ü   4,545 yds/trk
ü   8 yrs Average Age of Fleet
ü   2.7 yds/hr
ü   $0.47 Variable Delivery Cost/Min
ü   3,451 yds per Production Employee
              PRODUCTIVITY
             AVG     UNDER     100,000-   300,000 –    OVER
           COMPANY   100,000   300,000     500,00     500,000
                      YDS        YDS        YDS         YDS
# PLTS        4        1          4          5          12

YDS/PLT     54,875   29,803    78,028      78,028     83,928

# TRKS       44        12        36          72        144

YDS/TRK     5,018    3,652      4,890      5,814      6,211

AVG AGE       8        8          8          8          7

YDS/HR       2.7       2.1       2.7        2.9         3.1

COST/MIN    $0.47    $0.41      $0.45      $0.52      $0.55

YDS/EMP     3,451    2,506      3,535      4,102      4,058
          FINACIAL RATIOS
          <1M    1M-3M   3M-5M   >5M

CURRENT   1.8    2.0     1.6     1.7

CASH      29.9   40.5    13.1    16.9

D/E       1.1    0.6     1.1     0.4

AR DSO    32.9   46.2    54.7    46.3

INVENT    10.8   11.9    10.8    10.2
     S A LE S V O LU M E & B R E A K -
                 E V EN A N A LY SIS


 DEF IN ITIO N O F BREAK -EVEN :

TH E PO IN T AT W H ICH ALL F IX ED
 CO STS ARE P AID F OR OU T OF
         CO NTR IBUTION

AN D F UTUR E CO NTRIBUTIO N IS
            P RO FIT
            M O D U L E II I: S E S S I O N 2   OH   28
             BREAK-EVEN POINT

 BE   PT = FIXED COST DIVIDED BY MARGIN
 DATA   REQUIRED
 CURRENT   TOTAL FIXED COSTS   = $1,000,000
 CURRENT AVG SELLING PRICE     = $60.00/YD
 CURRENT AVG VARIABLE CST      = $40.00/YD
 CURRENT MARGIN                = $20.00/YD
 BE PT IN YDS             =    FC/UNIT MARGIN
 BE PT IN $               =    FC/MARGIN RATIO
 $1,000,000/$20                =   50,000 YDS
 $1,000,000/.33                =   $3,030,303
ADDITIONAL SALES REQUIRED TO COVER
       INCREASED FIXED COSTS

 CURRENT SP      =   $60/YD
 CURRENT VC      =   $40.00/YD
 CURRENT FC      =   $1,000,000
 CURRENT BE PT   =   50,000 YDS
 NEW FC          =   $1,500,000
 MARGIN          =    $20
 NEW BE PT       =   75,000 YDS

    ($1,500,000/$20)
 INCREASE OF 25,000 YDS/50%
 VOLUME REQUIRED TO MAINTAIN
CURRENT PROFIT LEVEL IF PRICES
       ARE INCREASED


NEW SP               =     $65.00
% INCREASE           =     8.33%
NEW MARGIN           =     $25.00
NEW BE PT            =     40,000 YDS

 ($1,000,000/$25)
%   DECREASE         = 20%
           MODULE III: SESSION 2
                   OH                    64
 VOLUME REQUIRED TO MAINTAIN
CURRENT PROFIT LEVEL IF PRICES
       ARE DECREASED


NEW SP     = $50.00/YD
% DECREASE = 16.6%
NEW MARGIN = $10.00
NEW BE PT  = 100,000 YDS
            ($1,000,000/$10)
% INCREASE = 100%

          MODULE III: SESSION 2
                  OH              65
        P rice/V o lu m e R ela tio n s h ip

                P E R C E N T C H A N G E I N SA LE S P R I C E

%G PM   -5%    -3%           -1%             +1%              +2%       +3%     + 5%


10%     100%   43%           11%              -9%             -17%      -23%   -33%
12%     71%    33%            9%              -8%             -14%      -20%   -29%
14%     56%    27%            8%              -7%             -13%      -18%   -26%
16%     45%    23%            7%              -6%             -11%      -16%   -24%
18%     38%    20%            6%              -5%             -10%      -14%   -22%
20%     33%    18%            5%              -5%                 -9%   -13%   -20%
22%     29%    16%            5%              -4%                 -8%   -12%   -19%
24%     26%    14%             45             -4%                 -8%   -11%   -17%
        FIXED C OS TS TUB


M AR G IN
   $ 20




                       P R O F IT $ 2 0. 00




F IX E D C O S T
  $ 1 ,0 0 0 ,0 0 0
                                              PR OFI T
    KEY OPERATIONAL
         TOOLS

   PAYROLL ANAYLSIS
    • NUMBER OF EMPLOYES BY
      CATEGORY
    • OVERTIME
    • FRINGES
        KEY OPERATIONAL
             TOOLS

   PRODUCTION
    •   YDS PER YR PER PLANT
    •   YDS PER YR PER TRUCK
    •   AVG DAILY LOADS PER TRUCK
    •   AVG YDS PER LOAD
    •   AVG YDS PER MAN HOUR
    •   VARIABLE DELIVERY COST PER
        MINUTE
              SALES TOOLS


   DAILY/M-T-D/Y-T-D $ SALES & YARDS BY PLANT
   JOBS AVAILABLE
   JOBS BID
     • YDS/PRICE/COMPETITION
   JOBS SOLD
     • YDS/PRICE
     • COMPETITION
   BACKLOG
     • YDS/WEIGHTED AVERAGE PRICE
     • COMPETITION
         SALES TOOLS

   JOB COSTING

   TARGET MARGIN PRICING

   PRICE LISTS
    COSTING INDIVIDUAL
          JOBS

WHY?
   DETERMINE COST VS SELLING
    PRICE
   DETERMINE PROFITABILITY OR
    LACK OF PROFIT
   DETERMINE THE
    CONTRIBUTION TO FIXED
    COSTS PROVIDED FROM JOB
           MODULE III: SESSION 1 - 0H   94
    1998 TYPICAL YARD OF CONCRETE
            AVERAGE SELLING PRICE $63.56




               MATERIAL 54.6% $35.25




                                        PROFIT 7.1% $4.61


DELIVERY 16.6% $10.73
                                FIXED 15.7% $10.13
          PLANT 5.2% $3.34
                             OTHER 0.8% $0.50
              F U N D A M E N TA L S O F
                             P R IC IN G
  T O P R IC E A P R O D U C T O R A JO B , A
      CO M PA NY SHO ULD LO O K AT:
• TO TA L DO LL AR C ON TR IBU TIO N T HE
  PR OD UC T OR J OB C ON TR IBU TE S TO T HE
  CO M PAN Y’ S FIX ED COS TS
• EF FE CT U PO N TH E CO M P AN Y’S AV ERA GE
  SE LL ING PRI CE A ND M AR GI N
• EF FE CT U PO N TH E M A RK ET P RIC E
• CO M PET ITI ON
• A FTE R-T AX PRO FI T PER CYD
    DEVEL OP IN G A T ARGET M ARGIN
    TM IS TH E AM O UN T OF M ON EY A C OM PA NY
EX PE CT S TO C ON TRI BU TE T O FIX ED C OS TS A FT ER
     PA YI NG IT S VA RA IBL E CO ST S (00 P CO STS )

    C OM PA NIE S NE ED T O DE VE LO P TA RG ET
             M AR GIN S IN O RD ER T O:
   • D EVE LO P PR ICE L IS TS TH AT W IL L
     G UA RAN TE E A D ESI RED RET UR N ON
     EA CH M IX
   • CO ST A ND PRI CE IN DI VID UA L JO BS B Y
     A DD ING T HE D ES IRE D TA RG ET M AR GI N
     TO TH E JOB ’S V AR IAB LE C OS T, T HU S
     EN SU RI NG T HA T TH E JOB W IL L PR OD UC E
     TH E D ESI RED RET UR N
T A R G E T M A R G IN F O R M U L A

• A FTE R- TAX RE TUR N IN DO LLA RS =
            A SSE TS /I NV ES TM ENT /SA LE S
            TI M E S DE SIR ED R ET UR N
            EX PR ES SED AS A P ER CEN T


• PR E- TA X RE TU RN = A FT ER T AX R ET UR N
  D IVI DED BY (1 -.40)


• TA RG ET M A RG IN IN $ /YD = PR E-T AX
  RE UR N DI VID ED BY A NN UA L YA RD AG E
                                 EXAMPLE
•   AVG YARDS PER YEAR       =   100,000
•   ASSETS                   =   $2,000,000
•   PERCENT RETURN DESIRED   =   15%
•   AFTER TAX RETURN         =   $300,000
•   PRE-TAX RETURN           =   $500,000
•   RONA PER YARD            =   $5.00
•   FIXED COSTS              =   $1,000,000
•   FIXED COSTS PER YARD     =   $10.00
•   TARGET MARGIN            =   $15.00
•   VARIABLE COSTS           =   $45.00
•   SELLING PRICE            =   $60.00
•   MARGIN RATIO (PV)        =   25%
                 P R IC E L I S T S



• Variable costs divided by m argin expressed
  as a percent of sales.
• Exam ple:
  – 40 00 ps i v aria ble co st = $5 0.00
  – D ivid e b y (1- .2 5)
  – Pr ice = $ 66.67

                    M O D U L E II I: S E S S I O N 2   OH   15
  P R IC IN G IN D I V I D U A L J O B S
        THE RECOM M ENDED M ETHO D FO R
             PRICIN G INDIVID UAL JOBS IS:

• C O S T O U T I N D IV ID U A L M I X E S
• C O S T O U T V A R IA B L E D E L IV E R Y F O R J O B
• A D D A V G P L A N T C O S T T O M A T E R IA L A N D
   D E L IV E R Y C O S T S T O D E T E R M I N E T O T A L
   V A R IA B L E C O S T S
• D E V E L O P A T A R G E T M A R G IN
• A D D T A R G E T M A R G IN T O T O T A L V A R IA B L E
   C OST
• P R E P A R E A Q U O T A T IO N U S I N G T H E
   R E C O M M E N D E D PU R C H A S E O R D E R F O R M

                      M O D U L E II I: S E S S I O N 2   OH   19
 1   J O B N AM E                                                                                          JO B 1
 2 D A T E : S T A R T /F IN IS H                                                         9 / 3 1 /9 5        6 /3 1 /9 6
 3 M IX D E S IG N                                                                            3 00 0
 4   T O T AL Y AR D S I N JO B                                                             10 00 0
                  M A T E R IA L C O S T S F O R M IX                                 L B S /C Y D       CO S T /U N IT C O S T /Y D
 5 C EM EN T                                                                                    50 0           0 .0 3 6 5   $ 1 8 .2 5
 6 F IN E A G G                                                                               1 30 0           0 .0 0 3 3    $ 4 .2 3
 7   C O AR S E A G G                                                                         1 90 0           0 .0 0 3 9    $ 7 .3 6
 8   F L Y A SH                                                                                   96           0 .0 1 0 0    $ 0 .9 6
 9   AD M I X T U RE S                                                                            20           0 .0 2 1 5    $ 0 .4 3
10 AE                                                                                             10           0 .0 1 4 5    $ 0 .1 4
11 T O T A L L IN E S 5 - 1 0                                                                                  0 .0 8 9 6   $ 3 1 .3 7
12 A DD % W AS T E                                                                            2 .0 %                         $ 0 .6 3
13 T O T A L M A T L C O S T S                                                                                              $ 3 2 .0 0

                  V A R IA B L E D E LI V E R Y C O S T S
14   P R E V IO U S Y R A V G C O S T S P E R Y D                                         $ 1 0 .0 0
15   C U R RE NT Y R A V G CO S T S P E R Y D                                             $ 1 2 .0 0
16   C U R R E N T Y R A V G C O S T / M IN                                                $ 0 .5 0
               D E L IV E R Y T IM E S IN M IN U T U E S
17   P L T L O A D IN G                                                                           10
18 PL T W A SH D O W N                                                                             5
19 T O /F R O M J O B                                                                           16 5
20 T IM E O N J O B IN C L U D IN G W A S H D O W N                                              10
21 T O T T IM E (S U M O F 1 7 -2 0 )                                                           19 0
22 A D D N O N P R O D U C T IV E F A C T O R %                                                 24 7
23   D E L IV E R Y C O S T / M IN                                                         $ 0 .5 0
24   T O T D E L C S T S P E R L O A D ( 2 2 T IM E S 2 3 )                             $ 1 2 3 .5 0
25   AV E R AG E Y A R DS P E R L O AD                                                              5
26   D E L IV E R Y C S T S P E R Y A R D (D IV ID E 2 4 B Y 2 5 )                        $ 2 4 .7 0
27   A V E R AG E P L T C S T S P E R Y D                                                  $ 3 .0 0
28   T O T A L V A R C S T S /Y D ( S U M O F 1 3 ,2 6 ,2 7 )                             $ 5 9 .7 0
29   A D D F IX E D C O S T S P E R Y A R D                                               $ 1 0 .0 0
33   T O T AL C O S T S                                                                   $ 6 9 .7 0
34   T A R G E T M A R G IN                                                               $ 1 7 .5 0
35   T A R G E T S E L L IN G P R IC E       M O D U L E III : S E S S IO N 1 - 0 H       $ 7 7 .2 0                                     96
  W H A T T O D O IF T H E M A R K E T P R IC E
  IS L O W E R T H A N T H E T A R G E T S A L E S
                                         PRICE

• SE LL T HE C ON CR ET E AT T HE T AR GE T
  PR IC E DE VE LO PED , B Y OF FE RIN G
  A DD ITIO NA L V ALU E TO TH E CU STO M ER
  A S DE TAI LE D IN M OD UL E IV,
  PR OF ES SIO NA L SA LES SKI LLS .
• M EET THE M A RK ET P RIC E
• BE AT T HE M A RK ET PR IC E
• W AL K AW AY FR OM T HE P RO JEC T


                M O D U L E II I: S E S S I O N 2   OH   20
          H O W D O YO U M A KE TH E
                         D E C ISIO N ?


• A N A L Y Z E T H E U N IT M A R G IN & $
  C O N T R IB U T I O N T H E J O B W IL L
  PRO DU CE
• E F F E C T O N C O M P A N Y ’S O V E R A L L
  AV G SELLING PRICE & M AR GIN
• E F F E C T O N M A R K E T P R IC E
• E F F E C T O N C O M P E T IT IO N
                M O D U L E II I: S E S S I O N 2   OH   21
                ANALYZING JOB
                CONTRIBUTION
• COMPARE CONTRIBUTION AT
  DIFFERENT SELLING PRICES
• COMPARE MARGIN TO TARGET
  MARGIN
• COMPARE RETURN TO DESIRED
  RETURN
• DETERMINE AFTER-TAX PROFIT
  PER YARD
          MODULE III: SESSION 2   OH   22
   C0ST COMPARISON SHEET

              JOB 1     JOB 2
YARDS         10,000    10,000
MATL CST      $32.00    $30.00
DEL TIME      247       120
COST/MIN      $0.50     $0.50
COST /LOAD    $123.50   $60.00
AVG/YD/LD     5         7
PLT CST       $3.00     $3.00
TOT VAR CST   $59.70    $41.57
FIXED CST     $10.00    $10.00
TOTAL CST     $69.70    $51.57
               JOB 1


   MARKET PRICE       =   $60.00
   VARIABLE COST      =   $59.70
   MARGIN             =   $00.30
   JOB CONTRIBUTION   =   $3,000
   PRE-TAX PROFIT     =   ?
   AFTER TAX PROFIT   =   ?
               JOB 2


   MARKET PRICE       =   $60.00
   VARIABLE COSTS     =   $41.57
   MARGIN             =   $18.43
   JOB CONTRIBUTION   =   $184,300
   PRE-TAX PROFIT     =    $8.43
   AFTER TAX PROFIT   =    $5.05
              JOB 1


   MARKET PRICE       =   $55.00
   VARIABLE COST      =   $59.70
   MARGIN             =   ($4.70)
   JOB CONTRIBUTION   =   ($47,000)
               JOB 2

   MARKET PRICE       =   $55.00
   VARIABLE COSTS     =   $41.57
   MARGIN             =   $13.43
   JOB CONTRIBUTION   =   $134,300
   PRE-TAX PROFIT     =   $3.43
   AFTER-TAX PROFIT   =   $2.05
               JOB 2


   MARKET PRICE       =   $50.00
   VARIABLE COST      =   $41.57
   MARGIN             =   $8.43
   JOB CONTRIBUTION   =   $84,300
   PRE-TAX PROFIT     =   ?
      T RACKING JOB CON TRIBUT ION

  T O T R A C K T H E C O N T R IB U T IO N O F IN D IV I D U A L
           J O B S , Y O U N E E D T H E F O L L O W IN G
                         IN F O R M A T IO N :
• A VG T R UC K CO ST P E R M IN UT E
• T IM E T O /O N /F RO M P L T /J O B /P L T
• M AT E R IA L C O ST
• A VG P L A NT CO ST /YD
• A VG P E R CE N T W AS T E T IM E

T H E O U T P U T F R O M T H I S D A T A W IL L IN C L U D E :

• SU M M A R Y O F D A IL Y C O N TR IB U T IO N B Y J O B
• SU M M A R Y O F E A C H J O B ’ S C O N T R IB UT I O N
SALES & MANAGEMENT
       TOOLS

DAILY & J-T-D JOB INFORMATION
 YARDS

 VARIABLE DELIVERY COST PER YD

 UNIT MARGIN PER YARD

 $ CONTRIBUTION

 VARIANCE FROM BID DATA

 JOB SUMMARY
DAILY JOB CONTRIBUTION REPORT

  31-Dec-95

              SELL     MATL     TOTAL     DEL CST    PLT CST TOT YDS      TOT #    AVG YDS AVG YDS/ CONTRIBUT % CONTRIB       TOTAL       % VAR

CUSTOMER      PRICE    COST     TRK MIN   PER YD     PER YD     POURED    LOADS     /LOAD     MAN/HR    PER YARD    PER YD    CONTRB FR TARGET

HHN           $46.50   $25.75      350       $8.40       1.95       25        3        8.33      4.29      $10.40    22.37%    $260.00    -16.80%

SMITH         $50.00   $25.00      750       $8.49       1.95       53        9        5.89      4.24      $14.56    29.12%    $851.15     16.48%

RYAN          $47.50   $26.00      450      $12.86       1.95       21        3        7.00      2.80       $6.69    14.09%    $140.55    -46.46%

BELZ          $45.00   $23.00      275      $11.00       1.95       15        3        5.00      3.27       $9.05    20.11%    $135.75    -27.60%

HARRIS        $48.00   $27.50      300      $10.00       1.95       18        3        6.00      3.60       $8.55    17.81%    $153.90    -31.60%

MCKIN         $51.00   $22.60      550      $13.75       1.95       24        4        6.00      2.62      $12.70    24.90%    $304.80      1.60%

JONES         $46.50   $25.50      157      $18.84       1.95        5        1        5.00      1.91       $0.21     0.45%      $1.05    -98.32%

HOLLAND       $45.00   $25.00      835      $10.02       1.95       50        6        8.33      3.59       $8.03    17.84%    $401.50    -35.76%

AAA           $44.00   $23.00      511       $9.02       1.95       34        5        6.80      3.99      $10.03    22.80%    $341.10    -19.74%

A PLUS        $42.75   $21.00      400       $8.57       1.95       28        3        9.33      4.20      $11.23    26.27%    $314.40    -10.17%

AVERAGES      $46.63   $24.44    457.80     $11.09      $1.95     27.30     4.00       6.77      3.58       $9.15    19.58%    $290.42    -26.84%




TOTALS                            4578                             273        40                                              $2,904.20
IN D IV IU AL JOB S U M M AR Y

C U ST O MER                              SMIT H
JO B                                      H I-R IS E

YD S T O D AT E
4000#                                             1134

SALES P RICE/YD
4000#                                          $50.00

MA T ER IA L C O ST
4000#                                          $25.00

D ELIVERY CO ST /YD                            $11.85
P LA N T CO ST /YD                              $1.95

CO N T RIB U T IO N /YD
4000#                                          $11.20

T O T AL CO N T RIB U T IO N T O D AT E
4000#                                       $ 1 2 ,6 9 9
JOB # 123 SMITH YTD

               MIX   SELL   MATL   TOT         DEL CST PLT CST TOT YDS TOT # AVG YDS AVG YDS/ CONTRIB % CONTRIB TOT    % DIFF
   DATE         #    PRICE   CST TRK MIN       PER YD    PER YD POURED LOADS /LOAD MAN/HR PER YD       PER YD CONTRB FR TARGET
  02-May-95   4B     $50.00 $25.00   575          $13.80    $1.95    25     4    6.25    2.61    $9.25   18.50%   $231  -26.00%
  03-May-95   4B     $50.00 $25.00   650           $9.75    $1.95    40     6    6.67    3.69   $13.30   26.60%   $532    6.40%
  04-May-95   4B     $50.00 $25.00   890          $10.08    $1.95    53     9    5.89    3.57   $12.97   25.95%   $688    3.80%
  05-May-95   4B     $50.00 $25.00   565          $10.94    $1.95    31     6    5.17    3.29   $12.11   24.23%   $376   -3.08%
  06-May-95   4B     $50.00 $25.00  2100          $10.08    $1.95   125    21    5.95    3.57   $12.97   25.94% $1,621    3.76%
  07-May-95   4B     $50.00 $25.00  4250          $10.85    $1.95   235    34    6.91    3.32   $12.20   24.40% $2,867   -2.41%
  10-May-95   4B     $50.00 $25.00  2500          $13.89    $1.95   108    18    6.00    2.59    $9.16   18.32%   $989  -26.71%
  11-May-95   4B     $50.00 $25.00  2800          $11.20    $1.95   150    23    6.52    3.21   $11.85   23.70% $1,778   -5.20%
  12-May-95   4B     $50.00 $25.00   980          $10.50    $1.95    56     8    7.00    3.43   $12.55   25.10%   $703    0.40%
  13-May-95   4B     $50.00 $25.00  1050           $8.40    $1.95    75     9    8.33    4.29   $14.65   29.30% $1,099   17.20%
  14-May-95   4B     $50.00 $25.00   400          $12.00    $1.95    20     3    6.67    3.00   $11.05   22.10%   $221  -11.60%
  15-May-95   4B     $50.00 $25.00   250          $12.50    $1.95    12     2    6.00    2.88   $10.55   21.10%   $127  -15.60%
  21-May-95   4B     $50.00 $25.00   190          $14.25    $1.95     8     1    8.00    2.53    $8.80   17.60%    $70  -29.60%
  22-May-95   4B     $50.00 $25.00   310          $12.40    $1.95    15     2    7.50    2.90   $10.65   21.30%   $160  -14.80%
  23-May-95   4B     $50.00 $25.00   400          $17.14    $1.95    14     3    4.67    2.10    $5.91   11.81%    $83  -52.74%
  24-May-95   4B     $50.00 $25.00   780          $10.40    $1.95    45     6    7.50    3.46   $12.65   25.30%   $569    1.20%
  25-May-95   4B     $50.00 $25.00   590          $11.80    $1.95    30     5    6.00    3.05   $11.25   22.50%   $338  -10.00%
  26-May-95   4B     $50.00 $25.00   700          $15.56    $1.95    27     8    3.38    2.31    $7.49   14.99%   $202  -40.04%
  27-May-95   4B     $50.00 $25.00   375          $18.75    $1.95    12     3    4.00    1.92    $4.30    8.60%    $52  -65.60%
  28-May-95   4B     $50.00 $25.00   750           $8.49    $1.95    53     9    5.89    4.24   $14.56   29.12%   $851   16.48%

       AVG           $50.00   $25.00 1194.00     $11.85          64.47   9.93    6.50    3.13   $11.20   20.34%   $342.82   34.92%
    TOTALS                             21105                     1134    180                                      $12,699
          OTHER
     MANAGEMENT TOOLS


   BUDGETS

   CASH FORECASTS

   3-5 YEAR PLAN

   MODELS
           Time for a Change?


• You can not create the future using the old
  strategy tools
        – Gary Hamel

• The new source of wealth is intelligence
        – Charles Handy

• How much intelligence does your company
  possess?
               SUMMARY

   ONLY THE INTELLIGENT WILL SURVIVE

   ONLY THE INFORMED WILL BE INTELLIGENT

   MANAGEMENT MUST BE ABLE TO IDENTIFY AND
    QUANTIFY ALL PROBLEMS IF IT IS GOING TO
    SOLVE THEM

   MANAGEMENT MUST USE ALL TOOLS AND
    TECHNOLOGY AVAILABLE TO MANAGE

				
DOCUMENT INFO
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