High-Growth CEO Forums A Unique CEO Learning Exchange

High-Growth CEO Forums™: A Unique CEO Learning Exchange Presented to: KM Forum May 2007 by: Bouzha Cookman Catlin & Cookman Group Developers of High-Growth CEO Forums™ Adapted from Leading at the Speed of Growth By Katherine Catlin & Jana Matthews (Wiley, 2001).

Context: The Dream

Context: The Reality

Context: The Reality

Predictable Stages of Corporate Growth™ Continuously Building Value NEW GROWTH Building the Profit Spiral TURBULENCE TRANSFORMATION Declining into the Spin Cycle GROWTH FORMATION

Stages of Growth: Company Goals E C EN L U RB TU • Jump to the next curve • New growth strategy • Expand to new markets/niches • Add products and services • Re-invent operations CONTINUOUS GROWTH Dominate the Industry E U RB RAPID GROWTH TU Lead the Market E INITIAL GROWTH U B UR Drive Sales CE N START UP C EN L E UL T C EN L • Become market leader in your niche • Ward off competitors • Build management team • Hire and integrate more people • Become profitable • Launch differentiated product • Capture market share • Grow revenues • Raise Funds B R TU • Figure out product & concept that customers want to buy Develop Product • Build relationships • Raise funds Adapted from Leading at the Speed of Growth By Katherine Catlin & Jana Matthews (Wiley, 2001). © 2007 Catlin & Cookman Group Developers of High-Growth CEO Forums™

Evolution of the CEO & the Executive Team L BU UR E NC E T Strategic Innovator Change Catalyst Organization Builder Chief of Culture CONTINUOUS GROWTH Dominate the Industry E U RB RAPID GROWTH C EN L Team Builder Coach Planner Communicator TU Lead the Market E C EN INITIAL GROWTH L BU R TU Drive Sales Delegator Direction Setter CE START UP R TU B N LE U Doer/Decision Maker Develop Product Adapted from Leading at the Speed of Growth By Katherine Catlin & Jana Matthews (Wiley, 2001). © 2007 Catlin & Cookman Group Developers of High-Growth CEO Forums™

High-Growth CEO Forums Help CEOs Succeed “The job of the CEO is inherently and unapologetically isolating. The High-Growth CEO Forum offers a refreshingly honest and sincere source of support and advice from peers who live on similar quarterdecks. Its format and strong facilitation differentiate it from other groups I have seen. The Forum is one of the most effective feedback and personal development mechanisms available to a CEO. It has made me a more effective leader and a happier, more balanced human being. ” Colin Angle, CEO of i. Robot, which had a successful IPO in November 2005 Colin was an E&Y Entrepreneur of the Year winner in 2003 "I am a strong advocate for the CEO Forum. I grew and sold my last company for 5 X more than it was worth when I started as CEO. There is no way I could have done that without the Forum. The quality of the people and input I got from them along the way was invaluable. We are all dealing with the same issues, just different context and timeframes. As you know, a CEO's biggest challenge is prioritizing – especially his/her time. The fact that most of this team never misses a meeting speaks volumes about the value proposition! As an aside, my current company is less than a year old and our last round post money was already 5 X the first! Paul Di. Giammarino, President & CEO of Anaqua. Paul is back in a High Growth CEO Forum running his second company after a successful exit with his first. “The High-Growth CEO Forum fills a unique slot in a CEO’s advisory requirements. The group really shares deep problems, concerns, fears, challenges, and hopes. I didn’t expect the depth and clarity that we get into on some tough topics, such as how to handle sticky board of directors’ issues and how to make executive and organizational change better. The High-Growth CEO Forum was a major contributor to giving me the ideas and inspiration…that led to winning the Entrepreneur of the Year Award. ” Dan Schimmel, CEO of Pyramid Research, former CEO of One. Source Information Services and an E&Y Entrepreneur of the Year winner in 2001.

Nine Years of Proven Value • • • Seven High-Growth CEO Forums are running in the U. S. and Europe 45% of Forum CEOs have had a successful exit, including IPOs. 75% who sold their companies are back in the Forum as CEO of their next venture. Six member CEOs have been winners or finalists in E&Y's Entrepreneur of the Year program. • Members have been on the INC 500 and Deloitte’s Fast 50 multiple times. • The annual membership renewal rate is 100%.

What makes it work? Selection Criteria Similarities • Want to learn from and contribute to each other • Are smart • Are investor-backed • Share similar business environments - high-tech Differences • Have diverse skills and experiences • Run different stage companies Process • Are screened by the existing members

What makes it work? Unique, High-Impact Format • 1. 5 -2 days quarterly -- “the forest through the trees” • Confidentiality • Ground rules • Emotional breakthroughs: “putting it on the line” • One “Member Challenge” per CEO each meeting • “Best Practices” • Accountability -- Milestones • Key Discoveries • CCG IP - co-authored books Leading at the Speed of Growth and Building the Awesome Organization, cutting-edge tools, models and performance evaluators – to frame discussion and deliver actionable insights.

Some Challenges • Managing Board of Director (Bo. D) effectiveness • Getting sales traction • Changing strategies and/or organizational structure • Scaling the Executive Management Team (EMT) -- making hard people decisions • Jumping to the next level of growth -- organic, M&A, etc. • Managing fast growth • Managing through downturns • The CEO as chief of planning, communication and culture • Sale vs. IPO -- pros and cons

Best Practice Topics • Alignment with investors – effective Bo. D management • Effectively evolving the CEO role • Planning process and plan • Building an effective culture to support the plan • Building the Executive Team as Leaders of Growth • Listening to markets and customers

Best Practice Case Studies: Collective Learning over Time • • • Didn’t work: T’s setting Board of Director expectations in early stage start-up Worked: C’s setting of Board of Director (Bo. D) expectations in early stage start-up Executive Team Performance Evaluator insights -- D & J’s VP HR

Member Challenges Success Drivers & Examples • • • Initial Framing & Preparation: prioritization of issues starts here Unbiased interest in the success of each participant Continuity -- builds on experience with each other over time: EMT decisions Paradigm shifting analysis: M’s Founder dilemma, D’s acquisition strategy, G’s Bo. D Upgrade Support & Development for a new point-of-view: S’s User Experience Challenge

Q&A