Transcript No Slide Title

Why Business Transformation?
• We are doing well, but we can do better
• Alignment—internally and with sales leaders
• Focus our resources on growth initiatives
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Pharmanex — S2, g3, LifePak nano
Nu Skin — ProDerm
Big Planet — Photomax
Geographic Investments
• Identify, create and sustain competitive advantages
• Simplify
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Business Transformation
• Not all work is created equal
Competitive process
Competitive enabling process
Business essential process
Compliance
Non-essential process
• Left unabated, compliance and business
essential work overwhelms the more important
competitive and competitive enabling work
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4 Core Business Processes
Strategy Development
Product Development
Demand Creation (Distributor Success)
Supply Chain
Competitive process
Competitive enabling process
Business essential process
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Great Companies Choose One Core
Process Where Competitive Work is Done
• Product Development – Apple / Intel
• Demand Creation – Nike / Starbucks
• Supply Chain – WalMart
• Strategy – Berkshire Hathaway
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Strategy Development
Strategy Making and Plan Process — two to five years
Strategic
Intent
Strategic
Means
Strategic
Action
Resource
Allocation
and
Execution
• What is our strategic intent?
• What will we do differently than all of our
competitors?
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Our Community -
Nu Skin Enterprises - Pillars of Success
Culture
Opportunity
Product
A better way of life
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Characteristics of our Opportunity
Historically:
• Leadership focused
• Generous comp plan
• Global/Seamless
Today:
• Distinct product brands, plus
Q: What do we do differently (competitive advantage)?
A: We will become best at developing successful leaders
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Characteristics of our Products
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Innovative
Premium Quality
Proprietary
Product Integrity — Substantiation
All of the good, none of the bad
Q: What do we do differently (competitive advantage)?
A: “The Measurable Difference”
A: We apply a higher level of technology to each of our
product categories: Scanner, ProDerm, Photomax
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Characteristics of our Culture
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Force for Good
Integrity
Fun
Encourage our partners to make a difference in the
world
Q: What do we do differently (competitive advantage)?
A: Nourish the Children: Force for good baked into the
business model
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Distributor Success Process
• Our most important asset is our distributor
partners; therefore, this is our most critical
process and where our major competitive
work takes place
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Distributor Success Process
Sponsoring
Consumption
& Duplication
Leadership
Development
Trained Distributor
Retained Distributor
Consuming and Duplicating
(sponsored 3 active distributors)
(active, sponsoring, duplicating, advancing)
(with 100 pts)
Engaged consumer
Successful Distributor
(who places the 1st
order)
Consumption
Active Consumer
(ordering every 3 months)
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Three Competitive Components of the
Distributor Success Process
• Sponsoring
• Consumption/Retention
• Leadership Development
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Sponsoring
• Ensure opportunity creates demand
• Focus on easy, frictionless signup process
• Ensure process to qualify for commissions
is clear, simple and standardized
• Create an amazing support experience for a
new distributor
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Consumption/Retention
• Provide a consistent focus on retention of
both consumers and distributors
• Provide partners with tools necessary to
immediately begin the business duplication
process
• Create incredible first experiences (first
check, first order, etc.)
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Leadership Development
• Focus our time and resources on the most
valuable stage of your business; leadership
advancement, leadership skills and
recognition
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DSP Strategies
Core Strategies
Key Tactics/Actions
• Execute: simple story effectively communicated
Eliminate sign-up barriers
Distributor
Success
Strategies
• Implement frictionless sign-up process
• Develop and implement DRM programs
Strengthen consumption
and duplication processes
• Align core global programs (ARO, Scanner etc)
• Implement aligned technology strategy
• Introduce success roadmap
Improve leadership
effectiveness
• Develop and execute leadership programs
• Make culture pervasive throughout organization
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• Implement global recognition standards
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Overall Conclusion
While each NSE market may require localized business
strategies, there are core overarching Distributor Success
Processes that apply to all markets…
Identifying and implementing these core and enabling
processes will result in growth and savings
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Product Development (PD) Core Process
unique distinctive brands
Design/
Product Story
Formulate
& Testing
Viable innovative Business case
product idea
product concept
Preliminary
formula
Ideation
Development
Final product
Specifications –
Product integrity
and quality
Manufacturing
Product
inventory
Launch
Incremental
revenue
Product
Management
Brand growth
&
Improved profits
• Developing innovative products to drive the
business opportunity
• Number of scientists (including external thought
leaders) in Multi Disciplinary teams to discover
products with a measurable difference
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CEO
Truman Hunt
Corporate
Development
Distributor
Success
Product
Development
Finance
Human
Resources
Legal
Jack Peterson
Dan Chard
Joe Chang
Ritch Wood
Claire Averett
Matt Dorny
Business Trans
Employee Events
FFG Culture
Gov’t Relations
Distrib Discipline
Distrib. Policies
& Procedures
Growth Opps
Sponsoring
Acquisitions
Big Planet
Geographic Mgmt.
Sponsoring/Reten/
Leadership Dev
Distributor Training
Compensation Plan
Product Mktg/Sales
Recognition
Events
Creative Services
New Markets
Nu Skin PD
Pharmanex PD
Product Mgmt
Supply Chain
Finance
IT
Administration
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Distributor
Success
Dan Chard
Americas
and Europe
North Asia
Scott Schwerdt
Robert Conlee
North America
South America
Western Europe
Eastern Europe
Japan
Korea
Asia
Pacific
Greater China
Southeast Asia
Australia/NZ
Global
Coordination
Distributor Events
Recognition
Commissions
Creative Services
New Market Development
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What’s Next?
$2.5 billion in annual revenue
AND
$1 billion of annual
commissions!
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