DMACCOctober 2010

The Breakthrough Company

• Analysis of 7000 + private companies over a 22- year period

• Top 9 performers compared to 9 comparison companies

• Field studies in 53 companies

5-Year Study

Revenue Growth

5- Year Study

ROE: 2 x Industry Average

ROS: 3 x Industry Average

$1 Invested in 6 Public Companies

$-

$50.00

$100.00

$150.00

$200.00

$250.00

Years after IPO

S& P 500

6 Public Breakthrough Companies

A Curious Surprise

Three Surprises

The Breakthrough CompanyCompany

ADTRAN

Chico’s FAS

Express

Fastenal

Intuit

Paychex

Polaris

SAS

Staubach

Inc 500

92

89

88

82

90

82

86

82

85

Begin. Rev

$42.6 mil.

$ 6.2 mill

$50.0 mil

$3.7 mil

$18.7 mil

$14.4 mil

$90.0 mil

$10.1 mil

$ 2.8 mil

Status

Public

Public

Private

Public

Public

Public

Public

Private

Private

Location

Huntsville, AL

Fort Meyers, FL

Oklahoma City, OK

Winona, MN

Mountainview, CA

Rochester, NY

Medina, MN

Cary, NC

Addison, TX

DMACCSeptember 2010

Disruptive Change

Steady State

DisintegrationReintegration

New Steady State

The Good Times The Tough Times

Tale of Two Companies

SuperballInc.

The XmasOrnament

Group

Valley of Despair

Uninformed Optimism

Immobilization and Denial

Bargaining

Despair

Informed Pessimism Face The New Reality

Hopeful Optimism

Discovering the Devil in the Details

Informed Optimism

Structure aroundthe New Reality

Anger

DISRUPTIVECHANGE

Convert A1 to A2

A1

The fear ofwhat might happen to us

A2

The fear ofwhat will happen If we DO NOT CHANGE