EO Auckland 4.4.13

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Understanding the Pattern of Business Success

Text of EO Auckland 4.4.13

  • 1. Understanding the Patternof Business Success

2. This is a very special workshop I have a ton to cover and I will go pretty fast. 80% is in the book. Please take notes and ask questions. I am happy to answer any of your questions, offeradvice and recommend books at any time. Work very hard take this seriously.The slides are already posted at:www.SlideShare.net/johnspence 3. 100+ since 1989 4. What does this mean to me? How can I use this idea? What can I do right away? 5. Reality CheckKnowing Doing1 -10 6. Most people are sobusy w orking IN their business th athey do not take t anytime to work O N their business. 7. (T + C + ECF) x DE = Success2 8. Do you have a clearly focused andwell-communicated vision and strategy for growth? Effective Strategy = Valued Differentiation x Execution 9. Just because you have an idea 10. Success comes from executing the RIGHT ideas,not just from the planning process itself. 11. Five Foundations of Effective Strategy Business AcumenPersonal ExperiencePattern RecognitionStrategic InsightDisciplined Execution 2 12. The Four Is Ignorance Inflexibility Indifference Inconsistency Page 2 13. How to avoid the Four Is Aggressive external market focus. Aggressive customer focus. Keep the Main Things the main things. Bullish on knowledge sharing and learning. Teamwork is mandatory not optional. Passion and commitment at all levels. Foster a healthy paranoia. Revel in change. 2 14. The willingness evenenthusiasm to change EVERYTHING combined with the wisdom to understand what must NEVER be changed. 15. The Key To Success in theNew NormalNimbleosityNimbo-licious 16. To get the most from oursession together It is absolutely critical that you bebrutally honest with yourself today. So lets get started with a little self-test 3 17. Simplicity isthe ultimatesophisticationLeonardo da Vinci 18. From the CEO of a little 172 billion dollar companyLook, what is strategy but resource allocation?When you strip away all the noise, thats what itcomes down to. Strategy means making clear-cutchoices about how to compete. You cannot beeverything to everybody, no matter what the sizeyour business or how deep its pockets. You haveto figure out what to say NO to. Jeffrey Immelt 19. Microsoft Total World Domination The Top 5 % Bet the Company Require Failure Managers are Qualified Perform, Perform, Perform Shrimps vs. Weenies Stop the Insanity Espirit De Corps 4From: The Twelve Simple Secrets of Microsoft Management by Thielen 20. Charlie Trotters 4 21. Lessons from seven top CEOs Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B Have an outside-in perspective Be deeply passionate about your job Understand the importance of culture Create or adapt next generation products, processes and solutions Implement the best ideas regardless of origin1-10 4From: What the Best CEOs Know by Krames 22. The Toyota Way Challenging Vision We form a long-term vision, meeting challenges with courage andcreativity to realize our dreams. Kaizen We improve our business operations continuously, always driving forinnovation and evolution. Genchi Genbutsu We go to the source to find the facts to make correct decisions, buildconsensus, and achieve our goals at our best speed. Respect, Challenge and Help your People and Suppliers We respect others, make every effort to understand each other, takeresponsibility and do our best to build mutual trust. Teamwork We stimulate personal and professional growth, share the opportunitiesof development, and maximize individual and team performance.5 23. What does it take to be a valued member of a team?Develop and display competence.Follow through on commitments.Deliver required results.Ensure your actions are consistent with your word.Stand behind the team and its people.Be enjoyable to work with.Be passionate about your work and those you serve.Communicate and keep everyone informed.Help the other members of the team.Help members of other teams.Share ideas, information and credit.Hold yourself 100% accountable. 24. Direction vivid, clear, inspiring --- shared Measurements specific, observable, focused Competence very good at what they do Communication open, honest, courageous M utual Accountability all team members Discipline do this every day 6 25. 10 Key Team Competencies:1. Setting clear, specific and measurable goals.2. Making assignments extremely clear and ensuring required competence.3. Establishing accountability for high performance across the entire team.4. Running effective team meetings.5. Building strong levels of trust.6. Establishing open, honest and frank communications.7. Managing conflict effectively.8. Creating mutual respect and collaboration.9. Encouraging risk-taking and innovation. 1 - 1010. Engaging in ongoing team building activities.66 26. The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in yourbusiness is The level of highly satisfied and engaged EMPLOYEES in your business. 27. 1,300,000 interviews: Basic 4 + 1 NITBFrom: The Orange Revolution by Gostick and Elton 28. What do engaged employees look like?1. They give more discretionary effort.2. They consistently exceed expectations. 1 - 103. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 711 29. 1 - 10 7 5 30. Is Your Company Up To Speed? Pages 8 - 9Fast Company June 2003 31. 10 32. Twice weekly surveys for five years of2,000+ senior managers and executives at: IBM Fidelity GE Motorola Morgan Stanley Ikon Merck American Express 3M Progressive Microsoft Bank of America CIGNA AT&T Heineken SAP MasterCard Borders 33. Keys to effective management Communicate clearly Force the hard decisions Focus on results 1 - 10 Remain flexible to change Prove your value to the customer Force collaboration Rigorous but not ruthlessFrom: Think Big Act Small by Jennings 34. The Evergreen Project10 year study of 160 top companies40 distinct industries200 management practicesWinners, climbers, tumblers, losersWinners had an average Total Return to Shareholders of 945%... The Losers only averaged a TRS of 62%From: What (really) Works by Joyce, Nohria, Roberson 35. The Four Primary Practices:1. A sharply focused, clearly communicated and well-understood strategy for growth.2. Flawless operational execution that consistently delivers the value proposition.3. A performance-oriented culture that does not tolerate mediocrity.4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work.11From: What (really) Works by Joyce, Nohria, Roberson 36. The SecondaryManagement Practices: Talent = find and keep the best people. Key leaders show commitment and enthusiasm for the business. Embrace strategic innovation. Master the power of partnerships.Score yourself on the 110 scale for all eight practices on page 11From: What (really) Works by Joyce, Nohria, Roberson 37. Key Drivers of Financial PerformanceBusiness Success T olerateCR=104.12 N othing Global study: Quality P&S L ess 16 countries &Customer Relationship 29 companies 139 offices CR= .404 5,589 respondentsEmployee CR=.277 SatisfactionCR=.275Workshop CR=.249CR=.334 Page 13 Empowerment CR=.280CoachingHigh StandardsCR=.28CR=.37 CR=.36 CR=.19CR=.245 151 7 Long-term Enthusiasm, Training &Fair Orientation Commitment,Development Compensation Respect 12From: Practice What You Preach by Maister 38. What Inhibits Execution?National Survey of 4,000 Senior Executives 4. Inability to work together (21%) 3. Company culture (23%) 2. Economic climate (29%) 1. Holding onto the past / unwillingness to CHANGE (35%) 39. In other words In order to succeed you need a high-performance team that embraces a strong culture of disciplined execution and accountability while being nimble, agile and adaptable to changes in the marketplace. 40. Where are we going + how will we behave on the way? Praise + Celebration Focusand Differentiation Eliminate Mediocrity NoMeasure / TrackCommunicateStakeholders + Transparencyguiding collationRenewalVision + ValuesTraining +Strategytime / money /Planssupplies /Goals /peopleObjectivesTactics /Actions Procedures / Protocols Clear / consistent /Repeatable Process relentless 41. Disciplined Execution Clear VisionDetailed StrategyGuiding CoalitionAlignmentSystems 1 - 10 CommunicationSupportAdjustReward / Punish14 42. 1. 100% Clarity + Authority2. 100% Agreement3. Track & Post4. Coach & Train5. Reward or PunishNITB 43. & 16 es 15PagRe ad 44. Individual Workshop Go back and look at all of your audits. Where were your low scores, where were your highscores what is the pattern? Look over your notes what were the key themes?What are the most important ideas? Answers all the questions on pages 17 19. Put in as much detail as possible. Be very honest with yourself. Think in terms of Actions and Outcomes. 45. In teams What do you feel were theFOUR biggest takeawaysof the day? The four mostimportant things youlearned for creating asuccessful business? 46. Please read page 22If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com My twitter address is: @awesomelysimple*** Please connect with me on LinkedIn ***Also, you might find value in the ideas I share in my blog. You can sign up for it at: www.blog.johnspence.comLastly, these slides have already been uploaded to:www.slideshare.net/johnspence