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www.johnspence.com
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MDCE
ACTION PLAN FOR ACCELERATING GROWTH
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The Formula for Business Success: (T+C+ECF) x DE = Success
THE WEB OF VALUE
VOC + MOT + WOM
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MOT FOR CUSTOMERS
MOT INTERNAL
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ORGANIZATIONAL EFFECTIVENESS AUDIT Answer the following questions as honestly as possible using this 1-10 point scale:
1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure
7 = Agree Somewhat 10 = Strongly Agree
1. We have a clear and detailed vision for the direction of our company that is very well communicated
throughout the entire organization: ________
2. Every employee has clear / quantifiable / observable performance objectives: ________
3. There is a high level of very open and honest communication throughout the organization: ________
4. I have a high level of trust in the skills, abilities, and integrity of my co-workers: ________
5. There is a high sense of urgency within the organization to get things done: ________
6. We have only the best, highly competent people in all areas of the organization: ________
7. We focus very intently on the needs of our customers: ________
8. There is no politics, rumor-mongering or finger-pointing within our organization: ________
9. Our key leaders operate as a highly-effective team: ________
10. There is a high level of both personal and mutual accountability within the organization: _______
11. People display a positive, enthusiastic attitude throughout the organization: _______
12. We are superb at collecting and using feedback from our customers: _______
13. Our organization displays great discipline in pursuing our focused business objectives: _______
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WHAT DO ENGAGED EMPLOYEES LOOK LIKE?
They give more discretionary effort _______
They consistently exceed expectations _______
They take more responsibility and initiative _______
They receive better customer service ratings _______
They offer more ideas for improvement _______
They promote and model teamwork _______
They volunteer more for extra assignments _______
They anticipate and adapt better to change _______
They persist at difficult work over time _______
They speak well of the organization _______
TEN ELEMENTS OF A WINNING CULTURE
1. People enjoy the work they do and the people they work with _____
2. People take pride in the work they do and the company they work for _____
3. There are high levels of engagement, connection, camaraderie and
a community of caring _____
4. There is a culture of fairness, respect, trust, inclusiveness and teamwork _____
5. The leaders walk the talk, live the values and communicate a clear vision
and strategy for growth _____
6. Lots of open, honest, robust and transparent communication across
the entire organization _____
7. The company invests back in employees; there is a commitment to learning,
coaching and development _____
8. There is a bias for action, employees have an ownership mentality and
always strive to give their personal best _____
9. There is high accountability and a strong focus on delivering the desired results _____
10. There is ample recognition and rewards and mediocrity is not tolerated _____
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ORANGE REVOLUTION: 4 + 1
Clear, specific and measurable goals _______
High levels of trust across the organization _______
Free flow of all pertinent information across the entire organization _______
High levels of both personal and mutual accountability _______
A focus on catching people doing things right and rewarding them _______
Wow — No Surprises — Celebrate
Based on: ”Results Rule! “ by Pennington
THE BEST PLACE ON EARTH TO WORK
Individual differences are nurtured _______
Information is not suppressed or spun _______
The company adds value to employees rather than merely extracting it from them _______
The organization stands for something meaningful _______
The work itself is intrinsically rewarding _______
There are no stupid rules _______
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THE FIVE STEPS TO CREATING A CULTURE OF ACCOUNTABILITY 1. 100% Clarity + Appropriate Authority _______
2. 100% Agreement _______
3. Track & Post _______
4. Coach, Mentor and Train _______
5. Reward or Release _______
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D
M
C
C
M
D
ELEMENTS OF A HIGH PERFORMANCE TEAM
10 Key Team Competencies
1. Setting clear, specific and measurable goals. _______
2. Making assignments extremely clear and ensuring required competence. _______
3. Establishing 100% accountability for high performance across the entire team. _______
4. Running effective team meetings. _______
5. Building very strong levels of trust. _______
6. Establishing open, honest, frank and safe communications. _______
7. Managing conflict effectively. _______
8. Creating mutual respect and collaboration. _______
9. Encouraging prudent risk-taking, creativity and innovation. _______
10. Engaging in ongoing team building activities. _______
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THE 4 + 2 FORMULA The Four Primary Management Practices 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent 1. Strategy: Devise and maintain a clearly stated, focused strategy: ________ Whatever your strategy, it will only work if it is sharply defined, clearly communicated, and well understood by employees, customers, partners, and investors. 2. Execution: Develop and maintain flawless operational execution: ________ You might not always delight every customer, but make sure that you never disappoint them. Winners consistently meet the expectations of their customers by delivering on their value proposition. Bad quality surely will hurt. 3. Culture: Develop and maintain a performance-oriented culture: ________ One of the best indicators of being performance-oriented is the way you deal with your own poor performers. It is easy to reward good performers. What matters is whether you have the courage to get rid of poor performers. 4. Structure: Build and maintain a fast, flexible, flat organization: ________ What really counts is whether structure reduces bureaucracy and simplifies work. Simpler and faster - such are the best goals for all organizations. The Four Secondary Management Practices 1. Talent: Hold on to talented employees and find more: ________ Winning organizations pay great attention to finding, growing, developing, and rewarding very talented people. 2. Leadership: Key leaders are truly committed to the business: ________ The research data clearly showed that the leadership effectiveness of the top executives, on average, influenced 15% of the variance in corporate performance, for better or for worse. 3. Innovation: Make innovations that are industry transforming: ________ Agile companies that were highly innovative and able to anticipate rather than react to disruptive events in the marketplace, were always the winner. 4. Mergers and Partnerships: Make growth happen with mergers, alliances, and partnerships: _________ Internally generated growth is essential, but companies that can also master mergers and partnerships are much more likely to be winners.
Based on: “ What (Really) Works” by Joyce
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WHY IS IT SO IMPORTANT TO DELIVER SUPERIOR CUSTOMER SERVICE? It is a proven business fact: The combination of quality products and services, with very high levels of customer satisfaction — directly drives significantly higher profitability.
In other words, it should be spelled Customer $ervice — with a big capital $.
Financial Performance
Highest Quality Products / Services
& Excellent
Customer Relationships
Employee Satisfaction
Empowerment High Standards
Long-term Orientation
Enthusiasm, Commitment,
Respect
Training & Development
Fair Compensation
CR=104.12
CR= .404
CR=.334
CR=.277
CR=.275 CR=.249
CR=.280 Coaching
CR=.285 CR=.371 CR=.365 CR=.191 CR=.247
What this chart shows: According to this massive research study, by going from an average of “Somewhat Agree” to “Agree” on the Quality and Customer Relationship scores (in the eyes of the staff) the average company would more than double (104%) its financial performance! As another example: If you improve the average rating on Employee Satisfaction by 10 –15% (again going from “Somewhat Agree” to “Agree”) it will cause a 42% improvement in financial performance, including both profitability and growth.
CR = Causal Relationship
T
N
L
Based on: “ Practice What You Preach” by Maister
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HERE IS THE LIST OF THE TOP FACTORS THAT DROVE THESE COMPANIES TO BRING IN FINANCIAL RETURNS THAT WERE OFTEN 20 TIMES LARGER THAN THEIR COMPETITORS... 1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree We have an uncompromising determination to achieve excellence in everything we do: ________
We have a real commitment to high-quality work, and tolerate nothing less: ________
We have a real commitment to high levels of customer service, and tolerate nothing else: ________
In this company we set and enforce very high standards for performance: ________
Management gets the best work out of everybody in the company: ________
The quality of the work performed by our group is consistently high: ________
We keep customers informed on issues affecting their business: ________
We make our customers feel as though they are very important to us: ________
Customer satisfaction is a top priority in our company: ________
We listen well to what the customer has to say: ________
We are extremely good at building long-term customer relationships: ________
The people in our company do “whatever it takes” to do a good job for the customer: ________
We do a good job of resolving customer problems when they occur: _________
We always place the customers’ interests first, ahead of those of the company: _________
The level of quality service delivered by my group / team is consistently high: ________
READ THAT LIST AGAIN… AND AGAIN!!!!! THIS IS CRITICAL TO YOUR SUCCESS
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DISCIPLINED EXECUTION 1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree
We have a clear vision for exactly where we are trying to take our organization _______ We have a detailed and specific plan to accomplish the key objectives we are trying to execute _______ Our senior leaders are all 100% committed to executing the key objectives _______ The key leaders/employees in our organization are all superb at execution ______ All of the major objectives we are pursuing are fully aligned and mutually reinforcing _______ We have excellent systems and processes in place to ensure consistently superb execution ______ There is continuous and transparent communication throughout he entire organization about exactly where we stand on executing on our key objectives _______ Every employee has all of the training, support, equipment and resources they need to deliver the results required of them _______ We are superb at adjusting and adapting our strategy and objectives when truly necessary _____ We do a great job of celebrating both small and big wins and praising great performance _______ We refuse to tolerate mediocrity or lack of accountability and deal decisively with people who are not able to meet the clear standards of performance in our organization _______
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IBM
•Collaborative partnerships with customers.
•Drive unique value and growth through
innovation that matters.
•Invest in people.
•Leverage talent and knowledge through
trust and communication.
Charlie Trotter
•Only the best people (passion)
•Lots of communication
•Highest standards
•Innovation
•Truly delight the customer
Good to Great
•Best people
•Effective (Level 5) leaders
•Deal with difficult issues
•Focus on the main things
•Patience + discipline
Results Rule
•Tell the truth
•Pursue the best over the easiest
•Leverage the power of partnerships
•Focus on the main things
•Accountability
•Constant improvement
Microsoft
•Best people
•Bet the company
•Require failure
•Managers are qualified
•Performance is what counts
•Money where it is important
•Stop the insanity
Spence: 6 Ways to Run or Ruin
1. Clear Vision
2. Robust Communication
3. Culture of Urgency
4. Disciplined Execution
5. Best People
6. Focus on the Customer
4+2 Formula
•Clear, focused strategy
•Flawless execution
•Performance-oriented culture
•Fast, flexible, flat organization
-Best people
-Committed leaders
-Innovation
-Growth through partnerships
Top Concerns of 700 CEOs
1. Have not communicated my vision
2. Do not discuss the tough stuff
3. Do not have the best people in key
positions
4. Lack of disciplined execution
Philly Gear
•Best people
•Transparency
•Customer focus
•Sell value
•Have FUN
Skinner Nurseries
•Own the word service
•Best people
•Lots of communication
•Know your business
•Have a plan
•Sell value
Small Giants
•Independent vision
•Strong Relationships
-employees
-customers
-community
•Caring workplace
•Flexible structure
•Passionate
Think Big - Act Small
•Stewardship
•Transparency
•Accessibility
•Stand for something
•Erase superficial distinctions
In Search of Excellence
•A bias for action
•Close to customer
•Intrepreneurship
•Values driven
•Focus on core competencies
•Simple structure
•Minimal bureaucracy
Top 7 CEOs
•Customer focus
•Passion for the job
•Culture counts
•Constant innovation
•Learn from the best
Tough Management
•Communicate clearly
•Force the hard decisions
•Focus on results
•Remain flexible
•Prove your value to the company
•Force collaboration
•Be a tough manager / not a tough
guy
Toyota Way
•Clear and compelling vision
•Constant improvement (Kiazen)
•Go to the source (Genchi Genbutsu)
•Respect and mutual accountability
•Teamwork
Kiss Theory Goodbye
•Superior leadership
•Sales effectiveness
•Flawless operational execution
•Superb financial management
•Customer loyalty
Ram Charan: Know How
•Position / Reposition the business to
make money
•Pinpoint patterns and change - then take
action
•Build a strong culture of excellence
•Hire the best people - build them into
leaders
•Build a TEAM of leaders
•Set the right goals - then FOCUS on key
priorities
The Six Secrets of Change
1. Love your employees
2. Connect meaning to the work
3. Invest in your people
4. Learning/innovation IS the work
5. Transparency rules
6. Create learning systems
Firms of Endearment
Meaningful work
Partnerships with all stakeholders
Respect for individuals
Transparency
Teambuilding
Empowerment
Fun work environment
Support for life balance
Training and development are high
priorities
Recognition and celebration have a high
priority
Mavericks at Work
Value-based differentiation
Transparency + knowledge sharing
Bond with customers
Talent + culture
Mastering the Rockefeller Habits
Right people doing the right things right
Clear focused one-page strategic plan
Strong core values.
Organizational alignment and focus
Relentless and consistent communication
of the theme.
Transparency and openness to employee
feedback.
Key executives highly aware of the
business.
Deliver the brand promise and truly
delight customers.
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WORKSHOP: IDEAS INTO ACTION Go back page-by-page and carefully look through the entire workbook. Compare and contrast your scores on the various audits and re-read any notes you wrote. What are the themes that emerge… the patterns? Look for any scores below a 7 as an area that needs improvement and anything in the 1-5 range as a serious problem that needs attention. The goal here is to really dig into these topics so you can take an honest look at the actual current state of your organization. This is a rare opportunity to take a critical look at how well your organization is truly operating and specifically what must be done to improve it. Take this exercise very seriously and push yourself to really understand what these scores and everything you learned today about world-class organizations could mean to your business. Here are three major questions to keep in mind: What does this mean to our business? How can I make these ideas work in our company? What can I do right away to improve our success? 1. Strengths What was the pattern of high scores? In what major areas did you seem to have as strengths, where you scored an 8 or higher across all of the workshops? 2. Weaknesses What was the pattern of low scores? In what major areas did you seem to have as weaknesses, where you scored a 6 or lower across all of the workshops?
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3. Key Strategies for Success Based on everything you have learned here today and your own personal business experience, what do you believe are the top strategies your organization must focus on to build and sustain success? What are the 4—6 most important ideas that will drive your organization’s future? (Please describe these in detail. You might lead off with a single word or short phrase, but then you’ll need to give a definition and description to exactly what you mean. It must be clear precisely what each ideas means and how you will pursue it.)
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4. Organizational Action Steps: D-fly as a company Please list at least 4 specific, measurable, and observable action steps that the overall organization can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can be done right away to take the lessons of this class and put them into positive action for the overall company in the next 90 days?
1. 2. 3. 4.
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4. Organizational Action Steps ORLANDO / GAINESVILLE Please list at least 4 specific, measurable, and observable action steps that your part of the organization can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can be done right away to take the lessons of this class and put them into positive action for your part of the Organization right away (next 90 days)?
1. 2. 3. 4.
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5. Personal Action Steps Please list at least 6 specific, measurable, and observable action steps that YOU can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can you do to make a more positive impact on your organization’s success??
1. 2. 3. 4.
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NOTES: