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Leadership and the NEW Normal?
For the past 21 years…
Today will be VERY challenging!
• Big company• Small company • Micro company• Team• Department• Sole practitioner• Your own career
What does this mean to me?
How can I use this idea?
What can I do right away?
Reality CheckKnowing – Doing
1 -10
Organization Effectiveness Audit
Page 2
Be “Brutally Honest”Scale of 1 – 10
“Simplicity is the ultimate sophistication” Leonardo da Vinci
The 4 P’s of Expertise
3
Five Elements of Effective Strategic Thinking
Business Acumen
Personal Experience
Pattern Recognition
Strategic Insight
Disciplined Execution
3
SII 2012Do you have a clearly focused and well-communicated strategy for success?
Effective Strategy =
Valued Differentiation x Execution
Good to Great
Running a GREAT Business
4
Key Competitive Advantages
Products People Process
• The willingness… even enthusiasm… to change EVERYTHING combined with the wisdom to understand what must NEVER be changed.
The Key To Success in the New Normal…
NimbleocityNim-bo-lishis
The Four – I’s
• Ignorance• Inflexibility• Indifference• Inconsistency
4
How to avoid the Four I’s
• Aggressive external market focus.
• Ridiculously high level of 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.
4
The Pattern of Business Success
(T + C + ECF) x DE = Success
5
Talent
Talent + Culture
Cecil Van Tuyl
“It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”
Here is how I define talent…
• Impeccable Character• Excellent Communicator• Positive Attitude • Customer Service Focused• Creative /Innovative• Strong Drive = Proactive• Solid Team Player
Job Description + Competency Model
WHAT WHO
5
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.
John Spence High Performance Team Model
• D• M• C• C• M• D
irection – vivid, clear, inspiring --- shared
easurements – specific, observable, focused
ompetence – very good at what they do
ommunication – open, honest, courageous
utual Accountability – all team members
iscipline – do this every day
5
11 Key Team Competencies:
1. Setting clear, specific and measurable goals.
2. Making assignments extremely clear and ensuring required competence.
3. Using effective decision making processes within the team.
4. Establishing accountability for high performance across the entire team.
5. Running effective team meetings.
6. Building strong levels of trust.
7. Establishing open, honest and frank communications.
8. Managing conflict effectively.
9. Creating mutual respect and collaboration.
10. Encouraging risk-taking and innovation.
11. Engaging in ongoing team building activities.
1 - 10
6
The level of highly satisfied and engaged EMPLOYEES in your business.
The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…
Fully Engaged Customers deliver a
23% premium over the average customer in terms of share of wallet, profitability, revenue,
and relationship growth.Harvard Business Review: Manage Your Human Sigma 6
Job + Organizational Engagement = Employee Engagement
Not Engaged Engaged
Enga
ged
Not E
ngag
ed
Job Engagement
Org
aniz
atio
nal E
ngag
emen
t
50%
9%
Benchwarmers
7%
Free Agents
34%
Stars
Disengaged
50%
Actively Disengaged Employees…
22%
Key Drivers of Customer Satisfaction and LoyaltyFinancial
Performance
Quality P&S&
Customer Relationship
EmployeeSatisfaction
Empowerment High Standards
Long-termOrientation
Enthusiasm, Commitment,
Respect
Training &Development
Fair Compensatio
n
CR= 104.12% increase in profits
CR= .404
CR=.334
CR=.277
CR=.275CR=.249
CR=.280 Coaching
CR=.285
CR=.371
CR=.365
CR=.191
CR=.247
TolerateNothing
Less
From: Practice What You Preach by Maister
Global study:16 countries529 companies15,589 respondents
Chart: 7Workshop: 8
Customer satisfaction drives customer loyalty… and customer loyalty drives profitability
100%
90
80
70
60
50
40
30
20
Extremely Dissatisfie
d
SomewhatDissatisfie
d
SlightlyDissatisfie
dSatisfied
Very Satisfied
Zone of Defection
Zone of Indifferenc
e
Zone of Affection
Loya
lty
Customer Satisfaction
Terrorist
Evangelist
A 5% increase in loyalty among your best customers…
Can produce a profit increase of 25% – 85%
I hate you
I don’t care about you
I love you
9
Actively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engaged
employees can drive profits up by as much as a 189%
Culture = Cash
Key attributes of winning cultures
• High aspirations and a desire to win
• Customer / market focus
• A “think like owners” attitude
• Bias to action
• Individuals who team
• Passion and energy
Bain & Company
1 - 10
9
From the Employee’s Perspective:
1 - 10
10
What Employees Want: SBA
Focus me
Know me
Care about me
Hear me
Help me feel proud
Equip me
Help me see my value
Help me grow
Help me see my importance
10
The Six Universal Drivers of Engagement
1. Caring, competent, and engaging leaders.
2. Effective managers who keep employees informed, aligned and engaged.
3. Effective teamwork at ALL levels.
4. Job enrichment and professional growth.
5. Valuing employee contributions.
6. Concern for employee well being.
1 - 10
10
1,300,000 interviews: Basic 4 + 1
Goal Setting
TrustAccountability
Communications
RECOGNITION
From: The Orange Revolution by Gostick and Elton 11
What do engaged employees look like?
1. They give more discretionary effort.2. They consistently exceed expectations.3. 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.
1 - 10
11
The Five Steps to Implementing a Winning Culture
1. Preform a culture audit and set new expectations.
2. Align the management team.3. Focus on RESULTS and build
accountability.4. Manage the drivers of culture.5. Communicate and celebrate.
12
Study of most important leadership skills7,000+ managers from 1,600 large organizations
• Must have superb communication skills.
• Lead by example to demonstrate character and competence.
• Establish and maintain clear and meaningful vision.
• Provide motivation to create ownership and accountability for results.
• Clarify performance expectations.
• Foster teamwork and collaboration.
• Develop clear performance goals and metrics.
• Consistently deliver superior results.
From: Getting Results by Longenecker and Simoneti
1- 10
512
Extreme Customer Focus
Web of Value: VOC + MOT + WOM
15
Extreme Customer Focus
VOC
How Many of these do you employ?
15
Moments Of Truth
Moments Of Truth
MOT Practice Round
Dry CleanerHair SalonTailorPlumber
Workshop: VOC + MOT Page 16
16
43% - 74% of purchasing decision = WOM
WOM = Your BEST form of advertising!
78.9%23.4%
You MUST have a WOM Referral System
Identify Ideal
Customer
ReferIdeal
Customer
From John Jantsch: The Referral Engine 17
Workshop: Three ways to generate WOM
17
Kaizen
The Evergreen Project
10 year study of 160 top companies
40 distinct industries
200 management practices
Winners, climbers, tumblers, losers
Winners 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 18
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.
The Secondary Management 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.
Workshop page 18
From: What (really) Works by Joyce, Nohria, Roberson
10 – 15%
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%)
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.
Where are we going andhow will we behave on the way?
FocusDifferentiation“No”
Guiding Collation
Vision + ValuesStrategy
ObjectivesInitiativesPrograms
Procedures / ProtocolsRepeatable ProcessClear / consistent / relentless
Training +time / money /
supplies / people
Measure / TrackCommunicate
Transparency Accountability
Celebrate SuccessEliminate Mediocrity
19
Disciplined Execution Workshop : Page 20
The 6 Keys to Controlling the Market
1. People + Culture
2. VOC
3. MOT
4. WOM
5. Kaizen
6. Execution
Read 21 & 22 Workshop 23 - 25
Can Leadership Be Taught ?
It is NOT about…
MoneyPower
PositionTitle
74%23,000,000
88%
High Potential / High Performance
Abbott, GE, Merrill Lynch, Microsoft, IBM, State Farm, Mayo Clinic,
The Seven C’s of Leadership
1. Character2. Courage3. Competence4. Communication5. Collaboration6. Compassion7. Contribution
Character
The Leadership Challenge by Kouzes and Posner
I want a leader who will:
Tell me the TRUTH. Has a clear vision for
where we are going. Has the skills to get
us there successfully. And is excited about
going with me.
Courage
TO THINK BIG TO BE BOLD
To speak the TRUTH TO MAKE GREAT THINGS HAPPEN
To be… Vulnerable
Competency = a commitment to LLBooksBook summariesAudio booksAudio book summariesTraining DVDsSeminarsi-Tunes UPod castsBlogsTED.comBigThink.com
Ask GREAT questions…
Communications
and LISTEN!
SMART Communications
DialogueAvoid Attack
Competence
RespectDis-trust
Affection TRUST
HIGH
LOWLOW HIGH
Concern
The 4 Cs of TRUST
“I am good at what I do… and I do it because I
care about you.”
Collaboration
Anne MulcahyCEO of Xerox and the third most powerful woman in the world!
1. Build a network of great relationships with people who want to see you succeed.
2. You don’t have all of the answers, so ask for help and advice from the smartest people you can find.
3. Learn to be a learner.
4. Listen intently to your employees and to your customers.
Some really great advice…
Focus me
Know me
Care about me
Hear me
Help me feel proud
Equip me
Help me see my value
Help me grow
Help me see my importance
Compassion
Gen X Y and C
RespectFreedom
Life-balanceAccomplishment
AppreciationMeaning
Contribution
Detroit - 2010
27% ---- 50%
1,000 - $1
Close 44 schools
33,500 empty houses
91,000 Vacant lots
1994
Profits = $13.9 Billion
WITH GREAT POWER COMES GREAT
RESPONSIBILITY(remember… they follow YOUR lead!)
Read Pages 30 – 40 Workshop on page 41
If you have any questions at all please do not hesitate to send a note or call. My email address is: [email protected]
My twitter address is: @awesomelysimplePlease feel free to “friend” me on FB
Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.blog.johnspence.com
Lastly, these slides have already been uploaded to:
www.slideshare.net/johnspence
Thank You
