Understanding the Pattern of Business Success
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, offer
advice and recommend books at any time.• Work very hard… take this seriously.
The slides are already posted at:
www.SlideShare.net/johnspence
100+ since 1989
What does this mean to me?
How can I use this idea?
What can I do right away?
Reality CheckKnowing – Doing
1 -10
Most people are so busy working IN
their business that they do not take any time to work ON their business.
(T + C + ECF) x DE = Success
2
Do you have a clearly focused and well-communicated vision and strategy for growth?
Effective Strategy =
Valued Differentiation x Execution
Just because you have an idea…
Success comes from executing the RIGHT ideas, not just from the planning process itself.
Five Foundations of Effective Strategy
Business Acumen
Personal Experience
Pattern Recognition
Strategic Insight
Disciplined Execution 2
The Four – I’s
• Ignorance• Inflexibility• Indifference• Inconsistency
Page 2
How to avoid the Four I’s • 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
• 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…
•Nimbleosity
•Nimbo-licious
To get the most from our session together…
It is absolutely critical that you be brutally honest with yourself today.
3
So let's get started with
a little self-test…
“Simplicity is the ultimate sophistication” Leonardo da Vinci
From the CEO of a little 172 billion dollar company…
Look, what is strategy but resource allocation?
When you strip away all the noise, that’s what it
comes down to. Strategy means making clear-cut
choices about how to compete. You cannot be
everything to everybody, no matter what the size
your business or how deep its pockets. You have
to figure out what to say “NO” to.Jeffrey Immelt
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
From: The Twelve Simple Secrets of Microsoft Management by Thielen
4
Charlie Trotter’s 4
Lessons from seven top CEOs
• 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 origin
4From: What the Best CEOs Know by Krames
Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B
1-10
The Toyota Way• Challenging Vision
– We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.
• Kaizen– We improve our business operations continuously, always driving for
innovation and evolution.
• Genchi Genbutsu– We go to the source to find the facts to make correct decisions, build
consensus, 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, take
responsibility and do our best to build mutual trust.
• Teamwork– We stimulate personal and professional growth, share the opportunities
of development, and maximize individual and team performance.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.
• 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
6
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.
10. Engaging in ongoing team building activities.1 - 10
6
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…
1,300,000 interviews: Basic 4 + 1
Goal Setting
TrustAccountability
Communications
RECOGNITION
From: The Orange Revolution by Gostick and Elton
NITB
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
7
57
1 - 10
Is Your Company Up To Speed?
Fast Company June 2003
Pages 8 - 9
10
Twice weekly surveys for five years of 2,000+ senior managers and executives at:
• IBM• GE• Morgan Stanley• Merck• 3M• Microsoft• CIGNA• Heineken• MasterCard
• Fidelity• Motorola• Ikon• American Express• Progressive• Bank of America• AT&T• SAP• Borders
Keys to effective management…
• Communicate clearly
• Force the hard decisions
• Focus on results
• Remain flexible to change
• Prove your value to the customer
• Force collaboration
• Rigorous but not ruthless…
1 - 10
From: Think Big – Act Small by Jennings
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
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.
From: What (really) Works by Joyce, Nohria, Roberson
11
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.
From: What (really) Works by Joyce, Nohria, Roberson
Score yourself on the 1–10 scale for all eight practices on page 11
Key Drivers of Business Success
Financial Performance
Quality P&S&
Customer Relationship
EmployeeSatisfaction
Empowerment High Standards
Long-termOrientation
Enthusiasm, Commitment,
Respect
Training &Development
Fair Compensatio
n
CR=104.12
CR= .404
CR=.334
CR=.277
CR=.275CR=.249
CR=.280 Coaching
CR=.285
CR=.371
CR=.365
CR=.191
CR=.247
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WorkshopPage 13
TolerateNothingLess
From: Practice What You Preach by Maister
Global study:16 countries29 companies139 offices5,589 respondents
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 + how will we behave on the way?
FocusDifferentiation“No”
Stakeholders + guiding collation
Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions
Procedures / ProtocolsRepeatable ProcessClear / consistent /
relentless
Training +time / money /
supplies / people
Measure / TrackCommunicate
Transparency Renewal
Praise + Celebration and
Eliminate Mediocrity
Disciplined Execution Clear Vision
Detailed Strategy
Guiding Coalition
Alignment
Systems
Communication
Support
Adjust
Reward / Punish
14
1 - 10
1. 100% Clarity + Authority
2. 100% Agreement
3. Track & Post
4. Coach & Train
5. Reward or PunishNITB
Read Pages 15 & 16
Individual Workshop• Go back and look at all of your audits.• Where were your low scores, where were your high
scores – 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.
In teams…
• What do you feel were the FOUR biggest takeaways of the day? The four most important things you learned for creating a successful business?
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: @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.com
Lastly, these slides have already been uploaded to:
www.slideshare.net/johnspence
Please read page 22
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