• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Great Ideas! Brad Hams' Ownership Thinking
 

Great Ideas! Brad Hams' Ownership Thinking

on

  • 4,147 views

An overview of Brad Hams' recent and excellent Ownership Thinking, a book that picks up and expands upon the key concepts in Jack Stack's still-invaluable The Great Game of Business.

An overview of Brad Hams' recent and excellent Ownership Thinking, a book that picks up and expands upon the key concepts in Jack Stack's still-invaluable The Great Game of Business.

Statistics

Views

Total Views
4,147
Views on SlideShare
4,146
Embed Views
1

Actions

Likes
7
Downloads
244
Comments
0

1 Embed 1

http://www.linkedin.com 1

Accessibility

Categories

Upload Details

Uploaded via as Apple Keynote

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment
  • Introduce the book, Collins, L&L concept\n\nVALIDATION - clients and OSB\n
  • Collins as guru:\n\nCome to Boulder, RH framework, Growth Summit keynote\n
  • Collins as guru:\n\nCome to Boulder, RH framework, Growth Summit keynote\n
  • Explain “prequel” idea\n\nCorporate genome project -- mapping “great” organizational DNA\n
  • Explain “prequel” idea\n\nCorporate genome project -- mapping “great” organizational DNA\n
  • Not about these companies? Not about business?!?\n\n1 thing: the timeless principals of G2G\n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • \n
  • Not about these companies? Not about business?!?\n\n1 thing: the timeless principals of G2G\n
  • Introduce the book, Collins, L&L concept\n\nVALIDATION - clients and OSB\n

Great Ideas! Brad Hams' Ownership Thinking Great Ideas! Brad Hams' Ownership Thinking Presentation Transcript

  • Great ideas!Ownership Thinking:How to End Entitlement and Create aCulture of Accountability, Purpose and Profitby Brad HamsThe Executive ForumFebruary 7, 2012
  • Brad Hams has takenJack Stack’s Great Game of Business vision, reinforced it and made it more tools based
  • Brad Hams has taken Jack Stack’s Great Game of Business vision, reinforced it and made it more tools based“A systematic and practical process for getting youremployees to give that extra effort and brain power that we know they possess.”Verne Harnish, author of Mastering the Rockefeller Habits
  • Like The Great Game of Business, this is a book written from the trenches
  • Like The Great Game of Business, this is a book written from the trenches... and now claims more than 1,000 client companies
  • Hams has an interesting back story
  • Hams has an interesting back story Left home in Scottsdale, AZ at 17 Hitchhiked to Berkley and put himself through school A voracious reader and lifelong learner Ran a company in Mexico at a young age Developed Ownership Thinking there Started his consulting firm in 1995
  • Quick overview
  • Why Ownership Thinking is Desperately Needed
  • “I am a big fan of wealth, because wealth creates opportunities.”
  • But Ownership Thinking is also about creating extraordinary organizational cultures
  • Where employees learn the business of business and participate actively
  • Remind you of anybody ... or anything?
  • How to Create Incentive Plans ... That Work!
  • This gets into the nuts and bolts of a great plan ... including why and how to make it self-funded
  • Your Employees Think You Make Wheelbarrows of Money
  • Why is educating your employees so important?
  • Because what they don’tknow can hurt the company There can be feelings ofresentment or morale issues
  • Measure Through the Windshield
  • ... not the rearview mirrorMeasure Through the Windshield
  • A focus on KPIs Operational and Financial Leading and Lagging Indicators
  • Get RIP’d: Rapid Improvement Plans
  • “The Objective of a RIP is to attack and improve one KPI at a time ...
  • ... with a high involvement, detailed plan.”
  • Ownership Thinking for the Long Term
  • With a focus on getting started
  • With a focus on getting started And sustaining your success
  • Now for the deep dive
  • Why Ownership Thinking is Desperately Needed
  • How owners and employees think
  • Owners think ...
  • Profit
  • ProfitCash flow
  • ProfitCash flow Risk
  • Profit Cash flow RiskCompetition
  • Profit Cash flow RiskCompetition Employees
  • Profit Cash flow RiskCompetition EmployeesCost control
  • Employees think ...
  • My paycheck
  • My paycheckHealthcare/Benefits
  • My paycheck Healthcare/BenefitsGetting my work done
  • My paycheck Healthcare/BenefitsGetting my work done Job Security
  • My paycheck Healthcare/BenefitsGetting my work done Job Security Recognition
  • My paycheck Healthcare/BenefitsGetting my work done Job Security Recognition Time off
  • My paycheck Healthcare/BenefitsGetting my work done Job Security Recognition Time offThe work environment
  • My paycheck Healthcare/BenefitsGetting my work done Job Security Recognition Time offThe work environment Opportunities
  • Overcoming the disconnect
  • Hams goes on a bit of a political jag about entitlement, earning,misdirected altruism and self-esteem
  • Which I’ll leave you tocontemplate from the comfort of your favorite armchair
  • “We must remember that ... the people with the greatest understanding andexpertise in any given area are the people actually doing the work”
  • Characteristics of great companies
  • They care deeply
  • They care deeply They have fun
  • They care deeply They have funThey have very high expectations of performance
  • Creating an organization of excellence, rather than having pockets of excellence
  • How to Create Incentive Plans ... That Work!
  • Incentive plans must be self-funding
  • Incentive plans must be self-funding
  • The Ownership Thinking model is: Right people Right education Right measures Right incentives
  • But I prefer:
  • Teach people how the company makes money
  • Show them how they (can) impact the company’s performance
  • Create incentives that improve performance
  • You need to provide:The education, measures, information and tools to help people find the money to fund the plan
  • “The incentive plan is meant to improve thefinancial performance of the company and shape employee behavior accordingly”
  • Elements of a poorly-designed incentive plan
  • Elements of a well-designed incentive plan
  • Designing your plan
  • Focus on one (ideally) or two key measures
  • Focus on one (ideally) or two key measures Profit Before Tax
  • Focus on one (ideally) or two key measures Profit Before Tax Cash Flow
  • The ten questions you should answer before designing your incentive plan
  • Your Employees Think You Make Wheelbarrows of Money
  • People typically vastly overestimate the company’s profit
  • Instead
  • Instead Most people are shocked at the cost of doing business
  • Your baseline for teaching basic financial literacyThe Income Statement - Cash Flow Statement - The Balance Sheet
  • Measure Through the Windshield
  • How to identify your KPIs
  • A five-year financial analysis: aimed at identifying trends
  • An employee survey:to highlight high-priority issues
  • Then determine what you will measure and report
  • Ask: what really drives our performance?“Focus on and measure the most critical activities that will accomplish this.”
  • Remember: Revenue, Gross Margin and Cash Flow are lagging indicators
  • Remember: Revenue, Gross Margin and Cash Flow are lagging indicators What drives them?
  • The KPI workshop
  • Start with a laundry list Whittle the list down to a manageable number of key items Have both leading and lagging indicators Determine who is accountable for each KPICreate a scoreboard (for forecasting)
  • Utilizing the scoreboard
  • Show: Month Month Month YTDKPI Owner Budget Forecast Actual Budget I IIIII
  • Use the scoreboard for forecasting, not problem solving And to create visibility and accountability (hmmm)
  • Huddles drive the conversation At least twice per month
  • Get RIP’d: Rapid Improvement Plans Improving, one KPI at a time
  • Steps to creating a RIP
  • The beauty of RIPs
  • Identify process improvementsCreate financial improvement in a short period of time Fund the incentive plan Create new standards in the business Real team building
  • “Rapid Improvement Plans are one of the most critical and influential components of Ownership Thinking”
  • The keysto creating great RIPs
  • Ownership Keep ‘em simpleDocument them/Make them formal Bring ‘em to life Report throughout Celebrate wins!
  • Get non-management involved in designing RIPs And always have at least one underway
  • Ownership Thinking for the Long Term
  • The key ingredients for sustained success
  • Discuss with your leadership team first
  • Then take it to everyone
  • Do the company survey
  • Do the financial analysis
  • The KPI workshop
  • Design the incentive plan
  • Kick off the program!
  • The super short Cliff Notes
  • Teach people how the company makes money
  • Show them how they (can) impact the company’s performance
  • Create incentives that improve performance
  • I’ll give the final word to Brad Hams
  • I’ll give the final word to Brad Hams It takes two things to create success: A great tool and the commitment to use it
  • Great ideas!Ownership Thinking:How to End Entitlement and Create aCulture of Accountability, Purpose and Profitby Brad HamsThe Executive ForumFebruary 7, 2012