EO 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.• Keep an open mind.• Work very hard… take this seriously. The slides and workbook are already posted at: www.SlideShare.net/johnspence
EO“Simplicity isthe ultimatesophistication” Leonardo da Vinci
Do you have a clearly focused and EOwell-communicated strategy for success? Effective Strategy = Valued Differentiation x Execution
EO Five Foundations of Effective Strategic Thinking Business AcumenPersonal ExperiencePattern Recognition Strategic Insight 2Disciplined Execution
EO The Four – I’s• Ignorance• Inflexibility• Indifference• Inconsistency Page 2
EO 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. Page 3
To get the most from our session together… It is absolutely critical that you bebrutally honest with yourself today. So lets get started with a little self-test… page 3 3
Southwest One type of plane Point-to-point Fast turnsLow fares / no frills Friendly staff
BTO JIT Inventory turnsLogistics vs. Technology VOC Dell
EO Southwest – Dell – Walmart What is the pattern?• Extreme Efficiency• Minimize Costs to as close to zero as possible – w/o negative impact• All focused on delivering customer value
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
EO Lessons from seven top CEOs Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B• Have an outside-in perspective• Be deeply passionate about your organization• Understand the importance of culture• Create or adapt next generation products, processes and solutions• Implement the best ideas regardless of origin 1-10 4From: What the Best CEOs Know by Krames
EO The Toyota Way 1 - 10• 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
EO• 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
EO1. 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. 1 – 109. Encouraging risk-taking and innovation.10. Engaging in ongoing team building activities. 6
EO1. They give more discretionary effort. 1 - 102. 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. 7
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 10
EO 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 ruthless… 10From: Think Big – Act Small by Jennings
EOThe 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 11
EO 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. 10From: What (really) Works by Joyce, Nohria, Roberson
EO 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. Score yourself on the 1–10 scale for all eight practices on page 11From: What (really) Works by Joyce, Nohria, Roberson
Key Drivers of Financial Performance Business Success T olerate CR=104.12 N othing Global study: Quality P&S L ess 16 countries & Customer Relationship 29 companies 139 offices CR= .404 5,589 respondents Employee CR=.277 Satisfaction CR=.275 Workshop CR=.249 CR=.334 Page 13 Empowerment CR=.280 Coaching High Standards CR=.28 CR=.37 CR=.36 CR=.19 CR=.24 5 1 5 1 7 Long-term Enthusiasm, Training & Fair Orientation Commitment, Development Compensation Respect 12From: Practice What You Preach by Maister
EOWhat 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%)
EOIn 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? Praise + Celebration Focus and Differentiation Eliminate Mediocrity “No”Measure / Track Communicate Stakeholders + Transparency guiding collation Renewal Vision + Values Training + Strategy time / money / Plans supplies / Goals / people Objectives Tactics / Actions Procedures / Protocols Clear / consistent / Repeatable Process relentless
EODisciplined Execution Clear Vision Detailed Strategy Guiding Coalition Alignment Systems 1 - 10 Communication Support Adjust Reward / Punish 14
EO 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.
EO If you have any questions at all please do not hesitate to send a note or call. My email address is: firstname.lastname@example.org My twitter address is: @awesomelysimpleAlso, 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
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