Achieving Business Excellence WORKBOOK - Embraer

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Achieving Business Excellence WORKBOOK - Embraer

  1. 1. Embraer First Annual Leadership Forum www.johnspence.com 1 Achieving Business Excellence
  2. 2. Embraer First Annual Leadership Forum www.johnspence.com 2 Achieving Business Excellence 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 _______ We have a clear and detailed vision for the direction of our company that is very well communicated throughout the entire organization. _______ Every employee has clear / quantifiable / observable performance objectives. _______ There is a high level of very open and honest communication throughout the organization. _______ I have a high level of trust in the skills, abilities, and integrity of my co-workers. _______ There is a high sense of urgency within the organization to get things done. _______ We have only the best, highly competent people in all areas of the organization. _______ We focus very intently on the needs of our customers. _______ There is no politics, rumor-mongering or finger-pointing within our organization. _______ Our key leaders operate as a highly-effective team. _______ There is a high level of both personal and mutual accountability within the organization. _______ People display a positive, enthusiastic attitude throughout the organization. _______ We are superb at collecting and using feedback from our customers. _______ Our organization displays great discipline in pursuing our focused business objectives. _______ I am very pleased with where our organization is in the marketplace today.
  3. 3. Embraer First Annual Leadership Forum www.johnspence.com 3 Achieving Business Excellence THE FOUR I’S 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. 4. Embraer First Annual Leadership Forum www.johnspence.com 4 Achieving Business Excellence What this chart shows: According to this global 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. 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=.27 CR=.275 CR=.249 CR=.280 Coaching CR=.285 CR=.371 CR=.365 CR=.191 CR=.247 CR = Causal Relationship TOLERATE NOTHING LESS Based on: “ Practice What You Preach” by Maister
  5. 5. Embraer First Annual Leadership Forum www.johnspence.com 5 Achieving Business Excellence 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. _______ Everyone in the organization has been trained on the important of superior customer service. _______ We keep customers informed on issues affecting their business with us. _______ We make our customers feel as though they are very important to us. _______ Customer satisfaction is a top priority in our company. _______ We do consistent training on delivering the highest quality products and service possible. _______ We listen very 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, even ahead of those of the company. _______ Our employees are highly engaged in their work. _______ Our employees take great pride in working for our organization. READ THAT LIST AGAIN… AND AGAIN!!! THIS IS CRITICAL TO YOUR SUCCESS
  6. 6. Embraer First Annual Leadership Forum www.johnspence.com 6 Achieving Business Excellence DO YOUR EMPLOYEES LOOK LIKE THIS? 1 = STRONGLY DISAGREE 3 = DISAGREE SOMEWHAT 5 = NOT SURE 7 = AGREE SOMEWHAT 10 = STRONGLY AGREE _______ 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. NOTES:
  7. 7. Embraer First Annual Leadership Forum www.johnspence.com 7 Achieving Business Excellence HOW WELL DOES YOUR ORGANIZATION STACK UP? 1= POOR 5 = AVERAGE 10 = SUPERIOR ______ Fun: people smile at work and enjoy their day and who they work with. ______ Family: people genuinely care about others and how they are doing. ______ Friends: many friends at work, sometimes a best friend. ______ Fair: people are treated with dignity and respect, their opinions matter. ______ Freedom: no micro-management, people are empowered to succeed. ______ Pride: employees are proud to tell people where they work. ______ Praise: some sort of sincere and specific praise once every 7 days. ______ Meaning: more than a pay check, employees feel like they are doing something important. ______ Accomplishment: employees feel like they are making real progress, getting key things done. THE SIX UNIVERSAL DRIVERS OF ENGAGEMENT ______ Caring, competent, and engaging leaders. ______ Effective managers who keep employees informed, aligned and engaged. ______ Effective teamwork at ALL levels. ______ Job enrichment and professional growth. ______ Valuing employee contributions. ______ Concern for employee well being.
  8. 8. Embraer First Annual Leadership Forum www.johnspence.com 8 Achieving Business Excellence THE BASIC 4 + 1 THE WEB OF VALUE: VOC + MOT + WOM
  9. 9. Embraer First Annual Leadership Forum www.johnspence.com 9 Achieving Business Excellence VOC + MOT Answer the following questions as honestly as possible using this 1-10 point scale: 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent ______ We have a very robust and well-developed process for capturing the VOC. _______ We do numerous customer surveys annually. _______ We have a “Customer Advisory Panel” that helps us understand the VOC. _______ We meet with our top clients regularly to solicit their feedback and ideas. _______ Everyone in our organization understands what our customers think/say is important. _______ We clearly understand our key Moments Of Truth (MOT). _______ Our MOT were defined specifically from the feedback of our customers. _______ We have built very well-developed and clear processes/systems around each of our MOT. _______ We are nearly flawless in consistently delivering our MOTs perfectly. _______ We truly own the Voice Of the Customer (VOC). THE KEY MOT FOR OUR BUSINESS ARE:
  10. 10. Embraer First Annual Leadership Forum www.johnspence.com 10 Achieving Business Excellence WHAT ARE FIVE THINGS YOU CAN DO RIGHT AWAY TO GENERATE POSITIVE WORD OF MOUTH AND STRONG PERSONAL REFERRALS?
  11. 11. Embraer First Annual Leadership Forum www.johnspence.com 11 Achieving Business Excellence THE 4 + 2 FORMULA The Four Primary Management Practices 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent _______ 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. _______ Execution: Develop and maintain flawless operational execution. Winners consistently meet the expectations of their customers by delivering on their value proposition. Bad quality, in products or service, surely will hurt. _______ 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. _______ 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 _______ Talent: Hold on to talented employees and find more. Winning organizations pay great attention to finding, growing, developing, and rewarding very talented people. _______ 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! _______ 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. _______ Partnerships: Make growth happen through winning combinations. Internally generated growth is essential, but companies that can also master partnerships, alliances, mergers, and acquisitions are much more likely to be winners in the long run. Based on: “ What (Really) Works” by Joyce
  12. 12. Embraer First Annual Leadership Forum www.johnspence.com 12 Achieving Business Excellence 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.
  13. 13. Embraer First Annual Leadership Forum www.johnspence.com 13 Achieving Business Excellence 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, fl at 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 •Intra-preneurship •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.
  14. 14. Embraer First Annual Leadership Forum www.johnspence.com 14 Achieving Business Excellence
  15. 15. Embraer First Annual Leadership Forum www.johnspence.com 15 Achieving Business Excellence WORKSHOP: IDEAS INTO ACTION Go back page-by-page and carefully look back through the 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 1-4 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 and controlling the market could mean to your business. Here are three major questions to keep in mind: 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?
  16. 16. Embraer First Annual Leadership Forum www.johnspence.com 16 Achieving Business Excellence 3. Key Strategies for Success Based on everything you have learned here today and your own personal business experience, what are the 4—6 most important ideas that will drive your organization’s ability to control the market? (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.)
  17. 17. Embraer First Annual Leadership Forum www.johnspence.com 17 Achieving Business Excellence 4. Action Steps Based on the list you just created, as well as the strengths and weaknesses you identified please list at least 4 specific, measurable, and observable action steps that can be done right away to take the lessons of this class and put them into positive action for your organization? 1. 2. 3. 4.
  18. 18. Embraer First Annual Leadership Forum www.johnspence.com 18 Achieving Business Excellence NOTES:
  19. 19. Embraer First Annual Leadership Forum www.johnspence.com 19 Achieving Business Excellence NOTES:

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