ASMC Focusing on the Fundamentals of ExcellencePresentation Transcript
Focusing on the Fundamentals of Excellence
For the past 22 years…
What does this mean to me? How can I use this idea? What can I do right away?
Organization Effectiveness Audit Page 2 Be “Brutally Honest” Scale of 1 – 10
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 / communication is mandatory – not optional.
Passion and commitment at all levels.
Foster a healthy paranoia.
Revel in change.
3 1 - 10
The Pattern of Business Success
(T + C + ECF) x DE = Success
Talent + Culture Talent
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.”
The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…
The level of highly satisfied and engaged EMPLOYEES in your business. 4
Key Drivers of Customer Satisfaction and Loyalty T olerate N othing L ess From: Practice What You Preach by Maister Global study: 16 countries 529 companies 15,589 respondents 4 Workshop Page 5 1 - 10 Financial Performance Quality P&S & Customer Relationship Employee Satisfaction Empowerment High Standards Long-term Orientation Enthusiasm, Commitment, Respect Training & Development Fair Compensation CR= 104.12% increase in profits CR= .404 CR=.334 CR=.277 CR=.275 CR=.249 CR=.280 Coaching CR=.285 CR=.371 CR=.365 CR=.191 CR=.247
Customer satisfaction drives customer loyalty… and customer loyalty drives profitability 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 NITB 100% 90 80 70 60 50 40 30 20 Extremely Dissatisfied Somewhat Dissatisfied Slightly Dissatisfied Satisfied Very Satisfied Zone of Defection Zone of Indifference Zone of Affection Loyalty Customer Satisfaction Terrorist Evangelist
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
What do engaged employees look like?
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.
Page 6 1 - 10 6
What they look for in a leader… Credibility
What Employees Want: SBA
Care about me
Help me feel proud
Help me see my value
Help me grow
Help me see my importance
The key elements of a winning culture: Employees
7 1 - 10
The Six Universal Drivers of Engagement
Caring, competent, and engaging leaders.
Effective managers who keep employees aligned, informed and engaged.
Effective teamwork at ALL levels.
Job enrichment and professional growth.
Valuing employee contributions.
Genuine concern for employee well being.
1 - 10
1,300,000 interviews : Basic 4 + 1 From: The Orange Revolution by Gostick and Elton 8
E xtreme C ustomer F ocus
Web of Value: VOC + MOT + WOM
How Many of these do you employ?
M oments O f T ruth
MOT Practice Round Dry Cleaner Hair Salon Tailor Plumber
Workshop VOC + MOT 9
43% - 74% of purchasing decision = WOM/T
WOM = Your BEST form of advertising! 78.9% 23.4%
You MUST have a WOM Referral System From John Jantsch: The Referral Engine Identify Ideal Customer Refer Ideal Customer
Workshop : Five ways to generate WOM 10
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 11
The Four Primary Practices:
A sharply focused, clearly communicated and well-understood strategy for growth.
Flawless operational execution that consistently delivers the value proposition.
A performance-oriented culture that does not tolerate mediocrity.
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
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.
Workshop Page 12
Very Clear Expectations
Specific and Measurable Goals
Necessary Systems & Support
Consistent Tracking of Performance
Timely Performance Reviews
Refuse to Tolerate mediocrity
Final Workshop Strategy map on page 13 Business excellence “Word Cloud” on page 14 Specific assignments pages 15 - 17
Thank You If you have any questions at all please do not hesitate to send a note or call. My email address is: email@example.com My twitter address is: @awesomelysimple Please 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