FOR HR PROS
The Five Foundations of Strategy
THE 4 I’S
NOTES ON SOUTHWEST AIRLINES:
NOTES ON DELL COMPUTERS:
NOTES ON WALMART:
*** A KEY TO EFFECTIVE STRATEGY IS KNOWING WHAT TO SAY “NO” TO!
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
1. We have a clear vision and a detailed strategy to achieve that vision that is well communicated
throughout the entire organization: ________
2. Every employee has clear / quantifiable / observable performance objectives: ________
3. There is a high level of open, honest and frank communication throughout the organization: ________
4. I have a high level of trust in the skills, abilities, and integrity of my co-workers: ________
5. There is a high sense of urgency within the organization to get things done: ________
6. We have only the best, highly competent people in all areas of the organization: ________
7. We focus very intently on the needs of our customers: ________
8. There is no politics, rumor-mongering or finger-pointing within our organization: ________
9. Our key leaders operate as a highly-effective team: ________
10. There is a high level of both personal and mutual accountability within the organization: _______
11. People display a positive, enthusiastic attitude throughout the organization: _______
12. I personally set a living example of what I want other people in my organization to act like: _______
13. Our organization displays great discipline in pursuing our focused business objectives: _______
14. I am very pleased with where our organization is in the marketplace today: _______
MICROSOFT CHARLIE TROTTER
⇒ The Top 5% ⇒ Hire Only the Best
⇒ Bet the Company
⇒ Require Failure
⇒ Managers are Qualified
⇒ Perform, Perform, Perform ⇒ Highest Standards
⇒ Shrimps vs. Weenies
⇒ Espirit De Corps
⇒ Truly Delight Customers
⇒ Stop the Insanity
Based on: “ Lesson on Excellence from
Based on: “ The 12 Simple Secrets of
Charlie Trotter” by Clarke
Microsoft management” by Thielen
**** For the all of the workshops here is how to score yourself and your company ****
1 to 2 = very poor 3 to 4= mediocre 5 to 6= good 7 to 8 = superior 9 to 10 = world class
WHAT THE BEST CEO’S KNOW:
KEY LESSONS FROM THE TOP 7 CEO’S IN AMERICA
(Grove, Dell, Gerstner, Welch, Kellerher, Walton, Gates)
_______ We have an “Outside-In” perspective and focus intently on the needs of our customers.
_______ People in our organization are passionate about their work and serving the customer.
_______ We have a strong and very positive / supportive corporate culture.
_______ We are a highly innovative and creative organization.
_______ We are superb at studying other companies and industries in search of new ideas.
Based on: “ What the Best COE’ Know” by Krames
THE TOYOTA WAY SCORE YOURSELF ON THE 1-10 SCALE
Challenging Vision _______
We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.
We improve our business operations continuously, always driving for innovation and evolution
(1% better every day)
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.
We stimulate personal and professional growth, share the opportunities of development, and maxi-
mize individual and team performance.
From a study of 25 top companies that are renowned for being number one at what they do:
GE, Dell, Toyota, Nordstrom's, Wal-Mart, Starbucks, Southwest Airlines, IBM, P&G, Whole Foods,
Ritz Carlton, Intel…
THEY UNDERSTAND THAT RESULTS RULE!
SCORE YOURSELF ON THE 1-10 SCALE
We highly value candor and honesty in our organization _____
We always pursue the best over the easiest in every situation _____
We are excellent at leveraging partnerships both internally and externally _____
We are highly focused and make sure to keep the main things the main thing _____
People throughout the organization show the courage of accountability _____
We are always striving to learn, grow and improve every single day _____
Based on: ”Results Rule! “ by Pennington
IS YOUR COMPANY UP TO SPEED? ADAPTED FROM FAST COMPANY MAGAZINE
Score your company from 1 to 10: 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure
7 = Agree Somewhat 10 = Strongly Agree
WE HAVE A STRONG EMOTIONAL BOND WITH OUR CUSTOMERS: ________
Competing strictly on price, quality, and features is the road that most companies travel—and it
is the road to disaster. In a world of overcapacity, endless choice, and highly informed
customers there will always be some company that can do it a little faster, a little cheaper, or a
little better than you can. Companies that prosper over the long haul don’t just offer good deals,
they exude genuine affection and concern for their customers. They build strong, customer
intimate relationships as trusted advisors and true business partners.
WE HAVE A UNIQUE STRATEGY THAT CLEARLY STANDS OUT: ________
You can’t do great things if you are satisfied doing things just “a little better” than your rivals.
If you want to win really big, you have to think differently. You must pursue strategic ideas that
challenge the status quo in the industry. You must create a position that is unique, highly
valuable in the marketplace, and defendable from your competition.
OUR ORGANIZATION IS A FUN PLACE TO WORK—
AND A FUN ORGANIZATION TO DO BUSINESS WITH: ________
The most productive companies have an atmosphere of fun and excitement that permeates
their entire culture. This does not mean people sit around and play video games and tell jokes
all day long, it simply means that people smile and have fun while at work. They enjoy their
work and the people they work with—and especially serving their customers.
WE ARE BUILT TO CHANGE: ________
The only certainty in business today is that some crucial elements of your strategy, the
competitive landscape, your customer’s expectations, the underlying economics of your industry
will be different tomorrow. That is why change itself has become a core capability in
organizations that prosper over the long run. Companies that succeed are the ones that
embrace, even revel, in change.
WE STRONGLY EMBRACE THE VALUE OF VALUES: ________
Today, more than ever, customers don't just ask “What products do you make?” or “What
services do you offer?” they also ask “What values does your company stand for?” The
company with the clearest sense of purpose, bolstered by honesty and integrity wins.
WE ARE AS DISCIPLINED AS WE ARE CREATIVE: ________
(AND AS CREATIVE AS WE ARE DISCIPLINED)
Creating long-term value means delivering short-term results… every quarter, every week, every
day. There is no contradiction between creativity and execution. The most innovative companies
tend to be the most disciplined when it comes to making their numbers. Think outside the box,
but build a strong box to stand on while doing it.
WE USE TECHNOLOGY TO CHANGE EXPECTATIONS AND RESHAPE OUR BUSINESS: ________
Every business is a technology business. Regardless of your product, service or industry, every
company that hopes to survive, let alone win, must embrace technology as a fundamental driver
of their business strategy. Fundamental values and core business excellence is powered by
relevant (to the customer) technology.
WE ARE BUILT FOR SPEED: ________
Being fast does not mean reckless. But fast companies do understand the cost of hesitation and
delay, whether its responding to a customer’s complaint or launching a new product. Successful
companies know that time is as valuable a resource as money or talent and treat it accordingly.
WE HAVE BUILT A COMPANY OF LEADERS: ________
There is much more to leadership than the vision and charisma of the CEO. The most effective
form of leadership is grassroots leadership; the companies with the most confident and
committed leaders, in all levels of the organization, are companies that win.
GOOD TO GREAT
Based on: “ Good to Great” by Jim Collins
From a twice weekly survey for five years of 2,000+ senior managers and executives at:
• IBM • Microsoft • Motorola
• GE • CIGNA • Ikon
• Morgan Stanley • Heineken • American Express
• Merck • Master Card • Progressive Insurance
• 3M • Fidelity Investments • Bank of America
• AT&T • SAP • Borders Books
Keys to Effective Management (score on the 1—10 scale)
We have clear and consistent communication across the entire organization _____
We are courageous and always force the hard decisions _____
Everyone in our organization is clearly focused on delivering the key results _____
Our organization is highly flexible and eagerly embraces change _____
We do a superior job of clearly proving our value to the customer _____
We force collaboration and demand that people be excellent team players _____
We are rigorous in holding people 100% accountable, but never ruthless _____
Based on: “ Tough Management” by Martin
THE 4 + 2 FORMULA
The Four Primary Management Practices
1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent
1. 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 all stakeholders: employees, customers, partners, and investors.
2. Execution: Develop and maintain flawless operational execution: ________
You might not always delight every customer, but make sure that you never disappoint them.
Winners consistently meet the expectations of their customers by delivering on their value
proposition. Bad quality surely will hurt.
3. 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.
4. 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 goals for all world class organizations.
The Four Secondary Management Practices
1. Talent: Hold on to talented employees and find more: ________
Winning organizations pay great attention to finding, growing, developing, and rewarding very
2. 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 organizational performance, for better or for worse.
3. 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.
4. Mergers and Partnerships:
Make growth happen with mergers, alliances, and partnerships: _________
Internally generated growth is essential, but companies that can also master alliances and
partnerships are much more likely to be winners.
Based on: “ What (Really) Works” by Joyce
WHY IS IT SO IMPORTANT TO DELIVER SUPERIOR CUSTOMER SERVICE?
It is a proven business fact: The combination of quality products and services, with very high
levels of customer satisfaction — directly drives significantly higher profitability.
In other words, it should be spelled Customer $ervice — with a big capital $.
What this chart shows: Financial
According to this massive research study, by Performance
going from an average of “Somewhat Agree”
to “Agree” on the Quality and Customer
Relationship scores (in the eyes of the CR=104.12
staff) the average company would more than
double (104%) its financial performance!
Products / Services
As another example: & N
If you improve the average rating on Customer Relationships
Employee Satisfaction by 10 –15%
(again going from “Somewhat Agree” to
“Agree”) it will cause a 42% improvement in CR= .404
financial performance, including both
profitability and growth.
Empowerment Coaching High Standards
CR=.285 CR=.371 CR=.365 CR=.191 CR=.247
Long-term Enthusiasm, Training & Fair
Orientation Commitment, Development Compensation
CR = Causal Relationship
Based on: “ Practice What You Preach” by Maister
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 less: ________
In this company we set and enforce very high standards for performance: ________
Management gets the best work out of everybody in the company: ________
The quality of the work performed by our group is consistently high: ________
We maintain excellent/open communications with our customers: ________
We make our customers feel as though they are very important to us: ________
Customer satisfaction is a top priority in our company: ________
We listen extremely 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 effectively resolving customer problems when they occur: _________
We always place the customers’ interests first, even ahead of those of the company: _________
The level of quality service delivered by my group / team is consistently high: ________
READ THAT LIST AGAIN… AND AGAIN!!!!!
THIS IS CRITICAL TO YOUR SUCCESS
WORKSHOP: IDEAS INTO ACTION
Go back page-by-page and carefully look 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 right away.
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 could mean to your business. Here are three
major questions to keep in mind:
What does this mean to our business?
How can I make these ideas work in our company?
What can I do right away to improve our success?
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?
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? Look carefully for the pattern.
3. Key Strategies for Success
Based on everything you have learned here today and your own personal business experience,
what do you believe are the top strategies your company must focus on to build and sustain
success? What are the 4—6 most important ideas that will drive your company’s future?
(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 of exactly what you mean. It must be clear precisely what each ideas
means and how you will pursue it.)
4. Action Steps
Please list at least five specific, measurable, and observable action steps that your organization
can take to implement the ideas you learned today. Based on the list you just created, as well as
the strengths and weaknesses you identified, what can be done right away to take the lessons
of this class and put them into positive action for your organization?
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