Vistage Achieving Business Excellence


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These are the slides for the "Achieving Business Excellence" program I deliver for the Vistage organization.

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Vistage Achieving Business Excellence

  1. 1. Achieving Business <br />
  2. 2. Most people are so busy working IN their business that they do not take any time to work ON their business.<br />
  3. 3. Do you have a clearly focused and well-communicated strategy for success?<br />Effective Strategy = Valued Differentiation x Execution<br />
  4. 4.
  5. 5. Key Point:<br />Strategy is EXTERNAL <br />as well as INTERNAL<br />
  6. 6. Five Foundations of Effective Strategic Thinking<br />Business Acumen<br />Personal Experience<br />Pattern Recognition<br />Strategic Insight<br />Disciplined Execution<br />2<br />
  7. 7. The Four – I’s<br />Ignorance<br />Inflexibility<br />Indifference<br />Inconsistency<br />2<br />
  8. 8. How to avoid the Four I’s <br />Aggressive external market focus.<br />Aggressive customer focus.<br />Keep the “Main Things” the main things.<br />Bullish on knowledge sharing and learning.<br />Passion and commitment at all levels.<br />Foster a healthy paranoia.<br />Revel in change.<br />be agile, adaptive, and anticipatory.<br />
  9. 9. Southwest<br />One type of plane<br />Point-to-point<br />Fast turns<br />Low fares / no frills<br />Friendly staff<br />3<br />
  10. 10. BTO<br />JIT<br />Inventory turns<br />Logistics vs. Technology<br />VOC<br />Dell<br />3<br />
  11. 11. 100,00<br />ELP<br />No Frills<br />Logistics<br />3<br />
  12. 12. From the CEO of a little 172 billion dollar company…<br />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.<br />Jeffrey Immelt<br />
  13. 13. Educated GuessDifferentiated Strategy FocusResource AllocationBold Not RiskyWhat NOT To Do<br />
  14. 14. Organizational <br />Effectiveness<br />Audit <br />Page 4<br />4<br />
  15. 15. Microsoft<br />Total World Domination<br /> The Top 5 %<br /> Bet the Company<br /> Require Failure<br /> Managers are Qualified<br /> Perform, Perform, Perform<br /> Shrimps vs. Weenies<br />Stop the Insanity<br />Espirit De Corps <br />5<br />From: The Twelve Simple Secrets of Microsoft Management by Thielen<br />
  16. 16. Charlie Trotter’s<br />Hire for Desire<br /> Teamwork: NP<br /> Communication <br /> Highest Standards<br /> Innovation<br /> Truly Delight Customers<br />5<br />
  17. 17. Lessons from seven top CEOs<br />Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B<br />Have an outside-in perspective<br />Be deeply passionate about your job<br />Understand the importance of culture<br />Create or adapt next generation products, processes and solutions<br />Implement the best ideas regardless of origin<br />1-10<br />5<br />From: What the Best CEOs Know by Krames<br />
  18. 18. 2007 p/T @13.9B&gt;p/F+GM+DC+VW+BMW+JAG+RR+HUM+MC<br />
  19. 19. The Toyota Way<br />1-10<br />Challenging Vision<br />We form a long-term vision, meeting challenges with courage and creativity to realize our dreams.<br />Kaizen<br />We improve our business operations continuously, always driving for innovation and evolution.<br />Genchi Genbutsu<br />We go to the source to find the facts to make correct decisions, build consensus, and achieve our goals at our best speed.<br />Respect, Challenge and Help your People and Suppliers<br />We respect others, make every effort to understand each other, take responsibility and do our best to build mutual trust.<br />Teamwork<br />We stimulate personal and professional growth, share the opportunities of development, and maximize individual and team performance.<br />6<br />
  20. 20. In-depth study of 25 top companies renowned for building winning corporate cultures…<br />GE<br />Dell<br />Wal-Mart<br />Toyota<br />Nordstrom<br />Starbucks<br />Southwest Airlines<br />IBM<br />P&G<br />Whole Foods<br />Ritz Carlton<br />Intel<br />The pattern of six common traits for all of these firms…<br />From Results Rule by Randy Pennington<br />
  21. 21. They understand that: Results Rule!<br />Tell themselves the truth and value candor and honesty.<br />Pursue the best over the easiest in every situation.<br />Leverage the power of partnerships both internally and externally.<br />Focus the energy to make the main things the main thing.<br />Show the courage of accountability.<br />Learn, grow and improve every single day.<br />1-10<br />6<br />From Results Rule by Randy Pennington<br />
  22. 22. Is Your Company Up To Speed?<br />Pages 7 - 8<br />Fast Company June 2003<br />
  23. 23. Good to Great:1,483 to 11400 – 700%15+ years<br />9<br />
  24. 24. Twice weekly surveys for five years of 2,000+ senior managers and executives at:<br />IBM<br />GE<br />Morgan Stanley<br />Merck<br />3M<br />Microsoft<br />CIGNA<br />Heineken<br />MasterCard<br />Fidelity<br />Motorola<br />Ikon<br />American Express<br />Progressive<br />Bank of America<br />AT&T<br />SAP<br />Borders<br />9<br />
  25. 25. Keys to effective management…<br />Communicate clearly<br />Force the hard decisions<br />Focus on results<br />Remain flexible to change<br />Prove your value to the customer<br />Force collaboration<br />Rigorous but not ruthless<br />9<br />1 - 10<br />
  26. 26. The Evergreen Project<br />10 year study of 160 top companies<br />40 distinct industries<br />200 management practices<br />Winners, climbers, tumblers, losers<br />Winners had an average Total Return to Shareholders of 945%... The Losers only averaged a TRS of 62%<br />10<br />From: What (really) Works by Joyce, Nohria, Roberson<br />
  27. 27. The Four Primary Practices:<br />A sharply focused, clearly communicated and well-understood strategy for growth.<br />Flawless operational execution that consistently delivers the value proposition.<br />A performance-oriented culture that does not tolerate mediocrity.<br />A fast, flexible, flat organization that reduces bureaucracy and simplifies work.<br />10<br />From: What (really) Works by Joyce, Nohria, Roberson<br />
  28. 28. The Secondary Management Practices:<br />Talent = find and keep the best people.<br />Key leaders show commitment and enthusiasm for the business.<br />Embrace strategic innovation.<br />Master the power of partnerships.<br />Score yourself on the 1–10 scale for all eight practices on page 10<br />From: What (really) Works by Joyce, Nohria, Roberson<br />
  29. 29. Key Drivers of Business Success<br />Tolerate<br />Nothing<br />Less<br />Global study:<br />16 countries<br />29 companies<br />139 offices<br />5,589 respondents<br />Workshop<br />Page 12<br />11<br />From: Practice What You Preach by Maister<br />Financial <br />Performance<br />CR=104.12<br />Quality P&S<br />&<br />Customer Relationship<br />CR= .404<br />Employee<br />Satisfaction<br />CR=.277<br />CR=.275<br />CR=.249<br />CR=.334<br />CR=.280<br />Empowerment<br />High Standards<br />Coaching<br />CR=.371<br />CR=.365<br />CR=.285<br />CR=.191<br />CR=.247<br />Long-term<br />Orientation<br />Enthusiasm, Commitment,<br /> Respect<br />Training &<br />Development<br />Fair <br />Compensation<br />
  30. 30. Disciplined Execution<br />Clear Vision<br />Detailed Strategy<br />Guiding Coalition<br />Alignment<br />Systems<br />Communication<br />Support<br />Adjust <br />Reward / Punish<br />1 - 10<br />13<br />
  31. 31. Individual Workshop<br />Go back and look at all of your audits.<br />Where were your low scores, where were your high scores – what is the pattern?<br />Look over your notes – what were the key themes? What are the most important ideas?<br />Answers all the questions on pages 14 – 16.<br />Put in as much detail as possible.<br />Be very honest with yourself.<br />Think in terms of actions and outcomes.<br />
  32. 32. THANK YOU<br />If you have any questions at all please do not hesitate to send a note or call. <br />My email address is: <br />Also, you might find value in the ideas I share in my blog. You can sign up for it at:<br /> <br />Lastly, I have a new book coming out in September!<br />