For Leaders Only - May 10, 2011

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For Leaders Only - May 10, 2011

  1. 1. For Leaders Only<br />In Pursuit of Excellence Sessions<br />Engaging People for Better <br />Performance<br />May 10, 2011<br />
  2. 2. “If we were meeting here one year from today, looking back over that time, what needs to have happened for you to be satisfied with the performance of your organization?” <br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  3. 3. Leaders are Ready for Growth<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  4. 4. Leaders are Ready for Growth<br />The Top CEO Challenges for 2011 (Conference Board 2011)<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  5. 5. Imagine …<br />If all of your workforce was ready, willing, and able – what could your business achieve?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  6. 6. The Situation …Moving Mountains<br />The critical driver for<br />performance lies in your ability to put the right people in the right positions and align them to your strategy.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  7. 7. The Situation …Moving Mountains<br />Most organizations produce results at about 63% of potential performance capacity.<br />(Harvard Business Review)<br />63%<br />63% Actual Performance<br />Lost Potential Performance<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  8. 8. The Situation …Moving Mountains<br />Employees are responsible for 85% of the variation in executing on strategy.<br />It is not the brilliance of strategy that creates competitive advantage – it is the efforts of people.<br />(Success Factors Research 2010)<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  9. 9. The Focus … Moving Mountains<br />Leaders need to look internally to improve execution and business <br />growth …<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  10. 10. The Focus … Moving Mountains<br />1.<br />The Top 4 Strategies to Improve Business Results:<br />(Conference Board 2011)<br />2.<br />3.<br />4.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  11. 11. To provide tools and insights to improve organizational performance.<br />Part 1<br />Shifting the Curve for Better Results<br />Part 2 Increasing the ROI of Your Workforce<br />Part 3<br />Being More than the Sum of the Parts<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />Today’s Focus …<br />
  12. 12. The Outcome:<br />No matter what your starting point, you can always drive improvement.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Introduction<br />
  13. 13. Part One:<br />New Perspectives<br />Leading for Performance: <br />Shifting the Curve for Better Results<br />
  14. 14. “If you can’t explain it simply, you don’t understand it well enough.”<br />Albert Einstein<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  15. 15. If an organization wants to succeed – today and in the future – it must attract and retain great employees.<br />“In the long run, the most profitable companies are those that take care of their people … without people who are happy and productive, the company’s long-term prospects are mediocre at best.”<br />Dr Jack Fitz-Enz<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  16. 16. The impact of good people on the organization cannot be underestimated.<br />85% of the variance in execution against strategy is explained by people performance.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  17. 17. Without people performance, a great strategy is just an idea – it’s your people who make it real.<br />The greatest potential for increased execution, productivity, and profitability lies in your people.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  18. 18. One solution … <br />Hucamentrics<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  19. 19. Hucametrics<br />The new science of tracking and applying human capital data to predict employee and business performance based on cause and effect.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  20. 20. The Formula …<br />Competence <br />Engagement <br />Organizational Opportunity<br />= Return on Human Capital<br />Or, more simply put …<br /> Ready, Willing, and Able.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  21. 21. Turning data into business intelligence… <br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  22. 22. Where to start:<br />HCVA: Human Capital Value Added<br />HCROI: Human Capital Return on Investment<br />PROHC: Potential Return on Human Capital<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  23. 23. Handout One: <br />Organizational Hucametrics<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  24. 24. Human capital is the greatest lever for performance today.<br />Hucametrics provide a baseline of where the organization stands today. The next step is to get a firm grip on performance variance to improve the metrics.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  25. 25. Every organization has a distribution curve of their employees’ performance levels – but it’s a question of how well you can see it.<br />Only 3% of organizations measure their performance curve.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  26. 26. The Performance Curve<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  27. 27. Where do you focus?<br />The A Performer:<br />goes beyond expectations and shows self-starting initiative<br />The B Performer: <br />valued, steady, and meets the needs of their role – not dispensable<br />The C Performer: <br />does not meet expectations<br />The D Performer: <br />Lacks contribution and is not engaged in the organization<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  28. 28. The C Performers hold great potential for significant contribution variance.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  29. 29. So many C Performers are simply placed in the wrong position, mismanaged, or under coached.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  30. 30. Handout Two<br />Moving the C Performer<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  31. 31. The linchpin for shifting people performance - leadership.<br />“Better people are not needed for better performance.”<br />*Peter Drucker<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  32. 32. How well managers manage and are managed determines whether business goals will be reached and the level of workforce performance achieved.<br />“Workers’ attitude reflects, above all, the attitude of their management.”<br />*Peter Drucker<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  33. 33. The responsibility of leadership:<br />Improve managers’ competence and confidence in building people performance and being accountable for the results.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  34. 34. The organization needs to …<br /><ul><li>Hold employees accountable
  35. 35. Provide open and honest feedback
  36. 36. Consistently invest in development
  37. 37. Support managers to be responsible for employee performance</li></ul>FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  38. 38. The needed organizational shifts …<br /><ul><li>Establish clearly defined but individual performance objectives for all employees
  39. 39. Link competencies to performance needs</li></ul>FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  40. 40. The needed organizational shifts …<br /><ul><li>Provide an individual development plan for each employee
  41. 41. Improve manager competence and accountability for team performance – coaching skills</li></ul>FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  42. 42. Shifting the performance curve is founded in leadership that measures what matters and invests responsibly with accountability.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part One<br />
  43. 43. Part Two:<br />Innovative Ideas<br />Leading with Engagement<br />Increasing the ROI on your Workforce<br />
  44. 44. “"If we did all things we were capable of doing, we would truly astound ourselves." <br />Thomas Edison<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  45. 45. Execution is about focusing resources on the objectives that will reap the biggest reward for your organization.<br />It's more than just having a strategy; it is about translating the strategy into action on a daily basis.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  46. 46. The Shifting Drivers of Business Value<br />"More than 75% of the growth in US market capital in the last 10 years has come from "intangible assets" - assets which are not listed on the balance sheet." <br />Bersin & Associates<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  47. 47. Organizational capability is a shift in mindset to improve execution through people...<br /> "The firm's ability to manage people to gain competitive advantage”<br />Dave Ulrich<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  48. 48. How does the organization ensure that it has the talent in place - the capability - to execute on its strategy?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  49. 49. Developing a "talent mindset" is based on the belief that:<br />talent is a positive differentiator for the organization and individuals <br /> that it can be developed, and that it leads to reaching current and future goals.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  50. 50. A Talent Mindset is founded in the belief that people are the primary driver for success.<br />It is proactive rather than reactive.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  51. 51. Organizations need a business process that drives performance at both the organizational and individual level with emphasis on aligning competencies with business goals.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  52. 52. The first step to improving Workforce ROI through organizational capability is focus.<br />Where should attention be placed to make a difference?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  53. 53. The key to productivity gains for an organization is to manage the performance variance at the pivot points:<br /> Strategic drivers<br /> Strategic competencies<br />Strategic positions<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  54. 54. Organizational Competencies<br />Organizational competencies are the combination of required skills, necessary information, appropriate performance measures, and the right corporate culture dynamics that is needed to achieve the strategic vision.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  55. 55. Step One<br />What competencies are needed organizationally to deliver against the strategy?<br />Case Study <br />Handout<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  56. 56. Step Two<br />What positions matter most?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  57. 57. Pivotal Positions<br />These are the pivotal positions. <br /> <br />Pivotal positions vary by industry and organization and time. <br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  58. 58. Pivotal Positions<br />To identify: <br />the organization must look across the enterprise and objectively determine which position(s) have the greatest ability to impact (positively or negatively) key business results. <br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  59. 59. Case Study Part Two<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  60. 60. Pivotal Positions<br />Identifying pivotal positions supports organizations to:<br /><ul><li>Concretely determine which positions contribute the most to organizational success
  61. 61. Focus development resources on these strategically valuable positions
  62. 62. Determine the starting point for investing to increase workforce ROI</li></ul>FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  63. 63. Not every employee is equally important in driving your organizational strategy. Different jobs contribute differently to both top and bottom line, and the performance of individuals differentially contributes even more. <br />Few organizations apply this concept.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  64. 64. Measuring bench-strength is about targetingthe variance <br />in individual / group performance.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  65. 65. The Performance / Potential Matrix<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  66. 66. Development strategy must be based on business strategy and the requirements for effective execution.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  67. 67. Achieving a significant increase in the Workforce ROI for your organization starts and ends with focus.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  68. 68. Define the strategic drivers to focus the organization’s actions and attention<br />Define the organizational competencies to focus the workforce on the actions that create competitive advantage for the organization<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  69. 69. Define the pivotal positions that will have the greatest impact on organizational execution and performance<br />Define the competencies most needed for exceptional performance in the pivotal positions<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  70. 70. Define the benchstrength of the people in the pivotal positions to determine the skill gaps and focus for investment<br />Invest and measure<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  71. 71. This overall approach builds a solid “People Portfolio”. <br />You connect strategy to people for the performance you need to achieve results. <br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Two<br />
  72. 72. Part Three:<br />Renewed Energy<br />Leading with Effectiveness<br />Being More than the Sum of the Parts<br />
  73. 73. The Challenge<br />Only 21% of teams are assessed as being effective;<br /><ul><li>37% are mediocre
  74. 74. and 42% are judged as poor.</li></ul>*Harvard Business Review<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  75. 75. The Challenge<br />Few teams function as well as they could but the stakes are higher with senior teams – lack of effectiveness at the top can slow down or derail an organization.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  76. 76. The Situation<br />A real team is more than the sum of its parts …<br />most top teams are simply work groups where synergy does not create leverage and the group is the sum of its parts.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  77. 77. The Situation<br />Increasingly, top teams are essential to the success of the organization. The top team has broader and deeper reach than one leader alone and its performance has a multiplier effect.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  78. 78. Often, however, the leadership team is at best a collection of strong individuals who sometimes work at cross-purposes.<br />Being seasoned executives with excellent individual performance does not naturally translate to an effective team.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  79. 79. The Situation<br />In most situations, smart people do not make smart teams.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  80. 80. The Situation<br />The critical question is; <br />Why can’t a group of sophisticated, experienced, and intelligent professionals come together to create a solid, high-performing top team?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  81. 81. Answer:<br /> <br />There are specific roadblocks and obstacles that prevent senior teams to actually work as effective teams and these issues need to be addressed and resolved.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  82. 82. FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  83. 83. How do we bridge the gap between potential and performance?<br />Potential<br />Performance<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  84. 84. The Solution<br />The Four Dimensions of a Successful Top Team<br />Ensure the top team does just the work only it can do … a clear and compelling definition of the performance opportunities and challenges that require collective effort is essential.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  85. 85. The Solution<br />The Four Dimensions of a Successful Top Team<br />Address team dynamics and processes… clarify expectations for team collaboration and put in place supportive systems and processes to ensure accountability<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  86. 86. The Solution<br />The Four Dimensions of a Successful Top Team<br />Master the performance dimensions needed for success… shared understanding of common goals and values, interactive skill development, and build capabilities to respond to change<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  87. 87. The Solution<br />The Four Dimensions of a Successful Top Team<br />Ensure the right skills are present … capabilities, attitudes, and beliefs needed to meet specific performance opportunities and challenges are more important than title and position<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  88. 88. In Practice<br /><ul><li>Only 35% of executives say their teams are focused on the right work
  89. 89. Only 38% of executives feel their teams allocate their time appropriately
  90. 90. Only 30% of top teams work in productive collaboration</li></ul>McKinsey and Company 2011<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  91. 91. You can not just convene a group of people and call them a team<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  92. 92. A real team has one essential characteristic – <br />interdependent work.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  93. 93. Leading the<br />High-Performance Top Team<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  94. 94. The top team leader’s role requires the wearing of two hats … team member and team leader.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  95. 95. Team leadership is based on balancing two things:<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  96. 96. The leader of the top team needs to determine the best approach.<br />The LEAD Style Assessment<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  97. 97. Finding the Right Approach<br />PARTICIPATIVE<br />2<br />1<br />NON-DIRECTIVE<br />DIRECTIVE<br />3<br />4<br />NON- PARTICIPATIVE<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  98. 98. The Senior Leader’s Approach<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  99. 99. The responsibilities of the top team leader:<br /><ul><li>Define the agenda
  100. 100. Clarify meeting objectives
  101. 101. Questioning and testing for understanding
  102. 102. Managing the allocation of time to topics</li></ul>FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  103. 103. The responsibilities of the top team leader:<br /><ul><li>Calling the question when decisions need to be made
  104. 104. Summarizing the discussions and results of work
  105. 105. Identifying next steps and accountabilities</li></ul>FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  106. 106. The Next Steps<br />What should the team be focused on?<br />What is the value-add from working as a team?<br />What are the expectations for working together?<br />What are the processes needed?<br />What are the needed dynamics?<br />Where is the team now, what are the gaps, and what needs to happen?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  107. 107. The Next Steps<br />Today’s challenges demand not only great personal effort, but also first-class collective leadership.<br />Make the investment to build a truly top team.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Three<br />
  108. 108. Part Four:<br />Immediate Impact<br />Focus your thinking and commit to key takeaways <br />
  109. 109. Leaders must always, in every decision and action, put economic performance first. The organization can justify its existence only by the economic results it produces.<br />Paraphrased from Peter Drucker<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  110. 110. Leaders must also make work productive and support the worker to achieve. Organizations have only one true resource – people. It performs by supporting workers to be productive.<br />Paraphrased from Peter Drucker<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  111. 111. Leaders also have a social responsibility for the organization. None of our organizations exist by itself or are an end in itself. <br />Paraphrased from Peter Drucker<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  112. 112. Leaders are ready for growth.<br />To achieve growth effectively, organizations need to shift focus from financial capital and process efficiency to people performance.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  113. 113. “We have become an employee society”<br />Peter Drucker<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  114. 114. Maximizing employee contribution requires a shift to a <br />“talent mindset”.<br />Proactively connecting strategy and people to provide focus, meaning, and results.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  115. 115. Imagine …<br />If all of your workforce was ready, willing, and able – what could your business achieve?<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  116. 116. Moving Mountains:<br />The critical driver for performance lies in your ability to put the right people in the right positions and aligning them to your strategy.<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  117. 117. Key Insights:<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  118. 118. The Next Steps<br />The Bigger Future Session<br />FOR LEADERS ONLY<br />IN PURSUIT OF EXCELLENCE<br />Part Four<br />
  119. 119. www.BluteauDeVenney.com<br />Thank You!<br />

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