The Execution Maximizer™ Tune Up

The Execution Tune-up™
Getting from Vision to Execution

Kath Infante McBroom

Great Companies

“Good is the enemy of great”
- Jim Collins

2 Copyright © Alampi & Associates

Great Companies

The Great companies had a 5 times
multiple in profit performance and a
10 times multiple in valuation
compared to the Good companies.


Great Companies

“Great performance is about 1%
vision and 99% alignment”
Jim Collins
Built to Last


Great Companies

Companies don’t fail for lack of
vision. They fail because they
cannot translate their vision into
execution.
Vision without execution is
hallucination.


Our Agenda Today

The 3 Barriers to Profitable Growth
– Leadership
– Systems and structures
– Market dynamics
The Rockefeller Habits for Executive Teams
CEO & Executive leadership
The Execution Roadmap – getting your strategic plan
onto one page so you can execute it


There are very
Predictable Barriers to a
Company’s Profitable
Growth

Barriers to Growth
• 31 million companies in the U.S. file tax returns (2008 IRS Data)
• 96% have fewer than 10 employees

2,500→
17,000→
125,000→
4%→

$500 million
96% 1,000 + FTEs
$50 million
$10 million 200-400 FTEs
50-75 FTEs
$1 million
10 FTEs


Predictable Barriers to Growth

Leadership
Delegation
Systems & Structures
Market Dynamics (Fundamentals)

Issues that impact a company as it moves
through transitions to the next level


Barriers to Growth
Leadership

2,500→
17,000→
125,000→
4%→
$500 million
96% $50 million
1,000+ FTEs

50-75 FTEs
$1 million
10 FTEs


Delegation

So why is it so tough?


Delegation is Critical to Growth

• Pinpoint (measure)
• Feedback Agreement
• Risk Tolerance
• Reward & recognition

“Great leaders delegate results, not tasks”


What Is Your Risk Tolerance?

x

+2
x
x x
x
Risk
Goal x
x x Tolerance
x
x x
-2

x


• Pinpoint (measure)
• Feedback Agreement
• Risk Tolerance
• Reward & recognition

“Great leaders delegate results, not tasks”


“What is one thing you are
doing today that you should
delegate to someone else?”


Barriers to Growth
Systems & Structures

2,500→
17,000→
125,000→
4%→

$500 million
96% 1,000+ FTEs
$50 million
50-75 FTEs
$1 million
10 FTEs


It Is About Complexity!

2:2 4:12

An arithmetic increase in headcount, locations or
databases leads to a geometric increase in complexity


Barriers to Growth
Market Dynamics

2,500→
17,000→
0.4%→
4%→
$500 million
96% $50 million
1,000+ FTEs

50-75 FTEs
$1 million
10 FTEs


It is virtually impossible in
growth phases to skip a step,
just like child development


Rockefeller Habits for Executive Teams

Priorities – Top 3 to 5 and #1

Rhythm - Executive Team Meetings

Data Driven - Metrics

Titan, Ron Chernow
Biography of John D. Rockefeller
Mastering the Rockefeller Habits, Verne Harnish


Habit #1 - Priorities

Priorities have to start at the company level
Top 3 to 5 focus areas (maximum) and know #1
Issues where executive team focus will have greatest
impact for the company
For 3 year horizon, current year and next quarter
For Company / Department / Individual levels


Rhythm is about Frequency

Activity

Time

Activity

Time
Increase the frequency and you will
naturally increase the results


Habit #2 – Meeting Rhythm

Annual executive team off-site – 2 days
Quarterly executive team off-site – 1 day
Monthly executive team meeting - ½ day
Weekly executive team meeting/call – 1 -1½ hours
Daily huddle/call – stand up meeting - < 15 minutes

This structured format utilizes about 5%
of an executive team’s total time


Habit #3 – Data Driven

Standard Corporate Numbers
– Financial and operational numbers / ratios
– Rear-view look
Smart Numbers
– Typically 2 - 3 in any organization
– Leading indicators – what is around the corner?
Critical Number
– 1 or 2 numbers targeted to a critical weakness
– Targeted for a short period of time (e.g., quarter)


The Right Metrics

Graph it
Visual - get it up and around the Examples
organization
Frequent - 6 data points to spot
a trend
Measure what’s important, not
what’s easy
Absolute numbers vs. %’s -
choose which is appropriate for
the type of measurement


CEO and Executive Leadership

An organization needs to be both to be successful

Smart Healthy

- Strategy - Less Politics
- Marketing - Less Confusion
- Finance - Higher Morale
- Technology - Higher Productivity
- Lower Turnover

* Source: Patrick Lencioni, The Table Group, Inc.


Leadership: the Four Obsessions

4:
Reinforce
Clarity Through
Human
3: Systems
Over-
Communicate
Organizational
Clarity
2:
Create
Organizational
Clarity
1:
Build and
Maintain a
Cohesive
Leadership
Team * Source: The Four Obsessions of An Extraordinary
Executive, Patrick Lencioni, The Table Group, Inc.


Getting from Vision to Execution

So how does a company
first create a vision and then
more importantly, translate it
into execution and results?


High-performing Companies

Companies rarely fail for lack of
vision. They fail because they cannot
translate their vision into execution.
Vision without execution is
hallucination.


High-performing Companies

“Great performance is about 1%
vision and 99% alignment”
Jim Collins
Built to Last


The Execution Roadmap™

It all starts with a vision (core ideology) and
then a specific plan and process
to execute that vision

The best way to execute a strategic plan is 90
days at a time


Summary

The 3 Barriers to Profitable Growth
– Leadership
– Systems and structures
– Market dynamics
The Rockefeller Habits for Executive Teams
CEO & Executive leadership
The Execution Roadmap – getting your strategic plan
onto one page so you can execute it


Rarely do good companies
need to replace the engine;
tune-up the components to
get optimum performance


Contact Information

Kathie McBroom
Synergy Business Group, LLC
859-552-4991

Kathie.mcbroom@vistage.com


The Execution Maximizer™ Tune Up

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