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Abe updated.generic.edited v 7.09

  1. 1. Achieving Business Excellence ACHIEVING BUSINESS EXCELLENCE www.johnspence.com 1
  2. 2. Achieving Business Excellence The Five Foundations of Strategic Thinking 1. 2. 3. 4. 5. THE 4 I’S www.johnspence.com 2
  4. 4. Achieving Business Excellence 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: _______ www.johnspence.com 4
  5. 5. Achieving Business Excellence MICROSOFT CHARLIE TROTTER ⇒ The Top 5% ⇒ Hire Only the Best ⇒ Bet the Company ⇒ Teamwork ⇒ Require Failure ⇒ Communication ⇒ Managers are Qualified ⇒ Perform, Perform, Perform ⇒ Highest Standards ⇒ Shrimps vs. Weenies ⇒ Innovation ⇒ 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 www.johnspence.com 5
  6. 6. Achieving Business Excellence 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. Kaizen _______ 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. Teamwork _______ 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 www.johnspence.com 6
  7. 7. Achieving Business Excellence 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. www.johnspence.com 7
  8. 8. Achieving Business Excellence 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. www.johnspence.com 8
  9. 9. Achieving Business Excellence 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 www.johnspence.com 9
  10. 10. Achieving Business Excellence 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 talented people. 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 www.johnspence.com 10
  11. 11. Achieving Business Excellence 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 T than double (104%) its financial Highest Quality performance! Products / Services & N Excellent As another example: Customer Relationships If you improve the average rating on Employee Satisfaction by 10 –15% L (again going from “Somewhat Agree” to CR= .404 “Agree”) it will cause a 42% improvement in financial performance, including both profitability and growth. Employee CR=.277 Satisfaction CR=.275 CR=.249 CR=.334 CR=.280 Empowerment Coaching High Standards CR=.285 CR=.371 CR=.365 CR=.191 CR=.247 Long-term Enthusiasm, Training & Fair Orientation Commitment, Development Compensation Respect CR = Causal Relationship Based on: “ Practice What You Preach” by Maister www.johnspence.com 11
  12. 12. Achieving Business Excellence 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 www.johnspence.com 12
  13. 13. Achieving Business Excellence DISCIPLINED EXECUTION 1 = Strongly Disagree 3 = Disagree Somewhat 5= Not Sure 7= Agree Somewhat 10 = Strongly Agree We have a clear vision for exactly where we are trying to take our organization _______ We have a detailed and specific plan to accomplish the key objectives we are trying to execute _______ Our senior leaders are all 100% committed to executing the key objectives _______ The key leaders/employees in our organization are all superb at execution ______ All of the major objectives we are pursuing are fully aligned and mutually reinforcing _______ We have excellent systems and processes in place to ensure consistently superb execution ______ There is continuous and transparent communication throughout he entire organization about exactly where we stand on executing on our key objectives _______ Every employee has all of the training, support, equipment and resources they need to deliver the results required of them _______ We are superb at adjusting and adapting our strategy and objectives when truly necessary _____ We do a great job of celebrating both small and big wins and praising great performance _______ We refuse to tolerate mediocrity or lack of accountability and deal decisively with people who are not able to meet the clear standards of performance in our organization _______ www.johnspence.com 13
  14. 14. Achieving Business Excellence 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? 1. Strengths 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? 2. Weaknesses 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. www.johnspence.com 14
  15. 15. Achieving Business Excellence 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.) www.johnspence.com 15
  16. 16. Achieving Business Excellence 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? 1. 2. 3. 4. 5. www.johnspence.com 16
  17. 17. Achieving Business Excellence NOTES: www.johnspence.com 17
  18. 18. Achieving Business Excellence NOTES: To get me recommended reading list or to sign up for my blog (there are some VERY useful articles there), just go to: www.johnspence.com The slides from this session are available for free at: www.slideshare.net/johnspence If you have any additional questions or need any assistance, please do not hesitate to send me a note at: john@johnspence.com www.johnspence.com 18