John Spence EMP: Fundamentals of Success


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John Spence's presentation of ther Fundamentals of Business Success for the EO / MIT EMP program

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  • Because there is no way in the world that I can know as much about your business as you do, many of my suggestions and ideas I present will be somewhat generic, which means it is up to YOU to take the ideas I present and figure out how to make them work in your company, in your specific market, with your customers, with your employees. If you will continually ask the three questions above every time I put up a slide, there is a good chance that you will uncover something that will help your business significantly.
  • John Spence EMP: Fundamentals of Success

    1. 1. Awesomely Simple Focusing on theFundamentals of John Spence
    2. 2. Why should I listen to you?
    3. 3. A few of my clients:
    4. 4. What does this mean to me? How can I use this idea? What can I do right away?
    5. 5. Reality CheckKnowing – Doing 1 -10
    6. 6. Before we get started… Passion Persistence Practice Pattern Recognition Focus Discipline Action Knowledge Network LOVE NITB
    7. 7. Organization Effectiveness Audit Page 1Be “Brutally Honest” Scale of 1 – 10 1
    8. 8. The Pattern of Business Success
    9. 9. (T + C + ECF) x DE = Success 2
    10. 10. T = Talent Talent
    11. 11. Cecil Van Tyul “It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”
    12. 12. Some really great advice… Anne Mulcahy 1. Build a network of great relationships CEO of Xerox and the third most powerful with people who want to see you woman in the world! succeed. 2. You don’t have all of the answers, so ask for help and advice from the smartest people you can find. 3. Learn to be a learner. 4. Listen intently to your employees and to your customers. 2
    13. 13. Here is how I define talent… • Impeccable Character • Excellent Communicator • Positive Attitude • Competence + Aptitude • Creative /Innovative • Strong Drive = Proactive • Customer Focused • Solid Team Player Job Description + Competency Model WHAT WHO
    14. 14. What does it take to be a valued member of a team? Develop and display competence. Follow through on commitments. Deliver required results. Ensure your actions are consistent with your word. Stand behind the team and its people. Be enjoyable to work with. Be passionate about your work and those you serve. Communicate and keep everyone informed. Help the other members of the team. Help members of other teams. Share ideas, information and credit. Hold yourself 100% accountable. 2
    15. 15. • Lack of TRUST• Lack of candor• Lack of commitment• Lack of accountability• Lack of results 2
    16. 16. The 4 C’s of Trust HIGH Affection TRUST Concern Distrust Respect LOW LOW HIGH Competence 3
    17. 17. “I am good atwhat I do… andI do it because I care about you.”
    18. 18. John Spence High Performance Team Model• D irection – vivid, clear, inspiring --- shared• M easurements – specific, observable, focused• C ompetence – very good at what they do• C ommunication – open, honest, courageous• M utual Accountability – all team members• D iscipline – do this every day 3
    19. 19. Three Key Areas of Expectations NITB
    20. 20. Ground Rules for a Professional Organization• Staff agrees to be managed and coached to strictly enforced standards of performance and quality work.• Teamwork is mandatory, not optional.• Excellence in customer satisfaction is an enforced standard.• Personal and professional growth is a nonnegotiable minimum standard.• All team members must show a sincere interest in the customer and a sincere desire to help them.• The primary focus must be on delivering quality work and building strong customer relationships.• Demand excellence and refuse to tolerate mediocrity. NITB
    21. 21. 11 Key Team Competencies: Workshop Page41. Setting clear, specific and measurable goals.2. Making assignments extremely clear and ensuring required competence.3. Using effective decision making processes within the team.4. Establishing accountability for high performance across the entire team.5. Running effective team meetings.6. Building strong levels of trust.7. Establishing open, honest and frank communications.8. Managing conflict effectively.9. Creating mutual respect and collaboration. 1 – 1010. Encouraging risk-taking and innovation.11. Engaging in ongoing team building activities. 4
    22. 22. Best Practices: Talent • Create a pipeline of talent into your company. • Hire for attitude – train for skills. • Train people how to interview. • Use team interviewing. • Use a focused competency model. • Use numerous types of testing. • Do a thorough reference check. • Make sure they really want to work for you. • Hire slow – fire fast. Make “Hiring Right” a core competency! NITB
    23. 23. C = Culture Business Side • Integrity • Innovation • Accountability • Execution • Urgency • Customer Focus • Ownership Mentality
    24. 24. Nine Elements of Organizational HealthFrom: Beyond Performance by Keller and Price 4
    25. 25. From the Employee’s Perspective: NITB
    26. 26. What do employees want? S B A Focus me Know me Care about me Hear me Help me feel proud Equip me Help me see my value Help me grow Help me see my importance 5
    27. 27. The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…The level of highly satisfied and engaged EMPLOYEES in your business.
    28. 28. What do engaged employees look like? WS page 51. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization. 1 - 10 5
    29. 29. The Six Universal Drivers of Engagement 1. Caring, competent, and engaging senior leaders. 2. Effective managers who keep employees aligned and engaged. 3. Effective teamwork at ALL levels. 4. Job enrichment and professional growth. 5. Valuing employee Contributions. 6. Concern for employee well being. WS page 5 1 - 10 5
    30. 30. Key Drivers of Customer Satisfaction and Loyalty Financial Performance CR= 104.12% increase in profitsGlobal study: Tolerate16 countries Quality P&S & Nothing529 companies Customer Relationship15,589 respondents Less CR= .404 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 Workshop 6From: Practice What You Preach by Maister
    31. 31. Best Practices: Culture Make hiring “right” a core competency Manage the corporate culture as a key asset Establish a clearly communicated vision for success Focus on employee satisfaction and engagement as a strategic objective Set high standards and hold people accountable to those standards Refuse to tolerate mediocrity Be a fanatic for training, coaching and mentoring across the organization Empower your people to go out and “wow” the customer…
    32. 32. Extreme Customer Focus
    33. 33. Web of Value: VOC + MOT + WOM
    34. 34. VOC 7
    35. 35. How Many of these do you employ? 7
    36. 36. Moments Of Truth
    37. 37. Moments Of Truth
    38. 38. MOT Practice RoundDry CleanerHair SalonTailorPlumber
    39. 39. MOT Workshop Page 7• What are your MOT
    40. 40. 43% - 74% of purchasing decision = WOM 7
    41. 41. WOM = Your BEST form of advertising! 78.9% 23.4% 7
    42. 42. You MUST have a Referral PROCESS Identify Refer Ideal IdealCustomer Customer From John Jantsch: The Referral Engine
    43. 43. The Evergreen Project 10 year study of 160 top companies 40 distinct industries 200 management practices Winners, climbers, tumblers, losers Winners had an average Total Return to Shareholders of 945%... The Losers only averaged a TRS of 62%From: What (really) Works by Joyce, Nohria, Roberson
    44. 44. The Four Primary Practices: 1. A sharply focused, clearly communicated and well- understood strategy for growth. 2. Flawless operational execution that consistently delivers the value proposition. 3. A performance-oriented culture that does not tolerate mediocrity. 4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work.From: What (really) Works by Joyce, Nohria, Roberson
    45. 45. The Secondary Management Practices: • Talent = find and keep the best people. • Key leaders show commitment and enthusiasm for the business. • Embrace strategic innovation. • Master the power of partnerships. Score yourself on the 1–10 scale for all eight practices on page 8From: What (really) Works by Joyce, Nohria, Roberson
    46. 46. Where are we going + how will we behave on the way? Praise + Celebration Focus Eliminate Mediocrity Differentiation “No” Measure Track & Post Stakeholders + Transparency guiding collation Renewal Vision + Values Strategy Training + Plans time / money / Goals / Objectivessupplies / people Tactics / ActionsClear / consistent / relentless Procedures / Protocols @ Execution Repeatable Process NITB
    47. 47. Non-negotiable Standards + Fanatical Discipline Very Clear Expectations Specific and Measurable Goals Necessary Systems & Support Robust Communication Page 9 Consistent Tracking of 1 - 10 Performance Regular Performance Reviews Refuse to Tolerate mediocrity
    48. 48. Zappos Sales in 1998 = 0 Sales in 2008 = 1.2 Billion Looking back, a big reason we hit our goal early was that we decided to invest our time, money and resources into three key areas: customer service (which would build our brand and drive word-of- mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team). Even today, our core belief is that our Brand, our Culture and our Pipeline are the only competitive advantages we will have in the long run. Everything else can and will be copied.Tony Hsieh – CEO Zappos
    49. 49. Final Workshop• Look back over all of your notes and scores, especially the LOW scores!• Thank about everything you have learned here at the EMP.• What is the pattern?• Answer the question on page 10 and take it VERY seriously!!!
    50. 50. Thank You If you have any questions at all please do not hesitate to send a note or call. My email address is: My website is: My twitter address is: @awesomelysimple Please feel free to “friend” me on FB or LinkedInAlso, you might find value in the ideas I share in my blog. You can sign up for it at: Lastly, these slides have already been uploaded to: