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Sher leadership infrastructure keynote

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PRISM 2019 Presentation

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Sher leadership infrastructure keynote

  1. 1. Mighty Midsized Companies 1
  2. 2. 0 5 10 15 Sales Profits Mighty Midsized Companies 2 ALERT THE MEDIA: Our first million dollar month!! Successful startups are EXCITING
  3. 3. Mighty Midsized Companies 3 CEO
  4. 4. How to Run the Business? Mighty Midsized Companies 4 Small Large $1B$500M$10M
  5. 5. How to Run the Business? Mighty Midsized Companies 5 Small Large $1B$500M$10M
  6. 6. How to Run the Business? Mighty Midsized Companies 6 Small Midsized Large <$10M $10M-$1B $1B + Emerging Midsized $10M-$100M
  7. 7. Mighty Midsized Companies 7
  8. 8. Revenues - $10 million to 1B Complexity Led by team Longer term horizon What defines MIDSIZED? Mighty Midsized Companies 8 Headcount - 20 to 5000
  9. 9. Midsized companies are overlooked “Despite its significance to the economy, we know less about the middle market than about small and large firms” - Ohio State University National Center for the Middle Market Mighty Midsized Companies 9
  10. 10. What Leads to Growth is Well Understood Mighty Midsized Companies 10
  11. 11. Mighty Midsized Companies 11
  12. 12. Researching the Killers Mighty Midsized Companies 12
  13. 13. Mighty Midsized Companies 13
  14. 14. Mighty Midsized Companies 14
  15. 15. Our Philosophy • A messy stage. The development of processes and professionalism required to grow from small to midsized is messy and hard. Compromise is usually required between “best practices” and reality. • There is baggage. Our clients often have non-negotiable needs/wants/bad habits that don’t fit well in a best-practices, corporate scenario. • Don’t shoot for perfect. We work with those habits, around them & through them to improve the business toward an achievable goal (which may not be maximum profits). • Lead decisively. Leaders of midsized firms deserve to lead decisively, embracing their own style and approach. 15
  16. 16. Introducing the 7 Silent Growth Killers Letting Time Slip-Slide Away Mighty Midsized Companies 16 Introducing the 7 Silent Growth Killers
  17. 17. Introducing the 7 Silent Growth Killers Strategy Tinkering at the Top Mighty Midsized Companies 17
  18. 18. Introducing the 7 Silent Growth Killers Reckless Attempts at Growth Mighty Midsized Companies 18
  19. 19. Introducing the 7 Silent Growth Killers Fumbled Strategic Acquisitions Mighty Midsized Companies 19
  20. 20. Introducing the 7 Silent Growth Killers Operational Meltdown Mighty Midsized Companies 20
  21. 21. Introducing the 7 Silent Growth Killers The Liquidity Crash Mighty Midsized Companies 21
  22. 22. Introducing the 7 Silent Growth Killers Tolerating Dysfunctional Leaders Mighty Midsized Companies 22
  23. 23. Mighty Midsized Companies 23
  24. 24. Mighty Midsized Companies 24 Midsized companies finally get momentum. They do mostly what they did yesterday. But progress is NOT rolling the ball downhill. Progress requires going uphill.
  25. 25. Mighty Midsized Companies 25 Progress is hard. Why? A lot of people. A lot of actions. A lot of time elapsing. A lot of change-weekly, monthly.
  26. 26. Mighty Midsized Companies 26 Can we count on them to get the most important things done well, and on time? Does everyone know who will do what, by when?
  27. 27. Introducing the 7 Silent Growth Killers The Evolution of the Leadership Team Mighty Midsized Companies 27
  28. 28. 28 Small teams work well with one leader
  29. 29. 29 Leadership shortage kills growth of midsized firms.
  30. 30. Mighty Midsized Companies 30 1. 2013: $18M Revenues; Break even; 7% sales growth 2. Founded 1980. COO became CEO. 3. No firing rule. Top 3 leaders started in 1985. 4. CEO bright, energetic, introverted, frustrated. 5. Leadership team (managers) working, but disengaged. CEO: “Help me fix this ‘beast’ up!” Client Case Study: Wholesale Food Distributor
  31. 31. 31Mighty Midsized Companies Promote warehouse manager Leadership Re-arrange sales territories Tactic Upgrade website Project Grow 15% Goal Spend 7.2% on trade show budget Budget Manage customer service and sales team. Responsibility Zero the credit line once per year for 30 days Priority Review employees Performance Quarterly business review meeting Communication Client Case Study: Wholesale Food Distributor
  32. 32. Must Managing a Midsized Firm be a Game of Whack-a-Mole? Mighty Midsized Companies 32
  33. 33. 33 Upgrade helpers to leaders, starting with a few.
  34. 34. 34 A team of leaders with an operating system makes for a star CEO and accelerated growth.
  35. 35. 35 CXOs must upgrade their helpers to leaders at ~75M
  36. 36. 36 Strong leadership teams drive growth = Mightiness!
  37. 37. Mighty Midsized Companies 37 Becoming a Mighty Midsized Company At Work
  38. 38. 38Mighty Midsized Companies Leadership Infrastructure Elements 1. Planning & Governance Processes 2. Information Gathering Acumen 3. Communications Rhythm 4. Quality Leaders
  39. 39. Planning and Governance Process Well planned and a well tended plan Mighty Midsized Companies 39
  40. 40. Mighty Midsized Companies 40 Strategic Plan Requires marketplace analysis first Operational Plan Requires clear strategic direction Planning
  41. 41. 41Mighty Midsized Companies Roadmap: 1 per leader 1. Future state 2. Why we exist 3. KPIs 4. Operational strategies 5. Projects Operational Plan A Building Block of the Leadership Operating System
  42. 42. Mighty Midsized Companies 42 Client Example: Operating Plan Portal
  43. 43. Mighty Midsized Companies 43 Client Example: Operating Plan Portal
  44. 44. 44Mighty Midsized Companies 2014 Facts: 1. Strategy was straight ahead. Operations needed the focus. 2. Created an operations plan set (7) thus engaging the leadership team to run the business better. 3. Monthly plan reviews 4. Profits jumped from 0.4% to 3.5% profit 5. Sales grew same as previous year. Client Case Study: Wholesale Food Distributor
  45. 45. Information Gathering Acumen Knowing the hand we’re dealt Mighty Midsized Companies 45
  46. 46. Mighty Midsized Companies 46  Customers  Competitors  Partners  Investor Community  Geographies  Technology  External Talent Pool  Employees Supporting Great Decisions & Limiting Surprises Examples: Bentley’s quarterly trend report BlueArc’s CFO’s iBanker routine Customer interviews.
  47. 47. 47Mighty Midsized Companies Current  Current strategies  Internal competencies  Customer demand  Competitor weaknesses  Crucial differentiators Future  Best targets  Desired competencies  Growth targets  Drivers of growth  New strategies Formality Required Strategic Planning
  48. 48. 48Mighty Midsized Companies Example: $100M Engineering Firm Strategic Planning (Research + Decisions)  Who does this work?  Which of our leaders are experienced at this kind of work?  What is our schedule for this work?  What decisions made by when?  How do we de-risk it?  What is our budget for this work?
  49. 49. 49Mighty Midsized Companies Strategic Planning (Research + Decisions) Midsized Companies Are Too Big To Learn The Hard Way
  50. 50. Communications Rhythm Neither all the time nor never works well Mighty Midsized Companies 50
  51. 51. Mighty Midsized Companies 51 Topics Planning, monitoring, readjusting: Communications Rhythm Not including marketing to customers/prospects Audiences Informing, guiding, listening to: Methods Near and far, uni and bidirectional 1. Strategy 2. Operations 3. Company Results 4. Individual Performance 1. Shareholders 2. Board 3. C-Suite 4. Leadership team 5. All employees 6. Key partners 1. Meetings 2. 1:1s 3. E-mails 4. Newsletters 5. Video 6. Presentations Frequency 1. Daily 2. Weekly 3. Monthly 4. Quarterly
  52. 52. Mighty Midsized Companies 52 Topics Planning, monitoring, readjusting: Communications Rhythm Not including marketing to customers/prospects Audiences: Informing, guiding, listening to: Methods Near and far, uni and bidirectional 1. Strategy 2. Operations 3. Company Results 4. Individual Performance 1. Shareholders 2. Board 1. Meetings 2. 1:1s 3. E-mails 4. Newsletters 5. Video 6. Presentations Frequency 1. Daily 2. Weekly 3. Monthly 4. Quarterly
  53. 53. Mighty Midsized Companies 53 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  54. 54. Mighty Midsized Companies 54 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  55. 55. Mighty Midsized Companies 55 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  56. 56. Mighty Midsized Companies 56 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  57. 57. Mighty Midsized Companies 57 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  58. 58. Mighty Midsized Companies 58 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  59. 59. Mighty Midsized Companies 59 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones
  60. 60. Mighty Midsized Companies 60 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones Daily Weekly Monthly Quarterly
  61. 61. 61Mighty Midsized Companies • Monthly presentation of each leader’s results, visible to full leadership team. Includes budget results. • Integrated readjustments, only when essential. My Results A Building Block of Leadership Infrastructure
  62. 62. 62Mighty Midsized Companies Each Action Plan has a progress report each month
  63. 63. 63Mighty Midsized Companies Each Objective/KPI has a graph and a comment
  64. 64. Mighty Midsized Companies 64 Sales Mktg Ops IT HR Finance Strategic Long Term Managerial Mid Term Tactical Short Term Meeting Zones Monthly Annual
  65. 65. Mighty Midsized Companies 65 Communications Calendar
  66. 66. Quality Leaders They help pull the business forward Mighty Midsized Companies 66
  67. 67. 67Mighty Midsized Companies 1. What leadership demands must your leaders deliver against? 2. Are they capable? 3. Do they have a fair shot at success? 4. Rigorous and frequent review of results. 5. Repair or replace. A Leadership Team in the Race
  68. 68. Time Horizon Mighty Midsized Companies 68
  69. 69. Mighty Midsized Companies 69 “We spend so much time on fire-drills that we have no time to plan.” Can Companies Condemned to Scrambling Win?
  70. 70. Mighty Midsized Companies 70 Project Due 1Q Due 2Q Due 2H Due Next Year R&D for new market expansion X Complete lean mfg initiative X Capital Raise X Look for key acquisition X Close some big sales with big prospect X Each Project Has A Time Horizon (at any given moment in time)
  71. 71. Mighty Midsized Companies 71 0 10 20 30 40 50 60 Founder VPs Directors Managers Where Should We Spend Our Time? Q1 Q2 H2 Year 2 + Percent of Time Time Horizon Decisions Must be Thoughtful, Strategic Early Startup
  72. 72. Mighty Midsized Companies 72 0 20 40 60 80 100 120 C-Suite VPs Directors Managers Where Should We Spend Our Time? Q1 Q2 H2 Year 2 + Percent of Time Time Horizon Decisions Must be Thoughtful, Strategic Small Company
  73. 73. Mighty Midsized Companies 73 0 10 20 30 40 50 60 70 80 90 100 C-Suite VPs Directors Managers Where Should We Spend Our Time? Q1 Q2 H2 Year 2 + Percent of Time Time Horizon Decisions Must be Thoughtful, Strategic Early Midsized
  74. 74. Mighty Midsized Companies 74 0 10 20 30 40 50 60 70 80 90 100 C-Suite VPs Directors Managers Where Should We Spend Our Time? Q1 Q2 H2 Year 2 + Percent of Time Time Horizon Decisions Must be Thoughtful, Strategic $100M Revenues
  75. 75. Mighty Midsized Companies 75 0 10 20 30 40 50 60 70 80 C-Suite VPs Directors Managers Where Should We Spend Our Time? Q1 Q2 H2 Year 2 + Percent of Time Time Horizon Decisions Must be Thoughtful, Strategic
  76. 76. Strategic Delegation Mighty Midsized Companies 76
  77. 77. Mighty Midsized Companies 77 WorkRole Title CEO VPs Directors Managers The Temporal Nature of the Relationship Between Title, Role and Work Our Vision and Beyond 2018
  78. 78. Mighty Midsized Companies 78 WorkRole Title CEO VPs Directors Managers The Temporal Nature of the Relationship Between Title, Role and Work George Ray Sue Ann 2019
  79. 79. Mighty Midsized Companies 79 WorkRole Title CEO VPs Directors Managers The Temporal Nature of the Relationship Between Title, Role and Work George Ray Sue Ann 2020
  80. 80. Mighty Midsized Companies 80 WorkRole Title CEO CXOs Directors The Temporal Nature of the Relationship Between Title, Role and Work George Ray VPs New Hire New Hire Sue Ann 2021
  81. 81. Mighty Midsized Companies 81 1. Prioritize, intermediate deadlines, visibility of those deadlines. 2. Strengthen middle management; hires, mentoring, training, experiential development 3. Strategically delegate lower level (S/T) work. 4. Allocate time for strategic planning and strategic work. 5. Create processes that push the leadership team to do L/T planning and work. How I (or you or your CEO) Help Shift Time-Focus
  82. 82. 82Mighty Midsized Companies Leadership infrastructure answers: • Who leads this project? • When are we doing it? • How will we support each other? • What did we de-prioritize? • What is top priority? • How do we measure success? • What am I building? How a LI supports teams; frees top leader
  83. 83. 83Mighty Midsized Companies 1. Strong, persistent resolve on the part of the leader to change the status quo and make more progress. (Discipline is neither natural nor easy.) 2. An owner of the process. 3. A guide and coach for the process. Prerequisites for Upgrading Leadership Infrastructure
  84. 84. Mighty Midsized Companies 84 A Leadership Team in a Balanced Orbit Leadership Infrastructure at Work
  85. 85. Mighty Midsized Companies 85 Client Case Study: Wholesale Food Distributor 2015 Facts: 1. Hired VP Sales in January, who diligently managed the sales team. 2. By end of year, 18% growth, 6% Net Profit 3. Strategic shifts-geography and customer type. 4. Hiring VP Operations (second executive hire) early 2016 5. Now 12 plan set. 2018 Update • 21% growth • 7.2% net profit • Soon to open Midwest DC
  86. 86. 86Mighty Midsized Companies Next Step to Move from Left toward Right?
  87. 87. Mighty Midsized Companies 87 Understand the 7 Silent Growth Killers and how to stop them in their tracks. READ THE BOOK
  88. 88. CEO to CEO’s 9 Growth Drivers of Midsized Companies 1. People a. Recruiting high quality talent at all levels to fuel growth. b. The development of high potential talent already within the organization c. How well your leadership team members work together and their effectiveness. 2. Market Facing a. Sales Process: repeatability and scalability b. Optimizing the balance between marketing and sales efforts. c. The potential for continued growth in the marketplace the company plays in 3. Planning and Operations a. Using internal and external data to measure and guide company performance. b. Strategic and operational planning and governance in your organization. c. The financial capabilities of the company to achieve its mission. Join Our New Research Work https://www.ceotoceo.biz/research-agenda/ Mighty Midsized Companies 88
  89. 89. Thank you. Mighty Midsized Companies 89 Feedback form, please www.ceotoceo.biz

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