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Good to great strategic business planning
- 1. GOOD TO GREAT - STRATEGIC BUSINESS PLANNING CEDAR HILL CHAMBER OF COMMERCE IGNITE CONFERENCE NOVEMBER 2, 2018
- 3. STRATEGIC DEFINITION ➢ Carefully designed or planned to serve a particular purpose or advantage. ➢ Relating to the gaining of overall or long-term advantage.
- 5. J. Collins Notable Quotes: ➢ “First, I believe that it is no harder to build something great than to build something good (mediocre).” ➢ Good is the Enemy of Great!!! ➢ “Good-to-great comes about by cumulative process- step by step, action by action, decision by decision, turn by turn of the flywheel – that adds up to sustained and spectacular results.” 5
- 6. ER 8 6
- 9. 1. DISCIPLINED PEOPLE ~ FIRST, WHO. THEN, WHAT. ◼In a good to great transformation, people are not your most important asset. ◼The right people are.
- 10. FIRST, WHO. THEN, WHAT. ◼Marine corps get a lot of credit for building people’s values – not the way it really works ◼The Marine Corps recruits people who share the corps’ values, then provides them with the training required to accomplish the organization’s mission and vision.
- 11. FIRST WHO .. THEN WHAT ◼ Good 2 Great Management Teams consist of people who debate vigorously in search of the BEST answers, yet who unify behind decisions, regardless of individual interests.
- 12. PROVIDE A RIGOROUS, NOT RUTHLESS ENVIRONMENT ◼Ruthless – hacking and cutting, especially in difficult times or firing people without thoughtful consideration. A culture of competition without Values on how we will conduct business. ◼Rigorous – consistently applying exacting standards with Values of the company at all times and at all levels, especially in management. Means that the best people need not worry about their positions and can concentrate fully on their work.
- 13. CHURN BETTER ◼Good to Great companies show a bipolar pattern at the top management level: ◼ People either stayed on the bus for a long time OR ◼ People got off the bus in a hurry ◼In other words, the good to great companies did not churn more, they churned better.
- 14. KEY TO SUCCESSFUL TEAMS ◼ Take the time to make rigorous A+ selections right up front! ◼ If we get it right, we’ll do everything we can to try to keep them on board for a long time. ◼ If we get it wrong, then we’ll confront that fact so that that we can get on with our work and they can get on with their lives. ◼ And Sometimes, you have to move people who are not performing well once or even two or three times to other positions where they might blossom.
- 15. QUESTIONS FOR YOUR TEAM ◼If the right people are on the right bus, how do you manage in a way as not to de-motivate people? ◼ Lead with questions, not answers ◼ Engage in dialogue and debate, not coercion ◼ Conduct autopsies, without blame ◼ Build a “red flag” mechanism
- 17. ER 8 17
- 18. 2. DISCIPLINED THOUGHT ARE YOU A HEDGEHOG OR A FOX? ISAIAH BERLIN ◼The Fox knows many tricks ◼The Hedgehog knows One
- 19. YOUR HEDGEHOG DEFINES YOUR VISION
- 20. The turning point in the journey from Good-to-Great is the Hedgehog Concept ➢But it is a journey to discover it.
- 21. 21 SYMPTOMS OF A PROBLEM • Undisciplined search for a single silver bullet solution – be it a new program, CEO/Leader, technology or event • No Buildup – Just jump right to action without disciplined thought or the right people on the bus • Engage in “hoopla” rather than confronting the brutal facts • Spend a lot of time trying to align or motivate people or rally them around a new vision • Demonstrate Inconsistency Over Time
- 22. 22 No Buildup or Accumulation of Momentum - Disappointing results Reaction without understanding New Direction, program, leader, event, fad Oftentimes, the result continues the Problem
- 24. GREAT COMPANIES/ORGANIZATIONS ◼ Understand that the essence of profound insight is…Simplicity. ◼ And they basically ignore the Rest! ◼ Do you know what your Hedgehog is? Your business hedgehog is? ◼ Or are you a fox chasing many ends?
- 25. THREE CIRCLES DEFINED ◼What you can be the best in the world at – it’s an understanding of what you can be the best at. Not just a core competency. ◼What drives your economic engine – determine what is your denominator. If you were to pick one ratio (e.g. profit per x), what would have the greatest and most sustainable impact on your business? ◼What are we deeply passionate about? You cannot “manufacture” passion, you can only “discover” what ignites your passion and the passion of your employees.
- 26. ONCE YOU HAVE YOUR VISION ESTABLISHED NEXT STEP: BIG HAIRY AUDACIOUS GOALS ◼Do we have good BHAGs? ◼Are our BHAGs in direct alignment with the three circles of the Hedgehog Concept? ◼In order to achieve our 10-25 yr. BHAGs what should be some of our base-camp objectives be?
- 27. Individual – Q’s ◼ What are you deeply passionate about? ◼ What one thing could you be the best at? ◼ What you cannot be the best in the world at? Organizational – Q’s ◼ We are deeply passionate about _____? ◼ We could be the best at _____? ◼ We cannot be the best at _____? ◼ What drives our economic engine? (single denominator) or (cash flow/X) 27 TO FIND YOUR HEDGEHOG
- 28. Individual – Q’s ◼ What steps or actions I can take to move towards my personal Hedgehog Concept? ◼ Do I take a step by step, action by action, day by day, week by week, year by year—turn by turn of my personal flywheel? 28 A QUESTION TO ASK OURSELVES
- 31. 3. DISCIPLINED ACTION ◼ Most companies build their bureaucratic rules to manage the small percent of wrong people on the bus ◼ Which in turn drives away the right people on the bus ◼ Which then increases the percentage of wrong people on the bus ◼ Which increases the need for more bureaucracy to compensate for incompetence and lack of discipline ◼ Which then further drives people away ◼ And so forth.
- 32. INSTEAD…CULTURE OF DISCIPLINED ACTION ◼Avoid bureaucracy and hierarchy and instead create a culture of discipline ◼A combination of a culture of discipline and an ethic of entrepreneurship you get GREAT PERFORMANCE ◼ When there are disciplined people, you don’t need hierarchy ◼ Disciplined thought, you don’t need bureaucracy ◼ Disciplined action, you don’t need excessive controls
- 33. GOOD TO GREAT COMPANIES/ORGANIZATIONS ◼Build a consistent system with clear constraints ◼Give people responsibility within the framework of that system ◼They hire self-disciplined people who don’t need to be managed, and then managed the system, not the people.
- 34. ◼When examining our behavior, one word that comes to mind is consistency—consistency of purpose, consistency of values, consistency of Hedgehog, consistency of high standards, consistency of people, and so forth. 34 A = We exemplify this trait exceptionally well—there is limited room for improvement. B = We often exemplify this trait, but we also have room for improvement. C = We show some evidence of this trait, but our record is spotty. D = There is little evidence that we exemplify this trait, and we have obvious contradictions. F = We operate almost entirely contrary to this trait. A QUESTION FOR YOUR BUSINESS/ORGANIZATION
- 35. ◼We have immense flexibility and we adapt well to change—but always within the context of a coherent Hedgehog Concept. 35 A = We exemplify this trait exceptionally well—there is limited room for improvement. B = We often exemplify this trait, but we also have room for improvement. C = We show some evidence of this trait, but our record is spotty. D = There is little evidence that we exemplify this trait, and we have obvious contradictions. F = We operate almost entirely contrary to this trait. A QUESTION FOR YOUR BUSINESS/ORGANIZATION