achieving business excellence

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Achieving Business Excellence Building A Winning Culture in Challenging Times

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Page 1: Achieving Business Excellence

Achieving Business ExcellenceBuilding A Winning Culture in Challenging Times

Page 2: Achieving Business Excellence

This is a very special workshop• I have a ton to cover and I will go pretty fast.• 80% is in the book.• Please take notes and ask questions.• I am happy to answer any of your questions, offer

advice and recommend books at any time.• Keep an open mind.• Work very hard… take this seriously.

The slides are already posted at:

www.SlideShare.net/johnspence

Page 3: Achieving Business Excellence
Page 4: Achieving Business Excellence

For the past 21 years…

Page 5: Achieving Business Excellence

Most people are so busy working IN

their business that they do not take any time to work ON their business.

Page 6: Achieving Business Excellence

Do you have a clearly focused and well-communicated strategy for success?

Effective Strategy =

Valued Differentiation x Execution

Page 7: Achieving Business Excellence
Page 8: Achieving Business Excellence

Five Foundations of Effective Strategic Thinking

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution 2

Page 9: Achieving Business Excellence

The Four – I’s

• Ignorance

• Inflexibility

• Indifference

• Inconsistency2

Page 10: Achieving Business Excellence

The Four – A’s

• Alertness

• Agility

• Adaptability

• Alignment

2

Page 11: Achieving Business Excellence

To get the most from our session together…

It is absolutely critical that you be brutally honest with yourself today.

3

So let's get started with

a little self-test…

Page 12: Achieving Business Excellence

“Simplicity is the ultimate sophistication” Leonardo da Vinci

Page 13: Achieving Business Excellence

Southwest

One type of planePoint-to-point

Fast turnsLow fares / no frills

Friendly staff

Page 14: Achieving Business Excellence

Dell

BTOJIT

Inventory turnsLogistics vs. Technology

VOC

Page 15: Achieving Business Excellence
Page 16: Achieving Business Excellence

Southwest – Dell – Walmart

What is the pattern?

• Extreme Efficiency

• Minimize Costs to as close to zero as possible – w/o negative impact

• All focused on delivering customer value

Page 17: Achieving Business Excellence

From the CEO of a little 172 billion dollar company…

Look, what is strategy but resource allocation?

When you strip away all the noise, that’s what it

comes down to. Strategy means making clear-cut

choices about how to compete. You cannot be

everything to everybody, no matter what the size

your business or how deep its pockets. You have

to figure out what to say “NO” to.Jeffrey Immelt

Page 18: Achieving Business Excellence
Page 19: Achieving Business Excellence

(T + C + ECF) x DE = Success

NIBT

Page 20: Achieving Business Excellence

The level of highly satisfied and

engaged EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and

engaged CUSTOMERS in your business is…

Page 21: Achieving Business Excellence

Not Engaged Engaged

En

gag

ed

Not

En

gag

ed

Job Engagement

Org

an

izat

ion

al E

nga

gem

en

t

50%

9%

Benchwarmers

7%

Free Agents

34%

Stars

Disengaged

Page 22: Achieving Business Excellence

22%

Page 23: Achieving Business Excellence

What do engaged employees look like?

1. 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.

NIBT

Page 24: Achieving Business Excellence

Charlie Trotter’s 4

Page 25: Achieving Business Excellence

Lessons from seven top CEOs

• Have an outside-in perspective

• Be deeply passionate about your job

• Understand the importance of culture

• Create or adapt next generation products, processes and solutions

• Implement the best ideas regardless of origin

4

From: What the Best CEOs Know by Krames

Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B

1-10

Page 26: Achieving Business Excellence
Page 27: Achieving Business Excellence

The Toyota Way• 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.

• 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 maximize individual and team performance.5

Page 28: Achieving Business Excellence

• Lack of TRUST

• Lack of candor

• Lack of commitment

• Lack of accountability

• Lack of results

NIBT

Page 29: Achieving Business Excellence

Competence

RespectDistrust

Affection TRUST

HIGH

LOW

LOW HIGH

Concern

6

Page 30: Achieving Business Excellence

“I am good at what I do… and I do it because I

care about you.”

Page 31: Achieving Business Excellence

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging leaders.

2. Effective managers who keep employees informed, 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.

Next 5 slides are NIBT

Page 32: Achieving Business Excellence

Fun

Family

Friends

Fair

Freedom

Pride

Praise

Meaning

AccomplishmentNIBT

Page 33: Achieving Business Excellence

Top High-Potential VPs from GE, Microsoft, Verizon, Qualcomm, State Farm, Abbott and Merrill Lynch…

1. Credible

2. Respectful

3. Approachable

4. Team Player

5. Highly Professional

NIBT

Page 34: Achieving Business Excellence

Leader of the Future

1. Character

2. Courage

3. Communication

4. Collaboration

5. Compassion

6. Contribution

NIBT

Page 35: Achieving Business Excellence

Is Your Company Up To Speed?

Fast Company June 2003

Pages 7 - 8

Page 36: Achieving Business Excellence

Twice weekly surveys for five years of 2,000+ senior managers and executives at:

• IBM• GE• Morgan Stanley• Merck• 3M• Microsoft• CIGNA• Heineken• MasterCard

• Fidelity• Motorola• Ikon• American Express• Progressive• Bank of America• AT&T• SAP• Borders 9

Page 37: Achieving Business Excellence

Keys to effective management…

• Communicate clearly

• Force the hard decisions

• Focus on results

• Remain flexible to change

• Prove your value to the customer

• Force collaboration

• Rigorous but not ruthless…9

1 - 10

From: Think Big – Act Small by Jennings

Page 38: Achieving Business Excellence

The 4 Pieces of Paper

NIBT

Page 39: Achieving Business Excellence

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 10

Page 40: Achieving Business Excellence

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

10

Page 41: Achieving Business Excellence

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.

From: What (really) Works by Joyce, Nohria, Roberson

Score yourself on the 1–10 scale for all eight practices on page 10

Page 42: Achieving Business Excellence

Key Drivers of Business Success

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

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11

WorkshopPage 12

TolerateNothingLess

From: Practice What You Preach by Maister

Global study:16 countries29 companies139 offices5,589 respondents

Page 43: Achieving Business Excellence

What Inhibits Execution?National Survey of 4,000 Senior Executives

4. Inability to work together (21%)

3. Company culture (23%)

2. Economic climate (29%)

1. Holding onto the past / unwillingness to CHANGE (35%)

Page 44: Achieving Business Excellence

In other words…

• In order to succeed you need a high-performance team that embraces a strong culture of disciplined execution and accountability while being nimble, agile and adaptable to changes in the marketplace.

Page 45: Achieving Business Excellence

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable ProcessClear / consistent /

relentless

Training +time / money /

supplies / people

Measure / TrackCommunicate

Transparency Renewal

Praise + Celebration and

Eliminate Mediocrity

Page 46: Achieving Business Excellence

Disciplined Execution Clear Vision

Detailed Strategy

Guiding Coalition

Alignment

Systems

Communication

Support

Adjust

Reward / Punish

13

1 - 10

Page 47: Achieving Business Excellence

Read Pages 14 & 15

Page 48: Achieving Business Excellence

Individual Workshop• Go back and look at all of your audits.• Where were your low scores, where were your high

scores – what is the pattern?• Look over your notes – what were the key themes?

What are the most important ideas?• Answers all the questions on pages 16 – 18.• Put in as much detail as possible.• Be very honest with yourself.• Think in terms of Actions and Outcomes.

Page 49: Achieving Business Excellence

If you have any questions at all please do not hesitate to send a note or call. My email address is: [email protected]

My twitter address is: @awesomelysimple

Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.blog.johnspence.com

Lastly, these slides have already been uploaded to:www.slideshare.net/johnspence