achieving business excellence workbook - embraer

Embraer First Annual Leadership Forum

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Achieving Business Excellence


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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

_______ We have a clear and detailed vision for the direction of our company that is very well communicated throughout the entire organization.

_______ Every employee has clear / quantifiable / observable performance objectives.

_______ There is a high level of very open and honest communication throughout the organization.

_______ I have a high level of trust in the skills, abilities, and integrity of my co-workers.

_______ There is a high sense of urgency within the organization to get things done.

_______ We have only the best, highly competent people in all areas of the organization.

_______ We focus very intently on the needs of our customers.

_______ There is no politics, rumor-mongering or finger-pointing within our organization.

_______ Our key leaders operate as a highly-effective team.

_______ There is a high level of both personal and mutual accountability within the organization.

_______ People display a positive, enthusiastic attitude throughout the organization.

_______ We are superb at collecting and using feedback from our customers.

_______ Our organization displays great discipline in pursuing our focused business objectives.

_______ I am very pleased with where our organization is in the marketplace today.


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THE FOUR I’S

HOW TO AVOID THE FOUR I’S

Aggressive external market focus.

Ridiculously high level of customer focus.

Keep the “Main Things” the main things.

Bullish on knowledge sharing and learning.

Teamwork is mandatory – not optional

Passion and commitment at all levels.

Foster a healthy paranoia.

Revel in change.


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What this chart shows: According to this global research study, by going from an average of “Somewhat Agree” to “Agree” on the Quality and Customer Relationship scores (in the eyes of the staff) the average company would more than double (104%) its financial performance! As another example: If you improve the average rating on Employee Satisfaction by 10 –15% (again going from “Somewhat Agree” to “Agree”) it will cause a 42% improvement in financial performance, including both profitability and growth.

Financial Performance

Highest Quality Products / Services

& Excellent

Customer Relationships

Employee Satisfaction

Empowerment High Standards

Long-term Orientation

Enthusiasm, Commitment,

Respect

Training & Development

Fair Compensation

CR=104.12

CR= .404

CR=.334

CR=.27

CR=.275 CR=.249

CR=.280 Coaching

CR=.285 CR=.371 CR=.365 CR=.191 CR=.247

CR = Causal Relationship

TOLERATE NOTHING LESS

Based on: “ Practice What You Preach” by Maister


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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 else.

_______ In this company we set and enforce very high standards for performance.

_______ Everyone in the organization has been trained on the important of superior customer service.

_______ We keep customers informed on issues affecting their business with us.

_______ We make our customers feel as though they are very important to us.

_______ Customer satisfaction is a top priority in our company.

_______ We do consistent training on delivering the highest quality products and service possible.

_______ We listen very 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 resolving customer problems when they occur.

_______ We always place the customers’ interests first, even ahead of those of the company.

_______ Our employees are highly engaged in their work.

_______ Our employees take great pride in working for our organization.

READ THAT LIST AGAIN… AND AGAIN!!! THIS IS CRITICAL TO YOUR SUCCESS


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DO YOUR EMPLOYEES LOOK LIKE THIS? 1 = STRONGLY DISAGREE 3 = DISAGREE SOMEWHAT 5 = NOT SURE

7 = AGREE SOMEWHAT 10 = STRONGLY AGREE

_______ They give more discretionary effort.

_______ They consistently exceed expectations.

_______ They take more responsibility and initiative.

_______ They receive better customer service ratings.

_______ They offer more ideas for improvement.

_______ They promote and model teamwork.

_______ They volunteer more for extra assignments.

_______ They anticipate and adapt better to change.

_______ They persist at difficult work over time.

_______ They speak well of the organization.

NOTES:


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HOW WELL DOES YOUR ORGANIZATION STACK UP? 1= POOR 5 = AVERAGE 10 = SUPERIOR

______ Fun: people smile at work and enjoy their day and who they work with.

______ Family: people genuinely care about others and how they are doing.

______ Friends: many friends at work, sometimes a best friend.

______ Fair: people are treated with dignity and respect, their opinions matter.

______ Freedom: no micro-management, people are empowered to succeed.

______ Pride: employees are proud to tell people where they work.

______ Praise: some sort of sincere and specific praise once every 7 days.

______ Meaning: more than a pay check, employees feel like they are doing something important.

______ Accomplishment: employees feel like they are making real progress, getting key things done.

THE SIX UNIVERSAL DRIVERS OF ENGAGEMENT ______ Caring, competent, and engaging leaders.

______ Effective managers who keep employees informed, aligned and engaged.

______ Effective teamwork at ALL levels.

______ Job enrichment and professional growth.

______ Valuing employee contributions.

______ Concern for employee well being.


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THE BASIC 4 + 1

THE WEB OF VALUE: VOC + MOT + WOM


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VOC + MOT Answer the following questions as honestly as possible using this 1-10 point scale: 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent

______ We have a very robust and well-developed process for capturing the VOC.

_______ We do numerous customer surveys annually.

_______ We have a “Customer Advisory Panel” that helps us understand the VOC.

_______ We meet with our top clients regularly to solicit their feedback and ideas.

_______ Everyone in our organization understands what our customers think/say is important.

_______ We clearly understand our key Moments Of Truth (MOT).

_______ Our MOT were defined specifically from the feedback of our customers.

_______ We have built very well-developed and clear processes/systems around each of our MOT.

_______ We are nearly flawless in consistently delivering our MOTs perfectly.

_______ We truly own the Voice Of the Customer (VOC).

THE KEY MOT FOR OUR BUSINESS ARE:


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WHAT ARE FIVE THINGS YOU CAN DO RIGHT AWAY TO GENERATE POSITIVE WORD OF MOUTH AND STRONG PERSONAL REFERRALS?


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THE 4 + 2 FORMULA The Four Primary Management Practices 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent _______ 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 employees, customers, partners, and investors. _______ Execution: Develop and maintain flawless operational execution. Winners consistently meet the expectations of their customers by delivering on their value proposition. Bad quality, in products or service, surely will hurt. _______ 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. _______ 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 best goals for all organizations. The Four Secondary Management Practices _______ Talent: Hold on to talented employees and find more. Winning organizations pay great attention to finding, growing, developing, and rewarding very talented people. _______ 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 corporate performance, for better or for worse! _______ 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. _______ Partnerships: Make growth happen through winning combinations. Internally generated growth is essential, but companies that can also master partnerships, alliances, mergers, and acquisitions are much more likely to be winners in the long run.

Based on: “ What (Really) Works” by Joyce


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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.


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IBM

•Collaborative partnerships with customers.

•Drive unique value and growth through

innovation that matters.

•Invest in people.

•Leverage talent and knowledge through

trust and communication.

Charlie Trotter

•Only the best people (passion)

•Lots of communication

•Highest standards

•Innovation

•Truly delight the customer

Good to Great

•Best people

•Effective (Level 5) leaders

•Deal with difficult issues

•Focus on the main things

•Patience + discipline

Results Rule

•Tell the truth

•Pursue the best over the easiest

•Leverage the power of partnerships

•Focus on the main things

•Accountability

•Constant improvement

Microsoft

•Best people

•Bet the company

•Require failure

•Managers are qualified

•Performance is what counts

•Money where it is important

•Stop the insanity

Spence: 6 Ways to Run or Ruin

1. Clear Vision

2. Robust Communication

3. Culture of Urgency

4. Disciplined Execution

5. Best People

6. Focus on the Customer

4+2 Formula

•Clear, focused strategy

•Flawless execution

•Performance-oriented culture

•Fast, flexible, fl at organization

-Best people

-Committed leaders

-Innovation

-Growth through partnerships

Top Concerns of 700 CEOs

1. Have not communicated my vision

2. Do not discuss the tough stuff

3. Do not have the best people in key

positions

4. Lack of disciplined execution

Philly Gear

•Best people

•Transparency

•Customer focus

•Sell value

•Have FUN

Skinner Nurseries

•Own the word service

•Best people

•Lots of communication

•Know your business

•Have a plan

•Sell value

Small Giants

•Independent vision

•Strong Relationships

-employees

-customers

-community

•Caring workplace

•Flexible structure

•Passionate

Think Big - Act Small

•Stewardship

•Transparency

•Accessibility

•Stand for something

•Erase superficial distinctions

In Search of Excellence

•A bias for action

•Close to customer

•Intra-preneurship

•Values driven

•Focus on core competencies

•Simple structure

•Minimal bureaucracy

Top 7 CEOs

•Customer focus

•Passion for the job

•Culture counts

•Constant innovation

•Learn from the best

Tough Management

•Communicate clearly

•Force the hard decisions

•Focus on results

•Remain flexible

•Prove your value to the company

•Force collaboration

•Be a tough manager / not a tough

guy

Toyota Way

•Clear and compelling vision

•Constant improvement (Kiazen)

•Go to the source (Genchi Genbutsu)

•Respect and mutual accountability

•Teamwork

Kiss Theory Goodbye

•Superior leadership

•Sales effectiveness

•Flawless operational execution

•Superb financial management

•Customer loyalty

Ram Charan: Know How

•Position / Reposition the business to

make money

•Pinpoint patterns and change - then take

action

•Build a strong culture of excellence

•Hire the best people - build them into

leaders

•Build a TEAM of leaders

•Set the right goals - then FOCUS on key

priorities

The Six Secrets of Change

1. Love your employees

2. Connect meaning to the work

3. Invest in your people

4. Learning/innovation IS the work

5. Transparency rules

6. Create learning systems

Firms of Endearment

Meaningful work

Partnerships with all stakeholders

Respect for individuals

Transparency

Teambuilding

Empowerment

Fun work environment

Support for life balance

Training and development are high

priorities

Recognition and celebration have a high

priority

Mavericks at Work

Value-based differentiation

Transparency + knowledge sharing

Bond with customers

Talent + culture

Mastering the Rockefeller Habits

Right people doing the right things right

Clear focused one-page strategic plan

Strong core values.

Organizational alignment and focus

Relentless and consistent communication

of the theme.

Transparency and openness to employee

feedback.

Key executives highly aware of the

business.

Deliver the brand promise and truly

delight customers.


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WORKSHOP: IDEAS INTO ACTION Go back page-by-page and carefully look back 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. 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 and controlling the market could mean to your business.

Here are three major questions to keep in mind:

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?


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3. Key Strategies for Success Based on everything you have learned here today and your own personal business experience, what are the 4—6 most important ideas that will drive your organization’s ability to control the market? (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 to exactly what you mean. It must be clear precisely what each ideas means and how you will pursue it.)


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4. Action Steps Based on the list you just created, as well as the strengths and weaknesses you identified please list at least 4 specific, measurable, and observable action steps that 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.


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NOTES:


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NOTES:

achieving business excellence workbook - embraer

Business

annual leadership

achieving

good job

poor performers

high level

key objectives

10 point scale

employee satisfaction