vertifi - association of credit union senior executives

Achieving Business

Excellence

Understanding the Pattern of Business Success

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.• Work very hard… take this seriously.

The slides are already posted at:

www.SlideShare.net/johnspence

Most people are so busy working IN

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

What does this mean to me?

How can I use this idea?

What can I do right away?

Reality CheckKnowing – Doing

1 -10

2

The Four Ps

(T + C + ECF) x DE = Success

2

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

Effective Strategy =

Valued Differentiation x Execution

Five Foundations of Effective Strategy

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution 2

The Four – I’s

• Ignorance• Inflexibility• Indifference• Inconsistency

Page 2

How to avoid the Four I’s 1-10• Aggressive external market focus.

• Aggressive 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. 2

• The willingness… even enthusiasm… to change

EVERYTHING combined with the wisdom to understand

what must NEVER be changed.

The Key To Success in the New Normal…

•Nimbleosity

•Nim-bo-licous

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…

“Simplicity is the ultimate sophistication” Leonardo da Vinci

The Toyota Way 1-10• 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

1,300,000 interviews: Basic 4 + 1

Goal Setting

TrustAccountability

Communications

RECOGNITION

Wow — No Surprises — Celebrate 5

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…

Key Drivers of Business Success

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensation

CR=104.12

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

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

5

WorkshopPage 6

TolerateNothingLess

Global study:16 countries29 companies139 offices5,589 respondents

10

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 10

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…

1 - 10

From: Think Big – Act Small by Jennings

10

Extreme Customer

Focus

Web of Value: VOC + MOT + WOM

8

VOC

8

Moments Of Truth

8

VOC + MOT Workshop: Page 8

78.9%23.4%

43% - 74% of purchasing decisions = WOM/T

You MUST have a WOM Referral System

Identify Ideal

Customer

ReferIdeal

Customer

WOM workshop page 9

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

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.

10

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 10

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%)

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.

Disciplined Execution Clear Vision

Detailed Strategy

Guiding Coalition

Alignment

Systems

Communication

Support

Adjust

Reward / Punish

11

1 - 10

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 12 - 14• Put in as much detail as possible.• Be very honest with yourself.• Think in terms of Actions and Outcomes.

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

My twitter address is: @awesomelysimple

*** Please connect with me on LinkedIn ***

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

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