building the business to be the best

Victor Borchers

Master Coach

BUILDING

THE BUSINESS

TO BE THE BEST

SOURCES OF THINKING

BUILDING THE BUSINESS TO BE THE BEST

EQUITATION: Skills are Necessary

BUT Understanding

The Animal is Critical


UNDERSTANDING THE BUSINESS “ANIMAL”

In order to understand why Built to Last was published, one needs to start with Peter’s and Waterman’s In Search of Excellence (1982)

• 43 Top companies in the world

• 8 basic principles

• No.1 Best Seller

BUT

5 years later, many of the companies were in trouble –

some had gone bankrupt

• 1992: Built to Last

• 6 year study by 30 researchers on companies 50 years and older.

• These companies had been through two World Wars

and a depression

• 18 Visionary companies – the average age was 97years –

they were consistently No.1 in their industries


THE BEST OF THE BEST

• The 18 Visionary Companies are premier institutions, the crown jewels in

their industries. They were widely admired by their peers and had a long

record of significant impact on the world around them

• The Visionary Companies have woven themselves into the very fabric of

society

• They were more than successful; they were the “Best of the Best”.

However this doesn’t mean that they had perfect unblemished records


MORE THAN PROFITS

• The Purpose and Values statement becomes the shaping force of the

Visionary Company

• The Purpose and Values Statement is a declaration of

• This is who we are

• This is what we stand for

• This is what we are all about


INTRODUCTION

Peter Bernstein

“We simply do not know what the future holds”

Wall Street Journal

“The future is unknowable”

Peter Drucker:

“The best way to predict the future is to create it”


INTRODUCTION How do we move from vulnerability to become a great group,

with spectacular performance in unstable environments?

• The future will remain unpredictable and the world unstable for the rest of our lives

• We need to understand the factors that distinguish great companies.

• Research of Best Companies and their leaders in extreme environments gives insights

– understand what separates greatness from mediocrity

• How do the truly great differ from the merely good?


INTRODUCTION

What does it take to build a great Company?

• Have to understand what it takes to survive, navigate and prevail

• Understand the principles and actions that distinguish the great organizations form the

good ones

Invitation to join me on a journey

• Take what you find useful and apply it to creating a great enterprise that doesn’t just react

to events BUT shapes them:

The best way to predict the future is to create it


BIG HAIRY AUDACIOUS GOALS - BHAGS

EXAMPLES:

• Boeing, when building the 747:

“We will build this airplane even if it takes the resources of the entire company”

• Jack Welch of General Electric: 1981

“We must become #1 or #2 in every market we serve and revolutionize this Company to

have the speed and agility of a small enterprise”

• IBM in the 1960’s made an all-or-nothing investment in the IBM 360 Computer.

This required more resources that the Manhattan Project to develop the first atomic bomb.


CULT-LIKE CULTURE CHARACTERISTICS OF CULT-LIKE ORGANIZATIONS ARE:

• Fervently held ideology

• Indoctrination (not just induction) into Core Ideology


HOME GROWN MANAGEMENT WHAT IS HOME GROWN MANAGEMENT?

• IT’S NOT JUST THE QUALITY of leadership that separates visionary companies from

comparison companies –

• IT’S THE CONTINUITY of quality leadership that matters

• The crucial question visionary companies ask is

• “how well will the company perform

• under the next generation of leadership?”

EXAMPLES:

• General Electric

Jack Welch, CEO, GE, “From now on, (choosing my successor) is the most important

decision I’ll make. It occupies a considerable amount of thought almost every day”.

He was speaking about succession planning in 1991 – nine years before his anticipated

retirement.


CONTINUOUS IMPROVEMENT

WHAT IS CONTINUOUS IMPROVEMENT?

• It is a disciplined action ingrained into the fabric of the organization and reinforced by tangible

mechanisms

• It is long term investments for the future…

EXAMPLES:

• Wal-Mart: “Beat Yesterday” – it was comparing sales figures with the same day of the week,

1 year earlier

VISIONARY COMPANIES ATTAIN THEIR EXTRAORDINARY POSITION

NOT BECAUSE OF SUPERIOR INSIGHT

OR FROM SOME SPECIAL SECRET OF SUCCESS.

THEY BECOME WHAT THEY ARE

BECAUSE THEY ARE

SO TERRIBLY DEMANDING OF THEMSELVES.


ALIGNMENT WHAT IS ALIGNMENT?

• Vision is a combination of an enduring core ideology plus the envisioned progress for

the future. This is what creates Visionary Companies

• It is the creation and nurturing of an environment that envelopes the employees and

reinforces the Core Ideology….

EXAMPLES OF THE “POWER OF ALIGNMENT”:

• Ford, in the 1990’s:

Their intervention of mission, values and guiding principles

placed People and Products ahead of Profits


BRAIN STORM

How can we

EMBED, INTERNALIZE AND LIVE

our purpose and values

plus ACTION our BHAG’s,

create a cult-like culture,

ensure evolutionary progress,

grow management from within

and continuously improve?


REVISION


VALUES

PURPOSE

BUILDING THE VISION

CORE PURPOSE

• It is the organizations fundamental reason for being

• Core Purpose captures the soul of the organization, beyond just making a profit

• David Packard of HP in 1960 said “Many people assume, wrongly, that the company exists

simply to make money. While this is an important result of a company’s existence, we have

to go deeper and find the real reasons for our being”

EXAMPLE OF CORE PURPOSE:

• Disney: “To make people happy”


BUILDING THE VISION CORE VALUES

• Ralph Larsen of Johnson & Johnson said

“We have Core Values because they define for us what we stand for and we would hold

them even if they became a competitive disadvantage in certain circumstances ”

CORE IDEOLOGY

• Defines what we stand for, why we exist and how we will behave

• It sets forth what we aspire to achieve and create

WHAT IS BUILDING THE VISION?

• It is building a vision that will galvanize people.

• It is something eternal …..

• It enables the …

ENVISIONED FUTURE

• The Envisioned Future consists of two parts:

• A ten to thirty year Vision-level BHAG, and….


BUILDING THE VISION

EXAMPLES:

Henry Ford “I will build a motor car for the great multitude. It will be so low in price that no

man making a good salary will be unable to own one – and enjoy with his family the blessing

of hours of pleasure in God’s great open spaces. When I’m through everybody will be able to

afford one, and everyone will have one. The horse will have disappeared from our highways,

the automobile will be taken for granted and we will give a large number of men employment

at good wages”.


VICTOR BORCHERS

Master Business Coach and Consultant

MOBILE: +27 83 628 2247

EMAIL: [email protected]

WEBSITE: http://www.execucoach.co.za


building the business to be the best

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