1. 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, offeradvice and recommend books at any time. Keep an open mind. Work very hard take this seriously.The slides and workbook are already posted at:www.SlideShare.net/johnspence

2. For the past 21 years 3. Simplicity isthe ultimatesophisticationLeonardo da Vinci 4. Do you have a clearly focused andwell-communicated strategy for success?Effective Strategy = Valued Differentiation x Execution 5. Five Foundations ofEffective Strategic Thinking Business AcumenPersonal ExperiencePattern RecognitionStrategic Insight 2Disciplined Execution 6. The Four Is Ignorance Inflexibility Indifference Inconsistency Page 2 7. How to avoid the Four Is 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. Page 3 8. To get the most from oursession together It is absolutely critical that you bebrutally honest with yourself today. So lets get started with a little self-test page 3 3 9. Southwest One type of planePoint-to-pointFast turnsLow fares / no frillsFriendly staff 10. BTO JITInventory turnsLogistics vs. TechnologyVOC Dell 11. Southwest Dell WalmartWhat is the pattern? Extreme Efficiency Minimize Costs to asclose to zero as possible w/o negative impact All focused on deliveringcustomer value 12. From the CEO of a little 172 billion dollar companyLook, what is strategy but resource allocation?When you strip away all the noise, thats what itcomes down to. Strategy means making clear-cutchoices about how to compete. You cannot beeverything to everybody, no matter what the sizeyour business or how deep its pockets. You haveto figure out what to say NO to. Jeffrey Immelt 13. (T + C + ECF) x DE = Success 14. Charlie Trotters 4 15. Lessons from seven top CEOs Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B 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 origin1-10 4From: What the Best CEOs Know by Krames 16. The Toyota Way Challenging Vision We form a long-term vision, meeting challenges with courage andcreativity to realize our dreams. Kaizen We improve our business operations continuously, always driving forinnovation and evolution. Genchi Genbutsu We go to the source to find the facts to make correct decisions, buildconsensus, 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, takeresponsibility and do our best to build mutual trust. Teamwork We stimulate personal and professional growth, share the opportunitiesof development, and maximize individual and team performance. 5 17. 25 Top Companies = Results Rule WS: 5 18. $16,000,000,0001. Collaborative Partnerships with Customers2. Drive Unique Value and Growth throughInnovation3. Invest in People4. Leverage Talent and Knowledge through 6Communication and Trust 19. Lack of TRUST Lack of candor Lack of commitment Lack of accountability Lack of results NIBT 20. HIGHAffection TRUSTConcernDistrustRespectLOWLOW HIGH Competence 6 21. I am good atwhat I do and I do it because Icare about you. 22. Is Your Company Up To Speed? Pages 7 - 8Fast Company June 2003 23. Good to GreatKNLPay The Price9 24. Twice weekly surveys for five years of2,000+ senior managers and executives at: IBM Fidelity GE Motorola Morgan Stanley Ikon Merck American Express 3M Progressive Microsoft Bank of America CIGNA AT&T Heineken SAP MasterCard Borders9 25. Keys to effective management Communicate clearly Force the hard decisions Focus on results 1 - 10 Remain flexible to change Prove your value to the customer Force collaboration Rigorous but not ruthless 9From: Think Big Act Small by Jennings 26. The Evergreen Project10 year study of 160 top companies40 distinct industries200 management practicesWinners, climbers, tumblers, losersWinners 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 27. 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.10From: What (really) Works by Joyce, Nohria, Roberson 28. The SecondaryManagement 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 110 scale for all eight practices on page 10From: What (really) Works by Joyce, Nohria, Roberson 29. Key Drivers of Financial PerformanceBusiness Success T olerateCR=104.12 N othing Global study: Quality P&S L ess 16 countries &Customer Relationship 29 companies 139 offices CR= .404 5,589 respondentsEmployee CR=.277 SatisfactionCR=.275Workshop CR=.249CR=.334 Page 12 Empowerment CR=.280CoachingHigh StandardsCR=.28CR=.37 CR=.36 CR=.19CR=.245 151 7 Long-term Enthusiasm, Training &Fair Orientation Commitment,Development Compensation Respect 11From: Practice What You Preach by Maister 30. 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%) 31. 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. 32. Where are we going + how will we behave on the way? Praise + Celebration Focusand Differentiation Eliminate Mediocrity NoMeasure / TrackCommunicateStakeholders + Transparencyguiding collationRenewalVision + ValuesTraining +Strategytime / money /Planssupplies /Goals /peopleObjectivesTactics /Actions Procedures / Protocols Clear / consistent /Repeatable Process relentless 33. Disciplined Execution Clear VisionDetailed StrategyGuiding CoalitionAlignmentSystems 1 - 10 CommunicationSupportAdjustReward / Punish13 34. & 15 es 14PagRe ad 35. Individual Workshop Go back and look at ALL of your audits. Where were your low scores, where were your highscores 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. 36. 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: @awesomelysimpleAlso, you might find value in the ideas I share in my blog. You can sign up for it at: www.blog.johnspence.comLastly, these slides have already been uploaded to:www.slideshare.net/johnspence