best practices thought leadersmygazelles.com/documents/rockefeller_habits_2d_work… · ·...

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"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the

fastest lion or it will be killed...every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve

to death. It doesn't matter whether you are a lion or a gazelle...when the sun comes up, you'd better be running."

"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the

fastest lion or it will be killed...every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve

to death. It doesn't matter whether you are a lion or a gazelle...when the sun comes up, you'd better be running."

Gazelles Contact InfoGazelles Contact Info

Gazelles Inc.44031 Pipeline Plaza, Suite 200Ashburn, VA 20147703-858-2400703-858-2401 Fax

[email protected]

DellDell

“Start with smart executives, and then keep them smart”

Best Practices Thought Leaders

Michael Dell

2

What we doWhat we do

1 to 2 Day Executive Dev Programs“Keep up with the growth”

Best Practices Thought Leaders

www.gazelles.com

www.gazelles.com

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www.gazelles.com

Rockefeller HabitsRockefeller Habits

Rockefeller HabitsRockefeller Habits

4

DisciplineDiscipline

Good To GreatGood To GreatRight People Right Things Things Right

Disciplined People

Disciplined Thought

Disciplined Action

1% Per Week1% Per Week

5

HabitHabit

You are what you repeatedly do. Excellence is not an event - it is a habit.

Aristotle384-322 BCPhilosopher and Scientist

FORTUNE 500FORTUNE 500

Median Profit 5.9%

Revenue/Employee $400,000 vs. $250,000

27 Still Run by Founder, 18.5% annual return

Forging Ahead…Forging Ahead…

Bill Gates – “How I Work”

6

Forging Ahead…Forging Ahead…

Bill Gates – Whiteboards

Google – Whiteboards

3M – Whiteboards

Mind vs. MuscleMind vs. Muscle

Energy ManagementVs.

Time Management

Four DecisionsFour Decisions

People – Strategy – Execution

and

Cash

(Happiness) (Revenue/Growth) (Profit/Time)

(Oxygen)

7

People People

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

Head of Company (CEO)

Sales and Marketing (VP)

Operations (COO)

Accounting (CFO)

Human Resources (HR)

Information Technology (IT)

Customer Satisfaction

Business Unit Heads

StrategyStrategy

ExecutionExecution

RelentlessRepeatability

8

Who, What, WhenWho, What, WhenWho, What, When

Who What When

WeeklyExecution

Page 4 Page 4 -- CashCash

Cash is King!

Three DisciplinesThree Disciplines

PrioritiesData/Metrics

Meeting Rhythm

9

Priorities Priorities –– Less is MoreLess is More

Ivy Lee

Charles Schwab$25,000

Metrics/Data Metrics/Data ---- PredictionPrediction

Meetings Meetings -- Talk TimeTalk Time

CEO Council

pp 114 - 115

10

Two DriversTwo Drivers

Reputation and Productivity

ReputationReputation

EmployeesEmployees

have capabilities

CustomersCustomerswhich meet

needs

which generates

ShareholderShareholder

value

Get, Keep, Grow

… doing the Right Things (WHAT TO DO)

VisionVision

ProductivityProductivity

Make or BuyMake or Buy

products

SellSellto

RecordsRecords

track progress through

Faster, Better, Cheaper

… doing Things Right(HOW TO DO)

AlignmentAlignment

1% 99%

Core ValuesPurpose

Targets

Goals

Action Steps

Schedule

Accountability

ShouldWhy

Where

WhatHow

When

Who

ForeverLife of Mgmt

3-5 yrs

AnnuallyQuarterly

Weekly

Daily

Right PeopleRight PeopleRight Things RightRight Things Right

One CoachOne Coach

“No one has ever achieved peak performance without

a coach.”

11

Coaches Coaches

•Advisors – Advisory Board

•Consultants – Experts

•Coaches -- Accountability

Questions

44--33--22--11--ResultsResults

2x Cash Flow3x Profitability10x Valuation

More Time!

ExecutionExecution

RelentlessRepeatability

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YOUR Question?YOUR Question?

“We have the answers, all the answers, it’s the

question we do not know!”

1) Professional/Business Question?2) Personal Question?

Who, What, WhenWho, What, WhenWho, What, When

Who What When

WeeklyExecution

Two “Stop Doings”Two “Stop Doings”

"Sometimes you've got to let everything go...purge yourself. If you are unhappy with anything...whatever is bringing you down, get rid of it. Because you'll find that when you're free, your true creativity, your true self comes out."

Tina TurnerSinger

13

RhythmRhythm

CashCash

What’s YOUR Cash Cycle?


Cash is King!

14

““Execution without Excuses”Execution without Excuses”

“I founded the company over 20 years ago with $1000 in starting capital. By contrast, Compaq had been launched two years earlier with $100 million in capital. That’s an unbelievable difference. Dell bubbled up through a kind of Darwinian evolution, finding holes in the way the industry was working. We didn’t become asset-light just because it was a brilliant strategy. We didn’t have any choice.”

Cash CycleCash Cycle

Dell's Cash Cycle

63

-21

-40

-20

0

20

40

60

80

1991 2001

Year's 1991 - 2001

Cas

h Cy

cle

Day

s

Series1

Tom MeredithTom Meredith

Growth

Liquidity

Profitability

15

Cash CycleCash Cycle

Dell's Cash Cycle

63

-21

-40

-20

0

20

40

60

80

1991 2001

Year's 1991 - 2001

Cas

h Cy

cle

Day

s

Series1

Wild Birds UnlimitedWild Birds Unlimited

Free Birdseed Storage

Wild Birds UnlimitedWild Birds Unlimited

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Cooper and Ann MimsCooper and Ann Mims


Cash is King!

Cash Conversion Cycle (CCC)

Make/Production& Inventory Cycle

Sales Cycle Delivery CycleBilling & Payment Cycle

B

A C D

3 ways to shorten your Cash Conversion Cycle in each of the above 4 areas:

1. Shorten cycle times 2. Reduce mistakes3. Improve your business model and P/L

CCC ImprovementsCCC Improvements

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Right PeopleRight People

Would You Enthusiastically

Rehire YOUR People?

Page 1 Page 1 -- People People

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

Head of Company (CEO)

Sales and Marketing (VP)

Operations (COO)

Accounting (CFO)

Human Resources (HR)

Information Technology (IT)

Customer Satisfaction

Business Unit Heads

Financial Statements Financial Statements

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The Almost MatrixThe Almost Matrix

Functions

SBUs

1 Great = 3 Good1 Great = 3 Good

Pay twice as muchPay twice as much

160 hours of training160 hours of training

Great PeopleGreat People

Jack Jack

“Less people, paid more, with a lower total wage cost.”

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$15.97/hr $11.52/hr

9.8% of sales 17% of sales

$795/sq ft $516/sq ft

6% Turnover 21% Turnover


$5.63 Billion Profit22,425 Employees$251,000 Profit/Employee



ChallengeChallenge

Revenue/Employee

1) Double in 5 -10 years

2) Increase Wages 50%

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Getting PeopleGetting People

ReputationReputationMore people applying; More people applying; better people applyingbetter people applyingSell the Vision!Sell the Vision!

TopgradingTopgrading

Topgrading Topgrading ToolKitToolKit

• 2 DVDs – 6 hrs.

• 3 CDs -- audio

• 5 mini-books

• Implementation Guide

• Online Tools

$995 vs. $1250 + shipping

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Cairo CorporationCairo Corporation

“You'll need to spend 4-5 hours in a CIDS…it’s a lot of work up-front, but a few hours now versus 1000 hours of wrapping management around a C-player, paying their salary, getting no results for the job they were hired to do and frustrating the crap out of you as the alternative. Whatever the cost of a C-player, it sure is a lot more than the 4-10 hours of time to ferret out that fact now.”

Raymond Roberts, CEO

Page 2 Page 2 -- StrategyStrategy

Core ValuesCore Values

Core Values – handful of rules that remain constant

1) Personality – “Performance Edge” vs. Continuous Improvement

2) Fire someone for violating3) Take significant financial hit

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Core Purpose Core Purpose -- WHYWHY

3M NikeDisneyWal-MartMicrosoftStarbucks

InnovationCompetitionHappinessRobin HoodUbiquityEscape

Core IdeologiesCore Ideologies

EVERYDAY MANAGEMENTCreate LegendsRecruitment and SelectionOrientation and HandbookAppraisal ProcessRecognition and RewardInternal NewsletterQuarterly Themes

ONE HR LIST

Ritz CarltonRitz Carlton

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Right ThingsRight Things

Can You State YOUR Strategy in a Sentence?

Controlling the InkControlling the Ink

Jack Jack

“Strategy is not a lengthy action plan.

It is the evolution of a central idea through continually changing circumstances.”

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Hedge Hog Hedge Hog

Passion

Best At Profit/X

Jim CollinsGood to Great

Brand PromiseBrand Promise

Bill Graham

“The Grateful Dead aren't the best at what they do; they are the only ones that do what they do.”

5000

BHAGBHAG

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Brand PromisesBrand PromisesBlockbusterBlockbuster

Always the Hits

No Fee 3 Nights

Gary Hamel Gary Hamel ---- NokiaNokiaHumanize

Technology

SeamlessSolutions

VirtualPresence

Brand PromisesBrand PromisesMcDonaldsMcDonalds

Speed

Consistency Fun for Kids

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Mars Mars -- McDonaldsMcDonaldswww.advancedcircuits.com

Mars Mars -- McDonaldsMcDonaldswww.rackspace.com

X Factor X Factor -- BlockbusterBlockbuster

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X Factor X Factor –– EclipseEclipse

X Factor - Starbucks

X Factor X Factor -- OthersOthers

• AutoNation

• The Container Store

• Outback Steakhouse

• Your Story

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Things RightThings Right

Do YOU Have Relentless Repeatability?

Habits ChecklistHabits Checklist

Leadership Leadership -- CommitmentCommitment

“We are told that talent creates its own opportunities. But it sometimes seems that intense desire creates not only its own opportunities, but its own talents."

Eric Hoffer1902-1983, Author and Philosopher

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Leadership Leadership -- DelegationDelegation

The Most Effective Measure of Leadership is the Performance of the Team in Your Absence.

DelegationDelegation

Pinpoint – Top 5Measure -- DataFeedback – Meeting RhythmReward & Recognition

Thematic GoalThematic Goal

Thematic Goal

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ThemeTheme

What’s YOUR Daily Question?

ICC/Decision ServicesICC/Decision Services

Cairo CorporationCairo Corporation

31

Phillips GroupPhillips Group

Joe HooverJoe Hoover

Phillips GroupPhillips Group

Carney InteractiveCarney Interactive

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Advantage Data SystemsAdvantage Data Systems



33

Capital Recovery GroupCapital Recovery Group



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35

Multiple Intelligences ChartMultiple Intelligences Chart

10 Minutes – How we did last quarter10 Minutes – Stories highlighting Core Values20 Minutes – Introduce New Theme10 Minutes – How will you contribute5 Minutes – Report out

Meeting AgendaMeeting Agenda

Structures/AccountabilitiesStructures/Accountabilities

StructuresAccountabilities

36

Accountability ChartAccountability Chart

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

NameTitle

Workflow ChartWorkflow Chart

The Almost MatrixThe Almost Matrix

Functions

SBUs

37

Leadership PositionsLeadership Positions

VP Sales

CEO

COO CFO


VP Sales

CEO

COO CFO

CIO HR


VP Sales

CEO

COO CFO

CIO HR?CKO

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Accountability WorksheetAccountability Worksheet

•• List accountable person for each positionList accountable person for each position

•• Take Profit and Loss Statement and Take Profit and Loss Statement and Balance Sheet and assign a person’s Balance Sheet and assign a person’s name to each line itemname to each line item

MAPMAP

RhythmRhythm

MeetingRhythms

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Jazz BandJazz Band

Why Team Meetings?Why Team Meetings?

Communications ClarityCommunications ClarityFocused Collective IntelligenceFocused Collective IntelligencePeer PressurePeer Pressure

WARNING: Often suspended WARNING: Often suspended during busy or difficult timesduring busy or difficult times

Meeting RhythmMeeting Rhythm

•• Set dates in calendars for Year OutSet dates in calendars for Year Out•• Annual 2 day meetingAnnual 2 day meeting

•• Quarterly updatesQuarterly updates•• Monthly midMonthly mid--management meeting with management meeting with

executive teamexecutive team•• Weekly executive team meetingWeekly executive team meeting•• Employee quarterly annual theme Employee quarterly annual theme

meetingsmeetings•• Daily HuddlesDaily Huddles

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Daily Meeting StructureDaily Meeting Structure

What’s UpDaily MetricsWhere Stuck

Focus -- Top 1 Priority and Bottlenecks

Weekly Meeting StructureWeekly Meeting Structure

•• Good News Good News –– 5 5 minsmins•• The Numbers The Numbers –– 55--10 10 minsmins•• Customer/Employee Data Customer/Employee Data –– 55--10 10 minsmins•• Collective Intelligence Collective Intelligence –– 1010--30 30 minsmins•• Who, What, When SummaryWho, What, When Summary•• One Phrase CloseOne Phrase Close

MetricsMetrics

Weekly Data&

Measures

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eBayeBay

“If it moves, measure it!”

Janie and Victor TsaoJanie and Victor Tsao

Michael & KevinMichael & Kevin

Courtesy of Dell, Inc.

42

Ritz CarltonRitz Carlton

LearningLearning

Whoever learns faster wins

“…when the sun comes up you’d better be learning!”

FeedbackFeedback

Customers

Reputation

Employees Shareholders

Get, Keep, Grow

CASH

43

DehasslingDehassling the Organizationthe Organization

Close the Loop!Fix a few immediatelyDon’t worry if only a few – fix those!Share entire list – don’t summarize awayClose the loopReward for sharing issuesAutomate the collection and batchingMid-management led team

Dell’s Dell’s KPIsKPIs

•Ship to Target

•Initial Incident Rate

•First Time Fix

Daily & Weekly MeasuresDaily & Weekly Measures

Key PointsKey Points

•• Outcomes Outcomes –– Rev, Profit, GM, CashRev, Profit, GM, Cash•• Drivers Drivers ---- KPI’sKPI’s –– Kept PromiseKept Promise•• Critical Critical Number(sNumber(s) ) –– Short TermShort Term•• Make your measurements visibleMake your measurements visible

44

Success CriteriaSuccess Criteria

• GREEN = Define your GOAL• RED = Decide on your MINIMUM level of

acceptable performance• YELLOW = Between Minimum and Goal• SUPERGREEN™ = Exceeded the Goal by a

significant margin


Company AvidXchange

Quarter Q2 2006

Goal Apr May Jun Legend: R Y G SG

1 Cash availability & sales

1 Total sales (12 month contracts) $600K Sales 300K 300-600 600K 1MM

2 Cash balance end of Q2 $300K Cash Balance 100K 300K 500K

3

2 Employees: Org Structure

1 Put org in place 6 Positions Hire 6 2 3 - 5 6 --

2

3

3 Make: Software release

1 Smooth V5 release On: 5/21/2006 V5 (# Bug calls) 80 20-80 20 0

2 Define product roadmap Written 3 Gen plan Write roadmap V1 V1+ V1,2 --

3

Top Priorities

Quarterly Priorities Dashboard


Accounts Receivable Aging Chart

89,654

247,255

126,516

264,229

445,085

194,550

93,309

285,237237,079 241,800

454,716

199,847

140,231

70,289

117,919

2,975

34,548

190,09446,255

61,264 72,055

198,095

385,126

207,691

205,971

260,482180,774

58,727

127,811

107,826

120,384

93,842

138,837

62,957

90,017

133,468

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10

1 to 30 days 31 to 60 days > 60 days

45

Drivers Drivers -- KPIsKPIs

Critical NumbersCritical Numbers

Core Value ChecklistCore Value Checklist

Create LegendsRecruitment and SelectionOrientation and HandbookAppraisal ProcessRecognition and RewardInternal NewsletterQuarterly ThemesEveryday Management

ONE HR LIST

46

Brand PromisesBrand PromisesBlockbusterBlockbuster

Always the Hits

No Fee 3 Nights

Cynthia Kaye Cynthia Kaye

WalWal--Mart War RoomMart War Room

“Three display boards are covered with to-do lists. One says: "Promote Week of 10/24/05: MLK Memorial Donation. Urban/blighted community plan." Two large maps show the location of Wal-Mart and Sam's Club stores across the United States.” NY Times 11/1/05

47

Miner CorporationMiner Corporation

Miner CorporationMiner Corporation

MapPointMapPoint

48

Situation RoomSituation Room

•• Where will it be?Where will it be?•• Post a map of territories covered Post a map of territories covered ––

use Microsoft MapPoint.use Microsoft MapPoint.•• List your core values and purpose.List your core values and purpose.•• Display your SMART numbersDisplay your SMART numbers

Bias for ActionBias for Action

“On the plains of hesitation, bleach the bones of countless millions, who, at the dawn of victory sat down to rest, and resting, died.”

“On the plains of hesitation, bleach the bones of countless millions, who, at the dawn of victory sat down to rest, and resting, died.”

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