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: [email protected]
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
Page 15