Leadership and the NEW Normal?

Why should I listen to you?

100+ a year since 1989

300+ in 19 years

90+ in 19 years

“Simplicity is the ultimate sophistication” Leonardo da Vinci

What does this mean to me?

How can I use this idea?

What can I do right away?

Reality CheckKnowing – Doing

1 -10

Organization Effectiveness Audit

Page 2

Be “Brutally Honest”Scale of 1 – 10

The 4 P’s of Expertise

3

Five Elements of Effective Strategic Thinking

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution

3

SII 2012Do you have a clearly focused and well-communicated strategy for success?

Effective Strategy =

Valued Differentiation x Execution

Good to Great

Running a GREAT Business

4

Key Competitive Advantages

Products People Process

• 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…

NimbleocityNim-bo-lishis

The Four – I’s

• Ignorance• Inflexibility• Indifference• Inconsistency

4

How to avoid the Four I’s

• 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.

4

The Pattern of Business Success

(T + C + ECF) x DE = Success

5

Talent

Talent + Culture

Cecil Van Tuyl

“It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”

Here is how I define talent…

• Impeccable Character• Excellent Communicator• Positive Attitude • Customer Service Focused• Creative /Innovative• Strong Drive = Proactive• Solid Team Player

Job Description + Competency Model

WHAT WHO

5

What does it take to be a valued member of a team?

Develop and display competence.

Follow through on commitments.

Deliver required results.

Ensure your actions are consistent with your word.

Stand behind the team and its people.

Be enjoyable to work with.

Be passionate about your work and those you serve.

Communicate and keep everyone informed.

Help the other members of the team.

Help members of other teams.

Share ideas, information and credit.

Hold yourself 100% accountable.

John Spence High Performance Team Model

• D• M• C• C• M• D

irection – vivid, clear, inspiring --- shared

easurements – specific, observable, focused

ompetence – very good at what they do

ommunication – open, honest, courageous

utual Accountability – all team members

iscipline – do this every day

5

11 Key Team Competencies:

1. Setting clear, specific and measurable goals.

2. Making assignments extremely clear and ensuring required competence.

3. Using effective decision making processes within the team.

4. Establishing accountability for high performance across the entire team.

5. Running effective team meetings.

6. Building strong levels of trust.

7. Establishing open, honest and frank communications.

8. Managing conflict effectively.

9. Creating mutual respect and collaboration.

10. Encouraging risk-taking and innovation.

11. Engaging in ongoing team building activities.

1 - 10

6

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…

Fully Engaged Customers deliver a

23% premium over the average customer in terms of share of wallet, profitability, revenue,

and relationship growth.Harvard Business Review: Manage Your Human Sigma 6

Job + Organizational Engagement = Employee Engagement

Not Engaged Engaged

En

gag

ed

Not

En

gag

ed

Job Engagement

Org

an

izat

ion

al E

nga

gem

en

t

50%

9%

Benchwarmers

7%

Free Agents

34%

Stars

Disengaged

50%

Actively Disengaged Employees…

22%

Key Drivers of Customer Satisfaction and Loyalty

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR= 104.12% increase in profits

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

TolerateNothing

Less

From: Practice What You Preach by Maister

Global study:16 countries529 companies15,589 respondents

Chart: 7Workshop: 8

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

9

Actively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engaged

employees can drive profits up by as much as a 189%

Culture = Cash

Key attributes of winning cultures

• High aspirations and a desire to win

• Customer / market focus

• A “think like owners” attitude

• Bias to action

• Individuals who team

• Passion and energy

Bain & Company

1 - 10

9

From the Employee’s Perspective:

1 - 10

10

What Employees Want: SBA

Focus me

Know me

Care about me

Hear me

Help me feel proud

Equip me

Help me see my value

Help me grow

Help me see my importance

10

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging leaders.

2. Effective managers who keep employees informed, aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee contributions.

6. Concern for employee well being.

1 - 10

10

1,300,000 interviews: Basic 4 + 1

Goal Setting

TrustAccountability

Communications

RECOGNITION

From: The Orange Revolution by Gostick and Elton 11

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.

1 - 10

11

The Five Steps to Implementing a Winning Culture

1. Preform a culture audit and set new expectations.

2. Align the management team.3. Focus on RESULTS and build

accountability.4. Manage the drivers of culture.5. Communicate and celebrate.

12

Study of most important leadership skills7,000+ managers from 1,600 large organizations

• Must have superb communication skills.

• Lead by example to demonstrate character and competence.

• Establish and maintain clear and meaningful vision.

• Provide motivation to create ownership and accountability for results.

• Clarify performance expectations.

• Foster teamwork and collaboration.

• Develop clear performance goals and metrics.

• Consistently deliver superior results.

From: Getting Results by Longenecker and Simoneti

1- 10

512

SII 2012Is Your Company Up To Speed?

Fast Company June 2003

Pages 13 - 14

Extreme Customer Focus

Web of Value: VOC + MOT + WOM

15

Extreme Customer Focus

VOC

How Many of these do you employ?

15

Moments Of Truth

Moments Of Truth

MOT Practice Round

Dry CleanerHair SalonTailorPlumber

Workshop: VOC + MOT Page 16

16

43% - 74% of purchasing decision = WOM

WOM = Your BEST form of advertising!

78.9%23.4%

You MUST have a WOM Referral System

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine 17

Workshop: Three ways to generate WOM

17

Kaizen

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 18

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.

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.

Workshop page 18

From: What (really) Works by Joyce, Nohria, Roberson

10 – 15%

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.

Where are we going andhow will we behave on the way?

FocusDifferentiation“No”

Guiding Collation

Vision + ValuesStrategy

ObjectivesInitiativesPrograms

Procedures / ProtocolsRepeatable ProcessClear / consistent / relentless

Training +time / money /

supplies / people

Measure / TrackCommunicate

Transparency Accountability

Celebrate SuccessEliminate Mediocrity

19

Obstacles to Execution

1. There is a real void of clear, direct and understandable communication. This results in people doing what they want to do, not what they need to do and breeds a climate of not caring about the customers/clients or their colleagues.

2. Dysfunctional behavior is accepted or ignored and worse yet, colleagues, management reward it.

3. There is no definition of what is acceptable and what is unacceptable.

4. Management do not promote and confirm that accountability is a key principle within their company.

5. Good people may leave because of frustration that their employees are ignoring the issue and is not proactive in seeking and implementing a solution to change the environment.

Accountability

• 100% Clarity

• Agreement

• Tracking

• Coaching

• Reward / Punishment

Clear Direction

No

Yes

Explain the Task

Agreement

Gain Agreement

Skills

Yes

No

Training

Resources

Yes

No

Get them theResources

Authority

Yes

No

Empower Them

Motivated

Yes

No

Coach Them

PerformanceImprovement

Yes

No

Clarity

The Four Pieces of Paper… Agreement

Drone Scapegoat

OwnershipMentality

LooseCannon

HIGH

LOW

LOW HIGHAccountability

Empowerment

Keep a Compelling Scoreboard• It has to be simple• It has to be visible to the

team• The has to show all key

metrics• It has to tell you immediately

if you are winning or losing!!

Tracking

MPS Margin Per Sale

Talent

Customer Service

Customer Retention

Create a “Dashboard” of all key measures

Coaching

Situational Leadership

LOW

LOW

HIGH

HIGH

Skill

Disciplined Execution Workshop : Page 20

The 6 Keys to Controlling the Market

1. People + Culture

2. VOC

3. MOT

4. WOM

5. Kaizen

6. Execution

Read 21 & 22 Workshop 23 - 25

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: @awesomelysimplePlease feel free to “friend” me on FB

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

Thank You