ACHIEVING BUSINESS EXCELLENCE
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- Gregory Osborne
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1 ACHIEVING BUSINESS EXCELLENCE Understanding the Pattern of Business Success JohnSpence.com Page 1
2 The 4 Ps of expertise P P P P The Formula for Business Success: (T+C+ECF) x DE = Success JohnSpence.com Page 2
3 THE 4 I S Ignorance Inflexibility Indifference Inconsistency How to avoid the 4 I s (1 = terrible 5 = average 10= world class) 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 JohnSpence.com Page 3
4 ORGANIZATIONAL EFFECTIVENESS AUDIT Answer the following questions as honestly as possible using this 1-10 point scale: 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure 7 = Agree Somewhat 10 = Strongly Agree 1. We have a clear and detailed vision for the direction of our company that is very well communicated throughout the entire organization: 2. Every employee has clear/quantifiable/observable performance objectives: 3. There is a high level of very open and honest communication throughout the organization: 4. I have a high level of trust in the skills, abilities, and integrity of my co-workers: 5. There is a high sense of urgency within the organization to get things done: 6. We have only the best, highly competent people in all areas of the organization: 7. We focus very intently on the needs of our customers: 8. There are no politics, rumor-mongering or finger-pointing within our organization: 9. Our key leaders operate as a highly-effective team: 10. There is a high level of both personal and mutual accountability within the organization: 11. People display a positive, enthusiastic attitude throughout the organization: 12. We are superb at collecting and using feedback from our customers: 13. Our organization displays great discipline in pursuing our focused business objectives: 14. I am very pleased with where our organization is in the marketplace today: JohnSpence.com Page 4
5 Orange Revolution: Clear, specific, measurable and binary goals (no ambiguity) High levels of trust across the entire organization Free flow of all pertinent information across the entire organization (transparency) High levels of both personal and mutual accountability A focus on catching people doing things right and rewarding them Wow No Surprises Cheer Elements of high-performance team D M C C M D JohnSpence.com Page 5
6 Key team competencies 1. Setting clear, specific and measurable goals 2. Making assignments extremely clear and ensuring required competence 3. Establishing 100% accountability for high performance across the entire team 4. Running effective team meetings 5. Building very strong levels of trust 6. Establishing open, honest, frank and safe communication 7. Managing conflict effectively 8. Creating mutual respect and collaboration 9. Encouraging prudent risk-taking, creativity and innovation 10. Engaging in ongoing team building activities JohnSpence.com Page 6
7 Elements of a winning culture 1. People enjoy the work they do and the people they work with 2. People take pride in the work they do and the company they work for 3. There are high levels of engagement, connection, camaraderie and a community of caring 4. There is a culture of fairness, respect, trust, inclusiveness and teamwork 5. The leaders walk the talk, live the values and communicate a clear vision and strategy for growth 6. Lots of open, honest, robust and transparent communication across the entire organization 7. The company invests back in employees; there is a commitment to learning, coaching and development 8. There is a bias for action, employees have an ownership mentality and always strive to give their personal best 9. There is high accountability and a strong focus on delivering the desired results 10. There is ample recognition and rewards and mediocrity is not tolerated JohnSpence.com Page 7
8 Keys to effective management Communicate Clearly internally and externally, honesty, transparency, and candor Force the Hard Decisions core values drive fast, effective decision making Focus Relentlessly on Key Results outcomes not effort, clear metrics, binary Remain Flexible to Change be agile, adaptable and nimble, embrace change Prove Your Value to the Customer every day, in every interaction Force Collaboration teamwork is mandatory, not optional, no Prima Donnas! Rigorous but Not Ruthless set high standards and hold people 100% accountable Based on: Tough Management by Martin JohnSpence.com Page 8
9 Web of value = VOC + MOT + WOM What are all of the ways you currently listen to the VOC? What are several new ways you can add? MOT Workshop: What do you believe are the top THREE MOTs for your customers? Do you have a robust system/process in place to ensure repeatable success in delivering these MOTs flawlessly to every customer? JohnSpence.com Page 9
10 WOM Workshop 1. Describe in detail what your Ideal Client looks like. 2. What are the triggering events that cause them to buy from you? What happens in their world that makes them need/want to do business with you? 3. What is special / unique / valuable about the way you solve their problems? Why, specifically, do your customers choose you? JohnSpence.com Page 10
11 How do you get potential customers to... KNOW you: LIKE you: TRUST you: TRY your products/services: REPEAT buy from you: Become a customer evangelist who sends lots of high-quality referrals to you: JohnSpence.com Page 11
12 THE FORMULA THE FOUR PRIMARY MANAGEMENT PRACTICES 1 = Not at all 3 = Poor 5 = Fair 7 = Good 10 = Superior /Excellent 1. Strategy: Devise and maintain a clearly stated, focused strategy: Whatever your strategy, it will only work if it is sharply defined, clearly communicated, and well understood by employees, customers, partners, and investors. 2. Execution: Develop and maintain flawless operational execution: You might not always delight every customer, but make sure that you never disappoint them. Winners consistently meet the expectations of their customers by delivering on their value proposition. Bad quality surely will hurt. 3. Culture: Develop and maintain a performance-oriented culture: One of the best indicators of being performance-oriented is the way you deal with your own poor performers. It is easy to reward good performers. What matters is whether you have the courage to get rid of poor performers. 4. Structure: Build and maintain a fast, flexible, flat organization: What really counts is whether structure reduces bureaucracy and simplifies work. Simpler and faster - such are the best goals for all organizations. THE FOUR SECONDARY MANAGEMENT PRACTICES 1. Talent: Hold on to talented employees and find more: Winning organizations pay great attention to finding, growing, developing, and rewarding very talented people. 2. Leadership: Key leaders are truly committed to the business: The research data clearly showed that the leadership effectiveness of the top executives, on average, influenced 15% of the variance in corporate performance, for better or for worse. 3. Innovation: Make innovations that are industry transforming: Agile companies that were highly innovative and able to anticipate rather than react to disruptive events in the marketplace, were always the winner. 4. Mergers and Partnerships: Make growth happen with mergers, alliances, and partnerships: Internally generated growth is essential, but companies that can also master mergers and partnerships are much more likely to be winners. Based on: "What (Really) Works by Joyce JohnSpence.com Page 12
13 Here is a checklist of actions that led these companies to bring in financial returns that were often as much as 20 times greater than their competitors... 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure 7 = Agree Somewhat 10 = Strongly Agree We have an uncompromising determination to achieve excellence in everything we do: We have a real commitment to high-quality work, and tolerate nothing less: We have a real commitment to high levels of customer service, and tolerate nothing else: In this company we set and enforce very high standards for performance: Management gets the best work out of everybody in the company: The quality of the work performed by our group is consistently high: We make our customers feel as though they are very important to us: Customer satisfaction is a top priority in our company: We listen well to what the customer has to say: We are extremely good at building long-term customer relationships: The people in our company do "whatever it takes" to do a good job for the customer: We do a good job of resolving customer problems when they occur: The level of quality service delivered by my group/team is consistently high: READ THAT LIST AGAIN AND AGAIN!!!!! THIS IS CRITICAL TO YOUR SUCCESS JohnSpence.com Page 13
14 Disciplined Execution 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure 7 = Agree Somewhat 10 = Strongly Agree We have a clear vision for exactly where we are trying to take our organization We have a detailed and specific plan to accomplish the key objectives we are trying to execute Our senior leaders are all 100% committed to executing the key objectives The key leaders/employees in our organization are all superb at execution All of the major objectives we are pursuing are fully aligned and mutually reinforcing We have excellent systems and processes in place to ensure consistently superb execution There is continuous and transparent communication throughout the entire organization about exactly where we stand on executing on our key objectives Every employee has all of the training, support, equipment and resources they need to deliver the results required of them We are superb at adjusting and adapting our strategy and objectives when truly necessary We do a great job of celebrating both small and big wins and praising great performance We refuse to tolerate mediocrity or lack of accountability and deal decisively with people who are not able to meet the clear standards of performance in our organization JohnSpence.com Page 14
15 The five keys to accountability (1-10) Achieving Business Excellence % Clarity + Appropriate Authority % Agreement 3. Track & Post (Easy to understand + highly visible) 4. Coach, Mentor, Train and Support 5. Reward Success / Punish Failure JohnSpence.com Page 15
16 WORKSHOP: IDEAS INTO ACTION Go back page-by-page and carefully look through the entire book. Compare and contrast your scores on the various audits and re-read any notes you wrote. What are the themes that emerge the patterns? Look for any scores below a 7 as an area that needs improvement and anything in the 1-5 range as a serious problem that needs attention. The goal here is to really dig into these topics so you can take an honest look at the actual current state of your organization. This is a rare opportunity to take a critical look at how well your organization is truly operating and specifically what must be done to improve it. Take this exercise very seriously and push yourself to really understand what these scores and everything you learned today about world-class organizations could mean to your business. 1. Strengths What was the pattern of high scores? In what major areas did you seem to have as strengths, where you scored an 8 or higher across all of the workshops? 2. Weaknesses What was the pattern of low scores? In what major areas did you seem to have as weaknesses, where you scored a 6 or lower across all of the workshops? JohnSpence.com Page 16
17 3. Key strategies for success Based on everything you have learned here today and your own personal business experience, what do you believe are the top strategies your organization must focus on to build and sustain success? What are the 3-5 most important ideas that will drive your organization s future? (Please describe these in detail. You might lead off with a single word or short phrase, but then you ll need to give a definition and description to exactly what you mean. It must be clear precisely what each idea means and how you will pursue it.) JohnSpence.com Page 17
18 4. Organizational action steps Please list at least 4 specific, measurable, observable and BINARY action steps that your organization can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can be done right away to take the lessons of this class and put them into positive action for your organization? JohnSpence.com Page 18
19 5. Personal action steps Please list at least 4 specific, measurable, observable and BINARY action steps that YOU can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can you do to make a more positive impact on your organization s success? JohnSpence.com Page 19
20 NOTES: JohnSpence.com Page 20
21 SMALL GROUP WORKSHOP Achieving Business Excellence In your teams, share what you just wrote in the previous workshop. Make sure that each person takes time to explain their findings and recommendations. Then, combine all of your answers in order to create a group answer to the following questions: 1. What does your team feel are the THREE major strengths of your organization at this point in time? 2. What does your team feel are the THREE major weaknesses of your organization at this point in time? JohnSpence.com Page 21
22 3. Out of everything you have written, what are your teams top 4 recommended action steps that the organization should take immediately? Make these action steps specific, measurable, observable and BINARY! EACH TEAM WILL HAVE 5 MINUTES TO PRESENT THEIR FINDINGS AND RECOMMENDATIONS. JohnSpence.com Page 22
23 NOTES: JohnSpence.com Page 23
24 NOTES: JohnSpence.com Page 24
25 NOTES: JohnSpence.com Page 25
26 It is my sincere hope that you have enjoyed this class and found it extremely valuable. The challenge now is to take everything you have learned and apply it in your business. Even the best ideas in the world are useless without massive action behind them. If you did find this class of value, I also hope that you will enthusiastically refer me to any colleagues or companies that you think would find value in the sort of programs I offer. 99.9% of all of my business comes from happy clients telling their friends and colleagues about my programs, and I thank you very much for taking a moment to let lots of people know about my work. If there is anything you need from me please do not hesitate to send a note or call, I m here to assist you in any way I m able. If you have any questions at all please do not hesitate to send a note or call. My address is: john@johnspence.com PLEASE connect with me on LinkedIn and I have 20+ free training videos on You Tube that you can access on my web site Also, you might find value in the ideas I share in my blog. You can sign up for it at: Lastly, my workbooks and slides have already been uploaded to: JohnSpence.com Page 26
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