foundations of excellence keynote tci expo
DESCRIPTION
Keynote address at TCI Expo 2010 in PittsburghTRANSCRIPT
The Foundations of Excellence
Key Ideas for Building and Sustaining a Highly Successful Business
A few of my clients:
For the past 21 years…
What does this mean to me?
How can I use this idea?
What can I do right away?
I am NOT a guru…
The Foundations of Excellence
1. People2. VOC3. MOT4. WOM5. Kaizen6. Execution
The Pattern of Business Success
(T + C + ECF) x DE = Success
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.”
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…
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
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
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
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
How to you grow a great culture?
FunFamilyFriendsFairFreedomPridePraiseMeaningAccomplishment
What Employees Want
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
1,300,000 interviews: The 3 Keys…
Wow
CheerNo
Surprises
WinningCulture
From “The Orange Revolution”
Extreme Customer Focus
Web of Value: VOC + MOT + WOM
Page 8
6. Extreme Customer Focus
VOC
Moments Of Truth
Page 8
Do you have a system for your key MOT?
WOM = Your BEST form of advertising!
78.9%23.4%
43% - 74% of purchasing decision = WOM/T
You MUST have a WOM Referral System
Identify Ideal
Customer
ReferIdeal
Customer
From John Jantsch: The Referral Engine
Things have changed…
2008 2010
Now you MUST deliver…
• The highest possible quality…• At the lowest possible price…• Immediately --- or sooner…• All while giving consistently superior
customer service for an outstanding “Total Buying and Owning Experience.”
Kaizen
For those who are prepared…Chaos brings opportunity.
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 and adaptable to changes in the marketplace.
Execution =
Clear Expectations
Measurable Results
Support & Training
Robust Communication
Measure & Post Create A Dashboard of Key Indicators
MPS Margin Per Sale
Talent
Customer Service
Customer Retention
The Foundations of Excellence
1. People
2. VOC
3. MOT
4. WOM
5. Kaizen
6. Execution
THANK YOU
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
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