the american ceo the method · 2019-07-08 · 1.establish trust—“people don’t care how much...
TRANSCRIPT
CEO/GM PROBLEM #1 –
ALIGNMENTPROBLEM
CEO/GM PROBLEM #2 –
LACK OFPROPER INFORMATION
Only 4% of problems are known to top managers
96% of problems are not known to top managers
9% of problems are known to middle management
74% of problem are known to supervisors
100% of problems are known to front-line employees
PREDICTABLEPERFORMANCE
IS DIFFERENTCEO JOB
TOP 5 REASONS
Lack of Honest Feedback (Self-Diagnosis)
Decisions are NOT Expert Based
Manage the future not the present or past
Total Responsibility Act Through People instead of Doing Things
STAGES OF ACOMPANY
Tools of
the JobMANAGEMENT LEADERSHIP
COACHING
MANAGEMENTMAKING DECISIONS ABOUT THOSE THINGS YOU CONTROL
MANAGEMENTDECISIONS
Who you hire
What you pay
What title you give
What responsibility you give them
Who they work for
What office they work in
What Motivates People at Work?
Motivators Demotivators1. Achievement 1. Company Policies/Admin.
2. Recognition 2. Supervision
3. Work Itself 3. Relationship with Supervisor
4. Responsibility 4. Work Conditions
5. Advancement 5. Salary
6. Growth 6. Peer Relationships
One More Time: How Do You Motivate Employees? By Frederick Herzberg, Harvard Business Review January 2003
RESPONSIBILITY VS. CONTROLTOTAL RESPONSIBILITY
Total Responsibility Leadership Command
LIMITED CONTROL
SOLUTION IS INFLUENCE
CREDIBILITY COMPETENCE CARING
LEADERSHIPTHIS IS
COACHINGINTERACTIVE PROCESS FOR ENABLING LEARNING AND DEVELOPMENT
1. Establish Trust — “People don’t care how much you know until they know how much you care.” —John Maxwell• Integrity, Authenticity, Transparency
2. Make It Personal — “Every person is unique.”• Potential, Strengths, Stories
3. Commit to Growth — “What do you want to be?”• Journey, Goals, Powerful Questions
4. Accountability — “Talk without works is failure.”• Feedforward, Practice, Discipline
COACHING STEPS
THE CEORESPONSIBILITIES OF
BUILD GOODCULTURE
MAKE GOODDECISION
DELIVERPERFORMANCE
OWN THE VISION
(Strategy)
PROVIDE THE PROPER RESOURCES
HumanCapital
“The better you are as CEO the less you have to do and more you can do.”
THE VISIONOWN
STRATEGIC VISIONExplains to Shareholders, Employees and Customers What We Will Provide. Should enable action by each group.
WHAT IS YOUR STORY?
ALWAYS LOW PRICES ORGANIZING ALL THE WORLD’S INFORMATION NETWORK PERFORMANCE EXPERTS
THE VISIONSTRUCTURING
MISSION/VISION
VALUES
STRATEGIC PLAN (1-3 YEAR)
QUARTERLY GOALS
PROOF POINTS (METRICS)
DECISION BULL'S-EYE
CUSTOMERS
SHAREHOLDERS EMPLOYEES
LEADERSHIP
CHEERLEADING
VS
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WHAT DO THESE THREE PEOPLE
HAVE IN COMMON?
GEORGE BUSH BARACK OBAMA RICK PERRY
MATTERS?WHY VISION
"The very essence of leadership is that you have to have vision. You can't blow an uncertain trumpet."
THEODORE M. HESBURGH
“A clearly communicated inspiring vision is what creates a team.”
JOEL TRAMMELL
“I am more afraid of an army of 100 sheep led by a lion than an army of 100 lions led by a sheep."
CHARLES MAURICE DE TALLEYRAND-PERIGORD
CEO HAS AN IDEA
VISION SHARED WITH CHOSEN FEW
MAJORITY UNDERSTAND VISION
EVERYONE KNOWS THE STORY
EVERYONE ACTS ON THE STORY
RESOURCESPROVIDING THE RIGHT
ON THE BUSRIGHT PEOPLE
A, B OR C
APLAYERS
EXCEEDS EXPECTATIONS
Individuals whose performance in their current role provide significant competitive advantage over those employees in similar roles at principal competitors and therefore, are exceptional contributors to long-term profitability. These individuals are among the top 15 percent of their peers throughout the industry in their current role. It is a primary responsibility of management to ensure that these employees are retained and fully engaged. NetQoS is ALWAYS in the market for A level talent and must continually improve its ability to identify and recruit these exceptional individuals. Management decisions should be made based upon how this group will react.
BPLAYERS
MEETS EXPECTATIONS
Individuals whose performance in their current role have proven to be at least as good as that of their peers at principal competitors. These individuals are between the top 15th and 50th
percent of performers throughout the industry in their current roles. B’s are valuable contributors who consistently meet expectation and may exceed expectation in many areas of performance. B Level individuals are, collectively, critical to a company’s success. They are not an afterthought, living in the shadow of A performers. Management’s responsibility is to facilitate and empower these individuals to grow into A performers in their current role or move them into a role that can best utilize their strengths.
CPLAYERS
NEEDS IMPROVEMENT
Individuals whose performance in their current role put NetQoS at a competitive disadvantage by being below average relative to their peers at principal competitors. C’s are not meeting expectations. Management’s responsibility is to rapidly develop them in their current role or get them into a role where they can be above average. If this cannot be done in a timely manner the individual should not be retained. Inability to create value at one organization does not mean the same will be true elsewhere in an organization with different values or culture.
RECRUITING VS HIRING
0
10
20
30
40
50
60
70
80
CATEGORY 1 CATEGORY 2
“At most companies, people spend 2% of their time recruiting and 75% managing their recruiting mistakes”
RICHARD FAIRBANK, CEO at Capital One.
75%Managing Recruiting Mistake
02%Spend Time on Recruiting
RECRUITINGA continuous process of identifying talent that might have a role in your organization
HIRINGfilling a position after it opens in your organization
RECRUITING IS A CONTINUOUS
PROCESS
ALWAYS HIRE A PLAYERS WHEN
AVAILABLE
RECRUITING IS A DUAL SALES
PROCESS
TIME IS OF THE ESSENCE
ONE PERSON HAS TO
SET THE BAR
LOOK FOR DISRUPTIVE EVENTS
YOUR RECRUITERS MUST BE TOP
PEOPLE
CULTIVATE UNIQUE SOURCES
TRAINING IS ALWAYS REQUIRED
MEASURE YOUR
PERFORMANCE
RECRUITINGMETRICS FOR
TIME TO FILL AN OPEN JOB
TIME FROM INITIAL ENGAGEMENT TO JOB OFFER
PERCENT OF CANDIDATES ACCEPTING JOB OFFERS
WHO DID WE LOSE TO?
PERCENT OF NEW HIRES RATED A TWO QUARTERS AFTER HIRE
CAPITALSOURCE OF
ORGANIC
Non-informative data –aka “BS”
CEO Job – constant search for predictive data
Sales Process – converts “BS” to predictive data
INORGANIC
Personal Angels
Private EquityVenture Capital
INTANGIBLESEXPERTISE &
INTANGIBLES
COOL FACTOR
CONFIDENCE
EMOTIONAL BALANCE
ADVISORS
VENDORS
COMPETITORS
INTANGIBLES
RANDOM HIRING AND SPENDING
REACTIVE HIRING AND SPENDING
BUDGET-BASED
ALLOCATION
FORWARD-LOOKING
ALLOCATION
OPPORTUNITY-DRIVEN
ALLOCATION
CULTUREBUILD THE
"People will do anything for those who encourage their dreams, justify their failures, allay their fears, confirm their suspicions and help them throw rocks at their enemies." —Blair Warren
How things REALLY get done in your organization
Culture comes directly from the values of the CEO
Culture affects performance
CULTURE
What Motivates People at Work?
Motivators Demotivators1. Achievement 1. Company Policies/Admin.
2. Recognition 2. Supervision
3. Work Itself 3. Relationship with Supervisor
4. Responsibility 4. Work Conditions
5. Advancement 5. Salary
6. Growth 6. Peer Relationships
One More Time: How Do You Motivate Employees? By Frederick Herzberg, Harvard Business Review January 2003
SCARFMinimize danger and maximize reward is an overarching, organizing principle of the brain
MODEL
RESPONSE?
WHAT SOCIAL EXPERIENCES ACTIVATE A REWARD OR
THREAT
STATUSThe Status Syndrome by Michael Marmot
CERTAINTY
AUTONOMY
RELATEDNESS
FAIRNESS
REWARD/THREATIMPLICATIONS OF
Threat Reduces Cognitive Performance
Reward State Leads to Engagement
Less Creativity in Problem Solving Willing to Try Difficult Things
More Mistakes Willing to Take Risks
More Defensive Decisions Collaborative Behavior
POLICYIMPLICATIONSPrivate Offices for all Employees
Open Meeting Policy
Anonymous Feedback Mechanism
Open Book Management
Clearly Stated Mission, Values and Goals
Control Over an Employee’s Work Environment
Make New Employees Part of the Team
Objective Pay Policies
No Classes of Employees
Promote Learning and Growth at Every Opportunity
POLICYIMPLICATIONS
BUILD THECULTURE
THE12QUESTIONS
Do I know what is expected of me at work?01
02 Do I have the materials and equipment
I need to do my work right?
03 At work, do I have the opportunity to do
what I do best every day?
04 In the last seven days, have I received recognition or praise for doing good work?
05 Does my supervisor, or someone at work,
seem to care about me as a person?
06 Is there someone at work who encourages
my development?
At work, do my opinions seem to count?07
08 Does the mission/purpose of my company
make me feel my job is important?
09 Are my co-workers committed to doing
quality work?
10 Do I have a best friend at work?
11 In the last six months, has someone talked
to me about my progress?
12 This last year, have I had opportunities at
work to learn and grow?
THE12QUESTIONS
SURVEY RESULTS
THE QUESTIONS ON THE SURVEY HAD THESE POSSIBLE RESPONSES:
(5) Strongly Agree- Very positive result (4) Agree, (3) Neutral, (2) Disagree, (1) Strongly Disagree
SMALL COMPANYBIG COMPANY VS
BIG COMPANYAny organization where perfectly competent and productive employees consistently make decisions that are in opposition to the goals of the organization because of a lack of alignment
EXAMPLE:WALMART US MILITARY
MULTIPLE CONFLICTING CULTURES
VALUES STATED BUT NOT
EMBRACED
RULESBASED
CULTURE
INTELLECTUALLY ENGAGED
EMPLOYEES
MISSIONFIRST
DECISIONSMAKE GOOD
Time
Valu
e of
Dec
isio
n “No decision
is a decision”DECISIONVALUE DECAY
WHY WEMAKE BADDECISIONS
COM
MO
N C
OGNIT
IVE
BIAS
ES
WE HAVE TOO NARROW A FOCUS
WE FALL INTO CONFIRMATION BIAS
WE FALL FOR SHORT-TERM EMOTION
WE ARE OVERCONFIDENT
WRAP PROCESS
Reality-test your assumptionsWiden your options Attain distance
before deciding Prepare to be wrong
MODELSDECISION
"Great leaders are almost always great
simplifiers, who can cut through argument,
debate, and doubt to offer a solution everybody
can understand."
GENERAL COLIN POWELL
DECISION BULL'S-EYE
CUSTOMERS
SHAREHOLDERS EMPLOYEES
THEEISENHOWERBOX
“What is important is seldom urgent & what is urgent is seldom important”
DWIGHT EISENHOWER34th President of USA
URGENT NOT URGENT
IMPO
RTANT
DODO IT NOW
Write article for today
DECIDESCHEDULE A TIME TO DO IT
Exercising.
Calling family & friends.
Researching articles.
Long-term biz Strategy.
NO
T IM
PORT
AN
T
DELEGATEWHO CAN DO IT FOR YOU
Scheduling interviews.
Booking flights.
Approving comments.
Answering certain emails.
Sharing articles
DELETEELIMINATE IT
Watching television.
Checking social media
Sorting through junk mail
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S W
O TANALYSIS
CEO’S DECISIONSRULES FOR
EXECUTIVE DECISION MAKING
01 START WITH MISSION, VISION AND VALUES
02 SHOULD I MAKE THE DECISION
03 MAKE YOUR OWN PEOPLE TAKE A POSITION
04 SUPPORT YOUR PEOPLE
05VAST MAJORITY OF TIME YOU SHOULD BE SUPPORTING YOUR PEOPLE OR SOMETHING IS WRONG
06 FASTER IS BETTER
07 COMMUNICATE WHY TO EVERYONE
08 BALANCE CONSENSUS WITH BENEVOLENT DICTATORSHIP
09 PREPARE TO BE WRONG
10 CONDUCT A POST MORTEM
DEPARTMENT VS DEPARTMENT
CEO has to decide
Decision must
be based on
consistent principles
Can’t have a favorite child
Are you seeing all of
these decisions?
CEO IS DECISION BOTTLENECK
EXECUTIVE TEAM MAKES DECISIONS
DECISIONS DRIVEN BY PROCESS
SOME DECISIONS BY RIGHT PEOPLE
RIGHT PEOPLE MAKE RIGHT DECISIONS
PERFORMANCEDELIVER
RANDOMPERFORMANCE
BASIC METRICS
BROAD METRICS
METRICSCULTURE
PREDICTABLE PERFORMANCE
Chief Data Analyzer
THE DATA DELUGEDATA IS GREAT-BUT THE CEO NEEDS SOMETHING ELSE
PREDICTIVE, NOT HISTORICAL01
Data is by definition about the past.
But it’s the CEO’s responsibility to manage the future.
DON’T BE THIS GUY.
CEOs ASFORECASTERSWhen a CEO gets fired, it’s almost always because he or she failed to predict the future.
NORMALIZE, NOT FUNCTIONAL02
CEO/GMs get more raw functional data than the human brain can comprehend.
It comes with no context, in different formats.
VP of Sales might be able to track hundreds of deals—but you need to grasp all areas of the business.
Torture the data, and it will confess to
anything.
RONALD COASENobel Prize–winning economist
FROM THE WHOLE
NOT JUST THE03 ORGANIZATION
EXECUTIVE TEAMIn some ways, Henry Ford had it easy…
ON THEASSEMBLYLINE…
Easy to track outcomes.
Data collection independent of workers.
Little worker input required.
BUTTODAY
Work is harder to measure/track.
Harder for insights to rise through organizational layers.
Difficult to collect insight without being overwhelmed.
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SEE THE
YOUNEEDYOUR
TEAM’SHELP TO
FUTURE
Sales forecast
CEO can see the likely future— and plan accordingly.
Have employees forecast and re-forecast their outcomes.
Sales teams make forecasts all the time. But what about your other groups?
Raw dataflows up to CEO from the bottom gaining volume
COMMON METHOD BETTER METHOD
Normalized data flows up from
everyone in the organization
Succ
ess
crite
ria fl
ow d
own
from
CEO
EMPLOYEES NEED?WHAT DO
What Motivates People at Work?
Motivators Demotivators1. Achievement 1. Company Policies/Admin.
2. Recognition 2. Supervision
3. Work Itself 3. Relationship with Supervisor
4. Responsibility 4. Work Conditions
5. Advancement 5. Salary
6. Growth 6. Peer Relationships
One More Time: How Do You Motivate Employees? By Frederick Herzberg, Harvard Business Review January 2003
STRATEGY
MISSION VISION VALUES GOALS PROOF POINTS
OPERATING RHYTHMWEEKLY CONVERSATIONS QUARTERLY CONVERSATIONS
Individual Contact with Direct Reports Identify Goals
Review Past Quarter PerformanceOps Review - Goals
Personal Performance Reviews
Provide Feedback/PraiseEngage Board
Look for the Unusual - MBWA Rolling 12 Month Budget
OPERATINGRHYTHM
WEEKLY CONVERSATIONS
Individual Contact with Direct Reports
Ops Review - Goals
Provide Feedback/Praise
Look for the Unusual - MBWA
QUARTERLY CONVERSATIONS
Identify Goals
Review Past Quarter Performance
Personal Performance Reviews
Engage Board
Rolling 12 Month Budget
OPERATINGRHYTHM
EVERY SIX MONTHS
Departmental Responsibilities
Talent Review
Salary Reviews
Product Strategy
YEARLYCONVERSATIONS
Risk & Compliance
Internal System Review
CEO Performance Review
Total Strategy
RANDOMPERFORMANCE
BASIC METRICS
BROAD METRICS
COMPREHENSIVEMETRICS
PREDICTIVE INFORMATION (FSOR)
