vistage achieving business excellence

Achieving Business Excellence

Achieving Business


Most people are so busy working IN

their business that they do not take any time to work

ON their business.


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

Effective Strategy =

Valued Differentiation x Execution


Key Point: Strategy is EXTERNAL

as well as INTERNAL


Five Foundations of Effective Strategic Thinking

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution2


The Four – I’s

• Ignorance

• Inflexibility

• Indifference

• Inconsistency2


How to avoid the Four I’s • Aggressive external market focus.• Aggressive customer focus.• Keep the “Main Things” the main things.• Bullish on knowledge sharing and learning.• Passion and commitment at all levels.• Foster a healthy paranoia.

• Revel in change.– be agile, adaptive, and anticipatory.


Southwest

One type of planePoint-to-point

Fast turnsLow fares / no frills

Friendly staff 3


Dell

BTOJIT

Inventory turnsLogistics vs. Technology

VOC

3


100,00

ELP

NO FRILLS

LOGISTICS


From the CEO of a little 172 billion dollar company…

Look, what is strategy but resource allocation?

When you strip away all the noise, that’s what it

comes down to. Strategy means making clear-cut

choices about how to compete. You cannot be

everything to everybody, no matter what the size

your business or how deep its pockets. You have

to figure out what to say “NO” to.

Jeffrey Immelt


Educated GuessDifferentiated Strategy

FocusResource Allocation

Bold Not RiskyWhat NOT To Do


4

Organizational Effectiveness

Audit Page 4


Microsoft • Total World Domination• The Top 5 %• Bet the Company• Require Failure• Managers are Qualified• Perform, Perform, Perform• Shrimps vs. Weenies• Stop the Insanity• Espirit De Corps

5

From: The Twelve Simple Secrets of Microsoft Management by Thielen


Hire for Desire

Teamwork: NP

Communication

Highest Standards

Innovation

Truly Delight Customers

Charlie Trotter’s

5


Lessons from seven top CEOs

• Have an outside-in perspective• Be deeply passionate about your job• Understand the importance of culture• Create or adapt next generation

products, processes and solutions• Implement the best ideas regardless of

origin5

From: What the Best CEOs Know by Krames

Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B

1-10


2007 p/T @13.9B>p/F+GM+DC+VW+BMW+

JAG+RR+HUM+MC


The Toyota Way• 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.

6

1-10


In-depth study of 25 top companies renowned for building winning corporate cultures…

• GE• Dell• Wal-Mart• Toyota• Nordstrom• Starbucks

• Southwest Airlines• IBM• P&G• Whole Foods• Ritz Carlton• Intel

The pattern of six common traits for all of these firms…

From Results Rule by Randy Pennington


They understand that: Results Rule!

1. Tell themselves the truth and value candor and honesty.

2. Pursue the best over the easiest in every situation.

3. Leverage the power of partnerships both internally and externally.

4. Focus the energy to make the main things the main thing.

5. Show the courage of accountability.

6. Learn, grow and improve every single day.

From Results Rule by Randy Pennington

61-10


Is Your Company Up To Speed?

Fast Company June 2003

Pages 7 - 8


Good to Great:1,483 to 11400 – 700%15+ years

9


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 9


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

91 - 10


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 10


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.

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

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.

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

Score yourself on the 1–10 scale for all eight practices on page 10


Key Drivers of Business Success

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR=104.12

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

11

WorkshopPage 12

TolerateNothingLess

From: Practice What You Preach by Maister

Global study:16 countries29 companies139 offices5,589 respondents


Disciplined Execution Clear Vision

Detailed Strategy

Guiding Coalition

Alignment

Systems

Communication

Support

Adjust

Reward / Punish

13

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 14 – 16.• Put in as much detail as possible.• Be very honest with yourself.• Think in terms of actions and outcomes.


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]

Also, you might find value in the ideas I share in my blog. You can sign up for it at:www.johnspence.com/blog

Lastly, I have a new book coming out in September!

vistage achieving business excellence

Business

effective strategy

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wellcommunicated strategy

main things

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wellunderstood strategy