Post on 06-May-2015
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Achieving Business
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This is a very special workshop• I have a ton to cover and I will go pretty fast.• Please take notes and ask questions.• I am happy to answer any of your questions, offer
advice and recommend books at any time.• Keep an open mind.• Work very hard…
The slides are already posted at:
www.SlideShare.net/johnspence
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For the past 21 years…
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What does this mean to me?
How can I use this idea?
What can I do right away?
I am NOT a guru…
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Most people are so busy working IN
their business that they do not take any time to work ON their business.
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What makes a winning strategy?
FHHMCDo you have a clearly focused and well-communicated strategy for success?
Effective Strategy =
Valued Differentiation x Execution
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Key Point: Strategy is INTERNAL
as well as EXTERNAL
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Most people think of:
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Five Foundations of Effective Strategic Thinking
Business Acumen
Personal Experience
Pattern Recognition
Strategic Insight
Disciplined Execution 2
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The Four – I’s
• Ignorance
• Inflexibility
• Indifference
• Inconsistency2
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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.
2
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Breakthrough Strategies
• GE: 1- 2 or F.S.C.• Intel: memory to processors• Microsoft: installed base• Apple: chaos to elegance• Saturn: no haggling
3
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Southwest
One type of planePoint-to-point
Fast turnsLow fares / no frills
Friendly staff3
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Dell
BTOJIT
Inventory turnsLogistics vs. Technology
VOC
3
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3
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Southwest – Dell – Walmart
What is the pattern?
• Extreme Efficiency
• Minimize Costs to as close to zero as possible – w/o negative impact
• All focused on delivering customer value
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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
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Educated GuessEducated GuessDifferentiated Strategy Differentiated Strategy
FocusFocusResource AllocationResource Allocation
Bold Not RiskyBold Not RiskyWhat What NOTNOT To Do To Do
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To get the most from our session together…
It is absolutely critical that you be brutally honest with yourself today.
4
So let's get started with
a little self-test…
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Charlie Trotter’s 5
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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 origin
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From: What the Best CEOs Know by Krames
Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B
1-10
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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
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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
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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
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Fast Company June 2003
Pages 7 - 8
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Anyone who tells you they enjoy change… should seek immediate
professional help.
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Emotional Response to Perceived Negative Change
Stability
Immobilization
Denial
Anger
Bargaining
Depression
Testing
Acceptance
Time
Passive
Active
Em
oti
on
al R
esp
on
se
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Managing Positive Responses to Change
Uninformed Optimism
Informed Pessimism
HopefulRealism
Informed Optimism
Completion
CheckingOut
TIME
PE
SS
IMIS
M
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The eight major steps of the
change process
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1. Build an irresistible case for change
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2. Create a strong sense of urgency
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3. Form a powerful guiding coalition
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4. Create a clear vision for successful change 5. Communicate it relentlessly
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5. Empower others to act
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6. Plan for and celebrate small wins
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7. Institutionalize the change
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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
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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
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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
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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
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WorkshopPage 12
TolerateNothingLess
From: Practice What You Preach by Maister
Global study:16 countries29 companies139 offices5,589 respondents
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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%)
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Where are we going + how will we behave on the way?
FocusDifferentiation“No”
Stakeholders + guiding collation
Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions
Procedures / ProtocolsRepeatable ProcessClear / consistent /
relentless
Training +time / money /
supplies / people
Measure / TrackCommunicate
Transparency Renewal
Praise + Celebration and
Eliminate Mediocrity
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Disciplined Execution Clear Vision
Detailed Strategy
Guiding Coalition
Alignment
Systems
Communication
Support
Adjust
Reward / Punish
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1 - 10
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14 & 15
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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 16 – 18.• Put in as much detail as possible.• Be very honest with yourself.• Think in terms of Actions and Outcomes.
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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: @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
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