Focusing on the Fundamentals of Excellence
Nov 01, 2014
Focusing on the Fundamentals
of Excellence
For the past 22 years…
What does this mean to me?
How can I use this idea?
What can I do right away?
Organization Effectiveness Audit
Page 2
Be “Brutally Honest”Scale of 1 – 10
The Four – I’s
• Ignorance• Inflexibility• Indifference• Inconsistency
3
How to avoid the Four I’s
• Aggressive external market focus.
• Ridiculously high level of customer focus.
• Keep the “Main Things” the main things.
• Bullish on knowledge sharing and learning.
• Teamwork / communication is mandatory – not optional.
• Passion and commitment at all levels.
• Foster a healthy paranoia.
• Revel in change.
3
1 - 10
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…
4
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
4
Workshop Page 51 - 10
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
NITB
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
What do engaged employees look like?
1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.
Page 61 - 10
6
74%23,000,000
88%
What they look for in a leader…
Credibility
1.Honest2.Forward-looking3.Competent4.Inspiring
NITB
What Employees Want: SBA
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
The key elements of a winning culture: Employees
• Fun• Family• Friends• Fair• Freedom• Pride• Praise• Meaning• Accomplishment
7
1 - 10
The Six Universal Drivers of Engagement
1. Caring, competent, and engaging leaders.
2. Effective managers who keep employees aligned, informed and engaged.
3. Effective teamwork at ALL levels.
4. Job enrichment and professional growth.
5. Valuing employee contributions.
6. Genuine concern for employee well being.
1 - 10
7
1,300,000 interviews: Basic 4 + 1
Goal Setting
TrustAccountability
Communications
RECOGNITION
From: The Orange Revolution by Gostick and Elton 8
Extreme Customer Focus
Web of Value: VOC + MOT + WOM
VOC
How Many of these do you employ?
Moments Of Truth
MOT Practice Round
Dry CleanerHair SalonTailorPlumber
Workshop VOC + MOT
9
43% - 74% of purchasing decision = WOM/T
WOM = Your BEST form of advertising!
78.9%23.4%
You MUST have a WOM Referral System
Identify Ideal
Customer
ReferIdeal
Customer
From John Jantsch: The Referral Engine
Workshop: Five ways to generate WOM
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 11
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 11
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 11
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, agile and adaptable to changes in the marketplace.
Workshop Page 12
Very Clear Expectations
Specific and Measurable Goals
Necessary Systems & Support
Robust Communication
Consistent Tracking of Performance
Timely Performance Reviews
Refuse to Tolerate mediocrity
Final Workshop
Strategy map on page 13
Business excellence “Word Cloud” on page 14
Specific assignments pages 15 - 17
If you have any questions at all please do not hesitate to send a note or call. My email address is: [email protected]
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Lastly, these slides have already been uploaded to:
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Thank You