Stronger After the Storm Achieving Business GreatAmerica Dealer Council 2009 STRONGER AFTER THE STORM
Stronger After the Storm
Achieving Business
GreatAmerica Dealer Council 2009
STRONGER AFTER THE STORM
Stronger After the Storm
Most people are so busy working IN
their business that they do not take any time to work
ON their business.
Stronger After the Storm
Do you have a clearly focused and well-communicated strategy for success?
Effective Strategy =
Valued Differentiation x Execution
Stronger After the Storm
Stronger After the Storm
Key Point: Strategy is EXTERNAL
as well as INTERNAL
Stronger After the Storm
Five Foundations of Effective Strategic Thinking
Business Acumen
Personal Experience
Pattern Recognition
Strategic Insight
Disciplined Execution 2
Stronger After the Storm
The Four – I’s
• Ignorance
• Inflexibility
• Indifference
• Inconsistency2
Stronger After the Storm
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.
Stronger After the Storm
Southwest
One type of planePoint-to-point
Fast turnsLow fares / no frills
Friendly staff 3
Stronger After the Storm
Dell
BTOJIT
Inventory turnsLogistics vs. Technology
VOC
3
Stronger After the Storm
3
Stronger After the Storm
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
Stronger After the Storm
Educated GuessEducated GuessDifferentiated Strategy Differentiated Strategy
FocusFocusResource AllocationResource Allocation
Bold Not RiskyBold Not RiskyWhat What NOTNOT To Do To Do
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4
Organizational Effectiveness
Audit Page 4
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Microsoft • Total World Domination• The Top 5 %• Bet the Company• Require Failure• Managers are Qualified• Perform, Perform, Perform• Shrimps vs. Weenies• Stop the Insanity• Esprit De Corps
5
From: The Twelve Simple Secrets of Microsoft Management by Thielen
Stronger After the Storm
Hire for Desire
Teamwork: NP
Communication
Highest Standards
Innovation
Truly Delight Customers
Charlie Trotter’s
5
Stronger After the Storm
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
5
From: What the Best CEOs Know by Krames
Dell, Welch, Gerstner, Grove, Gates, Kelleher, Walton = 696 B
1-10
Stronger After the Storm
Stronger After the Storm
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
Stronger After the Storm
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
Stronger After the Storm
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
Stronger After the Storm
Is Your Company Up To Speed?
Fast Company June 2003
Pages 7 - 8
Stronger After the Storm
Good to Great:1,483 to 11400 – 700%15+ years
9
Stronger After the Storm
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
Stronger After the Storm
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
Stronger After the Storm
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
Stronger After the Storm
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
Stronger After the Storm
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
Stronger After the Storm
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
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Disciplined Execution Clear Vision
Detailed Strategy
Guiding Coalition
Alignment
Systems
Communication
Support
Adjust
Reward / Punish
13
1 - 10
Stronger After the Storm
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.
Stronger After the Storm
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!