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Focusing on the Fundamentals of John Spence Awesomely Simple
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John Spence EMP: Fundamentals of Success

Oct 19, 2014

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John Spence's presentation of ther Fundamentals of Business Success for the EO / MIT EMP program
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Page 1: John Spence EMP: Fundamentals of Success

Focusing on the Fundamentals of

John Spence

Awesomely Simple

Page 2: John Spence EMP: Fundamentals of Success

Why should I listen to you?

Page 3: John Spence EMP: Fundamentals of Success

A few of my clients:

Page 4: John Spence EMP: Fundamentals of Success
Page 5: John Spence EMP: Fundamentals of Success

What does this mean to me?

How can I use this idea?

What can I do right away?

Page 6: John Spence EMP: Fundamentals of Success

Reality CheckKnowing – Doing

1 -10

Page 7: John Spence EMP: Fundamentals of Success

Before we get started…

PassionPersistencePracticePattern Recognition

FocusDiscipline

Action

KnowledgeNetwork LOVE

NITB

Page 8: John Spence EMP: Fundamentals of Success

Organization Effectiveness Audit

Page 1Be “Brutally Honest”

Scale of 1 – 10

1

Page 9: John Spence EMP: Fundamentals of Success
Page 10: John Spence EMP: Fundamentals of Success

The Pattern of Business Success

Page 11: John Spence EMP: Fundamentals of Success

(T + C + ECF) x DE = Success

2

Page 12: John Spence EMP: Fundamentals of Success

Talent

T = Talent

Page 13: John Spence EMP: Fundamentals of Success

Cecil Van Tyul

“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.”

Page 14: John Spence EMP: Fundamentals of Success

Anne MulcahyCEO of Xerox and the third most powerful woman in the world!

1. Build a network of great relationships with people who want to see you succeed.

2. You don’t have all of the answers, so ask for help and advice from the smartest people you can find.

3. Learn to be a learner.

4. Listen intently to your employees and to your customers.

Some really great advice…

2

Page 15: John Spence EMP: Fundamentals of Success

Here is how I define talent…

• Impeccable Character• Excellent Communicator• Positive Attitude• Competence + Aptitude • Creative /Innovative• Strong Drive = Proactive• Customer Focused• Solid Team Player

Job Description + Competency Model

WHAT WHO

Page 16: John Spence EMP: Fundamentals of Success

What does it take to be a valued member of a team?

Develop and display competence.

Follow through on commitments.

Deliver required results.

Ensure your actions are consistent with your word.

Stand behind the team and its people.

Be enjoyable to work with.

Be passionate about your work and those you serve.

Communicate and keep everyone informed.

Help the other members of the team.

Help members of other teams.

Share ideas, information and credit.

Hold yourself 100% accountable.

2

Page 17: John Spence EMP: Fundamentals of Success

• Lack of TRUST• Lack of candor• Lack of commitment• Lack of accountability• Lack of results

2

Page 18: John Spence EMP: Fundamentals of Success

Competence

RespectDistrust

Affection TRUST

HIGH

LOW

LOW HIGH

Concern

The 4 C’s of Trust

3

Page 19: John Spence EMP: Fundamentals of Success

“I am good at what I do… and I do it because I

care about you.”

Page 20: John Spence EMP: Fundamentals of Success

John Spence High Performance Team Model

• D• M• C• C• M• D

irection – vivid, clear, inspiring --- shared

easurements – specific, observable, focused

ompetence – very good at what they do

ommunication – open, honest, courageous

utual Accountability – all team members

iscipline – do this every day

3

Page 21: John Spence EMP: Fundamentals of Success

Three Key Areas of Expectations

NITB

Page 22: John Spence EMP: Fundamentals of Success

Ground Rules for a Professional Organization

• Staff agrees to be managed and coached to strictly enforced standards of performance and quality work.

• Teamwork is mandatory, not optional.• Excellence in customer satisfaction is an enforced standard.• Personal and professional growth is a nonnegotiable minimum

standard.• All team members must show a sincere interest in the customer

and a sincere desire to help them.• The primary focus must be on delivering quality work and

building strong customer relationships.• Demand excellence and refuse to tolerate mediocrity.

NITB

Page 23: John Spence EMP: Fundamentals of Success

11 Key Team Competencies: Workshop Page 4

1. Setting clear, specific and measurable goals.

2. Making assignments extremely clear and ensuring required competence.

3. Using effective decision making processes within the team.

4. Establishing accountability for high performance across the entire team.

5. Running effective team meetings.

6. Building strong levels of trust.

7. Establishing open, honest and frank communications.

8. Managing conflict effectively.

9. Creating mutual respect and collaboration.

10. Encouraging risk-taking and innovation.

11. Engaging in ongoing team building activities.

1 – 10

4

Page 24: John Spence EMP: Fundamentals of Success

Best Practices: Talent• Create a pipeline of talent into your

company.

• Hire for attitude – train for skills.

• Train people how to interview.

• Use team interviewing.

• Use a focused competency model.

• Use numerous types of testing.

• Do a thorough reference check.

• Make sure they really want to work for you.

• Hire slow – fire fast.Make “Hiring Right” a core competency!

NITB

Page 25: John Spence EMP: Fundamentals of Success

C = Culture

Business Side• Integrity• Innovation• Accountability• Execution• Urgency• Customer Focus• Ownership Mentality

Page 26: John Spence EMP: Fundamentals of Success

Nine Elements of Organizational Health

From: Beyond Performance by Keller and Price 4

Page 27: John Spence EMP: Fundamentals of Success

From the Employee’s Perspective:

NITB

Page 28: John Spence EMP: Fundamentals of Success

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

What do employees want? S B A

5

Page 29: John Spence EMP: Fundamentals of Success

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…

Page 30: John Spence EMP: Fundamentals of Success

What do engaged employees look like? WS page 51. 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. 1 - 10

5

Page 31: John Spence EMP: Fundamentals of Success

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging senior leaders.

2. Effective managers who keep employees aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee Contributions.

6. Concern for employee well being.

WS page 5 1 - 10

5

Page 32: John Spence EMP: Fundamentals of Success

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

Workshop 6

Page 33: John Spence EMP: Fundamentals of Success

Best Practices: Culture

Make hiring “right” a core competency

Manage the corporate culture as a key asset

Establish a clearly communicated vision for success

Focus on employee satisfaction and engagement as a strategic objective

Set high standards and hold people accountable to those standards

Refuse to tolerate mediocrity

Be a fanatic for training, coaching and mentoring across the organization

Empower your people to go out and “wow” the customer…

Page 34: John Spence EMP: Fundamentals of Success

Extreme Customer Focus

Page 35: John Spence EMP: Fundamentals of Success

Web of Value: VOC + MOT + WOM

Page 36: John Spence EMP: Fundamentals of Success

VOC

7

Page 37: John Spence EMP: Fundamentals of Success

How Many of these do you employ?

7

Page 38: John Spence EMP: Fundamentals of Success

Moments Of Truth

Page 39: John Spence EMP: Fundamentals of Success

Moments Of Truth

Page 40: John Spence EMP: Fundamentals of Success

MOT Practice Round

Dry CleanerHair SalonTailorPlumber

Page 41: John Spence EMP: Fundamentals of Success

MOT Workshop Page 7

• What are your MOT

Page 42: John Spence EMP: Fundamentals of Success

43% - 74% of purchasing decision = WOM

7

Page 43: John Spence EMP: Fundamentals of Success

WOM = Your BEST form of advertising!

78.9%23.4%

7

Page 44: John Spence EMP: Fundamentals of Success

You MUST have a Referral PROCESS

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine

Page 45: John Spence EMP: Fundamentals of Success

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

Page 46: John Spence EMP: Fundamentals of Success

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

Page 47: John Spence EMP: Fundamentals of Success

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 8

Page 48: John Spence EMP: Fundamentals of Success

Where are we going + how will we behave on the way?

FocusDifferentiation“No”

Stakeholders + guiding collation

Vision + ValuesStrategyPlansGoals / ObjectivesTactics / Actions

Procedures / ProtocolsRepeatable Process

Clear / consistent / relentless @ Execution

Training +time / money /

supplies / people

Measure Track & PostTransparency

Renewal

Praise + Celebration Eliminate Mediocrity

NITB

Page 49: John Spence EMP: Fundamentals of Success

Non-negotiable Standards + Fanatical Discipline

Very Clear Expectations Specific and Measurable GoalsNecessary Systems & SupportRobust CommunicationConsistent Tracking of

PerformanceRegular Performance ReviewsRefuse to Tolerate mediocrity

Page 91 - 10

Page 50: John Spence EMP: Fundamentals of Success

Zappos Sales in 1998 = 0 Sales in 2008 = 1.2 Billion Looking back, a big reason we hit our goal early

was that we decided to invest our time, money and resources into three key areas: customer service (which would build our brand and drive word-of-mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team).

Even today, our core belief is that our Brand, our Culture and our Pipeline are the only competitive advantages we will have in the long run. Everything else can and will be copied.

Tony Hsieh – CEO Zappos

Page 51: John Spence EMP: Fundamentals of Success

Final Workshop

• Look back over all of your notes and scores, especially the LOW scores!

• Thank about everything you have learned here at the EMP.

• What is the pattern?• Answer the question on page 10 and take

it VERY seriously!!!

Page 52: John Spence EMP: Fundamentals of Success
Page 53: John Spence EMP: Fundamentals of Success

If you have any questions at all please do not hesitate to send a note or call. My email address is: [email protected]

My website is: www.JohnSpence.com My twitter address is: @awesomelysimple

Please feel free to “friend” me on FB or LinkedInAlso, 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

Thank You