ACHIEVING BUSINESS EXCELLENCE. Understanding the Pattern of Business Success

Transcription

1 ACHIEVING BUSINESS EXCELLENCE Understanding the Pattern of Business Success

2 II>EI Achieving Business Excellence THE 4 P s OF EXPERTISE P P P P THE FORMULA FOR BUSINESS EXCELLENCE (Talent + Culture + Extreme Customer Focus) X Disciplined Execution = Business Excellence Johnspence.com/EOAZ Page 2

3 Ignorance Inflexibility Indifference Inconsistency HOW TO AVOID THE 4 I s 1 = awful 3 = poor 5 = average 7 = good 10 = world-class 1. Aggressive external market focus 2. Ridiculously high level of customer focus 3. Keep the "Main Things" the main things 4. Bullish on knowledge sharing and learning 5. Teamwork is mandatory not optional 6. Passion and commitment at all levels 7. Foster a healthy paranoia 8. Drive change Johnspence.com/EOAZ Page 3

4 ORGANIZATIONAL EFFECTIVENESS AUDIT 1 = strongly disagree 3 = disagree somewhat 5 = not sure 7 = agree somewhat 10 = strongly agree 1. We have a clear and detailed vision for the direction of our company that is very well communicated throughout the entire organization: 2. Every employee has clear/quantifiable/observable performance objectives: 3. There is a high level of very open and honest communication throughout the organization: 4. I have a high level of trust in the skills, abilities, and integrity of my co-workers: 5. There is a high sense of urgency within the organization to get things done: 6. We have only highly competent people in all areas of the organization: 7. We focus very intently on the needs of our customers: 8. There are no politics, rumor-mongering or finger-pointing within our organization: 9. Our key leaders operate as a highly-effective team: 10. There is a high level of both personal and mutual accountability within the organization: 11. People display a positive, enthusiastic attitude throughout the organization: 12. We are superb at collecting and using feedback from our customers: 13. Our organization displays great discipline in pursuing our focused business objectives: 14. I am very pleased with where our organization is in the marketplace today: Johnspence.com/EOAZ Page 4

5 Adapted from: The Five Dysfunctions of a Team by Patrick Lencioni The first dysfunction is a lack of trust, which leads to a lack of candor where people are unwilling to say what is really on their mind, meaning that they often commit to things in public which they privately do not think is a good idea, so they are not personally committed and because they are not genuinely committed, they do not want to be held accountable for results, so they don t hold anybody else accountable, which means that the lack of trust inevitably leads to a lack of results. TRUST Candor Commitment Accountability Results THE FIVE KEY ELEMENTS OF TRUST 1. Connection 2. Concern 3. Competence 4. Character 5. Consistency Connection: a genuine desire to truly understand and empathize with the other person. People don t trust you until they understand that you understand them. Concern: caring about the other person, understanding their needs and often putting their needs above your own. A good example would be the idea of servant leadership. Competence: demonstrating deep expertise and continuous learning. In other words; be so good they can t ignore you. *A phrase that captures the essence of competence and concern is I m good at what I do and I do it because I care about you. Character: the number one factor in character is honesty, tell the truth all the time. Another word here would be integrity. Consistency: people need to see where you stand and have the confidence that you will be even- keeled and consistent in your values, behaviors and actions. **Special note: most people try to lead with number three, but if you don t start with numbers one and two, people don t really care about number three. Johnspence.com/EOAZ Page 5

6 Google Spent 2 Years Studying 180 Teams. The Most Successful Ones Shared These 5 Traits Over the years, Google has embarked on countless quests, collected endless amounts of data, and spent millions trying to better understand its people. One of the company's most interesting initiatives, Project Aristotle, gathered several of Google's best and brightest to help the organization codify the secrets to team effectiveness. Project Aristotle has managed to study 180 Google teams, conduct 200-plus interviews, and analyze over 250 different team attributes. Unfortunately, though, there was still no clear pattern of characteristics that could be plugged into a dream-team generating algorithm. It wasn't until Google started considering some intangibles that things began to fall into place. As they struggled to figure out what made a team successful, the group kept coming across research by psychologists and sociologists that focused on what are known as "group norms" - the traditions, behavioral standards, and unwritten rules that govern how teams function when they gather... Norms can be unspoken or openly acknowledged, but their influence is often profound. With a new lens and some added direction from a research study on collective intelligence (abilities that emerge out of collaboration) by a group of psychologists from Carnegie Mellon, MIT, and Union College, Project Aristotle's researchers went back to the drawing board to comb their data for unspoken customs. Specifically, any team behaviors that magnified the collective intelligence of the group. What they discovered were five key characteristics of enhanced teams. 1. Dependability Team members get things done on time and meet expectations. 2. Structure and clarity High-performing teams have clear goals and have well-defined roles within the group. 3. Meaning The work has personal significance to each member. 4. Impact The group believes their work is purposeful and positively impacts the greater good. 5. Psychological Safety We've all been in meetings and due to the fear of seeming incompetent, have held back questions or ideas. I get it. It's unnerving to feel like you're in an environment where everything you do or say is under a microscope. But imagine a different setting. A situation in which everyone is safe to take risks, voice their opinions, and ask judgment-free questions. A culture where managers provide air cover and create safe zones so employees can let down their guard. That's psychological safety. Johnspence.com/EOAZ Page 6

7 SIX KEY ELEMENTS OF HIGH-PERFORMANCE TEAMS Direction: clear, vivid, compelling and shared Measurements: specific, well understood, binary Competence: best possible people Communication: open, honest, robust and transparent Mutual accountability: personal, mutual, reverse Discipline: making sure that you build these into the culture of your team 10 KEY TEAM COMPETENCIES How well do your teams currently do these things? 1 = awful 3 = poor 5 = average 7 = good 10 = world-class 1. Setting specific and measurable goals 2. Making assignments extremely clear and ensuring required competence 3. Establishing 100% accountability for high performance across the entire team 4. Running effective team meetings 5. Building very strong levels of trust 6. Establishing open, honest, frank and safe communication 7. Managing conflict effectively 8. Creating mutual respect and collaboration 9. Encouraging prudent risk-taking, creativity and innovation 10. Engaging in ongoing team building activities Johnspence.com/EOAZ Page 7

8 29% of employees are engaged 45% of workers are not engaged 26 % of workers are actively disengaged The key drivers of employee disengagement are: Relationship with direct manager: 8 out of 10 employees dissatisfied with the direct manager were disengaged. Belief in senior leadership: 7 out of 10 employees who were not confident in the abilities of senior leadership were not fully engaged. Pride for working for the company: Roughly 5 out of 10 employees who take pride for their organization s contributions to society were engaged. The Seven Defining Elements of a Winning Culture from Bain & Company/Harvard 1 = strongly disagree 3 = disagree somewhat 5 = not sure 7 = agree somewhat 10 = strongly agree 1. Honest. There is high integrity in all interactions, with employees, customers, suppliers, and other stakeholders 2. Performance-focused. Rewards, development, and other talent-management practices are in sync with the underlying drivers of performance 3. Accountable and owner-like. Roles, responsibilities, and authority all reinforce ownership over work and results 4. Collaborative. There s a recognition that the best ideas come from the exchange and sharing of ideas between individuals and teams 5. Agile and adaptive. The organization is able to turn on a dime when necessary and adapt to changes in the external environment 6. Innovative. Employees push the envelope in terms of new ways of thinking 7. Oriented toward winning. There is strong ambition focused on objective measures of success, either versus the competition or against some absolute standard of excellence Johnspence.com/EOAZ Page 8

9 ELEMENTS OF A WINNING CULTURE from John Spence People enjoy the work they do and the people they work with People take pride in the work they do and the company they work for There are high levels of engagement, connection, camaraderie There is a culture of fairness, respect, trust, inclusiveness and teamwork The leaders walk the talk, live the values and communicate a clear vision and strategy for growth Lots of open, honest, robust and transparent communication across the entire organization The company invests back in employees; there is a commitment to learning and development There is a bias for action, employees have an ownership mentality and strive to give their best There is high accountability and a strong focus on delivering the desired results There is ample recognition and rewards and mediocrity is not tolerated Johnspence.com/EOAZ Page 9

10 Web of value = Voice of the Customer (VOC) Moments of Truth(MOT) Word of Mouth What are all the ways you currently listen to the VOC? Ways to listen to the voice of the customer include: customer surveys, new customer surveys, VIP customer surveys, surveys of customers that have left you, net promoter score, observation, mystery shoppers, point of sale, and web forms, customer advisory panels, focus groups, social media, taking key customers to lunch or dinner. Are there new ways you can add? The Four Customer Questions 1. Why, specifically, do you do business with us? What are the top three or four reasons you chose our company? 2. What can we do to make it easier to do business with us? 3. What would it take to earn more, or all, of your business? 4. What would we do that would cause you to fire us right away? Johnspence.com/EOAZ Page 10

11 Moments of Truth What do you believe are the top three to five key moments of truth for your customers? Do you have a robust system/process in place to ensure repeatable success in delivering these moments of truth flawlessly to every customer? Johnspence.com/EOAZ Page 11

12 Word of Mouth The Five Keys to Referability Achieving Business Excellence THE FORMULA THE FOUR PRIMARY MANAGEMENT PRACTICES 1. Strategy: Develop and maintain a sharply focused, well communicated vision and strategy for growth 2. Execution: Develop and maintain flawless operational execution 3. Culture: Develop and maintain a performance-oriented culture 4. Structure: Build and maintain a fast, flexible, flat organization THE FOUR SECONDARY MANAGEMENT PRACTICES 1. Talent: Hold on to talented employees and find more 2. Leadership: Key leaders are truly committed to the business 3. Innovation: Make innovations that are industry transforming 4. Mergers and Partnerships: Work with others to increase company growth Based on: "What(Really) Works by Joyce Johnspence.com/EOAZ Page 12

13 Key Drivers of Business Success From: Practice What You Preach by Maister Financial Performance CR= Quality P&S & Customer Relationship CR=.404 Employee Satisfaction CR=.277 CR=.249 CR=.334 CR=.275 Empowerment CR=.280 Coaching High Standards CR=.285 CR=.371 CR=.365 CR=.191 CR=.247 Long-term Orientation Enthusiasm, Commitment, Respect Training & Development Fair Compensation Johnspence.com/EOAZ Page 13

14 Here is a checklist of actions that led these companies to bring in financial returns that were often as much as 20 times greater than their competitors... 1 = Strongly Disagree 3 = Disagree Somewhat 5 = Not Sure 7 = Agree Somewhat 10 = Strongly Agree We have an uncompromising determination to achieve excellence in everything we do: We have a real commitment to high-quality work and tolerate nothing less: We have a real commitment to high levels of customer service and tolerate nothing else: In this company we set and enforce very high standards for performance: Management gets the best work out of everybody in the company: The quality of the work performed by our employees is consistently high: We make our customers feel as though they are very important to us: Customer satisfaction is a top priority in our company: We listen very well to what the customer has to say: We are extremely good at building long-term customer relationships: The people in our company do "whatever it takes" to do a good job for the customer: We do a good job of resolving customer problems when they occur: The level of quality service delivered by our organization is consistently high: Johnspence.com/EOAZ Page 14

15 Adapted from Scaling Up by Vern Harnish The executive team is high-functioning and aligned Everyone is aligned with the number one thing that needs to be accomplished this quarter to move the company forward Communication and information flows through the organization accurately and quickly Every facet of the organization has a person assigned with accountability for ensuring goals are met Ongoing employee input is collected to identify obstacles and opportunities Reporting and analysis of customer feedback data is as frequent and accurate as financial data Core values and purpose are alive in the organization Employees can accurately articulate the key components of the company strategy All employees can answer quantitatively whether they had a good day or week The company s plans and performance are visible to everyone Johnspence.com/EOAZ Page 15

16 IDEAS INTO ACTION Achieving Business Excellence Go back page-by-page and carefully look through the entire book. Compare and contrast your scores on the various audits and re-read any notes you wrote. What are the themes that emerge the patterns? Look for any scores below a 7 as an area that needs improvement and anything in the 1-5 range as a serious problem that needs attention. The goal here is to really dig into these topics so you can take an honest look at the actual current state of your organization. This is a rare opportunity to take a critical look at how well your organization is truly operating and specifically what must be done to improve it. Take this exercise very seriously and push yourself to really understand what these scores and everything you learned today about world-class organizations could mean to your business. STRENGTHS What was the pattern of high scores? In what major areas did you seem to have as strengths where you scored an 8 or higher across all the workshops? WEAKNESSES What was the pattern of low scores? In what major areas did you seem to have as weaknesses where you scored a 6 or lower across all the workshops? Johnspence.com/EOAZ Page 16

17 KEY STRATEGIES Based on everything you have learned here today and your own personal business experience, what do you believe are the top strategies your organization must focus on to build and sustain success? What are the three to five most important ideas that will drive your organization s future? Johnspence.com/EOAZ Page 17

18 ORGANIZATIONAL ACTION STEPS Please list at least four specific, measurable, observable and BINARY action steps your organization can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can be done right away to take the lessons of this class and put them into positive action for your organization? Johnspence.com/EOAZ Page 18

19 PERSONAL ACTION STEPS Please list at least four specific, measurable, observable and BINARY action steps you can take to implement the ideas you learned today. Based on the list you just created, as well as the strengths and weaknesses you identified, what can you do to make a more positive impact on your organization s success? Johnspence.com/EOAZ Page 19

20 NOTES: Johnspence.com/EOAZ Page 20

21 In your teams, share what you just wrote in the previous workshop. Make sure each person takes time to explain their findings and recommendations. Then combine all your answers in order to create a group answer to the following questions: What does your team feel are the three major strengths of your organization now? What does your team feel are the three major weaknesses of your organization now? Johnspence.com/EOAZ Page 21

22 Out of everything you have written, what are your teams top three recommended action steps that the organization should take immediately? To expand on the ideas presented today and to access additional resources, visit the client portal created for you to use and share Johnspence.com/EOAZ Johnspence.com/EOAZ Page 22

23 NOTES: Achieving Business Excellence Johnspence.com/EOAZ

24 NOTES: Achieving Business Excellence Johnspence.com/EOAZ

25 NOTES: Johnspence.com/EOAZ