Company. Execution Eats Strategy for Breakfast
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- Nigel Kennedy
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1
2 Company Execution Eats Strategy for Breakfast
3 Company Trey Russell Corporate Performance Group
4 Corporate Performance Group Founded in 1989 Provides business advisory and coaching support to help companies and nonprofits build highly effective organizations and achieve sustained success. Help business owners maximize the value of their companies and successfully transition ownership when they are ready to exit their companies. Client Base: Privately Owned Companies Family Owned Companies Not for Profit Organizations
5 Broad Mix of Industry Expertise Manufacturing Distribution Services Healthcare Financial Services Constructions Restaurants Hotels & Resorts Vehicle Rental & Sales Franchising
6 General Consensus What I can tell you is that the vast majority of business owners are dealing with many of the SAME issues regardless of industry! Theme of ARS People Process Profits
7 Business Owner Frustrations Company not performing the way it should People not performing the way they should Not enough time to get things done Work/Life Balance is out of whack Not making enough money
8 Is all lost?
9 Is all lost? NO, but you have to commit to taking action!
10 Execution vs. Strategy Whether you are a for-profit organization or a nonprofit, you need to be aware of the fact that more than 87% of all companies with a strategy fail to meet the goals of that strategy each and every year. Daniel F. Prosser Thirteeners Why Only 13 Percent of Companies Successfully Execute Their Strategy
11 Execution vs. Strategy Even the best conceived strategies won t produce targeted results if the strategies aren t executed effectively.
12 Strategic Traction Strategic Traction is a comprehensive Management Operating System that CPG uses to help business owners and leaders improve the performance of their companies.
13 Benefits Accelerates growth and profitability. Creates a more effective and aligned leadership team. Ensures the leadership team and employees are on the same page in terms of priorities, performance and accountabilities.
14 Benefits Provides better control over business operations and planned activities. Minimizes disruptions caused by the crisis-dujour. Makes running the business more fun and rewarding.
15 What does it do? Strategic Traction provides an effective management structure for achieving targeted results by effectively addressing the eight critical components that drive successful companies.
16 Strategic Traction
17 Strategic Traction
18 Strategic Traction
19 Strategic Traction The Key to Effective Execution is Getting Everyone Heading in the Same Direction
20 Typical Company
21 Focused Company
22 Vision Purpose/Passion Core Values
23 Vision Companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practices endlessly adapt to a changing world. Jim Collins
24 Purpose/Passion Purpose/Passion is a company s reason for being. It should be short and impactful!
25 Purpose/Passion An effective purpose reflects people s idealistic motivations for doing the company s work. It doesn t just describe the organization s output or target customers; it captures the soul of the organization. Jim Collins
26 Purpose/Passion Statement 3 to 7 words Simple, big & bold Comes from the heart Creates an aha effect Involves everyone Not about money Bigger than a strategic goal
27 Purpose/Passion Walt Disney: To make people happy.
28 Purpose/Passion Tulsa Community Food Bank: Feeding the hungry together with dignity and compassion.
29 Core Values Core values are the essential and enduring tenets of an organization. Jim Collins
30 Weave Core Values into Everything Your core values need to be integrated into every employee-related process hiring methods, performance management systems, criteria for promotions and rewards, and even dismissal policies. From the first interview to the last day of work, employees should be constantly reminded that core values form the basis for every decision the company makes. Patrick Lencioni
31 Core Values In the past, Core Values tended to be business versions of Boy Scout Oath Targeted Core Values have re-emerged as critical performance drivers for employees and companies
32 Cherokee Integration & Solutions Quality Because our name is on it! Teamwork Together everyone achieves more! Integrity Behave as if the world is watching! Pride Behave as if no one is watching!
33 Air Systems & Pump Solutions Customers First Flexible Fair Win/Win/Win Teamwork Authentic Do What You Say Get Stuff Done
34 Southwood Nursery & Landscape Empathy and focus on the customer Creative/innovative problem solver Happy enthusiastic people Attention to detail/quality focused Good stewards to business and community Self responsible Collaborate well with others
35 Vision The second primary component of the vision framework is envisioned future. Jim Collins
36 Three Year Picture Envisioned Future Preferred timeframe Five & Ten Year Picture World is changing too rapidly Tendency to lose relevancy
37 Three Year Picture The Three-Year Picture is a snapshot of your company s business model and strategies over the next three years that provides the basis for developing annual operating and action plans.
38 Three Year Picture Creating a picture of what the company is going to look like in three years makes the company s strategy and direction much easier to understand and execute.
39 Three Year Plan Revenues and Profits Other Measurables Fleet Size # of Locations Revenue Per Unit Strategic Positions Market Uniques Critical Capabilities Strategic Initiatives
40 Three Year Picture One reason why so many strategic plans are not executed effectively is because the plans are documented in an elaborate strategic planning document that gathers dust sitting on a shelf instead of driving execution of the plan.
41 VISION to EXECUTION Now that you have defined & explained the VISION of your company, EXECUTION is the next phase!
42 Execution Strategies most often fail because they aren t well executed. Execution is not just tactics It has to be built into a company s strategy, its goals, and its culture. Larry Bossidy Execution: The Discipline of Getting Things Done
43 Key Components One Year Plan Accountabilities Review Scorecard Rocks Weekly MRI Meeting (Metrics, Rocks & Issues) Quarterly Recharge Annual Reset
44 One Year Plan The Link Between the Vision and Execution. Plans are only good intentions unless they immediately degenerate into hard work Peter Drucker
45 One Year Plan Revenue & Profit Goals Key Measurables SMART Objectives (3 to 8) Specific Measurable Achievable Relevant Time Specific
46 Accountabilities Review Goal is to structure your company the right way while clearly defining roles & responsibilities within your organization
47 Accountabilities Review Only 3-5 major functions for all companies Examine functions without regard to people and boxes Each function should have 5-7 key accountabilities Now add people Apply sound organizational principles
48 Scorecard Scorecard metrics tell you where the business is going NOT where its been! Imagine you are on a remote island and you can only get one fax per week about your business!
49 Scorecard Process Driven Metrics of Key Functions (Accountabilities Review) Not a Dashboard or Financial Statement Key to how you manage weekly Examples: Projected Rentals per Day Projected Closed Rental Days Monthly RPU goal
50 Rocks Stephen Covey First Things First Identify and Focus on the Things that Have to Get Done in the Next 90 Days Every 90 Days, the Leadership Team Establishes Company & Individual Priorities and Accountabilities based on the One Year Plan Creates a 90-Day World for the Company
51 Meeting Protocol Weekly MRI (Metrics, Rocks & Issues) Quarterly Recharge Annual Reset
52 Weekly MRI Meeting The GAME CHANGER 60 Minute Time Limit Very Structured & Organized Agenda Seven (7) Key Sections
53 Quarterly Recharge The GLUE that holds it together! Review of Core Focus, Values & Market Vision Gut Check on Annual Plan & Objectives What s Working / Not Working? Allows for adjustments to be made Setting Rocks for the next quarter
54 Annual Reset Determine if Vision is still correct Core Focus, Values & Three-Year Picture Do a Brutal Facts Review Set new One Year Plan Set Rocks for the next quarter
55 Weekly MRI Meeting Do NOT miss/skip this meeting Senior Mgmt. Team / Company Leaders NOT a communication meeting IS a Management & Operations meeting Focus is on RESULTS not activity Begin & End on time
56 Weekly MRI Meeting Key Areas of Focus To Do List What needs to done in the next 1-2 weeks? Rocks What actions have been taken on the key objectives? Issues Examination of what is not working IDS the issues (Identify, Discuss & Solve) Prioritize the Issues Place Issues on a To Do List with dates & responsibilities
57 Weekly MRI Meeting Opening (5 Minutes) Scorecard Review (5 Minutes) Rock Review On Track/Off-Track (5 Minutes) Customer/Vendor/Employee Headlines (5 Minutes) To-Do List - Done/Not Done (5 Minutes) Issues Review (30 Minutes) Conclusion (5 Minutes)
58 Business Owner Frustrations Company not performing the way it should People not performing the way they should Not enough time to get things done Work/Life Balance is out of whack Not making enough money
59 Execution vs. Strategy Studies find that 87% of business strategies fail in execution
60 Four Takeaways 1. Get the VISION right it drives everything! 2. Focus on the TO DO s, ROCKS and ISSUES 3. Commit to the Weekly MRI Meeting 4. EXECUTE, EXECUTE, EXECUTE!
61 What questions do you have?
62 Networking Break Company 3:00pm 3:30pm Sponsored by
63 THANK YOU TO OUR SPONSORS Platinum Gold Silver Bronze
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