Executive Retreat

Most people are so busy working IN their business that they do not take any time to work ON their business.

What does this mean to me?

How can I use this idea?

What can I do right away?

Reality CheckKnowing – Doing

1 -10

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The Four Ps

Five Foundations of Effective Strategic Thinking

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution 2

Effective Strategy =

Valued Differentiation x Execution

Workshop Page 3

Most people think of:

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What strategy is not…

• More, better, faster is not a strategy.

• Effectiveness and efficiency are necessary… but not sufficient.

• Superb execution of fundamental business processes… is expected.

• Being extremely good at what you are supposed to be good at… gets you no extra credit at all.

From the CEO of a little 240+ 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…

Jeffrey Immelt

You have to figure out what to say NO to.

Strategy is INTERNALas well as EXTERNAL

Blue Ocean Strategy

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“Simplicity is the ultimate sophistication” Leonardo da Vinci

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(T + C + ECF) x DE = BE

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The Four – I’s

• Ignorance• Inflexibility• Indifference• Inconsistency

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How to avoid the Four I’s 1-10• Aggressive external market focus.

• Aggressive customer focus.

• Keep the “Main Things” the main things.

• Bullish on knowledge sharing and learning.

• Teamwork is mandatory – not optional.

• Passion and commitment at all levels.

• Foster a healthy paranoia.

• Revel in change. 5

To be successful in the future the rate of internal innovation

must exceed the rate of external innovation

II > EI

The Key To Success in the New Normal…

•Nimbleosity

•Nim-bo-licous

To get the most from our session together…

It is absolutely critical that you be brutally honest with yourself today.

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So let's get started with

a little self-test… page 6

1,300,000 interviews: Basic 4 + 1

Wow No Surprises Cheer 7

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Great Places to Work Study

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1-10

Why do you work where you work?

NITB

Fair PayMeaningful WorkCool Colleagues Winning CultureOpportunity for GrowthBoss I Admire

NITB

WS: What would you look for in an “Ideal” team member?Develops and displays very strong competence.

Follows through on commitments.

Delivers required business results.

Proactive – looks for ways to help.

Honesty and integrity

Great collaborator

Enjoyable to work with – positive attitude.

Passionate about their work and those they serve.

Communicates and keeps everyone informed.

Helps the other members of the team.

Helps members of other teams.

Always learning - shares ideas, information and credit.

Hold themselves 100% accountable.

DMCCMD

irect ion – vivid, clear, inspiring --- shared

easurements – specif ic, observable, focused - binary

ompetence – very good at what they do

ommunication – open, honest, robust - transparent

utual Accountabil i ty – all team members

iscipline – do this every day

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10 Key Team Competencies:1. Setting clear, specific and measurable goals.

2. Making assignments extremely clear and ensuring required competence.

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

4. Running effective team meetings.

5. Building strong levels of trust.

6. Establishing open, honest and frank communications.

7. Managing conflict effectively.

8. Creating mutual respect and collaboration.

9. Encouraging risk-taking and innovation.

10. Engaging in ongoing team building activities.1 - 10

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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…

Culture = Cash

52%Disengaged

18% Actively

Disengaged

Actively disengaged employees cost you

$3,400 for every $10,000 of salary.

DSD

E

FE60%

80%

100%+

220% +++

AD

-34%

NITB

*Companies in the top quartile performanceCompared with companies in the bottom quartile. NITB

The game is won in your “B” players

ABCDF

22x10x1x-3x-15x

NITB

TEN ELEMENTS OF A WINNING CULTURE

1. People enjoy the work they do and the people they work with

2. People take pride in the work they do and the company they work for

3. There are high levels of engagement, connection, camaraderie and a community of caring

4. There is a culture of fairness, respect, trust, inclusiveness and teamwork

5. The leaders walk the talk, live the values and communicate a clear vision and strategy for growth

6. Lots of open, honest, robust and transparent communication across the entire organization

7. The company invests back in employees; there is a commitment to learning, coaching and development

8. There is a bias for action, employees have an ownership mentality and always strive to give their personal best

9. There is high accountability and a strong focus on delivering the desired results

10. There is ample recognition and rewards and mediocrity is not tolerated

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1-10

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 10

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…

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From: Think Big – Act Small by Jennings

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Extreme

Customer Focus

Web of Value: VOC + MOT + WOM

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VOC

11

Moments Of Truth

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VOC + MOT Workshop:

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78.9%23.4%

43% - 74% of purchasing decisions = WOM/T

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine

You MUST have a referral process

Ideal CustomerWorkshop page 12

Know• Referrals

• Ads

• Business card

• Networking

• Associations

• Clubs

• Community involvement

• Charity involvementWorkshop page 13

Like• Brand

• Website

• Social media

• Blog

• Newsletter

• Building

• Car

• Reception / greeting

• Appearance of you and your staffWorkshop page 13

Trust

• Certifications

• Awards

• Client list

• Testimonials

• Guarantee

• Reputation

Workshop page 13

• Open house

• Short tour

• Discount on fees

• Special offer

• Limited time

• New development

• New builder

Try

Workshop page 13

Buy

Workshop page 13

Repeat Buy

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Referrals…Workshop page 13

The best way to get

referrals…

ASK!!!!

The Four Habits of Referability

1. Show up on time

2. Do what you say you will do

3. Finish what you start

4. Say “Please” and “Thank You”

5. Give a little bit more than they expect

NITB

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

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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.

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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.

Score yourself on the 1–10 scale for all eight practices on page 14

Key Drivers of Business Success

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensation

CR=104.12

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285CR=.371 CR=.365 CR=.191 CR=.247

NITB

WorkshopPage 15

TolerateNothingLess

Global study:16 countries29 companies139 offices5,589 respondents

What Inhibits Execution?National Survey of 4,000 Senior Executives

4. Inability to work together

3. Company culture

2. Economic climate

1. Holding onto the past / unwillingness to CHANGE

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.

Disciplined Execution Clear Vision

Detailed Strategy

Guiding Coalition

Alignment

Systems

Communication

Support

Adjust

Reward / Punish

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1 - 10

The five keys to accountability

1. 100% Clarity + Appropriate Authority & Resources

2. 100% Agreement

3. Track & Post

4. Coach, Mentor, Train and Support

5. Reward Success / Punish Failure

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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 18 -21• Put in as much detail as possible.• Be very honest with yourself.• Think in terms of Actions and Outcomes.

• Push yourself VERY hard!!!!!

Table Workshop

• Compare and contrast

• Coach and consult

• Ask for help and advice

• Develop REAL action steps that you can take back and implement right away!!!

Think about this…

1. Computer speed /cost

2. Machine learning / deep learning

3. IOT

4. Robotics

5. Augmented reality

6. Virtual reality

7. Genomic decoding and recoding

8. Synthesized medicine

Speed vs. Cost

Machine learning / deep learning

IOT

Robotics

2014 = $757M

So…

• What does all of this mean to your business?

• Think about the implications for 10 minutes and write some notes.

• Then discuss at your table.

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

My twitter address is: @awesomelysimple

Please connect with me on LinkedIn and twitter

Also, 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

All of this info is on page 28