best practices thought leaders -...
TRANSCRIPT
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"Every morning in Africa, a gazelle wakes up. It knows it must run faster than the
fastest lion or it will be killed...every morning a lion wakes up. It knows it must outrun the slowest gazelle or it will starve
to death. It doesn't matter whether you are a lion or a gazelle...when the sun comes up, you'd better be running."
Gazelles Contact InfoGazelles Contact Info
Gazelles Inc.44031 Pipeline Plaza, Suite 200Ashburn, VA 20147703-858-2400703-858-2401 Fax
DellDell
“Start with smart executives, and then keep them smart”
Best Practices Thought Leaders
Michael Dell
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What we doWhat we do
1 to 2 Day Executive Dev Programs“Keep up with the growth”
Best Practices Thought Leaders
www.gazelles.com
www.gazelles.com
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www.gazelles.com
Rockefeller HabitsRockefeller Habits
Rockefeller HabitsRockefeller Habits
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DisciplineDiscipline
Good To GreatGood To GreatRight People Right Things Things Right
Disciplined People
Disciplined Thought
Disciplined Action
1% Per Week1% Per Week
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HabitHabit
You are what you repeatedly do. Excellence is not an event - it is a habit.
Aristotle384-322 BCPhilosopher and Scientist
FORTUNE 500FORTUNE 500
Median Profit 5.9%
Revenue/Employee $400,000 vs. $250,000
27 Still Run by Founder, 18.5% annual return
Forging Ahead…Forging Ahead…
Bill Gates – “How I Work”
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Forging Ahead…Forging Ahead…
Bill Gates – Whiteboards
Google – Whiteboards
3M – Whiteboards
Mind vs. MuscleMind vs. Muscle
Energy ManagementVs.
Time Management
Four DecisionsFour Decisions
People – Strategy – Execution
and
Cash
(Happiness) (Revenue/Growth) (Profit/Time)
(Oxygen)
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People People
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
Head of Company (CEO)
Sales and Marketing (VP)
Operations (COO)
Accounting (CFO)
Human Resources (HR)
Information Technology (IT)
Customer Satisfaction
Business Unit Heads
StrategyStrategy
ExecutionExecution
RelentlessRepeatability
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Who, What, WhenWho, What, WhenWho, What, When
Who What When
WeeklyExecution
Page 4 Page 4 -- CashCash
Cash is King!
Three DisciplinesThree Disciplines
PrioritiesData/Metrics
Meeting Rhythm
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Priorities Priorities –– Less is MoreLess is More
Ivy Lee
Charles Schwab$25,000
Metrics/Data Metrics/Data ---- PredictionPrediction
Meetings Meetings -- Talk TimeTalk Time
CEO Council
pp 114 - 115
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Two DriversTwo Drivers
Reputation and Productivity
Reputation
EmployeesEmployees
have capabilities
CustomersCustomerswhich meet
needs
which generates
ShareholderShareholder
value
Get, Keep, Grow
… doing the Right Things (WHAT TO DO)
Vision
Productivity
Make or BuyMake or Buy
products
SellSellto
RecordsRecords
track progress through
Faster, Better, Cheaper
… doing Things Right(HOW TO DO)
Alignment
1% 99%
Core ValuesPurpose
Targets
Goals
Action Steps
Schedule
Accountability
ShouldWhy
Where
WhatHow
When
Who
ForeverLife of Mgmt
3-5 yrs
AnnuallyQuarterly
Weekly
Daily
Right PeopleRight PeopleRight Things RightRight Things Right
One CoachOne Coach
“No one has ever achieved peak performance without
a coach.”
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Coaches Coaches
•Advisors – Advisory Board
•Consultants – Experts
•Coaches -- Accountability
Questions
44--33--22--11--ResultsResults
2x Cash Flow3x Profitability10x Valuation
More Time!
ExecutionExecution
RelentlessRepeatability
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YOUR Question?YOUR Question?
“We have the answers, all the answers, it’s the
question we do not know!”
1) Professional/Business Question?2) Personal Question?
Who, What, WhenWho, What, WhenWho, What, When
Who What When
WeeklyExecution
Two “Stop Doings”Two “Stop Doings”
"Sometimes you've got to let everything go...purge yourself. If you are unhappy with anything...whatever is bringing you down, get rid of it. Because you'll find that when you're free, your true creativity, your true self comes out."
Tina TurnerSinger
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RhythmRhythm
CashCash
What’s YOUR Cash Cycle?
Page 4 Page 4 -- CashCash
Cash is King!
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““Execution without Excuses”Execution without Excuses”
“I founded the company over 20 years ago with $1000 in starting capital. By contrast, Compaq had been launched two years earlier with $100 million in capital. That’s an unbelievable difference. Dell bubbled up through a kind of Darwinian evolution, finding holes in the way the industry was working. We didn’t become asset-light just because it was a brilliant strategy. We didn’t have any choice.”
Cash CycleCash Cycle
Dell's Cash Cycle
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-21
-40
-20
0
20
40
60
80
1991 2001
Year's 1991 - 2001
Cas
h Cy
cle
Day
s
Series1
Tom MeredithTom Meredith
Growth
Liquidity
Profitability
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Cash CycleCash Cycle
Dell's Cash Cycle
63
-21
-40
-20
0
20
40
60
80
1991 2001
Year's 1991 - 2001
Cas
h Cy
cle
Day
s
Series1
Wild Birds UnlimitedWild Birds Unlimited
Free Birdseed Storage
Wild Birds UnlimitedWild Birds Unlimited
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Cooper and Ann MimsCooper and Ann Mims
Page 4 Page 4 -- CashCash
Cash is King!
Cash Conversion Cycle (CCC)
Make/Production& Inventory Cycle
Sales Cycle Delivery CycleBilling & Payment Cycle
B
A C D
3 ways to shorten your Cash Conversion Cycle in each of the above 4 areas:
1. Shorten cycle times 2. Reduce mistakes3. Improve your business model and P/L
CCC ImprovementsCCC Improvements
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Right PeopleRight People
Would You Enthusiastically
Rehire YOUR People?
Page 1 Page 1 -- People People
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
NameTitle
Head of Company (CEO)
Sales and Marketing (VP)
Operations (COO)
Accounting (CFO)
Human Resources (HR)
Information Technology (IT)
Customer Satisfaction
Business Unit Heads
Financial Statements Financial Statements
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The Almost MatrixThe Almost Matrix
Functions
SBUs
1 Great = 3 Good1 Great = 3 Good
Pay twice as muchPay twice as much
160 hours of training160 hours of training
Great PeopleGreat People
Jack Jack
“Less people, paid more, with a lower total wage cost.”
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Great PeopleGreat People
$15.97/hr $11.52/hr
9.8% of sales 17% of sales
$795/sq ft $516/sq ft
6% Turnover 21% Turnover
Great PeopleGreat People
$5.63 Billion Profit22,425 Employees$251,000 Profit/Employee
$5.20 Billion Profit54,600 Employees$95,238 Profit/Employee
$5.20 Billion Profit53,218 Employees$97,560 Profit/Employee
ChallengeChallenge
Revenue/Employee
1) Double in 5 -10 years
2) Increase Wages 50%
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Getting PeopleGetting People
ReputationReputationMore people applying; More people applying; better people applyingbetter people applyingSell the Vision!Sell the Vision!
TopgradingTopgrading
Topgrading Topgrading ToolKitToolKit
• 2 DVDs – 6 hrs.
• 3 CDs -- audio
• 5 mini-books
• Implementation Guide
• Online Tools
$995 vs. $1250 + shipping
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Cairo CorporationCairo Corporation
“You'll need to spend 4-5 hours in a CIDS…it’s a lot of work up-front, but a few hours now versus 1000 hours of wrapping management around a C-player, paying their salary, getting no results for the job they were hired to do and frustrating the crap out of you as the alternative. Whatever the cost of a C-player, it sure is a lot more than the 4-10 hours of time to ferret out that fact now.”
Raymond Roberts, CEO
Page 2 Page 2 -- StrategyStrategy
Core ValuesCore Values
Core Values – handful of rules that remain constant
1) Personality – “Performance Edge” vs. Continuous Improvement
2) Fire someone for violating3) Take significant financial hit
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Core Purpose Core Purpose -- WHYWHY
3M NikeDisneyWal-MartMicrosoftStarbucks
InnovationCompetitionHappinessRobin HoodUbiquityEscape
Core IdeologiesCore Ideologies
EVERYDAY MANAGEMENTCreate LegendsRecruitment and SelectionOrientation and HandbookAppraisal ProcessRecognition and RewardInternal NewsletterQuarterly Themes
ONE HR LIST
Ritz CarltonRitz Carlton
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Right ThingsRight Things
Can You State YOUR Strategy in a Sentence?
Controlling the InkControlling the Ink
Jack Jack
“Strategy is not a lengthy action plan.
It is the evolution of a central idea through continually changing circumstances.”
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Hedge Hog Hedge Hog
Passion
Best At Profit/X
Jim CollinsGood to Great
Brand PromiseBrand Promise
Bill Graham
“The Grateful Dead aren't the best at what they do; they are the only ones that do what they do.”
5000
BHAGBHAG
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Brand PromisesBrand PromisesBlockbusterBlockbuster
Always the Hits
No Fee 3 Nights
Gary Hamel Gary Hamel ---- NokiaNokiaHumanize
Technology
SeamlessSolutions
VirtualPresence
Brand PromisesBrand PromisesMcDonaldsMcDonalds
Speed
Consistency Fun for Kids
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Mars Mars -- McDonaldsMcDonaldswww.advancedcircuits.com
Mars Mars -- McDonaldsMcDonaldswww.rackspace.com
X Factor X Factor -- BlockbusterBlockbuster
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X Factor X Factor –– EclipseEclipse
X Factor - Starbucks
Things RightThings Right
Do YOU Have Relentless Repeatability?
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Habits ChecklistHabits Checklist
Leadership Leadership -- CommitmentCommitment
“We are told that talent creates its own opportunities. But it sometimes seems that intense desire creates not only its own opportunities, but its own talents."
Eric Hoffer1902-1983, Author and Philosopher
Leadership Leadership -- DelegationDelegation
The Most Effective Measure of Leadership is the Performance of the Team in Your Absence.
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DelegationDelegation
Pinpoint – Top 5Measure -- DataFeedback – Meeting RhythmReward & Recognition
Thematic GoalThematic Goal
Thematic Goal
ThemeTheme
What’s YOUR Daily Question?
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ICC/Decision ServicesICC/Decision Services
Cairo CorporationCairo Corporation
Phillips GroupPhillips Group
Joe HooverJoe Hoover
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Phillips GroupPhillips Group
Advantage Data SystemsAdvantage Data Systems
ICC/Decision ServicesICC/Decision Services
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Capital Recovery GroupCapital Recovery Group
Capital Recovery GroupCapital Recovery Group
10 Minutes – How we did last quarter10 Minutes – Stories highlighting Core Values20 Minutes – Introduce New Theme10 Minutes – How will you contribute5 Minutes – Report out
Meeting AgendaMeeting Agenda
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RhythmRhythm
MeetingRhythms
Jazz BandJazz Band
Why Team Meetings?Why Team Meetings?
Communications ClarityCommunications ClarityFocused Collective IntelligenceFocused Collective IntelligencePeer PressurePeer Pressure
WARNING: Often suspended WARNING: Often suspended during busy or difficult timesduring busy or difficult times
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Meeting RhythmMeeting Rhythm
•• Set dates in calendars for Year OutSet dates in calendars for Year Out•• Annual 2 day meetingAnnual 2 day meeting
•• Quarterly updatesQuarterly updates•• Monthly midMonthly mid--management meeting with management meeting with
executive teamexecutive team•• Weekly executive team meetingWeekly executive team meeting•• Employee quarterly annual theme Employee quarterly annual theme
meetingsmeetings•• Daily HuddlesDaily Huddles
Daily Meeting StructureDaily Meeting Structure
What’s UpDaily MetricsWhere Stuck
Focus -- Top 1 Priority and Bottlenecks
Weekly Meeting StructureWeekly Meeting Structure
•• Good News Good News –– 5 5 minsmins•• The Numbers The Numbers –– 55--10 10 minsmins•• Customer/Employee Data Customer/Employee Data –– 55--10 10 minsmins•• Collective Intelligence Collective Intelligence –– 1010--30 30 minsmins•• Who, What, When SummaryWho, What, When Summary•• One Phrase CloseOne Phrase Close
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MetricsMetrics
Weekly Data&
Measures
eBayeBay
“If it moves, measure it!”
Janie and Victor TsaoJanie and Victor Tsao
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Michael & KevinMichael & Kevin
Courtesy of Dell, Inc.
Ritz CarltonRitz Carlton
LearningLearning
Whoever learns faster wins
“…when the sun comes up you’d better be learning!”
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FeedbackFeedback
Customers
Reputation
Employees Shareholders
Get, Keep, Grow
CASH
DehasslingDehassling the Organizationthe Organization
Close the Loop!Fix a few immediatelyDon’t worry if only a few – fix those!Share entire list – don’t summarize awayClose the loopReward for sharing issuesAutomate the collection and batchingMid-management led team
Dell’s Smart NumbersDell’s Smart Numbers
•Ship to Target
•Initial Incident Rate
•First Time Fix
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Best If GraphicalBest If Graphical
020406080
100120140160180
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
NorthWestEast
Daily & Weekly MeasuresDaily & Weekly Measures
Key PointsKey Points
•• Outcomes Outcomes –– Rev, Profit, GM, CashRev, Profit, GM, Cash•• Drivers Drivers ---- KPI’sKPI’s –– Kept PromiseKept Promise•• Critical Critical Number(sNumber(s) ) –– Short TermShort Term•• Make your measurements visibleMake your measurements visible
WalWal--Mart War RoomMart War Room
“Three display boards are covered with to-do lists. One says: "Promote Week of 10/24/05: MLK Memorial Donation. Urban/blighted community plan." Two large maps show the location of Wal-Mart and Sam's Club stores across the United States.” NY Times 11/1/05
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Miner CorporationMiner Corporation
Miner CorporationMiner Corporation
MapPointMapPoint
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Situation RoomSituation Room
•• Where will it be?Where will it be?•• Post a map of territories covered Post a map of territories covered
–– use Microsoft MapPoint.use Microsoft MapPoint.•• List your core values and List your core values and
purpose.purpose.•• Display your Metrics Display your Metrics
Bias for ActionBias for Action
“On the plains of hesitation, bleach the bones of countless millions, who, at the dawn of victory sat down to rest, and resting, died.”