john spence emp: fundamentals of success
Post on 19-Oct-2014
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John Spence's presentation of ther Fundamentals of Business Success for the EO / MIT EMP programTRANSCRIPT
Focusing on the Fundamentals of
John Spence
Awesomely Simple
Why should I listen to you?
A few of my clients:
What does this mean to me?
How can I use this idea?
What can I do right away?
Reality CheckKnowing – Doing
1 -10
Before we get started…
PassionPersistencePracticePattern Recognition
FocusDiscipline
Action
KnowledgeNetwork LOVE
NITB
Organization Effectiveness Audit
Page 1Be “Brutally Honest”
Scale of 1 – 10
1
The Pattern of Business Success
(T + C + ECF) x DE = Success
2
Talent
T = Talent
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.”
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
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
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
• Lack of TRUST• Lack of candor• Lack of commitment• Lack of accountability• Lack of results
2
Competence
RespectDistrust
Affection TRUST
HIGH
LOW
LOW HIGH
Concern
The 4 C’s of Trust
3
“I am good at what I do… and I do it because I
care about you.”
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
Three Key Areas of Expectations
NITB
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
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
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
C = Culture
Business Side• Integrity• Innovation• Accountability• Execution• Urgency• Customer Focus• Ownership Mentality
Nine Elements of Organizational Health
From: Beyond Performance by Keller and Price 4
From the Employee’s Perspective:
NITB
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
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…
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
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
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
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…
Extreme Customer Focus
Web of Value: VOC + MOT + WOM
VOC
7
How Many of these do you employ?
7
Moments Of Truth
Moments Of Truth
MOT Practice Round
Dry CleanerHair SalonTailorPlumber
MOT Workshop Page 7
• What are your MOT
43% - 74% of purchasing decision = WOM
7
WOM = Your BEST form of advertising!
78.9%23.4%
7
You MUST have a Referral PROCESS
Identify Ideal
Customer
ReferIdeal
Customer
From John Jantsch: The Referral Engine
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
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
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
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
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
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
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!!!
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