The Keys to Superior Perfomance

How to Build and Sustain a Highly Successful Organization

I will not waste one minute of your time…

• I have a ton to cover and I will go pretty fast.• I am happy to answer any of your questions, offer advice

and recommend books at any time after this session.• John@JohnSpence.com

The slides are already posted at:

www.SlideShare.net/johnspence

What does this mean to me?

How can I use this idea?

What can I do right away?

“Simplicity is the ultimate sophistication” Leonardo da Vinci

The Real Job of a CEO

• Financial Performance

• Growth – organic & acquisitions

• Direction – vision (shared)

• Pace – sense of urgency

• Tone – values and culture

1

Five Steps toEffective Strategic Thinking

Business Acumen

Personal Experience

Pattern Recognition

Strategic Insight

Disciplined Execution1

Most people think of:

Superior Strategy =

Valued Differentiation x Effective Execution

1

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.

1

The level of highly satisfied and engaged EMPLOYEES in your credit union.

The number one factor in increasing the level of highly satisfied and engaged MEMBERS in your credit union is…

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

WorkshopPage 2

Actively disengaged employees

can reduce revenues by up to

22%, while highly satisfied and

engaged employees can drive

profits up by as much as…

189%

Culture = Cash

Key attributes of winning cultures

• High aspirations and a desire to win

• Extreme customer focus

• A “think like owners” attitude

• Bias to action

• Individuals who team

• Passion and energy

Bain & Company

1 - 103

HUGE data set…

• 600,000 employees at 500 companies.• 6,800 senior executives.• 900 books and academic articles.• 30 CEOs of Fortune 500.

From: Beyond Performance by Keller and Price

Nine Elements of Organizational Health

From: Beyond Performance by Keller and Price

Core Principles of Workforce Productivity

• Respect Employees

• Clarify Objectives

• Increase Transparency

• Create Dialogue

NITB

What do engaged employees look like?1. 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

3

What Do Engaged Employees Look Like?

E + E + E SBA PMA

EEngaged

Enabled

Energized

Attachment to the company and willingness to give extra effort.

A work environment that supports productivity and performance.

Individual physical, social and emotional well-being at work.

“All In” by Gostick and Elton 4

Impact of the Three E’s

• The research shows the cumulative effect of the three Es at work. The engaged, enabled, and energized cultures saw average annual operating

margins of 27.4 percent during a period that included a recession/economic downturn—twice as high as organizations with just high employee engagement and three times higher than those with low engagement.

1,300,000 interviews: Basic 4 + 1 Goal Setting

TrustAccountability

Communications

RECOGNITION

From: The Orange Revolution by Gostick and Elton

The Fundamental 4+1

4

1 - 10

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging leaders.

2. Effective managers who keep employees informed, 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.

1 - 10

5

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.

To create a highly accountable culture… 1-10

• Communicate clearly and relentlessly.• Set agreed-upon and highly specific metrics.• Focus on results – not personalities.• Force collaboration – teamwork is mandatory

not optional.• Question all activities that don’t contribute to

the company’s overall strategic goals.• Make sure that everyone in the organization –

from top to bottom – focuses on accountability. WS 5

TEC / Vistage / EO / YPO = 3,000 CEOs

1. Lack of a well-communicated vision and strategy for growth.

2. Lack of courageous communication.

3. Tolerating mediocrity.4. Poor culture of teamwork.5. Do not listen to our customers

well enough.6. Lack of accountability and

disciplined execution.

6

5 Obstacles to Execution

6

1. There is a real void of clear, direct and understandable communication about the direction of the organization. This results in people doing what they want to do, not what they need to do and breeds a climate of not caring about the customers/clients or their colleagues. 6

2. Dysfunctional behavior is accepted or ignored and worse yet, colleagues, management reward it.

6

3. There is no definition of what is acceptable and what is unacceptable performance

Expectations x 3

6

4. Management does not promote and confirm that accountability is a key principle within the company.

6

5. Good people may leave because of frustration that their employer is ignoring the issue and is not proactive in seeking and implementing a solution to change the environment.

6

Accountability 1. 100% Clarity + Authority

7

Drone Scapegoat

OwnershipMentality

LooseCannon

HIGH

LOW

LOW HIGHAccountability

Authority

NITB

4-Level Decision Making

NITB

Accountability 1. 100% Clarity + Authority

2. 100% Agreement

7

The Four Pieces of Paper… Agreement

NITB

Accountability 1. 100% Clarity + Authority

2. 100% Agreement

3. Track & Post

Keep a Compelling Scoreboard• It has to be simple• It has to be visible to the team• The has to show all key

metrics• It has to tell you immediately

if you are winning or losing!!

Tracking

MPS Margin Per Sale

Talent

Customer Service

Customer Retention

Create a “Dashboard” of all key measures

NITB

Some thoughts on measurement

Less is moreResults not activityEasy / HardPost and reviewHelp not punishment

NITB

Accountability 1. 100% Clarity + Authority

2. 100% Agreement

3. Track & Post

4. Coach & Train

Situational Leadership

LOW

LOW

HIGH

HIGH

Skill

NITB

Accountability 1. 100% Clarity + Authority

2. 100% Agreement

3. Track & Post

4. Coach & Train

5. Reward or Punish

99% of the time when I do something wrong I get in trouble… 99% of the time when I do something right - nobody says anything!

Accountability 1. 100% Clarity + Authority

2. 100% Agreement

3. Track & Post

4. Coach & Train

5. Reward or Punish WS 7

Accountability 1. 100% Clarity + Authority

2. 100% Agreement

3. Track & Post

4. Coach & Train

5. Reward or Punish 1 - 10

7

Final Workshop Pages 7 and 8

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

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My “Top 50 Best Business Books” list and a link to my free business training channel on Vimeo are both on the front page of my website: www.johnspence.com

Lastly, these slides have already been uploaded to:

www.slideshare.net/johnspence

Clarify ExpectationsSide 1 - What you will focus on in the business as your measure of success.-Your expectations for every employee.

Side 2-Your core leadership values.-What your employees can expect from you.