Achieving Business Excellence

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

A few of my clients:

100+ every year since 1989

What does this mean to me?

How can I use this idea?

What can I do right away?

I am NOT a guru…

The 6 Keys to Controlling the Market

1. People2. VOC3. MOT4. WOM5. Kaizen6. Execution

The Pattern of Business Success

(T + C + ECF) x DE = Success

Talent

Talent + Culture

Cecil Van Tuyl

“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.”

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…

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

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

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

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

E + E + E

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

• 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.

Seven Steps to Success1. Define a Burning platform2. Create Extreme Customer Focus3. Develop Agility4. Share Everything5. Partner With Your Talent6. Root for Each Other7. Establish Clear Accountability

From the Employee’s Perspective:

Extreme Customer Focus

Web of Value: VOC + MOT + WOM

Things have changed…

2008 2012

Now you MUST deliver…

• The highest possible quality…• At the lowest possible price…• Immediately --- or sooner…• All while giving consistently superior

customer service for an outstanding “Total Buying and Owning Experience.”

Joe Calloway: Three Greatest Competitive Advantages

1. Know more about the customer than anyone else.

2. Get closer to the customer than anyone else.

3. Emotionally connect with the customer better than anyone else.

Jack Malcolm: Top 10 Sales Trainers in America

1. Get back to basics. When things are going well, it’s easy to cut corners and get away with it.

2. Pay extreme attention to detail. It’s very easy to lose a customer when times are tough. They’re not in a forgiving mood, so they expect to be treated very well.

3. Work on your network. Extend and diversify it, but most importantly, put effort into helping others, especially those who are not in a position to help you right now.

4. Prepare for the turnaround. It will come, despite how easy it is to be pessimistic. The trick is to come out of this stronger than when we went in. Learn, network, add value, and it will pay off.

5. Give a little extra. When people ask for three ideas, give them 5.

VOC

Moments Of Truth

WOM = Your BEST form of advertising!

78.9%23.4%

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

You MUST have a WOM Referral System

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine

Kaizen

For those who are prepared…Chaos brings opportunity.

10 – 15%

Where are we going andhow will we behave on the way?

FocusDifferentiation“No”

Guiding Collation

Vision + ValuesStrategy

ObjectivesInitiativesPrograms

Procedures / ProtocolsRepeatable ProcessClear / consistent / relentless

Training +time / money /

supplies / people

Measure / TrackCommunicate

Transparency Accountability

Celebrate SuccessEliminate Mediocrity

The 6 Keys to Controlling the Market

1. People

2. VOC

3. MOT

4. WOM

5. Kaizen

6. Execution

THANK YOU

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

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