Out Execute the Competition

Irv Rothman is the president and chief executive officer of HP Financial Services, a wholly owned subsidiary of Hewlett-Packard Company. Prior to joining HP, Rothman was president and chief executive officer of Compaq Financial Services Corporation where he led it from its founding to growth of over $3.7 billion in total assets.

Irv is the author of Out-Executing the Competition.  What I really admire is that Irv is donating all of the royalties he earns on the sale of the book to Room to Read, an organization dedicated to children’s literacy.

 

The best way to out-execute the other guy is to know your customer’s business as well as you know your own. -Irv Rothman

 

Attracting the Right Talent

Much of success in business is about finding and cultivating the right talent.  How did you attract and retain the talent needed to accomplish your goals?

Attracting and retaining the right people starts with a leadership commitment to first develop high performers in-house.  And this has to be more than an annual “talent management” exercise.  It’s an activity that leadership must consistently demonstrate is important by developing people and promoting from within.  This sends key messages to an organization:

1)   Leadership can be trusted to do as they say they will.

2)   Career opportunities exist…. No need to look elsewhere.

3)   Leadership recognizes and acknowledges that outside hires are a 50/50 proposition.

In short, provide an atmosphere where people can learn and achieve advancement based on merit.  Not only will the good people stick around, their hearts will be in it.

 

Developing a Culture of Execution

 

Out-Executing the Competition

Your book title is all about execution.  How do you develop a culture of execution?

A culture of execution starts with devotion to the customer.  Since it is theoretically easier to keep a customer than to find a new one, all messaging and reward systems need to be packaged around a “customer for life” philosophy.  And a pay-for-performance compensation system is a must.  Moreover, it can’t be black box; people need to be clear as to what rewards can be expected from results and behaviors.  Once you’ve got all that organized, creating an environment where people have freedom to act on behalf of the customer is crucial. You can’t have a circumstance where people are bound by the linear strictures of a traditional command and control organization. It not only frustrates your employees, it also makes for dissatisfaction on the part of the people on the other end of the phone.

7 Facts of Business Success

Photo by melanie_hughes on flickr.

 

After over forty years of owning businesses, Bill McBean shares the success factors that propelled his ventures to new heights. Whether turning around underperforming auto dealerships or forming new investing and administrative services companies, Bill has seen what works and what doesn’t. He recently wrote The Facts of Business Life: What Every Successful Business Owner Knows that You Don’t, and I had the opportunity to ask him a few questions about his formula for business success.

Why do most businesses not achieve the level of success that they should?

It’s usually a combination of reasons versus one specific reason. These reasons are, in no particular order: 1) an opportunity with little potential for gross profit and net profit; 2) a lack of knowledge of the important elements, or basic fundamentals which create success; 3) a lack of leadership knowledge of how to move a business “from here to there”; 4) a lack of knowledge of how to compete; 5) a lack of overall business knowledge (not to be confused with industry knowledge).9781118094969 cover.indd

This is not a comprehensive list, but in my opinion from what I have seen they make up the vast majority of business failure or lack of success — and it’s rarely just one of these reasons. Instead it is a combination that can kill or seriously hinder the success of a business.

Your book outlines seven “facts” that successful business owners understand and utilize. We don’t have time to go into all of them, but how did you develop and choose these seven?

 

It probably wouldn’t surprise you if I told you these ‘facts’ chose me rather than me choosing them. By this I mean in all my years of business ownership these 7 facts were the ones which cost me the most money — either in not optimizing an opportunity or by not paying enough attention to a particular fact that ended up taking a big bite out of my wallet.

Stick With It

Photo courtesy of istockphoto/Greg Epperson

Lee J. Colan, Ph.D. is a leadership consultant and the author of 12 books, the co-founder of The L Group, and a popular speaker.  His latest book, co-authored with his wife Julie, is Stick with It: Mastering the Art of Adherence.

I recently had the opportunity to ask Lee a few questions about his new book and his extensive experience working in the field of leadership, strategy execution and employee engagement.

Lee, this book is an updated version of a previous bestselling book of yours: Sticking to It.  What led you to update it?

Well, Skip, we had been applying the Adherence Equation for 10 years:

 

Black and White Equation for print

 

We learned from and worked with our clients to hone and develop new tools that support adherence (defined as consistent execution), and we wanted to share our learnings.  Even though I wrote 10 other books during that time, the Adherence Equation still seemed to resonate with organizations of all sizes and industries.  Truth be told, that first book remained my bestseller.  Clearly, I should have stopped after my first one!

I finally decided, with the better judgment of my business partner and wife of 25 years, that we should take our own medicine and FOCUS.  So, we have poured our best stories, examples and tools into this expanded and enhanced follow-up that serves as a roadmap for consistent execution.

Here is the essence of the Adherence Equation:www.stickwithitbook.com

Focus provides the clarity necessary to make decisions that support your most important goals. It results in a clearly defined pathway to success. A sharp focus answers the “what” question – What do you need to do to execute your strategy?

Competence is used in the broadest sense of the term. It encompasses all the skills, systems, processes and tools a team uses to achieve its goals. The result is the ability to commit to, measure and hit your targets. Building competence answers the “how” question – How will you execute your strategy?

Passion creates a sense of connectedness. It creates a connection between teammates, a connection to our human need for meaningful work and a connection to each individual’s sense of value and contribution. Igniting passion answers the “why” question – Why are you executing your strategy?

Shape Your Company’s Future

 

Are you confident in your company’s future?

How do you rate your business strategy?

Is your team engaged in the creation of your plan?

Are you staying ahead of the competition and creating a sustainable advantage?

 Shape Your Future

“Strategy is about shaping the future.”

That’s the opening line in The Strategy Book by Max Mckeown.  In a logical, straightforward manner, Max walks readers through strategic principles and best practices in a way that educates the novice and the well-practiced strategist alike.  Whether you are a CEO or a new team leader, Max provides helpful tools and checklists to improve your strategic plan.

Max Mckeown is an author of several best-selling, award winning books. He’s also a sought-after speaker on subjects ranging from competitive advantage to strategy to leadership.  He holds an M.B.A. and Ph.D. from Warwick Business School in England.

I recently had the opportunity to talk with Max about strategic best practices.

What’s the biggest misconception about creating a strategy?

Strategy isn’t a document. Some people believe that it is. And that’s probably why so many hard-working people roll their eyes when the strategy word is mentioned. Specifically, strategy is not leaders spending a million dollars on thick documents produced by outsiders to which insiders must align.-

You’ve met thousands of managers and leaders in businesses around the world.  When you meet a team, what attributes are present when you find an exceptionally high-performing team?

Strategy is about shaping the future. Perhaps this is why the roll-up-your-sleeves, get-things-done kind of people are often impatient with anything remotely connected to the word strategic. They want results. They tend to ignore the want-to-see-the-bigger-picture kind of people they see as daydreamers.

Leading Through the 5 Stages of Change

In yesterday’s post, I interviewed Jim Huling about the disciplines of execution.  The concepts in the The 4 Disciplines of Execution were so fascinating, we continued the conversation.

 

5 Stages of Changing Behavior

Much of leadership is influencing people to change.  You talk about the five stages of changing human behavior.  Would you explain these and is there one stage more difficult to move through than the others?

Because changing human behavior is such a big job, many leaders face challenges when first installing 4DX.  In fact, we’ve found that most teams go through five distinct stages of behavior change.

Stage 1: Getting Clear – The leader and the team commit to a new level of performance. They are oriented to 4DX and develop crystal-clear WIGs (wildly important goals), lag and lead measures, and a compelling scoreboard. They commit to regular WIG sessions. Although you can naturally expect varying levels of commitment, team members will be more motivated if they are closely involved in the 4DX work session.

Stage 2: Launch – Now the team is at the starting line. Whether you hold a formal kickoff meeting, or gather your team in a brief huddle, you launch the team into action on the WIG. But just as a rocket requires tremendous, highly focused energy to escape the earth’s gravity, the team needs intense involvement from the leader at this point of launch.

5 Stages of Behavior Change

  1. Getting Clear
  2. Launch
  3. Adoption
  4. Optimization
  5. Habits

Stage 3: Adoption – Team members adopt the 4DX process, and new behaviors drive the achievement of the WIG. You can expect resistance to fade and enthusiasm to increase as 4DX begins to work for them. They become accountable to each other for the new level of performance despite the demands of the whirlwind.

Stage 4: Optimization – At this stage, the team shifts to a 4DX mindset. You can expect them to become more purposeful and more engaged in their work as they produce results that make a difference. They will start looking for ways to optimize their performance—they now know what “playing to win” feels like.