Transcript Document
THE GROWTH PARTNERSHIP The Disciplines of Getting Things Done Secrets of Flawless Execution Presented to the 2020 Group Introduction • People on your work team know the firm’s most important goals. 58% • People know exactly what they are supposed to 54% do to help achieve the firm’s most important goals. • Your team consistently plans together to achieve the most important goals. 47% • People on your team know how they’re doing on those goals. 35% Sustained Superior Performance Sustained Superior Performance Today’s Performance (P) Specific Business Results Building Capability Long-term Performance (PC) Execution Process / Strategy Implementation Leadership & Management Development Individual Effectiveness Disciplined Thought/ Disciplined Action “Level 5 Leadership” Disciplined People 3 Execution Check Pg. 44 4 Execution Framework 5 Execution Happens When… People are clear about “the goal” They know the critical activities and actions Sounds Simple? They do it Agenda 1. The “Execution Challenge” 2. The 6 Root-causes of Execution Breakdowns 3. The 4 Disciplines of Execution The Execution Challenge People are clear about “the goal” Goal: They know the critical activities and actions They do it How? Who? Do What Differently? % Model % Not Yet % Never Question 1: Question 2: Question 3: What is the most important goal of my organisation or business unit? What group of people must learn something new or do something different for us to be successful? Who is modeling the behavior? What is it worth? Clarity _____ Commitment ______ Translation _____ Commitment _____ Who is not yet there, but could get there? Who is never going to get there? Enabling _____ Synergy _____ Accountability _____ Accounting Firm Execution Challenge Strategic Bet Clear about “the goal” 75% Client Retention Execution Bet know activities and actions They do it How? Cross-sell/Provide more services Who? Sr. Accountants/Partners Do What Differently? 1. Sr. Accountants – Question clients to ID opportunity 2. Partners – Strategic Account Reviews 3. Firm – At least quarterly face-to-face client contact % Model % Not Yet % Never Agenda 1. The “Execution Challenge” 2. The 6 Root-causes of Execution Breakdowns 3. The 4 Disciplines of Execution Root-causes of Execution Breakdowns Are they clear about “the goal”? 1. Clarity Do they know what is most important? Root-causes of Execution Breakdowns Are they clear about “the goal”? 1. Clarity Do they know the critical activities? 2. Translation Do they know what to do and how to do it? Root-causes of Execution Breakdowns Are they clear about “the goal”? 1. Clarity Do they know the critical activities? 2. Translation 3. Commitment Are they committed to the goal and their role in it? Root-causes of Execution Breakdowns Are they clear about “the goal”? 1. Clarity Do they know the critical activities? Do they Do It? 2. Translation 4. Enabling 3. Commitment Do we make it easy for them? Root-causes of Execution Breakdowns Are they clear about “the goal”? 1. Clarity Do they know the Critical Activities? Do they Do It? 2. Translation 4. Enabling 5. Synergy 3. Commitment Do we work effectively together? Root-causes of Execution Breakdowns Are they clear about “the goal”? 1. Clarity Do they know the Critical Activities? 2. Translation Do they Do It? 4. Enabling 5. Synergy 3. Commitment 6. Accountability Do we hold each other accountable all of the time? Agenda 1. The “Execution Challenge” 2. The 6 Root-causes of Execution Breakdowns 3. The 4 Disciplines of Execution Agenda 1. The “Execution Challenge” 2. The 6 Root-causes of Execution Breakdowns 3. The 4 Disciplines of Execution Discipline 1 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 1: Focus on the “Wildly Important” The team is clear about and committed to the most important objective(s) and people stay focused despite all the other competing priorities. Discipline 1 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 1: Focus on the “Wildly Important” Common Thinking: We can effectively accomplish 6, 8, or even 10 important goals at once with excellence. Reality: The more we narrow our focus the greater our chances of achieving our goals with excellence. Discipline 1 The 4 Disciplines of Execution Important Goal A goal with significant consequence or value. Discipline 1 The 4 Disciplines of Execution WILDLY Important Goals (WIG) Our most leveraged goals. Goals that drive our vision, make all the difference, and that take us to a new level. Perhaps, failure to achieve these goals renders any of our other achievements inconsequential. General Electric - The Power of Focus 1980 • 45+ business units • $25.5 billion revenue 1981 • Jack Welch (CEO) announces that GE will leave any business line where they cannot hold the leadership position or a very close 2nd place 2000 • • • • 12 business units $129.8 billion revenue 40-fold increase in stock price Outperformed S&P 500 by more than three times over the two decades Discipline 1 What It Takes to Focus 1. Identify what’s wildly important 2. Focus significant activity and resources on it 24 Discipline 1 The Focus – JFK’s Speech to Congress “I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.” President John F. Kennedy 25 Discipline 1 The Commitment of Resources “I believe we possess all the resources and talents necessary. But the facts of the matter are that we have never made the national decisions or marshalled the national resources required for such leadership. We have never specified long-range goals on an urgent time schedule, or managed our resources and our time, as to insure their fulfillment. This decision demands a major national commitment of scientific and technical manpower, materiel and facilities, and the possibility of their diversion from other important activities where they are already thinly spread. It means a degree of dedication, organization and discipline which have not always characterized our research and development efforts.” President John F. Kennedy 26 Charan & Bossidy on Execution “Leaders who execute focus on a very few clear priorities that everyone can grasp.” —Execution: The Discipline of Getting Things Done 27 Jim Collins on Focus Jim Collins, in Good to Great, calls this focus the “Hedgehog Concept.” He found that great companies tend to focus on “one big thing,” at the intersection of their economic engine, their strategy (or what they can be best in the world at), and their organizational passion. (Recall the 2005 2020 Conference) 28 Peter Drucker on Focus “I have never encountered an executive who remains effective while tackling more than two tasks at a time.” —Peter Drucker Management Guru Harvard Business Review, June 2004 29 Discipline 1 The 4 Disciplines of Execution Creating Goals that… ❑ Are Focused (3 or fewer) ❑ Create Line-of-sight ❑ Are Well-crafted (specific|clear|deadline driven) ❑ Have Team Commitment WIG Filter Discipline 1 The 4 Disciplines of Execution Firm Level WIGs WIG 1 WIG 2 3 WIGs 2 WIGs Litigation Support Auditing & Accounting WIG 2 3 WIGs Tax 3 WIGs 3 WIGs 2 WIGs Construction Manufacturing Professional Services Multiplication of Goals Discipline 2 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 2: Create a Compelling Scoreboard We have a highly visible scoreboard of the critical few measures that motivate our players to win! Discipline 2 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 2: Create a Compelling Scoreboard Common Thinking: Once we have communicated the goal people will know we are serious about it. Reality: They won’t believe we’re serious until we start keeping score. Three Types of Measures Lagging Lagging measures provide an historical look at past performance. Leading Leading measures provide indicators that are predictive of future results. • Must drive the lag measures • Should be sensitive enough to move every week • Behavioral, not “quick lag” measures Real-Time Real-time measures show where things are right now. They allow corrective action to be taken immediately to affect the outcome. 36 23 Discipline 2 The 4 Disciplines of Execution Lag Measure Lead Measure Measures Goal Achievement Predictive of the Goal Difficult to Influence Easier to Influence Easier to Measure Harder to Measure Client Retention + Client “touches” Revenue WIP Profit Number of Strategic Reviews Discipline 2 The 4 Disciplines of Execution Compelling Scoreboards… ❑ Are Simple ❑ Are Visual and Highly Visible to the Players ❑ Exist at all Levels ❑ Have the right “Lead” and “Lag” Measures Accounting Firm Example Wildly Important Goals and the Measures 1. Develop and “Professionalize” Automotive Niche to achieve desired market position . a. Develop marketing campaign by June 30. b. Meet with 15 prospects by October 31. c. Convert 5 clients by December 31. 2. Develop online accounting systems capabilities for top 50 clients within 12 months. a. Get system up by June 30. b. Complete first five pilot companies by November. c. Bring “five live” every month until August of next year. 3. Achieve the most successful product launch in firm history with Cost Segregation Studies. a. Generate 20 percent of sales from new clients. b. Generate 30 percent of sales from referral sources. c. Generate 50 percent of sales from existing clients. d. Achieve total revenue of $500K by year-end. Personal Scoreboard for Jeff Pawlow Recovery Debtor Aging 40 Discipline 3 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 3: Think Differently, and Translate New Goals Into Specific Action We think “new and better” and have a process for individually selecting and activating the critical few weekly objectives that will drive the goal. Discipline 3 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 3: Translate Goals Into Specific Action It’s not uncommon to think… However, in reality… The best ideas come from the leaders. The best ideas come from interaction between leaders and the front line. If people know the goal and see the scoreboard, they will know what to do about it… and do it…. Goals will never be achieved until everyone on the team thinks critically about what must be done to achieve goals and then does it. Discipline 3 The 4 Disciplines of Execution Key Questions… Do you think “new and better” What are the three most important things I can do this week to impact the scoreboard? Discipline 3 The 4 Disciplines of Execution “New and Better” Einstein’s definition of Insanity? Getting to Synergy: 1+1= 3 10 100 Discipline 3 The 4 Disciplines of Execution What would it be worth if everyone in your firm actually did the three most important things they could do to move the goal forward each week? An Important Question Is your week happening to YOU… or are YOU happening to your week? A Typical Week M T W Th F Sa Su An Effective WIG Week M T W Th F Sa Su Discipline 3 1 2 3 Translate Goals into Specific Action 3 Team Goals Increase Number of Referral Sources 1_______________ Identify 3 New Sources 2_______________ 2 referral meetings 3_______________ Monday Tuesday Wednesday Thursday 8:00 ID 3 Sources 9:00 Citibank 10:00 Win-win 11:00 Taylor Assoc. Meeting 12:00 1:00 2:00 3:00 4:00 Citibank Win-win Nic Jones Meeting Friday Discipline 4 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 4: Hold Each Other Accountable All the Time We have a process for reporting to each other on the critical few weekly objectives that will drive the goal. Discipline 4 Clear about “the goal” The 4 Disciplines of Execution know activities and actions They do it Discipline 4: Hold Each Other Accountable All the Time It’s Not Uncommon to think: As long as goals are clear and compelling and people know what to do to achieve them they will remain focused and committed to doing it. However, in reality: The certainty of weekly accountability to the team ensures focus and commitment. Hold Each Other Accountable “Follow-through is the cornerstone of execution, and every leader who’s good at executing follows through religiously. Following through ensures that people are doing the things they committed to do.” Larry Bossidy, Execution: The Discipline of Getting Things Done 47 The Weekly Cadence Discipline 2: Maintain and Review the Scoreboard Disciplines 3 & 4: Make Individual Commitments and Report on Activity and Results The 4 Disciplines of Execution Clear about “the goal” know activities and actions They do it 1. Focus on the Wildly Important The 4 Disciplines of Execution Clear about “the goal” know activities and actions They do it 1. Focus on the Wildly Important 2. Create a Compelling Scoreboard The 4 Disciplines of Execution Clear about “the goal” know activities and actions They do it 1. Focus on the Wildly Important 2. Create a Compelling Scoreboard 3. Translate Goals into Specific Action The 4 Disciplines of Execution Clear about “the goal” know activities and actions They do it 1. Focus on the Wildly Important 2. Create a Compelling Scoreboard 3. Translate Goals into Specific Action 4. Hold Each Other Accountable All The Time The 4 Disciplines of Execution “We must all inevitably suffer from one of two pains. Either the pain of discipline or the pain of regret!” Jim Rohn Business Philosopher and Speaker 47 Quote “There is a tide in the affairs of men, Which taken at the flood, leads on to fortune; Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures.” —William Shakespeare Julius Caesar 59 55 Quote “The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today.” —Nolan Bushnell Founder of Atari Computer 60 55 If This Is All Just Too Hard… “The nicest thing about not planning is that failure comes as a complete surprise rather than being preceded by a period of worry and depression.” —Sir John Harvey-Jones Thank You! Jeffrey S Pawlow CEO & Managing Shareholder The Growth Partnership, Inc. [email protected] www.thegrowthpartnership.com (314) 209-0922