Business Execution for RESULTS - Lessons learned from working with thousands of SMB clients
Stephen Lynch is the Head of Strategy and Consulting at RESULTS.com. He is a “Kiwi” (New Zealander) living in San Francisco.
RESULTS.com’s software gives them unique and privileged insights into the day to day operations of thousands of small-medium sized growth firms. We see what really works and what doesn’t in terms of strategy execution, goal setting, tracking performance, running effective meetings, engaging employees and holding them accountable.
To save you from spending several lifetimes trying to figure it all out for yourself, you can access these powerful (and often counter intuitive) insights in this presentation.
1. Presenter: Stephen Lynch
Role: Head of Strategy & Consulting at RESULTS.com
Twitter: @StephenLynch @RESULTSdotcom
Email: Stephen.Lynch@Results.com
Slides Available: www.RESULTS.com/slides
Business Execution for RESULTS
Best practices based on the direct observations
of thousands of client firms
11. "If everything you do needs to work on a 3 year time
horizon, you're competing against a lot of people.
But if you're willing to invest on a 7 year time horizon,
you're competing against a fraction of those people,
because very few companies are willing to do that.
We can't realize our potential as people or as
companies unless we plan for the long term."
27. “This is a fantastic time to be entering the
business world, because business is
going to change more in the next
10 years than it has in the last 50”
28. “It is not the strongest who survive,
nor the most intelligent,
but the ones most responsive to change”
29.
30. “Companies need to operate with one eye focused on
the short-term, and one eye focused on the long-term.
Short-term is about projects related to improving
the current core business, and meeting the needs
of today’s target customers.”
31. Often, this demands bold, disruptive strategic moves
away from the present to reshape the company
for future success.”
“Long-term is NOT about performance improvement.
It is about forgetting the past and reshaping the business
to compete more effectively in the future.
41. Who are your Key Competitors? (the “players”)
What moves are they likely to make? Any Threats? Opportunities?
( Industry life cycle: introduction > growth > maturity > decline / Industry growth rate / Industry profitability / Number of competitors / Market
share / Capital requirements / Globalization / Commoditization / Cost advantages / Economies of scale / Friendly vs. Aggressive competition)
List your answers below:
45. What New Entrants could disrupt you?
Any Threats? Opportunities?
( Industry barriers / Capital requirements / Learning requirements / Access to supplies / Access to distribution / Performance vs. incumbents /
Perceived differentiation in customers’ mind / Loyalty to incumbents / Switching costs / Retaliation by incumbents / “Innovator’s dilemma”)
List your answers below:
51. What Substitute products / services could disrupt you?
Any Threats? Opportunities?
( Technology changes / Industry structure changes / Availability of substitutes / Performance of substitutes / Perceived differentiation in
customers’ mind / Switching costs / Customer desire to seek out alternative solutions to satisfy their need)
List your answers below:
53. “Who” or “What” do you need to
pay for to run your business?
54.
55. Who are your Key Suppliers? What moves are they likely to make?
Any Threats? Opportunities?
( Cost of supplies / Negotiating power of suppliers / Access to alternative sources of supply / Switching costs /
Forward integration – supplier becomes competitor)
List your answers below:
58. Who are your Key Customers? What moves are they
likely to make? Any Threats? Opportunities?
( Customer demographic and psychographic description / Power to dictate prices or terms / Ability to influence other customers / Customer
reviews / Perception of differentiation between vendors / Loyalty / Switching costs / Backward integration – customer becomes competitor)
List your answers below:
62. What political factors / laws / regulations are likely to impact you?
Any Threats? Opportunities?
( Industry specific regulations / political spectrum left vs. right / political stability / laws / taxes / trade policy / wars / environmental issues /
health / safety / consumer laws / employment laws)
List your answers below:
67. What economic factors / changes in buying behaviors
are likely to impact you? Any Threats? Opportunities?
( Economic growth / interest rates / exchange rates / inflation / availability of credit / investor interest in your industry / discretionary spending
changes in customer purchasing habits / use of debt and leverage vs. more frugal spending / new forms of payment)
List your answers below:
72. “We are going to have to
reinvent management; the way
we lead, we plan, we organise,
we hire, we motivate... because
today, organisations are facing a
set of challenges that are truly
unprecedented."
73. Baby Boomer
1946 -1964
Generation X
1965 - 1980
Millennial / Gen Y
1981 - 2000
Key life influences Cold War nuclear threat, NASA
moon landing, Vietnam, Civil
rights, Hippie culture
AIDS, Divorce, MTV, Cold War
ending, Personal computer,
Microsoft
Internet, Always connected,
Share everything online,
Facebook, Apple and Google
Work environment Long hours, Office only Formerly Office, Increasingly
working from home
Office, Home, Wherever,
Desires flexible work hours
Work ethic Workaholic, Quality focus,
Team player
Clear direction, Get tasks done,
Self reliant, Free agent
Entrepreneurial, Variety,
Multitasking, What’s next?
Management style Hierarchy, Chain of command Everyone should manage
themselves, Challenge people
Collaboration, Consensus
Personal Motivators Salary, Job title, Feeling valued
and respected
Money, Freedom, Break the
rules and do it your own way
Meaningful work,Maintain
personal life, Training, Mentoring
Mentoring Does not like feedback. Does
not take negative feedback very
well
Does not think feedback is
necessary. Will ask for it they
want it
Wants frequent management
feedback, Feedback on demand
at the push of a button
Internal
communication
Face to face meetings focused
on process, Memos
Face to face meetings focused
on results, Emails
Face to face participative
discussions, Emails,
Collaboration software
Client
communication
Face to face, Phone Face to face, Phone, Email Email, Social Media, Instant
messaging
Career Goals Climb the ladder at one
company, Job security
Build transferable career with
variety of skills & experiences,
Build a business.
Build several parallel careers or
businesses simultaneously
74. What social factors / trends / attitudes / behaviors
are likely to impact you? Any Threats? Opportunities?
( Demographic trends / career attitudes / health issues / environmental concerns / communication styles / social behaviors / online behaviors /
media consumption / cultural differences / generational differences / income equality / society’s evolving attitudes, values & beliefs)
List your answers below:
92. What technological factors / trends / are likely to impact you?
Any Threats? Opportunities?
(New technologies / Rate of technology adoption / Impact of internet and mobile / Social media / New devices & interfaces / Jobs replaced by
technology / Business models disrupted by technology)
List your answers below:
94. What do you need to START doing?
(Because industry analysis shows it is strategically important for your long term success = “Core”)
List your answers below:
95.
96. “The difference between successful people
and very successful people
is that very successful people say "no"
to almost everything”
Warren Buffett
“Many managers do not understand the importance
of having a clear strategy. Strategy is about
making trade-offs. The essence of strategy
is choosing what NOT to do.”
““Many managers do not understand the importance of
having a clear strategy. Strategy is about making trade-offs.
The essence of strategy is choosing what NOT to do.”.”
97. “The difference between successful people
and very successful people
is that very successful people say "no"
to almost everything”
Warren Buffett
98. “The difference between successful people
and very successful people
is that very successful people say "no"
to almost everything”
Warren Buffett
99. “The difference between successful people
and very successful people
is that very successful people say "no"
to almost everything”
Warren Buffett
100. What do you need to STOP doing?
(Because industry analysis shows it is not strategically important for your future success /
it no longer serves you / initiatives not working out / purposeful abandonment = “Non Core”)
List your answers below:
101. “Every leader needs to
clearly explain the top 3 things
the company is working on.
If you can't,
then you're not leading well”
102. What are the top 3 long-term strategic moves
to position your firm for future industry success?
(will be implemented within the next 3-5 years)
3-5 Year Strategic Move Person Accountable
1.
2.
3.
103. ★ Research your early adopter customers
★ Subscribe to industry thought leader blogs
★ Attend industry conferences
★ Learn from other industries - peer networks
★ Conduct thorough industry analysis at least every 12 months
○ Porter’s 5 Forces + PEST
○ Survey your staff to get their input
★ The questions remain the same. The answers keep changing
★ Review strategic moves every quarter. Do they still make sense?
★ Strategy requires tradeoffs. What are you NOT going to do?
3 to 5 yr Strategic Moves - best practices
104. 3 to 5 Year Strategic Moves
SWOT
Key Performance Indicators
Core Values
Best Practices
108. “Our people” is not a strength
What is it about your people that makes your team strong?
E.g. “Highly sought after software engineers”
“Marketing” is not a weakness
What is it about marketing that is weak currently?
E.g. “Cost of Customer acquisition too high”
“Communication” is not a weakness
What is not being communicated?
E.g. “3 to 5 Year Strategic Moves not well understood”
Be specific with your SWOT: Use 3-5 word phrases
110. What are the top strengths / assets / competencies within your
business you can leverage (or build) in the next 12 months?
Rank your Top 5 Strengths in order:
111. What are the biggest weaknesses within your current business
that could be fixed or improved in the next 12 months?
Rank your Top 5 Weaknesses in order:
112. What opportunities can you pursue over the next 12 months
that will position your company for future success?
Rank your Top 5 Opportunities in order:
113. What external threats do you need to reduce
(or closely monitor) to ensure they do not derail your plans?
Rank your Top 5 Threats in order:
115. What are the top 3 Strategic Projects your company
needs to execute in the coming period?
- Each must address 1 or more issues described in your SWOT analysis (relevant)
- Describe the tangible end-point milestones (so you know when to celebrate)
- Balance short-term business improvement initiatives (improving “what is”)
vs. building long-term strategic capability for the future (creating “what will be”)
Current Strategic Project Due
Date
Person
Accountable
1.
2.
3.
116. ★ Review and update SWOT every quarter
★ Use your 3 to 5 year Strategic Moves as the context for SWOT
★ Survey staff to get their input
★ Think like an outside investor doing due diligence on your firm
★ No fluff. Tell the truth. Be specific
★ Use 3 to 5 word descriptive statements
○ e.g. “Marketing” is not a weakness.
○ What is it about marketing that is weak currently?
○ e.g. “Customer acquisition cost too high”
★ Use SWOT as context for choosing top 3 Projects each quarter
SWOT Analysis - best practices
117.
118. 3 to 5 Year Strategic Moves
SWOT
Key Performance Indicators
Core Values
Best Practices
127. Questions to identify your KPIs
1. What are the functional areas of our operating model?
2. What result or outcome are we looking for in each area?
3. What “activities” or “actions” drive this outcome?
4. What “effectiveness” measures let us know how well these
activities are being performed?
159. Someone in “The Red”
What’s happening here?
What 1 thing can we do this week to
improve this?
How can I help? What support do you
need?
160. ★ KPIs drive “business as usual” (your current operating model)
★ Don’t just track outcomes or currency measures
★ Focus on activity & effectiveness measures that drive outcomes
★ Make performance visible on a dashboard
★ Weekly team and 1 on 1 meetings to discuss performance
★ Good performance praise and recognize
★ Poor performance discuss every week, “What’s happening here?”
★ Shame is not a motivator. Beware setting thresholds too high
★ Be conservative in beginning. Get every used to winning
★ Ratchet up performance threshold over time
★ Adjust thresholds every quarter to ensure relevance
KPI - best practices
161. 10 Benefits of KPI Dashboards
1. Radical Transparency - motivates action
2. Drive your operating model (Business as usual)
3. Keep people focused critical success factors
4. Communicate “what” needs to be done
5. Delegate authority to staff to figure out “how”
6. Recognize progress when things going well
7. Early warning indicator when things going wrong
8. More effective meetings to drive accountability
9. Objective decision making based on data
10. Drive business execution and RESULTS
162. 3 to 5 Year Strategic Moves
SWOT
Key Performance Indicators
Core Values
Best Practices
165. Get everyone home safely.
Fair day’s pay for a fair day’s work.
Promote the company positively.
Do it right first time.
Don’t take the piss.
166. Our Core Values:
Build trust
Provide amazing service
Jump in to help others
Handle change with flexibility
Embrace new technology
Figure it out and get it done
Our Mnemonic device:
Babies Push Jack Hammers Every Friday
167. Our Core Values:
Build trust
Provide amazing service
Jump in and help
Handle change with flexibility
Innovate our processes & technology
Figure it out and get it done
Make AnswerLab a great place to work
Our Mnemonic device:
Beer Pong Judges Have Incredible Floor Mops
168. Use 3-5 word phrases, to list small handful of behaviors you want
demonstrated by every person in every role:
Use unique words and phrases that have special meaning
and will resonate with your people
169. Core Values are “musts” – not “nice to haves”
Do each of your chosen Core Values pass these 4 tests?
If not – they are not core and should be eliminated Yes?
No?
Actively confront colleague for not demonstrating this behavior?
Spend (or forgo) money to uphold this behavior?
Everyone gets graded on how well they live this behavior?
Fire person if they cannot demonstrate behavior consistently?
170. ★ Use 3 to 5 word descriptive statements
★ Rules for the “right” behaviors to be demonstrated by ALL
★ Unique to your firm (the quirkier the better)
★ Core Values are “Musts”, not “Nice to haves”
★ Context for decision making “What’s the right thing to do?”
★ Basis for performance appraisals, hiring and firing staff
★ Everyone must know them by heart
★ Compulsory stories shared every week to reinforce them
Core Values - best practices
171.
172.
173. Presenter: Stephen Lynch
Twitter: @StephenLynch @RESULTSdotcom
Email: Stephen.Lynch@Results.com
Presentation Available: www.RESULTS.com/slides
Business Execution for RESULTS