The Execution Maximizer™ Tune Up

The Execution Tune-up™ Getting from Vision to Execution

Kath Infante McBroom

Great Companies

Copyright © Alampi & Associates 2

“Good is the enemy of great”

- Jim Collins

Great Companies


The Great companies had a 5 times

multiple in profit performance and a

10 times multiple in valuation

compared to the Good companies.

Great Companies


“Great performance is about 1%

vision and 99% alignment”

Jim Collins

Built to Last

Great Companies


Companies don’t fail for lack of

vision. They fail because they

cannot translate their vision into

execution.

Vision without execution is

hallucination.

Our Agenda Today

The 3 Barriers to Profitable Growth

– Leadership

– Systems and structures

– Market dynamics

The Rockefeller Habits for Executive Teams

CEO & Executive leadership

The Execution Roadmap – getting your strategic plan

onto one page so you can execute it

6 Copyright © Alampi & Associates


There are very

Predictable Barriers to a

Company’s Profitable

Growth

Barriers to Growth


• 31 million companies in the U.S. file tax returns (2008 IRS Data)

• 96% have fewer than 10 employees

96%

$1 million

10 FTEs

4%→

$10 million

50-75 FTEs

125,000→

$50 million

200-400 FTEs

17,000→

$500 million

1,000 + FTEs

2,500→

Predictable Barriers to Growth

Leadership

Delegation

Systems & Structures

Market Dynamics (Fundamentals)


Issues that impact a company as it moves

through transitions to the next level

Barriers to Growth


Leadership

96%

$1 million

10 FTEs

4%→

$10 million

50-75 FTEs

125,000→

$50 million

200-400 FTEs

17,000→

$500 million

1,000+ FTEs

2,500→

Delegation


So why is it so tough?

Delegation is Critical to Growth


• Pinpoint (measure)

• Feedback Agreement

• Risk Tolerance

• Reward & recognition

“Great leaders delegate results, not tasks”

What Is Your Risk Tolerance?


Goal x

x

x

x

x

x

x

x

x

x

x

x

+2

-2

Risk

Tolerance


“Great leaders delegate results, not tasks”

• Pinpoint (measure)

• Feedback Agreement

• Risk Tolerance

• Reward & recognition


“What is one thing you are

doing today that you should

delegate to someone else?”

Barriers to Growth


Systems & Structures

96%

$1 million

10 FTEs

4%→

$10 million

50-75 FTEs

125,000→

$50 million

200-400 FTEs

17,000→

$500 million

1,000+ FTEs

2,500→

It Is About Complexity!


2:2 4:12

An arithmetic increase in headcount, locations or

databases leads to a geometric increase in complexity

Barriers to Growth


Market Dynamics

96%

$1 million

10 FTEs

4%→

$10 million

50-75 FTEs

0.4%→

$50 million

200-400 FTEs

17,000→

$500 million

1,000+ FTEs

2,500→


It is virtually impossible in

growth phases to skip a step,

just like child development

THE ROCKEFELLER HABITS

Rockefeller Habits for Executive Teams


Priorities – Top 3 to 5 and #1

Rhythm - Executive Team Meetings

Data Driven - Metrics

Titan, Ron Chernow

Biography of John D. Rockefeller

Mastering the Rockefeller Habits, Verne Harnish






Habit #1 - Priorities

Priorities have to start at the company level

Top 3 to 5 focus areas (maximum) and know #1

Issues where executive team focus will have greatest

impact for the company

For 3 year horizon, current year and next quarter

For Company / Department / Individual levels







Rhythm is about Frequency


Increase the frequency and you will

naturally increase the results

Activity

Time

Activity

Time

Habit #2 – Meeting Rhythm

Annual executive team off-site – 2 days

Quarterly executive team off-site – 1 day

Monthly executive team meeting - ½ day

Weekly executive team meeting/call – 1 -1½ hours

Daily huddle/call – stand up meeting - < 15 minutes


This structured format utilizes about 5%

of an executive team’s total time







Habit #3 – Data Driven

Standard Corporate Numbers

– Financial and operational numbers / ratios

– Rear-view look

Smart Numbers

– Typically 2 - 3 in any organization

– Leading indicators – what is around the corner?

Critical Number

– 1 or 2 numbers targeted to a critical weakness

– Targeted for a short period of time (e.g., quarter)


The Right Metrics

Graph it

Visual - get it up and around the

organization

Frequent - 6 data points to spot

a trend

Measure what’s important, not

what’s easy

Absolute numbers vs. %’s -

choose which is appropriate for

the type of measurement


Examples

CEO and Executive Leadership


Smart Healthy

- Strategy

- Marketing

- Finance

- Technology

- Less Politics

- Less Confusion

- Higher Morale

- Higher Productivity

- Lower Turnover

An organization needs to be both to be successful

* Source: Patrick Lencioni, The Table Group, Inc.

Leadership: the Four Obsessions


4:

Reinforce

Clarity Through

Human

Systems 3:

Over-

Communicate

Organizational

Clarity

2:

Create

Organizational

Clarity 1:

Build and

Maintain a

Cohesive

Leadership

Team * Source: The Four Obsessions of An Extraordinary

Executive, Patrick Lencioni, The Table Group, Inc.

Getting from Vision to Execution


So how does a company

first create a vision and then

more importantly, translate it

into execution and results?

High-performing Companies


Companies rarely fail for lack of

vision. They fail because they cannot

translate their vision into execution.

Vision without execution is

hallucination.

High-performing Companies


“Great performance is about 1%

vision and 99% alignment”

Jim Collins

Built to Last

The Execution Roadmap™


It all starts with a vision (core ideology) and

then a specific plan and process

to execute that vision

The best way to execute a strategic plan is 90

days at a time





Summary

The 3 Barriers to Profitable Growth

– Leadership

– Systems and structures

– Market dynamics

The Rockefeller Habits for Executive Teams

CEO & Executive leadership

The Execution Roadmap – getting your strategic plan

onto one page so you can execute it

39 Copyright © Alampi & Associates


Rarely do good companies

need to replace the engine;

tune-up the components to

get optimum performance

Contact Information


Kathie McBroom

Synergy Business Group, LLC

859-552-4991

[email protected]

Documents

The Execution Maximizer™ Tune Up