The Execution Tune-up™ Getting from Vision to Execution
Kath Infante McBroom
Great Companies
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“Good is the enemy of great”
- Jim Collins
Great Companies
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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
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“Great performance is about 1%
vision and 99% alignment”
Jim Collins
Built to Last
Great Companies
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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
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There are very
Predictable Barriers to a
Company’s Profitable
Growth
Barriers to Growth
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• 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)
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Issues that impact a company as it moves
through transitions to the next level
Barriers to Growth
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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
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So why is it so tough?
Delegation is Critical to Growth
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• Pinpoint (measure)
• Feedback Agreement
• Risk Tolerance
• Reward & recognition
“Great leaders delegate results, not tasks”
What Is Your Risk Tolerance?
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Goal x
x
x
x
x
x
x
x
x
x
x
x
+2
-2
Risk
Tolerance
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“Great leaders delegate results, not tasks”
• Pinpoint (measure)
• Feedback Agreement
• Risk Tolerance
• Reward & recognition
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“What is one thing you are
doing today that you should
delegate to someone else?”
Barriers to Growth
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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!
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2:2 4:12
An arithmetic increase in headcount, locations or
databases leads to a geometric increase in complexity
Barriers to Growth
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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→
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It is virtually impossible in
growth phases to skip a step,
just like child development
THE ROCKEFELLER HABITS
Rockefeller Habits for Executive Teams
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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
Rockefeller Habits for Executive Teams
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Priorities – Top 3 to 5 and #1
Rhythm - Executive Team Meetings
Data Driven - Metrics
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
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Rockefeller Habits for Executive Teams
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Priorities – Top 3 to 5 and #1
Rhythm - Executive Team Meetings
Data Driven - Metrics
Rhythm is about Frequency
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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
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This structured format utilizes about 5%
of an executive team’s total time
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Rockefeller Habits for Executive Teams
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Priorities – Top 3 to 5 and #1
Rhythm - Executive Team Meetings
Data Driven - Metrics
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)
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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
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Examples
CEO and Executive Leadership
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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
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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
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So how does a company
first create a vision and then
more importantly, translate it
into execution and results?
High-performing Companies
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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
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“Great performance is about 1%
vision and 99% alignment”
Jim Collins
Built to Last
The Execution Roadmap™
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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
The Execution Roadmap™
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The Execution Roadmap™
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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
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Rarely do good companies
need to replace the engine;
tune-up the components to
get optimum performance
Contact Information
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Kathie McBroom
Synergy Business Group, LLC
859-552-4991
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