Welcome (back) Youve watched intro VUCA, change, - - PDF document

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Welcome (back)

• You’ve watched intro
• VUCA, change, friction/confusion/underperformance
• Sustainable competitive advantages are difficult
• You’ve practiced in the simulation
• Team quiz scores
• Team Liaisons introduce teams: Mark, Tim, Mike, Ryan, Paul
• Name, tagline, executive team
• Show portal
• Discuss “rules”

Suggested (virtual) rules…

• We will start on time (we will end on time)
• Mute/unmute as needed
• Keep camera on as much as possible
• Stand up and stretch frequently (feel free to turn off video)
• Got questions?
• Send in chat message to everyone & wait, or
• Unmute and say “question” & wait
• For help outside of this room,

text Max @ 312-757-0908 (& wait)

• In catastrophic failure (or Zoom bomb), look for email

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Recall: behaving “naturally” …

5 10 15 20 25 30 35 40 45 S t a r t Y r . 1 Y r . 2 Y r . 3 Y r . 4 Y r . 5 Y r . 6 Y r . 7 Y r . 8 Y r . 9 Y r . 1 ROI % Top Half Bottom Half

Source: Ghemawat, Commitment

692 business unit’s ROI comparison

• ver time

“Built to Last” & “Good to Great”

• Studied “Great” companies
• Finding 1.

⁻ “We’ve learned that, if anything, we

underestimated the importance of alignment”

• Finding 2.

⁻ Leadership is key

• However, beware of the myth that visionary companies require

charismatic leaders: “A charismatic visionary leader is absolutely NOT REQUIRED.”

• Think of ARCHITECTS

Built to Last, Collins and Porras; and Good to Great, Collins

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Management "Coping with Complexity" Leadership "Coping with Change"

S h

• r

t e r

• T

e r m L

• n

g e r

• T

e r m R i s k A v e r s e S e e k R i s k C

• m

p r

• m

i s e I n c r e a s e O p t i

• n

s Process Focus Substance Focus Control Influence Order Focus Change Focus

Source: Kotter, What Leaders Really Do

Market, Competitive, and Internal Analysis Product Development and Technology Marketing Distribution Finance Manufacturing

Company Performance Customer Satisfaction

Methodology

• You run a business (active, not passive

learning – a “laboratory”)

• Total immersion (overwhelmed with data. A

representation of reality, not a replication)

• By doing it! (making mistakes)
• Focus on the bigger picture (get outside your

specialty area – talk to others, listen to others)

• As an organized team (divide/conquer/report)
• Competing (focusing on end-goals)
• Fun!

10 lbs in 5 lb bag

Outcome:

Improved Decision-Making Common “Blind Spots” & Thinking Points

• About the “whole” picture (business

acumen or a “Total Business” perspective & the need for integrated & aligned decision-making)

• About how you make money (i.e.,

financial reports, metrics, KPIs)

• About long-term positioning (i.e.,

strategic thinking)

• About “customers”
• About external forces and the need

for adaptability (i.e. markets, competitors)

• The advantages of teams
• The role of “management” vs.

“leadership”

An opportunity to share thoughts & best practices in real-time 9 18

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Performance Measurement Worksheet

PERFORMANCE MEASUREMENT WORKSHEET

Corporate Governance dictates that the following measures will be used to determine success.

KPI’s Weighting

Revenue Growth: (Yr 6 – Yr 1)/Yr 1 40% (NOTE: no “winning”/bonus if < 20% revenue growth) Average Profit 40% circle one: $ or % Average Inventory Days 20% =100%

Performances are Scored (1-100) across the whole industry E.g., Highest sales = $50 MM. Score = (your $)/$50 MM x 100 E.g., Lowest inventory days = 8. Score = 8/(your days*) x 100

“To-Be”: Focus

Objectives & Goals

“As-Is”: Learn

Strengths, Weaknesses, Opportunities, Threats

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Defining the “As-Is” with SWOT

“Discovery consists of seeing what everybody has seen and thinking what nobody has thought.”

Albert Szent-Gyorgyi, in Irving Good, The Scientist Speculates (1962) US (Hungarian-born) biochemist (1893 - 1986). Discovered Vitamin C

Internal Assessment

Opportunities Threats Strengths Weaknesses

External Assessment

“My conclusion… is that a good managerial record is far more a function of what business boat you get into than it is of how effectively you row.”

Warren Buffett, in The Essays of Warren Buffett, 2015

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