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President's Focus Newsletter You can subscribe to and receive this newsletter every month. Moving Forward in 2010 June 8th, 2010 Execution Excellence! Is execution excellence a byproduct of great adversity or great vision or both? What if you were planning a major event and expecting 150,000 visitors to attend and you had these challenges? Your budget was $66 million and the shortfall was $53.8 million with only 40 months to get funding in place! Four months prior to the event, two of the million-dollar sponsors went into receivership as a result of the Global Economic Crisis with 30,000 pre-paid hotel reservations and $16 million in equipment leaving equipment orders and commitments unfulfilled. You had 'zero' no name recognition and no prior public relations experience for the event. Delegate attendance was in constant flux & impacting the amount of space required and equipment needed. The Saddledome wasn't available for opening ceremonies and had to be held at the Grandstand - therefore, good weather was paramount. Additional space & electrical power was required for the 800,000 sq ft event, again, making it dependant on good weather. 3,000 community volunteers were needed to assist in the implementation of the event! WHO declared the H1N1 Influenza outbreak as an official Global Pandemic one week before the event. Two days prior to the event, the Prime Minister had not yet confirmed his attendance. These were the challenges of the exceedingly successful Worldskills competition last fall! The Results! The competition was deemed to be "the Best WorldSkills Competition ever" by Jack Dusseldorp, President of WorldSkills International. The $9.5 million sponsorship target was exceeded by $3 million in spite of the largest global recession since the Second World War. 151,589 people attended! 3,300 people volunteered from Calgary and across the country with every province and territory represented. The Prime Minister did come for the opening ceremonies held at the Grandstand - it was a beautiful prairie day! 11 massive tents and 7 diesel generators were installed - the two week period was one of very warm, clear and dry weather. There was one H1N1 incident and the WorldSkills Response Team handled it in "text book fashion". IPSOS Reid Survey indicated 82% of Adults and 98% of Youth in Calgary were aware of the competition and opportunities for careers in technology and skilled professions as opposed to 7% and 4% prior to the event. The legacy: 55 schools and 60,000 elementary students engaged in the One School One Country program match schools with teams from around the world; $1.5 million WorldSkills Calgary 2009 Scholarship Fund; and so much more! Execution excellence! The Worldskills Vision Worldskills Vision was to host the best WorldSkills Competition in the 59 year history of the organization; highlight Calgary's culture, landscapes and hospitality; host a "VISITOR CENTRIC" event where the 150,000 expected guests will be the focus of attention for awareness raising and information transfer; fully engage industry in the support of the event with both volunteers and sponsorship; and leave a legacy after the event. Excellence in execution of the Vision! The Backdrop - Future Conditions The backdrop of the 40th International WorldSkills Competition is that in Canada by 2025, there will be 1 million jobs sitting empty as 40% of the workforce will be retired. Urbanization of the globe with world markets, employment opportunities and populations converging means that the pursuit of excellence and measurement against the Global Standard will take on greater significance. Globallization is here and it is providing phenomenal opportunities and unbelievable challenges. Our responsibility is to give the next generation the tools and the skills to take up this challenge - to re-write the process of transferring knowledge from Mentors to Students. In conclusion, there is a need to find a new way to nurture learning - as not all students blossom in a traditional linear model. Unleashing the passion that young students have for technology and skills - and fueling that passion - is our collective responsibility. Richard Walker of The Walker Resource Group The contents of this newsletter contain excerpts from Richard Walker's speech to CCAT in December, 2009. If you would like to find out more or have Mr. Walker key note an event for your organization, email Richard Walker of the The Walker Resource Group rlhwalker@shaw.ca. (The Walker Resource Group was established in 1988 to assist non-profits, educational institutions and community agencies to achieve excellence in the program delivery, revenue development, relevance, efficiency and effectiveness.) Skill Development for Building Strategic Focus For sharpening the strategic focus of your team when it comes to building your business strategy, marketing strategy, next level development stage of growth steps, business planning and/or execution strategy, call to book a workshop or a lunch & learn presentation - 403 252 0799 or ashmore@ashmore-assoc.com.
Yours truly, Eileen Ashmore, MBA Moving Forward in 2010 April 27, 2010 The Magnetic Force Several years ago, I wrote about what really happens with goal setting - all sorts of obstacles come up that make the goal more difficult and, at times, extremely difficult to reach. In his autobiography, OPEN, Andre Agassi describes what it is like to reach a major goal in life - winning the the US Open in 2006 - the final game of his career. "The finish line at the end of a career is no different from the finish line at the end of a match. The objective is to get within reach of that finish line, because then it gives off a magnetic force. When you're close, you can feel that force pulling you, and you can use that force to get across. But just before you come within range, or just after, you feel another force, equally strong, pushing you away. It's inexplicable, mystical, these twin forces, these contradictory energies, but they both exist. I know because I've spend much of my life seeking the one, fighting the other, and sometimes I've been stuck, suspended, bounced like a tennis ball between the two. Tonight, I remind myself that it will require iron discipline to cope with these forces, and whatever else comes my way. Back pain, bad shots, foul weather, self-loathing. It's a form of worry, this reminder, but also a meditation. One thing I've learned in 29 years of playing tennis. Life will throw everything but the kitchen sink in your path, and then it will throw in the kitchen sink. It's your job to avoid the obstacles. If you let them stop or distract you, you're not doing your job, and failing to do your job will cause regrets that paralyze you more that a bad back." Andre Agassi hated tennis. After becoming #1 is the world in 1995, the pinnacle of all pinnacles, he felt nothing. "...wondering what was the hell wrong with me. I did it, I'm the number one tennis player on earth, and yet I feel empty. If being number one feels empty, what's the point? Why not just retire - I'll be a 25 year old retiree, which sounds a lot like a ninth grade drop out. No, what I need is another goal.... What I think I've always wanted, since I was a boy, and what I want now, is far more difficult, far more substantial. I want to....." Andre Agassi went on to reach extraordinary goals, and, deeper and more meaningful goals with each successive year until his retirement in 2006 at the age of 36. Announcements Interested in doing business with PEMEX? On April 29th, Nexos Consulting is putting on a workshop 'How to do Business with PEMEX'. Call Nicole Granados at 403 232 6899 or nicole@nexosconsulting.com to find out more. Participate in an exciting and uplifting student entrepreneur's expo. ACE Canada is looking for presidents & entrepreneurs to judge student entrepreneur presentations at the National Exposition May 10th to 12th held in Calgary. Call Lauren Thomson at 416 304 1566, 1 800 766 8169 or email at lauren@acecanada.ca. Twittering: I am tweeting on my favorite topic - STRATEGY FIRST!! http://twitter.com/StrategyFirst when you want to check the tweets.
Yours truly, Eileen Ashmore, MBA Moving Forward in 2010: Our Canadians! March 8, 2010 The Moments! Will we ever forget the thrill and achievement of our Canadian Olympians? Remember the 1st medal won by Jennifer Hiel in the Woman's Moguls? And then remember the Gold secured by Alex Bilodeau in Men's Moguls and his sweet brother in overjoyed excitement - Christine Nesbitt's gold win in the 1000m speed skating, and the blond bombshell bobsledders winning gold? Then there was the woman's hockey team with total abandonment 'owning the ice' with beer and cigars. We were awed by Joannie Rochette competing against all odds under extreme personal adversity. With years and years of training from when they were children, we saw Tessa Virtue & Scott Moir securing the gold medal with flawless execution - the youngest Ice Dance gold winners in history and the first gold for Canada ever! There was only a 1.6 second difference between 5th place and a gold medal in the 50 km Cross Country Ski! And yes, Team Canada did set the record straight - hockey is Canada's game! For us proud Calgarians, it was Jerome Iginla's pass to Crosby that made the golden goal. We did own the podium - our Olympians have changed the Canadian psyche forever. We are strong, we are persevering, we are risk taking, and, we win over and over and over again. As entrepreneurs and business owners, we too can dust off our vision, mission and goals and be Olympian in thought and action right here in our own back yard. Could it be more exciting? Except for KD Lang - a superstar performing on the level of an Olympic Superstar. What a role model!! Detachment in Motion Who could not admire and respect Joannie Rochette competing under extreme duress with the sudden loss of her mother? She detached from her emotions to be a professional and become an Olympic champion. Tells us a lot about the importance of detachment to maintain a healthy work life balance - detaching from home while at work, and, detaching from work while at home. An important but difficult goal for all, and, an Olympic goal for Joannie. More Inspiration! Here's KD Lang like no other creating the most fun ever at the 1988 Olympics http://www.youtube.com/watch?v=L2VsivZ-9LY - watch for the kiss and then KD Lang at the 2010 Olympics - http://www.youtube.com/watch?v=rVq0L4kkpKM - the video is so good you have to buy it on iTunes!
Yours truly, Eileen Ashmore, MBA 2010 Alberta Budget Highlights February 9, 2010 The Minister cautioned that we are stilling feeling the impact of the recession and discussed having confidence by drawing upon our strengths and committing to keeping Alberta competitive. The 2010 budget estimates $34 billion in revenue and $38.7 billion in expenses with a $4.7 billion deficit with 2.6% growth in 2010 and an average of 3% over the next 3 years. The estimated deficit for 2011 is $1.7 billion with the goal to be back in the black by 2012 with $505 million surplus. The Minister committed to not allowing deficits to become long term debts. (He emphasized that debt was for capital projects and not day to day operations. ) Main points of the budget:
Premier's 4 Point Plan - reduce spending in government departments; use savings in Sustainability Fund to protect primary programs; build infrastructure - creating more jobs, and, keeping Alberta competitive - no new taxes. Note the government's 5 priority areas:
Throne Speech Highlights Alberta is striving to be 'Better, Stronger & Smarter'. Main ideas were:
Basic Facts about Canada & Alberta
Yours truly, Eileen Ashmore, MBA You are Most Vulnerable at the Top February 3, 2010 A few years ago, Ken King, while addressing the Strategic Forum, expressed a unique leadership dilemma in one short phrase. He said, "you are most vulnerable at the top". With the Flames' losses mounting, the timing for this newsletter may not be the best! Nevertheless, when Ken King was questioned about why he said this, he discussed how winning athletes are so close to the very top of their game that there's not much more room to improve and that this is when they are most vulnerable. Is this not true for leaders too? In addition to this, leaders can be insulated from reality by focusing on operations and not focusing enough on strategies for mitigating risk - seen or unforeseen. Let's consider Premier Stelmach's bringing in the Royalty Review in 2008. Oil prices were at all time highs and government coffers were at all time highs. A change in the royalty structure, was a huge risk that hurt thousands of people in the oil and gas sector, and, has brought the Conservatives much criticism and more competition in their arena with the Wild Rose party staking its territory. In Alberta right now, many businesses are not at the top of their game. In fact, they are fighting their way back to profitability. Let's remember as we move forward in 2010 - if we are at the top of our game, know that risk is at its highest. But also know that at the top, we have more resources, more strategies and more options to choose from to mitigate risk. That is, if we keep a strategic focus. To discuss further - ashmore@ashmore-assoc.com. Next newsletter will be on the February 9th Alberta Budget. Will we see the government provide some support and encouragement so that all industry sectors are firing on all 8 cylinders and Albertans are back to work? Check out out Premier Stelmach's twitter account http://twitter.com/premierstelmach for his latest thoughts on the upcoming Throne Speech & Budget. He recognizes the many strong and opposing forces to cutting spending along with stating the desire to be in the black by 2012. From the Bottom Up One of the most inspirational movies about leadership and motivating people to change under conditions when they absolutely don't want to change is the movie Invictus. Sometimes leaders work against such incredible odds that it comes down to achieving the impossible. That's what Nelson Mandela did to turn the tide in dealing with the aspirations of the blacks and calming the fears of the former ruling class. This is a movie for leaders to confirm not only how tough it is out there, but that great strides can be made with a unique but yet awsome strategy, a plan of action, and, exhilarating execution to achievement. Plus, there is one more secret & indomitable action - for that, you'll need to see the movie! Here's the trailer link http://www.youtube.com/watch?v=E9Ovkye6lac. Check out http://twitter.com/StrategyFirst - I’m tweeting on my favourite topic
Yours truly, Eileen Ashmore, MBA Relentless Execution! January 12, 2010 As we look back on 2009 and account for what went well and what didn't go so well, is there something that could have been done that would have made a great deal of difference in the year? For many companies, 2010 is a year for returning to profitability. Will your company be proactive this year? The execution of your business strategy and plan is key to your company's success and future growth in 2010.
But what about a year filled with relentless execution? Sounds exciting doesn't it? Relentless execution is simply doing what you say you're going to do and that everyone else on the team is doing what they say they're going to do. Yes, much easier said than done but what other alternatives do we have? Yes, there are hurdles and obstacles but relentlessly executing on the plan, tracking results, course correcting as we go, keeping an eye on opportunities not in the plan - all lead to glory and accomplishment in the end. We kept our word, raised our own energy and the excitement and the energy of our people and became relentless in the execution of our business strategy. 2010 - it's a year for relentless execution!
Yours truly, Eileen Ashmore, MBA The Entreprenuer's Lament December 8, 2009 An entrepreneur's lament too often is "Why is running a business such hard work?" Emerson in his essay on Self Reliance said "A political victory, a rise in rents, the recovery of your sick or the return of your absent friend, or some other favorable event raises your spirits and you think good days are preparing for you. Do not believe it. Nothing can bring you peace but yourself. Nothing can bring you peace but the triumph of principles." (The principle he was referring to is that cause equals consequence therefore hard work equals reward.) Pete Seeger came to a dead stop realization early in his career when challenged by reality that 'a future in music would follow from a superfluidity of talent - what he described as "unschooled talent" had been undone by an awareness that he would have to work very hard.' Nine years later he sold over 5 million records of 'Good Night Irene'. Jack Canfield has some insights for entrepreneurs. Success Principles - Jack Canfield "The 3 key differences that separate super high-achievers from everyday people:
Ask yourself, have you built your long term strategy and vision for your business? Are you applying powerful management and marketing disciplines in your business? Are you taking 100% responsibility for revenue and profit results?
Yours truly, Eileen Ashmore, MBA "Winning Forever" September 28, 2009 Pete Carroll was interviewed on 60 Minutes the Sunday before last and what an inspirational interview! Called the 'Prince of L.A.', Pete Carroll's castle is the L.A. Coliseum, the home of the University of Southern California Trojans. Fired from the NFL because of poor coaching performance, Pete Carroll found his way back to coaching through college football. He's become one of the highest paid college football coaches in the country - estimated at earning $4 million a year. His belief as a coach and leader is that "the best players don't always win, the players that play the best do. That's why we work so hard. That's why we focus so much on practicing better than anybody's ever practiced before. It's about doing things better than you have ever done them before." Now isn't this an exciting, self actualizing idea. But there is more - his coaching philosophy goes deeper. He calls it "Winning Forever". "It's about finding out how good you could become at something and then making it come to life." It's about helping people find hope by building "their own vision to help them understand what they can become." Now this sounds like 'real' hope. As Pete Carroll says "Each person holds so much power within themselves that needs to be let out. And sometimes, it's a little nudge, a little direction, a little support, a little coaching and you know the greatest of things can happen." It's "Winning Forever". As a leader and coach, have you unlocked your vision and purpose so that you are Winning Forever? As a leader and coach, have you unlocked the vision and purpose within each of your people so that they are Winning Forever? To read of view Pete Carroll's inspirational and practical visioning process, click http://www.cbsnews.com/sections/60minutes/main3415.shtml And now to an inspirational day with Jack Canfield right here in Calgary this Saturday!
Yours truly, Eileen Ashmore, MBA Finding Greater Certainty Moving Forward September, 2009 A recent Harvard Business Review article* tells us that adaptive leadership rather than hunkering down with cost cutting measures will help corporate leaders be more effective in dealing with continuing uncertainty as the US pulls out of recession. Adaptive capacity is defined as 'the ability to lead when neither you nor anyone else has ever been where you need to go.' The article indicates that 'intensifying global competition, energy constraints, climate change and instability' are some of the factors that will continue to contribute to uncertainty. Adaptive leadership has the qualities of being optimistic, and, realistic. This is an excellent article that gives leaders pause for thought as to how they are approaching uncertainty in the next few years as they move their companies forward. This article prompted my thinking about the changes underway in our values that also support the need for adaptive leadership. Work-life balance, debt reduction, wealth expectations, and, eco-care values are changing. A healthy work-life balance seems to be becoming more of the norm. This is more true now with the baby boomer generation who have had a tendency to 'work to live' whereas work-life balance has been important to both Generation X and Generation Y. For example, a 4 day work week could become the norm within the next few years. With the worldwide financial/banking crisis, debt reduction has become a priority. Expectations are changing in terms of expecting modest growth and modest wealth accumulation. Exponential growth and exponential wealth accumulation with a boom / bust experience has had a near crippling effect on the financial/banking system never mind on businesses and investors. Eco-care and reducing the carbon footprint at work and at home - recycling, minimizing energy usage, considering alternate energy sources are all part of big changes underway in the next few years. Given this, adaptive leadership is needed to incorporate these important values along with adapting to changing and somewhat uncertain market conditions. As you know, with the work that my firm does, it's about moving my clients to a position of certainty by building plans and strategies that are creative, and, reasoned, rational and sound. It's where inspiration meets structure = increased certainty and greater opportunity. Results are tracked to ensure that these plans and strategies are strong enough to weather the big storms but flexible enough to adapt to new conditions along the way. *Leadership in a (Permanent) Crisis - Ronald Heifetz, Alexander Grashow and Marty Linsky"
Yours truly, Eileen Ashmore, MBA Is the Recession Over? August 2009 Is the recession over? On July 24th, the headline 'The Bank of Canada declares
slump is over" seemed a little confusing. Another article quoted Finance Minister
Jim Flaherty as saying "No...the economy has stabilized and there are the beginnings
of a recovery, but I wouldn't put it any stronger than that." Scotiabank's Warren
Jestin clarifies that the recession retraction has ended and that technically Canada
is in recovery 'but we'll be filling in the hole we dug for ourselves between Sept
and May all the way through next year, and so will the US."
A Day with Jack Canfield! 'A Day with Jack Canfield' will help you and your team move forward to accelerate
your personal and business achievements. Jack Canfield has coached individuals
and companies for over 30 years. He knows how to accelerate the achievement of
your personal and professional goals.
Tips for Accelerating Sales Revenue Check wwww.ashmore-assoc.com/2009marketingtips.html for some more tips on accelerating revenues in 2009. Speaker Engagements Check www.ashmore-assoc.com/keynotespeaker.html for speaker topics for your special events, or, call to have your own topic customized. Summer Savings! Summer is the time to prepare for building more revenues today, and, for a strong
launch in the fall. For qualified projects contracted between June 15th and September
15th, a special summer savings program is offered where fees are negotiated and
trimmed to meet your budget for new and old clients alike. Call or email today
to secure your spot. Feel free to share this newsletter with other business associates.
Contact 403 252 0799 or consultation@ashmore-assoc.com.
Yours truly, Eileen Ashmore, MBA The Accelerator Principle June 2009 For many businesses, this year is about meeting margins and planning ahead for a productive summer & fall. Business development, innovation and marketing are 3 ways that businesses can increase their revenues. When it comes to marketing and revenue generation, are you applying a system, a mechanism, an accelerator that brings in revenues consistently each month? If not, the Accelerator Principle may help you get organized to consistently generate revenues. Sound good? Read on! Strategy Development - Step 1 A good marketing strategy is simply the best way to target and reach clients more successfully. It's about being proactive and cuts out the guesswork leading to quicker sales and sustaining revenues. It is also about using your resources more effectively so that your resources are focused on revenue generation. A good strategy saves you time and money! Building a Revenue Accelerator - Step 2 This is a system, a mechanism that consistently builds revenues each month. If your existing marketing and sales system is not working to sustain your margins each month, this must be addressed immediately. Some businesses simply need to tweak their marketing/sales system, others need to refresh it, and, others need to revamp it. Especially in today's market conditions, we need a revenue accelerator that works! Execution Coaching - Step 3 Sometimes, even the largest companies fail to execute on their strategies. It is especially important to execute immediately to ensure that your team is using the new strategies and tools. Don't let yourself or your people fall back into the 'old' ways. Coaching ensures that you and your team are held accountable and that you are applying your time and energy to an Accelerator Principle that works. It always needs to be tweaked! Remember, it has got to work - especially this year! Tips for Accelerating Sales Revenue Check www.ashmore-assoc.com/2009marketingtips.html for some more tips on accelerating revenues in 2009. Speaker Engagements Check www.ashmore-assoc.com/keynotespeaker.html for topics for lunch time or call to customize your own topic.
Yours truly, Eileen Ashmore, MBA A Quick Review of the 2009 Alberta Budget Here’s a quick review of the 2009/2010 Alberta Budget released at 3 pm yesterday:
2009 revenues are estimated at $31.8 billion and operating expenses at $36.4 billion. Note the government’s 5 priority areas:
Here are some basic facts about the economies of Canada and Alberta. Canada As of January 2009, there were 33,504,680 people living in Canada. The latest Statcan information is for February 2009. There were 27,161,200 people who were 15 years and older. 18,315,200 people were in the labour force, 16,899,400 or 92% of the labour force were employed full time or part time and 1,415,900 or 7.7% were unemployed. Note that from 2004 to 2008, the lowest number of unemployed people was 1,079,400 in 2007 and the highest number unemployed was 1,235,300 million in 2004. The number unemployed people in 2008 was 1,119,300. Canada’s GDP as of January was above $1.195 trillion and below $1.2 trillion. GDP peaked in 2008 at approximately $1.235 trillion. National debt was $457.6 billion or just under $14,000 per person as of March 31, 2008. According to www.debtclock.ca, it is now $459.3 billion or $13,708.55 per capita. Household net worth at the end of 2008 was approximately $165,000 per capita. Alberta As of January 2009, there were approximately 3,632,483 people living in Alberta. The latest Statcan information is for February 2009. There were 2,836,100 people who were 15 years and older and 2,116,500 people were in the labour force where 2,002,100 or 94.5% were employed full time or part time. There were 114,500 people or 5.4% unemployed. Alberta’s GDP as of 2007 was $259 billion. As of 2005, Alberta has been the only debt free province in Canada. This budget doesn’t appear to have any surprises other than the $4.7 billion deficit is the largest ever and that there might be 3 more years of deficit. The Alberta government seems to be staying the course.
Yours truly, Eileen Ashmore, MBA Breaking the Recessionary Mindset! I hope that January has been a good start on your New Year!
‘Good ideas are common – what’s uncommon are people who’ll work hard enough to bring them about.” Ashleigh Brilliant.
Yours truly, Eileen Ashmore, MBA The Credit Crunch and Your Options in 2009 & 2010 What are your options for 2009 and 2010? Most of us are trying to
understand what the crisis in the financial markets and a slowdown in the
world economy will mean to our businesses.
Which one of these options will generate revenue for your company?
*There are many other forecasts other than the Conference Board of Canada. Many of these forecasts are much lower than the Conference Board's.)
Yours truly, Eileen Ashmore, MBA Creating Success in 2009 & 2010 Your strategies for creating increased leverage, and, action plans for executing for results in 2009 and 2010 are now that much more key with the changes in the financial, banking and credit sectors. What are your best case and worst case scenarios? Where will you find the most leverage? What marketing and sales mechanisms will you put in place to generate and sustain revenues? What strategies and plans will pay off the most when the economy becomes healthier and the financial, banking and credit markets start to stabilize?
Yours truly, Eileen Ashmore, MBA 7 Deadly Optical Illusions to Business Success There are many illusions to business success as it pertains to the overall
running of a professional services company. Here are 7 deadly illusions to
avoid:
Yours truly, Eileen Ashmore, MBA The Fringe Benefits of Failure, and the Importance of Imagination, by J.K. Rowling This summer newsletter is about the thoughts of one of the wealthiest women in the world about being successful, the role of leaders, and, what forges strong leaders. You can view or read J K Rowling’s Commencement Address on June 5th, 2008 to the Harvard Alumni Association at http://harvardmagazine.com/go/jkrowling.html. Execution – Larry Bossidy Style! A Three Part Series Over the next few months, I hope to save you some precious time by summarizing the key points in Larry Bossidy’s book ‘Execution – The Discipline of Getting Things Done’. (It may save you a lot of money too!) Over the years, I’ve seen the most excellent of plans ‘sit on the shelf’ for so many reasons with the top 7 being:
That’s where I come in. My clients love the strategies and plans that we’ve built. Over the last 3 years, I have been working with clients by providing on-going support and coaching so that the excellent plans that we have built together bring specific end results.
Yours truly, Eileen Ashmore, MBA Part 1: Why Execution is Needed One of the first things that Larry Bossidy makes clear is “Putting an execution environment in place is hard but losing it is easy.” In 2000, 40 of the top 200 Fortune 500 executives were removed – they were either fired or asked to resign. That’s 1 out of every 5 leaders! WHY?
Their Recommendations:
Remember – “Execution is everything.’ (Emmit Smith, NFL Legend & ‘Dancing with the Stars’ winner) Larry King Live It’s your FOCUS that matters. Next newsletter – Part 2 – The Building Blocks of Execution
Yours truly, Eileen Ashmore, MBA Part 2: The Building Blocks of Execution With the alarming statistic that 20% of the top 200, Fortune 500 executives were removed in 2000, Larry Bossidy and Ram Charan make their point that execution is critical to maintaining leadership. Now, let’s move on to understanding their recommended building blocks for implementing an effective execution culture. They are as follows: Building Block 1: The 7 Essential Behaviours of Leaders They are - set clear goals & priorities and follow through. Insist on realism, reward the doers and expand your people’s capabilities. Know your people and your business, and, KNOW YOURSELF! Building Block 2: Creating the Framework for Culture Change As exciting as they are, the impact of a new strategy and a new organizational structure can greatly be decreased if the corporate culture isn’t aligned with these changes. For effective culture change, they are recommending implementing a set of processes which they call a ‘social operating mechanism’ to assist workers change their beliefs and behaviours so that these beliefs and behaviours are tied directly to bottom line results. This involves ‘operationalizing’ culture with new rules of engagement, and, rewarding performance. The social operating mechanism is basically a communication & coaching process that creates action to get results. It involves a consistent and intense informal dialog with all levels of the company to assist all workers focus on turning strategy into performance. This dialog surfaces business realities so that these realities can be realistically addressed. Some of this intense dialog is coaching workers by assisting them break down complex tasks into smaller steps. They recommend ‘robust dialogue’ to surface business realities and that the leader is the role model for exhibiting and determining worker beliefs and behaviour throughout the organization. Building Block 3: Having the Right People at the Right Place Bossidy and Charan assert that your competitive advantage is due to having quality people and that with quality people you have captured the ‘elusive sustainable advantage’. They tell us that the reason why the right people aren’t in the right place is due to the leader’s lack of knowledge, courage and commitment. The leader may make hiring and promoting decisions based on feeling comfortable with the worker rather than hiring or promoting the right person for the job. They call this a ‘psychological comfort factor’. When hiring and promoting workers, they instruct the leader to look at yourself first. Do you energize your people? Are you decisive on tough decisions? Are you effective at getting things done through other people? Do you follow through and get the results planned for? Given that you are the role model for showing how to ‘get things done’, they go on to recommend that for getting the right people in the right place is to hire people who have a track record of ‘getting things done’ and show enthusiasm for doing so. These are people who have ‘an enormous drive for winning’, know ‘how’ to get things done without burning out staff or damaging the organization, and, can be coached for improvement. This completes a synopsis of Part 2 – The Building Blocks of Execution from “Execution – The Discipline of Getting Things Done” by Larry Bossidy and Ram Charan. Remember - It’s your FOCUS on executing your strategies to get results that creates success. Next newsletter – Part 3 – The Three Core Processes of Execution Here’s the first of a 3 part series on Execution – The Discipline of Getting Things Done.
Yours truly, Eileen Ashmore, MBA Part 3: The Three Core Processes of Execution The three core processes of execution are the people process, the strategy process and the operations process. Without a strategy (and plan) to guide the people and the right people in place and the operationalizing of the strategy, execution falters. Bossidy and Charan emphasize that it’s the people in your organization that are able to translate strategy into operations and indicate that “If you don’t get the people process right, you’ll never fulfill the potential of your business.” They advise linking people to the short, medium and long term strategy first to ensure that you have the right people at the right time. The next step is training people to become future leaders. And lastly they discuss the importance of a putting in a retention plan while preparing for succession within or if a key employee leaves the company. They discuss what to do with nonperformers. They strongly recommend linking the HR function to business results where HR is proactive in recruitment and in training/building personnel for the next level development as per the strategic plan. They go on to discuss the importance of continuous assessment and candid rapport with each and every employee to ensure that the right people are in the right place delivering on business results as per the strategic plan. Basically a strategy is a directing process to attain a certain positioning in the market place. And once the direction and position is determined, the strategy must be converted into an action plan to show management and staff ‘how to’ execute on it. A strategic plan lays out understandings of where the company is now, where it’s going, the budget, capital resources needed and customer and market demand. The strategic plan analyzes risks (like a SWOT), analyzes competitor positioning and what constitutes success, indicates how the company will grow in the current environment, understands obstacles to success and critical issues facing the business, determines continuing sustainability. A strategic plan lists major milestones – if a milestone is missed, the course of action has changed and therefore the execution strategy needs to change. Lastly, the strategic plan questions the company’s ability to execute the plan, lists assumptions and is flexible enough to be open to new opportunities not foreseen at the time of the planning stage. The strategic plan should be less than 50 pages and explainable within 20 minutes and describable in 1 page. For most businesses, a strategic plan in my opinion is 10-15 pages long with 3-5 minutes to explain and can be summarized in 1 page! The operating plan breaks ‘long term outputs into short term targets’ so that employees have a guide for how to execute on the strategy. The operating plan is the link to reality. Goals are set, action plans are built and all parties involved agree to their commitment on the execution. Quarterly reviews maintain commitment and serve as an opportunity to build contingency plans as needed. Bossidy and Charan are totally adverse to budget planning driving the annual goals and objectives because this type of planning is not connect necessarily to market reality or the reality of how managers/employees get work done. Therefore, it must be the operating unit that commits to building and executing the operating plan that is aligned with the company strategy. This completes the 3rd part in a 3 part series summarizing the book ‘Execution’. This is the last newsletter until the fall where I will review Bossidy’s & Charan’s chapter on ‘How to Conduct a Strategic Review’. Have a wonderful summer. Remember, that the summer months are a good time to update your website, marketing & sales strategies and business plans in preparation for having a strong, successful and sustaining fall season.
Yours truly, Eileen Ashmore, MBA Why Marketing Strategy & Planning? Sun Tse, one of greatest and most strategic generals of all times, said it best when he said: "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before the defeat." circa 500 BC. Time after time, I am surprised when business leaders have difficulty describing their marketing strategy. With many businesses, all they need to do is add more salespeople and their sales revenues increase. With some businesses, all they need to do is add more advertising. Given sales revenue results, why do you need to consider building a marketing strategy?
The primary reason for building a marketing strategy is to determine the best position for effectively targeting your customer base. This will give you the most leverage so that you have the opportunity to accelerate your sales revenues and profits. Although you may be increasing sales revenues today, you may not be setting your organization up for long lasting and sustaining sales revenues over time. Envisioning the big picture and determining the best position in the market place to gain leverage will assist you grow today, and, sustain growth over the long term.
A good marketing strategy is usually only one sentence or a short phrase as it represents the key 'approach' for gaining leverage in your market place. Your marketing strategy dictates your choice of the best marketing and sales tools (the tactics) to deploy to get the best sales revenue results.
What are the best marketing and sales tools for building a marketing-sales mechanism - the engine that consistently generates sales revenues? What are the components of your marketing-sales mechanism? And, what fuels this engine so that it consistently 'forces' marketing and sales action? It helps to list the components of your marketing-sales mechanism and then draw a diagram showing how it works. What is the mix between marketing and sales activity? For the most part, marketing is about preparing the way for your sales and customer service people so that they have the most leverage when they are with your targeted customers.
For start-up businesses, sometimes they rely too heavily on branding and advertising activities and not enough on sales activities. For established companies, sometimes they rely too heavily on sales activities, customer service and repeating revenues and not enough on marketing activities.
As you look at the diagram of your marketing-sales mechanism, you'll start seeing where you are weak and where you are strong and can start formulating ways to:
The marketing-sales mechanism (once you've got it working and working consistently), becomes an unstoppable force for not only securing opportunity but for creating it.
Your next step is to build a Marketing-Sales Action Plan. A Marketing-Sales Action Plan directs your team to specific goals that can be tracked to get revenue results. Your Plan must budget for resources and deploy resources to get results. For ease of execution, it may help to build the annual Marketing-Sales Action Plan and then break the Plan down into monthly and quarterly goals.
What is 'measured is managed'. By tracking your results monthly and quarterly, you and your team can quickly decide to course correct as needed. You will see what is working with your marketing-sales mechanism and how to make it more effective on a continuous basis. You will also see what is not working with your marketing-sales mechanism and what needs to be changed or tweaked to get better revenue results.
Most businesses track traditional performance measures like revenue, profit, profit margins, cash flow, sales orders, etc. Tracking for short term and long term sustainability* is one level deeper. Tracking for short term sustainability is like tracking key performance measures with a few basic differences. For example, your firm's monthly revenue target might be $1,000,000. But, your sustainability target might be $700,000 from repeating sales and $300,000 from new sales. $700,000 in base revenue covers all of your operating and marketing costs whereas $300,000 in new sales revenue contributes to your gross and net profit margins and grows your company. With this revenue formula, your business sustains at its most optimum level.
Why track for long term sustainability? Because, it allows you to put resources in place today so that your business moves to its next level of development. If your goal is to grow your firm by 50% within 3 years, what financial, production, marketing, sales, human resources, products and services do you need to put in place today so that you can move to the next level? To get the most leverage, align your long term sustainability measures with your marketing and business strategies.
Walter Gretsky said it best when he said "Hockey is a thinking game, go where the puck is going not where it came from." That's strategy in a nutshell - so KEEP YOUR FOCUS!
Executing Your 2008 Strategic Plan As promised, here is a summary of Chapter 8 ‘How to Conduct a Strategy Review’ from Larry Bossidy’s and Ram Charan’s book Execution - The Discipline of Getting Things Done. They tell us that a strategy review must get everyone thinking and talking about reality. The questions to ask – is it plausible, realistic, internally consistent, does it match critical issues and assumptions, and, is everyone committed and accountable to their part of the Strategic Plan? They recommend asking these more in-depth questions:
Often there are divergences within a Management Team on the direction and goals of the company. When I work with my clients, I conduct an assessment to uncover similarities and differences. In a strategy session, we discuss these similarities and differences and work towards bringing the team together as a stronger and more directed unit to achieve company goals. As the leader, you are a role model for ‘getting things done’. Your focus in building and executing a strategy that is within your company’s capability, and, within market reality will determine your progress in 2008. Lester R. Bittell said it best when he said “Good plans shape good decisions. That’s why good planning makes elusive dreams come true.” Yours truly, Eileen Ashmore, MBA Business Strategy - Its Elements & Essence As you work through your business planning process, it may be helpful to review the elements and essence of your business strategy to ensure that your 2006 Business Plan is based on a business strategy that is robust enough to move your firm forward in 2006. The elements of business strategy are simple and a good business strategy is founded upon how you are:
What is complex about drafting business strategy is ensuring for the alignment of each element with each other element. By aligning the elements, you will eliminate confusion and uncertainty. Now, what about the essence of your business strategy? When you step back and review all of these elements, you'll find that the essence of your firm's business strategy can be summarized in a short phrase or sentence. Can you do this right now? If you can't, it may be time for you re-think your business strategy. What simple phrase will give internal power to motivate you and your team, and, external power to draw customers to your firm? Do you lead with Service or Quality or Price as per Tom Peter's advice? Is it working? If yes, GREAT! If not, why not? To summarize, the elements and essence of your business strategy are simplistic in nature but they are founded upon complex strategic thinking. By communicating the essence of your business strategy in a short phrase, you will focus your company with a focused, united and motivated battle cry. Sun Tse said it best when he said "Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before the defeat." Circa 500 BC. Where's the 'Power' in Your Business Strategy? Where's the 'power' in your business strategy so that your organization continues to sustain revenue, profits and customers while growing to your next level development? When we talk about 'power' we're talking about the 'impact' of your current business strategy to get the results that you want. Wouldn't you agree that sustaining, consistently, is one of the key components for building 'power' into your business strategy? Sustaining consistently is one of the most important critical success factors for running your organization. But what about growing your business? Is your business strategy big enough and strong enough to take your company to its next level? The 'power' in business strategy is about determining if your current business strategy has the strength and wherewithal to allow you to grow your company to the next level. The 'power' in a business strategy comes from:
It starts with understanding the components of sustainability first and then moves to re-evaluating your current business strategy for its robustness, strength and resilience for taking your company to the next level. Remember - business strategy and sustainability - it's a partnership if you want to grow your company. Yours truly, Eileen Ashmore, MBA
Goal Setting for Breakthrough Success! Why is it that although management teams build excellent business plans, they don't seem to reach their goals over the year? As soon as the goal is set, it seems like everything happens to get in the way of reaching the goal. I've started telling clients that the word 'goal' means the word 'obstacle' simply because a force field forms that slows or deters goal attainment. The force field could be imagined obstacles or real obstacles. And then again, it could look like and feel like an obstacle course. Think of any game - what would the game of hockey be like without the opposing team, and, the opposing fans? The game of business starts the minute we set a goal and so does an automatic force field establish itself - real or imagined. So what do we do to achieve goals with breakthrough success? We can:
Wayne Gretzky's said it best - 'One hundred percent of the shots you don't take don't go in'. The more valued the goal, the greater the force field, and, the greater victory and celebration on succeeding. Remember the Red Mile!!!
Yours truly, Eileen Ashmore, MBA
Habit & Execution - Your Dynamic Duo Last month we discussed the elements and essence of your business strategy so that you build a business strategy robust enough to move your firm forward in 2006. Now, as you complete your business planning* for 2006, you'll be considering your execution strategy. Just like New Year's resolutions, the execution strategy may fall by the wayside a couple of months down the road if an execution plan has not been established. In the book 'Execution', Larry Bossidy and Ram Charan said it best when they said "Putting an execution environment in place is hard, but losing it is easy1". Execution is about forming the habit of accountability with your team and your employees. It is a habit of doing 7 things:
Start the habit of setting review meetings on a regular basis. Your monthly review meetings could be 2 hours each month and the quarterly review meetings could be 4 hours each. If someone on your team is not available at the scheduled time, have them conference in to the meeting. Many a leader has felt beleaguered, befuddled and confounded because he/she could not get the team focused and directed on attaining the goals of the business plan. Don't let that leader be you in 2006 by forming the habit of accountability with regular review meetings. ."Motivation is what gets you started, habit is what keeps you going." Unknown. Let the habit of execution bring you more opportunities this year than ever before - it's your dynamic duo - Habit & Execution. Yours truly, Eileen Ashmore, MBA
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