Chief Executive Boards Winning Through Excellence 9:30 am Good Morning! I hope everyone has had a chance to get a drink if you like. We would like to welcome you and Thank you for coming to this Wining Through Excellence presentation. It has been a pleasure to meet most of you. For those that I did not get to meet my name is ______________ and this is _____________ and we are the Guides for Headwaters Houston. Joseph Barber Michael Goodfriend Upstream Guides

WHAT IS EXCELLENCE? Webster : Superior, very good, first class. Hard to define, but you know it when you see or experience it. Excellence is not perfection, but rather it is the pursuit of perfection. How would you define Excellence? Consistency is another word that describes excellent organizations. Excellence is a journey not a destination. It is really a state of mind? The desire to be the world class leader in your marketplace.

Who Are Some Organizations You Think Are Excellent? Southwest Airlines McDonald’s Wal~Mart Continental Airlines Nordstrom’s Intel Adam’s Automotive Amazon McDonald’s Shell IBM ExxonMobil 10:00

WHY EXCELLENCE? Greater customer satisfaction Gain a strategic advantage Higher profitability More adaptable to change High achievement culture Customers are more satisfied because of the consistency of the experience. They are more efficient which gives them a competitive advantage Excellent companies are more profitable. Higher profitability is also a strategic advantage. Excellent companies are that way because of their excellent processes. These processes equate to institutional value or knowledge. These excellent processes make them more adaptable to change. Excellent companies have fewer crises because their systems and cultures effectively deal with problems before they become crises. 3M – Diversified into office products and other items from Mining. Excellent companies have cultures in which achievement is sought and rewarded and which people are self accountable. Everything feeds off one another to develop a great work environment. Greater “pride of workmanship” Increased employee loyalty Better quality of life for all employees 8:45

Vince Lombardi “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.” Vincent T. Lombardi 10:05

What Keeps Companies From Achieving Excellence? When the Blueprint for Excellence was developed one of the first things we did was to study other companies and try and determine what keeps them from achieving excellence.

COMMON BARRIERS TO ORGANIZATIONAL EXCELLENCE No Process For Accomplishing Goals “Chance for Success” Approach vs “Leave Nothing To Chance” Lack of Commitment Inadequate Accountability Procrastination Poor Concentration Lack of Shared Vision Performance Delta You must have a process for achieving goals, otherwise you are leaving things to chance. This also essential to increasing success rate in accomplishing goals. Instilling a “Leave Nothing to Chance” mentality is a key step to developing a High Achievement Culture There is a big difference between “Support” and “Commitment” High achievers want everyone to be held accountable. Often the greatest barrier to achieving excellence is being good to begin with. It becomes hard to get motivated to improve because things are going well. However, failure to pursue excellence and settle for being good will leave you vulnerable to your competition who is pursuing excellence. How often are we interrupted in a day (whether by email, telephone, or people coming in our office)? When was the last time you were able to dedicate 2 hours, uninterrupted to a task. Making sure that everyone knows what the Vision is and clearly understands what the guiding principles of the organization are is essential to getting them to all pull in the same direction. This serves as the organization’s North Star. Service delta is the difference between the maximum value that someone can contribute and the actual value they are currently producing. 9:55

Delta Graph Maximum Value The Performance Delta represents the difference between the actual value an organization is putting forth and the maximum value they are capable of putting forth. Actual Value Performance Delta Barrier Exercise – Go back to previous slide 10:25 Minimum Value To avoid penalty

5 Attributes of Excellence Accountability Teamwork Commitment Communication Discipline

Keys Success Principles Create a Shared Vision Measure Progress Standardizing All of Your Processes Have a Strategic Process for Setting & Accomplishing Goals Ensure Accountability

Edison "Opportunity is missed by most people because it is dressed in overalls and looks like work." Thomas A. Edison

Discussion and Questions. Stay as long as you need to discuss or answer questions 11:00