1. Performance & Increase Results
Improve
Performance & Increase Results
Hello and welcome to this webinar focusing on improving performance and increasing results in our organizations.
May 16, 2012

2. Quick Intro Matt Lauth Business owner
Business Partner with EnterpriseCorp
Certified business coach
10 years developing the Six Disciplines system
9 years manufacturing
8 years high-tech
My name is Matt Lauth and I’ll be hosting today’s webinar. Although I’ve had a variety of “chapters” in my professional career, a central theme has always been about helping organizations delivery on their promises to customers, grow and get results.

3. Today’s webinar is being sponsored by:
EnterpriseCorp
Kentucky Small Business Development Center
Six Disciplines
GLI High Impact Program

4. It’s my belief that organizations are missing a “link” that is affecting the strength of the organization and the results the organization achieves.
This missing link has a major negative impact on the organization in a variety of ways.

5. Although the chain link is a nice metaphor it may be better to think of a jigsaw puzzle that is missing a piece.
Without this one piece the puzzle is incomplete.
The same is true for our organizations but is often difficult to see or understand.

6. Most of the time if something is missing it’s noticeable
Most of the time if something is missing it’s noticeable. But the reality is the missing system in our organization's is often not apparent. At least not as a apparent as the “missing piece” in this picture.

7. Our organizations are machines
Our organizations are machines. The organization addresses customers needs and generate a product or service that meets those needs in an economically beneficial way.
But in reality our organizations aren’t as nicely aligned and connected as this graphic depicts.

8. Often the organization may feel or resemble the idea of a Rube Goldberg cartoon.

9. Customer Service Systems Sales & Marketing Systems
Financial Systems
Customer Service Systems
Human Resources
Systems
Management System
Sales & Marketing Systems
Production Systems
The missing system is what I call a management system.
We all have systems for managing our Financials, our Human Resources, Sales & Marketing, Inventory, Production, Customer Service, and the list goes on.
But answer these questions:
Inventory Systems
Most organizations lack a defined management system in their organizations.

10. What is your system for…
Creating, documenting and communicating your strategy?
Your operational plans?
Connecting plans to individuals with accountability?
How you measure organizational performance?
How you measure results (not just financial results)?
Where you keep all the “stuff” that supports your plans?
Effectively asking, listening and reacting to the “voice” of your employees, customers and suppliers?
Managing succession or transition of the organization?
Connecting purpose to action for increased engagement?
Growing the organization?
What is your system for…
(read questions from slide)

11. Poll Questions
I’d like to get your input on a few poll questions. Based on what we’ve discussed so far….
Do you have a system in place for managing the organization?
Do you have a system for creating, documenting and executing strategy and operational plans?
Do you have a document management system for storing information related to plans?
Do individuals have plans that connect their activities to the goals of the organization?
Do you have a system for measuring organizational performance?

12. “All organizations are perfectly designed to get the results they are now getting. If we want different results, we must change the way we do things.”
Tom Northup
This quote has always been one of my favorites.
We are getting what we’ve designed our organizations for. If we want more, or different results we must change the way we approach the problem.

13. The ROI is known! Systematic Approaches Grow Assets 135% faster
Let me give you an example.
This diagram is the result of studying 600 companies who focused on changing their results. They addressed the problem by putting a performance management system in place. The system connected Leadership to Results and transformed the organizations.
You can see that across all the key measures shown the organizations were completely different than the control group they were compared to.
SOURCE: Hendricks, K.B. and Singhal, V.R. (1999).
US Research: 600 WW Excellence Programs, 5 years

14. What would it mean to your organization to have a management system in place to connect purpose to action?
- To defined and document the mission, values, strategic position and vision for the organization?
- To define the key objectives (vital few objectives), measures and targets need to achieve the vision?
- Support these key objectives with detailed project plans, or initiatives, that list the deliverables and clarifies who is responsible for what?
- Automatically provide a performance plan for each individual to connect them to the vision and help them make better decisions on what is important and what isn’t.

15. “We can't solve problems by using the same kind of thinking we used when we created them.” Albert Einstein
This is not new….
We did this in the 80’s in our Financial systems.
We did it in the 90’s with our customer relationship systems.
Anybody remember paper accounting ledgers, 9-key adding machines and customer rolodexes?

16. We can do this!
We can make a tremendous difference in our organizations that will help customers, our employees, our shareholders and our communities.
So what do we need?

17. Barriers Expertise Economics Human Nature
We need a way to address three critical barriers:
First, Expertise – it has to make the complex easy and be fitting for organizations of any size
Second, Economics – it has to be efficient in time and fit our budget.
Third, Human Nature – it has to keep us on track so we do what we say we want to do – hold us accountable. As Stephen Covey says, “common sense is not always common practice.”
Expertise
Economics
Human Nature

18. Strategy Execution Learn Strategize Measure Plan Manage Organize 18
To address the expertise barrier…the process that embodies best-practices is defined. It’s separated into 2 sections:
Strategy:
Learning from the past
Setting strategy to communicate what is important
Create plans to support the strategy that will help lead the organization toward it’s vision
Execution
Aligning and organizing the resources of the organization to be in-line with the goals and plans.
Improving leadership at the individual level to better manage ourselves to accomplish our part of the plan
Channeling innovation to better solve problems and remove inefficiencies within the organization.
Manage
Organize 18

19. To deal with the economics barrier, we need to leverage technology to reduce the cost.
Using the financial system as a comparison it use to take a large team of clerks, book keepers, accountants and controllers to manage the financial assets of the organization. Today this is done with a small team using software.
The same is true in managing our organization….software connects our strategy and vision of the future with our daily work. The integration to Microsoft Outlook allows connecting communications, calendar appointments and tasks to our plans and goals.
It also allows easier communication of progress which brings engagement, transparency and accountability throughout the organization.

20. The third barrier is overcoming human nature.
As humans we often don’t do what we say we want to do; or what we know we should do.
Through a combination of the best-practices process, the software and outside coaching for accountability this barrier can be overcome. It achieves reduction in wasted time, displacing of low priority activities to focus on the important, the high priority goals that will change the organization and achieve it’s vision.

21. Six Disciplines is a performance management system designed to systematize and streamline planning and execution for increased performance.
Six Disciplines is the performance management system designed to address this missing link, or fill the missing jigsaw puzzle to create a complete organization.
- The growth of the organization will be more predictable.
- Profitability will more predictable.
- And overall organization value will increase
- The ability to transition the organization will be easier

22. What’s included in this system?
Master planning calendar for the organization
Voice of the employee, customer and stakeholder
Process to do annual planning (strategic & operational)
Scorecards to align goals, measures and targets
Line of sight between goal and activities
Tools to connect goals to all knowledge workers of the organization
Align resources to goals (capacity); prioritization
Accountable measurement of performance & results
Document management to store docs with goals/plans
Here are some of the key features, or benefits, of the management system.
(review bullet points on slide)

23. Grew 40% in Down Economy
Used strategy execution system to quickly remake its strategy and align execution to that strategy.
Low Growth
Average Margin
High Growth
High Margin
Product Profitability
Low High
Low Growth
Low Margin
Average Growth
Low Margin
Here’s a local manufacturing company that illustrates the results a performance management system will provide.
Trufast, a leading provider of construction fasteners located in Northwest Ohio, grew their business by 40% in the middle of the recent economic downturn. They used Six Disciplines process to rapidly remake their strategy and target their most profitable product lines and customer segments. Then they used Six Disciplines software to engage everyone in the execution of this new strategy. The result was dramatic growth in profitability and sales with no increase in headcount.
Customer Profitability
Low High

24. Summary Recap
Organizations underperform, or don’t perform to their potential due to a missing system.
A performance management system connects purpose (mission, vision, strategy) to action (plans, results, accountability)
The return on investment is known and well documented. The highest performing organizations know this and have addressed their “missing system”
Let’s wrap up with a quick summary:
Organizations do not realize their full potential due to a missing system – a management system
Having a management system connects purpose of the organization to the daily activities of the organization.
The benefit, or return, is known. It’s now just a matter of deciding and doing.

25. “People go in the direction leadership is walking, not pointing.”
I’ll wrap up with this quote…
As leaders it’s not what we say that’s important it’s what we do. Talking will not solve our challenges…it’s time to take action.

26. Please complete the event survey
Questions?
Please complete the event survey
Thank you for attending today’s webcast. Here’s my contact information, please contact me to discuss how we can help your organization. It’s fitting for any organization, regardless of size or industry.
Now let’s answer some questions.
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Matt Lauth
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