Digital City Leadership March 2008

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session one:

leading your business

who the hell is andy hanselman?

i help forward thinking organisations improve their competitiveness and profitability

how I work…….

awareness

assessment

action

who are you?

what does success look like?

satisfied customers

sufficient ‘delighted’ customers

sufficient ‘devoted’ customers

committed motivated effective people

L

maximised financial returns

sufficient ‘devoted’ customers

committed motivated effective people

L

maximised financial returns

sufficient ‘devoted’ customers

committed motivated effective people

L

maximised financial returns

describe your business •what are your scores? •how do you maintain the balance? •what are your challenges?

what’s the difference between management and leadership?

managers • • • • • •

maintain the status quo monitor situation allocate resources communicate targets measure the results feedback on the trends

leaders • • • • •

strategic thinkers look forward and create visions challenge motivate inspire

strategic operational tactical

on in

get that ‘vision thing’

• Creating a clear picture of the future that ‘stimulates, excites and inspires’ • Getting everyone to ‘buy’ into it • Ensuring that everyone understands what’s expected of them • Turning it into meaningful goals and targets • Communicating progress towards it continuously • Celebrating successes • Working ‘On’ it consistently

The Five Steps in the Leadership Process: • Creating a vision &/or coming up with business enhancing ideas • Turning these into viable projects • Getting real commitment to projects • Creating a supportive climate for projects • Being persistent - seeing things through to completion

it’s quiz time!

“our driving purpose is to provide legendary service and memorable products that delight our customers” Ann Summers

Pizza Hut

WH Smith

“our driving purpose is to provide legendary service and memorable products that delight our customers” Ann Summers

Pizza Hut

WH Smith

“our vision is to be an internationally recognised, world leading organisation, in which people are valued as individuals, team – working is the norm, continuous improvement is everyone’s personal objective and contributing is an enjoyable and rewarding experience” Church Of England

British Aerospace

Maxim Magazine

“our vision is to be an internationally recognised, world leading organisation, in which people are valued as individuals, team – working is the norm, continuous improvement is everyone’s personal objective and contributing is an enjoyable and rewarding experience” Church Of England

British Aerospace

Maxim Magazine

“to help people achieve their full physical, intellectual, social and spiritual potentials, as individuals, as responsible citizens and as members of their local, national and international communities” Ann Summers

Church Of Scientology

The Scout Organisation

“to help people achieve their full physical, intellectual, social and spiritual potentials, as individuals, as responsible citizens and as members of their local, national and international communities” Ann Summers

Church Of Scientology

The Scout Organisation

“our future depends on our continuing ability to anticipate the lifestyles and tastes of our customers and to provide products and services which exceed their expectations” Ann Summers

Whitbread

World Of Leather

“our future depends on our continuing ability to anticipate the lifestyles and tastes of our customers and to provide products and services which exceed their expectations” Ann Summers

Whitbread

World Of Leather

“the symbol of power – to be one of the world’s leading high integrity power systems companies for the next century” Rolls Royce

Ann Summers

Braun

“the symbol of power – to be one of the world’s leading high integrity power systems companies for the next century” Rolls Royce

Ann Summers

Braun

“to offer scientifically validated solutions to the nation’s problems”

Natural Law Party

Boots Personal Hygiene Division

Maxim Magazine

“to offer scientifically validated solutions to the nation’s problems”

Natural Law Party

Boots Personal Hygiene Division

Maxim Magazine

“we create demand by continually

expanding the relationships that bonds our trademarks…with the five billion people on this planet. Everything we do must strengthen that bond, and we will utilise every available resource to expand the value of our trademarks in the hearts and minds of our consumers” Maxim Magazine

Coca Cola

The Scout Organisation

“we create demand by continually

expanding the relationships that bonds our trademarks…with the five billion people on this planet. Everything we do must strengthen that bond, and we will utilise every available resource to expand the value of our trademarks in the hearts and minds of our consumers” Maxim Magazine

Coca Cola

The Scout Organisation

“Our aim is to dominate the global market fully, by providing a product for our clients that not only satisfies and stimulates, but also offers them the opportunity to further themselves as individuals and be massively attractive to women”

Proctor & Gamble

Ann Summers

Maxim Magazine

“Our aim is to dominate the global market fully, by providing a product for our clients that not only satisfies and stimulates, but also offers them the opportunity to further themselves as individuals and be massively attractive to women”

Proctor & Gamble

Ann Summers

Maxim Magazine

what does a vision look like?

a vision.......

• is not simply a set of financial figures • is not a business plan • is not a ‘pie in the sky’ idea • is more than words in the MD’s annual speech

a vision • is a picture of the future that we want • is a point of strategic focus for the leadership of the business • is something for everyone to work towards

get that ‘vision thing’

IMAGINE THE FUTURE - WHAT DOES IT HOLD FOR YOUR BUSINESS? -THEN THINK AGAIN!!!!

“Well-informed people know it is impossible to transmit the voice over wires and that were it possible to do so, the thing would be of no practical value” Editorial in the Boston Post 1865

“Heavier-than-air flying machines are impossible” Lord Kelvin,mathematician, physicist, and president of the British Royal Society, 1865

“The telephone has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us” Western Union internal memo,1876

“I think there is a world market for about five computers” Thomas Watson, Chairman of IBM, 1943

“There is no reason for any individual to have a computer in their home” Ken Olsen, President of DEC at the Convention of the World Future Society, 1977

“640k ought to be enough for anybody” Bill Gates, 1981

“Newcastle United are too good to get relegated from the Premiership” A Geordie, 2008

what will we have in place by the end of march 2009?

what will we have in place by the end of september 2008?

people tell us they need to know:

how is this vision relevant to me?

what specifically do you want me to do?

how will I be measured?

what consequences will I face?

what tools and support are available?

what’s in it for me?

how are we doing?

the leader’s role?

to help people answer these questions

a leader's job is to rally people toward a better future marcus buckingham

where are we now?

FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS

FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS

S W O T

Sheffield Wednesday On Their way down

Strengths Weaknesses Opportunities Threats

PESTEL • P olitical • E conomic • S ocial • T echnological • E nvironmental • L egislative

React Or Die

Stop Start Continue

identify the customers you want to work with

HIGH ENTREPRENEURIAL

B

A HIGH SELL ON OPPS

LOW SELL ON OPPS

D

C LOW ENTREPRENEURIAL

get rid of the customers you don’t want

give your customers a damn good listening to

Turnover is vanity, profit is sanity

“One in two businesses cannot accurately determine their profitable customers and products” Source: KPMG

“show me the money!”

10 COMMON BARRIERS: • FOCUS ON TURNOVER NOT PROFIT • LACK OF UNDERSTANDING OF PROFITABILITY OF SPECIFIC PRODUCTS AND SERVICES • LACK OF PROACTIVE MANAGEMENT CONTROL • UNWILLINGNESS TO SAY ‘NO’ • STAFF HAVE NO UNDERSTANDING OF THEIR IMPACT ON PROFITABILITY (POSITIVELY OR NEGATIVELY) • NO PROFIT TARGETS • MEASUREMENT OF THE ‘WRONG THINGS’ • LACK OF MANAGED PRICING POLICY • ‘NUMBERS’ LEFT TO THE ACCOUNTANTS • NO PROFIT IMPROVEMENT PLAN

where are we going?

useful elements of a business plan: • • • • • • • • •

Goals / Targets Markets / customers Competitors Competitive strategy People / Skills / Numbers Resources Budgets P & L / Cashflow Milestones / Key Indicators

how do you measure up?

“Vision without action is hallucination”

Andy Law, St.Lukes

scare yourself, otherwise you’re not doing anything new Mary Murphy Hoye, Head Of R & D, Intel

“take the first step in faith. You do not have to see the whole staircase. Just take the first step.” Martin Luther King

don’t just stand there….. do something! dick dastardly

people can be divided into three groups

those who make things happen those who watch things happen those who ask ‘what happened’?

MISSING YOU ALREADY want more? visit: www.andyhanselman.com

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