A Critical Action for Successful CEOs

Posted by Super Job For You | Posted in Business | Posted on 11-01-2010

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Research conducted by The CEO Project suggests that the individual at the very top of the organization should spend their most valuable resource – time – much differently than how it is currently spent.

How the top person chooses to spend their time determines to a large extent the ultimate value of the organization. There are three actions that successful top executives focus on. Elsewhere you can read about the need for selecting the right business and profit model as well as selecting “A” players and having them in key positions.

The third critical action that the leaders of successful organizations focus on is the creation and implementation of “A” processes in customer service and sales.

The ability to systematically delight customers means they will stay, buy more and refer others. Having the ability to do this every time is critical. Note that the operative words in the definition are “delight” and “every.”

How can this be accomplished without significant cost? Consider that the end of each transaction, the customer is asked “Are you delighted, satisfied or not satisfied?” The next question is “why?” These eight words will reveal how the customer rates the entire experience, which includes the people, the processes, the product and the service. Given how simple this exercise is, it makes things “real” to those using the information.

The Ritz Carlton hotel chain understands the need to delight every customer. At the chain, every employee is empowered to take care of customer needs. Ritz Carlton understands that there is great economic value turning a satisfied customer into a delighted one. The intent of the company is “to create guests for life.”

Putting “A” processes into the sales function will greatly loosen if not free the point of constraint that keeps most organizations from growing as fast as they could. It starts with a decision to have an “A” player in charge of that department.

One way to conduct this assessment is to assume that the person being evaluated (and currently holding the position) has been out of that job for a year and the CEO has a chance to hire them back. The ratings would be:

“A” is defined as the CEO would move ‘heaven and earth’ to rehire that person

“B” is defined as the CEO would definitely rehire that person instead of taking a chance in hiring a new person from the outside

“C” is defined as the CEO would not rehire that person and would hire someone from the outside

This process can then be repeated until a candid assessment of all the positions reporting directly to the individual in charge of the sales area has been evaluated.

Other key issues related to improving the sales process includes an assessment of prospecting and lead generation; follow through on leads provided to the sales force; presentations made to prospects, overcoming objections and closing.

If a company can systematically increase its customer base and delight its existing customers, this combination leads to a series of compounding events. Existing customers continually buy more of the firm’s products at a cost of sales far below that of capturing new customers. Delighted customers become clients, refer others, which validates the essential need to develop “A” processes in customer service and sales.

There are many organizations that claim that they have great customer service (and great people working in the organization) but the truth is quite different.

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CEO Business Mistakes

Posted by Super Job For You | Posted in Business | Posted on 24-01-2009

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Bob Nardelli, formerly the CEO of The Home Depot (www.HomeDepot.com), was quoted in an interview that “People who do things make mistakes. The biggest mistake is doing nothing.”

This is the first commonly made mistake made by a CEO: doing nothing when action is called for. By waiting, the CEO seems to believe that the trouble will somehow disappear of its own volition. Guess what: it won’t.

The second mistake most often made is not to have a game plan. While having tangible number goals is great, as is a lofty vision statement supported by a clear mission statement and a “main thing,” all of it is for naught if it is not supported at the foundation by a crystal clear strategy, clear roles and specific responsibilities, desired results to the lowest level, simply understood value for clients and a team that can execute.

Being afraid to conduct performance appraisals is the third mistake CEOs make. The ability to speak honestly to those that are performing, those that are underperforming and those not performing at all is a skill that must be acquired and used when needed. On top of that, courage is required; it is not easy to sit down and have a difficult conversation with a top manager that is not making the necessary contribution as a leader, but it must be done. Regular feedback is essential, even if unpopular and uncomfortable.

Not listening, not hearing, not understanding and not caring when spoken to is the fourth mistake made by CEOs. Too many at the top talk to, not with, their people. As a result, people disengage and go on auto-pilot, which increases the resentment, anger and negative morale that is poison to any organization.

How the CEO spends his or her time is a strong indicator of priorities. When the client comes last to him or her, the CEO is sending a message. That is because mistake number five is that the CEO never sees any clients, except by accident. The CEO puts everything else before the one thing that makes his or her organization possible. Here’s reality: No clients, no company, no need for a CEO!

The sixth mistake is when the CEO expresses an aversion to learning. People learn from mistakes, successes, experience, shared ideas and from any number other of potential sources. When the top executive sends a message that they do not believe in their own continuing education, it says that the organization they lead is not a learning organization. In the real world, it means that the organization and the CEO will soon be passed by.

When the CEO gives orders, and only gives orders, two things occur. The first is that the company will be void of those risk takers willing to take ownership of ideas, programs and projects; the second is that the organization will lack excellence because motivation for idea creation and implementation will cease to exist in short order. Mistake number seven will produce resentment, avoidance and the “beaten dog” syndrome instead of what is needed: pride and passion. Who remains at such an organization: the weak and those without options to find employment elsewhere.

The eighth mistake is that the CEO allows disloyalty, incompetence, and the actively disengaged (internal terrorists) to stay employed. This sends the message that the organization will tolerate such behavior, starting with the recruiting practices that allowed these individuals to be hired in the first place, and a lack of an effective performance appraisal program for weeding them out. Every day that these kind of people are allowed to stay employed only strengthens the foundation of a culture that permits mediocrity, or less.

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When an organization has departments that are fighting with one another, often manifested by a lack of communication; when an organization has silos that put a department, division or regional office before the company; when there are competing and conflicting responsibilities, roles and desired results, the concept of a team exists in name only. The ninth mistake of the CEO is allowing the organization to run in a state of misalignment for more time than it takes to correct it.

The tenth mistake of the CEO is a lack of trust in the management team. This manifests itself by assigning multiple people to the same task; by micro-managing tasks and by constant and needless follow-up of trivial matters. Managers with this type of CEO often wonder why they have the title of manager when they have no real authority or responsibility. The good ones leave and go to a place where they will be allowed to put their talents, skills and abilities to use.

One of the best books for a CEO is “What Really Works” by William Joyce, Nitin Nohria and Bruce Roberson. It is a must read.

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Business Leadership and General George S. Patton

Posted by Super Job For You | Posted in Business | Posted on 04-09-2008

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The best leaders are great simplifiers. Often, they are outspoken, politically incorrect and offensive; they don’t worry much about hurt feelings. They focus on goals and action.

George S. Patton lead armies in Africa and Europe in WWII, covering more ground, engaging more of the enemy and suffering fewer casualties and losses than any other commander. Here are some of his thoughts on people and management:

On Success

“By perseverance, and study, and eternal desire, any man can become great.”

“Never stop being ambitious. You have but one life, live it to the fullest of glory and be willing to pay any price.”

“No sacrifice is too great if by it you can attain your goals. Let people talk and be damned. You do what leads to your ambition and when you get the power, remember those who laughed.”

“You are not beaten until you admit it.”

“Accept the challenges so that you can feel the exhilaration of victory.” “I don’t measure a man’s success by how high he climbs but by how high he bounces when he hits bottom.”

“The man who finds twenty dollars on the street or wins it at the slot machine thinks lightly of it, and before long it is as lightly spent. The same man who works and sweats for half a week for that same amount respects it and grudgingly parts with it when he has won it.”

“You must be single minded. Drive for the one thing on which you have decided. You will find that you will make some people miserable; those you love and very often yourself. And, if it looks like you are getting there, all kinds of people, including some whom you thought were loyal friends, will suddenly show up doing their…hypocritical best to trip you up, blacken you, and break your spirit.”

On Supervising and Quality

“Don’t tell people how to do things, tell them what to do and let them surprise you with their results.”

“Watch what people are cynical about, and one can often discover what they lack.”

“We can never get anything across unless we talk the language of the people we are trying to instruct. Perhaps that is why I curse.”

“Officers must assert themselves by example and by voice.”

“Like all commanders, I am constantly faced with the problem of malingering. If it is not checked, it spreads like a prairie fire.”

On Business Leadership

“Always do everything you ask of those you command.”

“Leadership is the thing that wins battles. I have it, but I’ll be damned if I can define it. It probably consists of knowing what you want to do, and then doing it and getting mad as hell if anyone tries to get in your way. Self confidence and leadership are twin brothers.”

“Bradley called up to ask me how soon I could go on the defensive. I told him that I was the oldest leader in age and in combat experience in the United States Army in Europe and that if I had to go on the defensive, I would ask to be relieved. I further suggested that it would be a good thing if some his staff visited the front to see how the other half lived.”

“The more senior the officer, the more time he has to go to the front.”

“The following pun always elicited great applause in the Great War; “If the staff of life is bread, what is the life of the staff? One long loaf!”

“It is really amazing what the determination on the part of one man can do too many thousands.”

“There is a great deal of talk about loyalty from the bottom to the top. Loyalty from the top down is even more necessary and is much less prevalent. One of the most frequently noted characteristics of great men who have remained great is loyalty to their subordinates.”

On Taking Action

“A good plan violently executed right now is far better than a perfect plan executed next week.”

“Throughout history wars have been lost because of armies not crossing rivers.”

“I don’t want to get any messages saying that, “We are holding out position.” We’re not holding anything…We are advancing constantly and we’re not interested in holding on to anything except the enemy…We’re going to hold on to him by the nose and we’re going to kick him…”

“We must keep moving. Do not sit down. Do not say, “I have done enough.” Always see what else you can do to raise hell with the enemy. You must have a desperate determination to continually go forward.”

On Winning the War

“Peace is going to be a hell of a letdown.”

Which of these quotes can you use this week to move your organization forward?

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Business CEO Questions

Posted by Super Job For You | Posted in Business | Posted on 21-08-2008

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What is your organization’s overall vision? Where are you going to be in three to five years?

What are your specific financial, marketing, sales and operations goals for the current fiscal or calendar year? Do you have a financial plan for the year? Marketing plan? Sales plan? Operations plan?

What is standing in the way of having these plans developed? What is your company theme for the year? Does everyone know what the theme is?

What is your “game plan” on a daily, weekly, monthly, quarterly basis to help you achieve your goals for the current year? How often is this message communicated to managers? How often is the message communicated to employees?

What is the level of trust that you have with your managers? What is the level of trust within the management team as a whole? Do your managers trust the employees? Do the employees trust the managers?

Are people treated fairly in your company? Does everyone adhere to company rules, policies and procedures? Which managers or employees do not adhere to company norms? What is being done about this?

Are you holding effective meetings that get the results you desire? Are your managers holding effective meetings that get the results that they desire? How often are agendas developed and handed out prior to a company meeting? How often does someone take notes of the decisions made and issues the meeting minutes to those impacted?

What is your organization’s mission statement? Are you still passionate about it? What about your employees? Do they know what the mission is and are they “buying in” to it? Are your employees passionate about the organization’s mission?

Is it acceptable to take risks in the organization? If someone makes a mistake, how is that addressed?

Does open dialog take place at your company? How does this take place? How often does this take place?

Are the people that work at your company being given opportunities to learn and contribute?

Who has the ability within the organization to make decisions and do the right things to achieve goals that all have agreed to?

What does the company training calendar look like? Does it exist? Is every employee being trained or educated on something new on a regular basis or is training exclusive?

Is everyone at the company professional in their behavior, dress and communication to others inside and outside the company?

What are the top five values of the organization? How many people know what they are? How many people abide by them?

Who are your strongest employees? What is being done to make sure that they are happy and motivated?

Who are your weakest employees? What is the plan for them?

Do you have a disaster plan in case of fire, flood, tornado, hurricane, windstorm or earthquake? What is your plan to communicate with employees, clients and suppliers in the event a disaster takes place?

What is your plan to keep the business going and your clients loyal if your facilities are destroyed or rendered useless?

Who are your top five clients? How often is someone from the senior management team from the company in contact with these clients?

Can people at your organization admit they made a mistake? Has anyone ever shared what they learned from a mistake they have made?

Do you have a mentoring program in place for new hires? Those recently promoted? For those that seek to be promoted?

Is your place of employment a cool and fun place to come to work everyday? Are you allowing your managers and employees to be part of something significant? Can your managers and employees grow while working at your company?

Is the company culture an open one, where people freely share information with others in order to get to the desired results?

Business information.

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