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Start by asking: What is the one thing I hate most about my industry? What is driving me nuts? What is the choke point constraining the company? It could be a massive cost factor.
neplačila izvajalcem
Garancija na izvedbo strankam
arhitektom samostojnost, priznanje in odgovornost
Then start brainstorming with your strategic thinking team about some possible 10x advantages.
The Profit per X metric represents the underlying economic engine of the business and provides the leaders with a single KPI they can track maniacally to monitor the progress of the business (a great luxury to have).
Collins placed the BHAG® in the center of his Hedgehog Concept, noting that it must fully align with all the components of your strategy.
Your BHAG® should be measured in the same units as the X. This is a key point.
Profit per poslovna enota/franšiza
The payoff is huge if you figure out all of the attributes of the 7 Strata. As with all of our tools, nail down what you can and keep moving.
You’ll know you’re on the right track when sustained revenue growth and great margins start coming more easily.
The Vision Summary provides a simplified OPSP framework for companies just getting started with implementing the Rockefeller Habits and for firms with 50 employees or fewer.
Figure out what you can, and let that help you determine the rest (e.g., Purpose and Brand Promise will triangulate back to the BHAG®). “Get it down; then get it right” is our mantra. A good plan now is better than a great plan too late.
There is also room to highlight the top six trends that will likely hit the company and its industry like meteors.
VR, augmented reality, 3d printing/milling
For a moving example, watch this five-minute 25th-anniversary tribute to Southwest Airlines’ employees featuring then-President, CEO, and Chairman Herb Kelleher: http://tiny.cc/Southwest-tribute
Revenues: Consider hitting a target revenue that’s twice what it is today. Again, this is the definition of a camp on the way to your Everest: the point at which you’re going to double the size of the business next.
Consider targeting three times industry average profitability. This is the definition of a great vs. good company, so go for it!
If you’re at a private company, set a target for how much cash you would like to have in the bank or the market share you’d like to own within your industry.
To support the company’s efforts, assemble a board of advisors. Recruit the smartest people you can find to advise you on each Key Thrust/Capability. It’s always helpful to learn from those who have already been
Yes, we recognize that your metrics are all critical, but this Critical Number designation is specific to one metric each year. “The Priority” chapter will walk you through this Critical Number decision for the year and for the next 90 days (columns 4 and 5) and explain how to set Critical Number targets: Super Green, Green, and Red.
To see Covey demonstrate these concepts, go to YouTube and search “Covey Big Rocks”; then watch the six-minute video with your team.
The key is giving your team finish lines and an opportunity to have some fun together.
This creates “line of sight,” through which everyone is able to see how his or her daily actions link to the company’s goals.
One of the keys to keeping people engaged is making a connection between their day-to-day efforts and the goals and vision of the company.
You need data detailing the profitability of every customer, product, service, salesperson, location, etc., so you can see where the business is making a profit and where it is not.
Strategic thinking is coming up with a few big-picture ideas. Execution planning is figuring out how to make them happen.
Coastal.com excels at execution precisely because it listens to customers and employees; has a meeting rhythm to discuss and implement quickly what’s being learned; and relies on a process for setting priorities based on all this input.
Hardy advises CEOs to review the Checklist every three months. “You’re not going to get it perfect every quarter,” he says. “It’s a work in progress. It forces you, though, to be objective and to realize there are blind spots. Like a pilot taking off, you don’t want to forget to lift the landing gear. It may be the things you take for granted that can hurt you the most. A Checklist is a good way of reminding you what’s missing.”
1. Priorities: Less is more in driving focus and alignment. 2. Data: Qualitative and quantitative feedback provides clarity and foresight. 3. Meeting Rhythm: Give yourself the time to make better/faster decisions.
The key is sequencing a series of #1 priorities that keep everyone focused and heading in the same general direction together.
“The ‘MIT’ solution — How to identify one key task each day to make consistent progress” @NiklasGoeke https://medium.com/better-humans/the-mit-solution-how-to-identify-one-key-task-each-day-to-make-consistent-progress-825aa60ec7ab
On the One-Page Strategic Plan (OPSP), there is a progression of #1 priorities: 1. Core Purpose: the one word/idea/speech driving the business 2. BHAG®: the one 10- to 25-year goal for the company 3. Profit per X: the one overarching KPI representing the core economic engine of the enterprise 4. Brand Promise: the one most important measurable promise (of three) representing the brand 5. The Critical Number: the one key driver for the year and the quarter
Choose just one or two each quarter, based on what will give you the most immediate benefit, as you would with the rest of our crossword puzzle-like tools.
Patrick M. Lencioni’s best-selling book The Five Dysfunctions of a Team: A Leadership Fable
The quarterly or annual Critical Number is the main short-term priority anchoring the execution planning side.
The Great Game of Business: The Only Sensible Way to Run a Company.
knjiga o open book managementu. must read.
reserve the term “Critical Number” for your measurable #1 priority,
To derive the one Critical Number, imagine the hundreds of important things you need to accomplish lined up like dominoes. Find the lead domino: the one initiative that, when pursued, makes it easier to accomplish everything else. Or identify the bottleneck — the choke point or constraint — and address it first.
So, what is the most important and measurable choke point you need to fix/control in your business this coming year? Figure it out. Then give your team a chance to win gold, silver, or bronze rewards (Super Green, Green, or Red at the bottom of column 4 of the OPSP).
For those new to this routine, give your team some wiggle room in the beginning by setting a three-tiered target.
The Quarterly Theme is a fun motif you can use in your internal marketing to rally everyone around achieving your Critical Number.
Every quarter, they ask themselves: What is the single most important thing going on in the business in the next 90 days that we want everyone to be aligned on?
Like the river making its way from Everest to the ocean, your organization will have to constantly navigate obstacles and take a step back (or pause) every once in a while.
At the same time, no one’s paycheck should suffer because the senior team chose an overly aggressive goal or one that the team was not prepared to achieve. Pick celebrations and rewards that are mostly for fun.
And as Jack Stack strongly suggests, it’s best if the Critical Number is benchmarked against an external standard (e.g., “If that company can achieve 12 inventory turns, why can’t we?”), so employees don’t think the senior team was just making stuff up!
Instead, ask the most powerful question a leader can pose when a team has successfully completed anything: “How did you do it?” Stand up and say “Congratulations. We said we would do X, and we did it!! How did you do it?” Then pick someone who you know contributed to reaching the Critical Number, and have that person share his or her story.
Aubrey C. Daniels, author of Bringing Out the Best in People: How to Apply the Astonishing Power of Positive Reinforcement
By the way, if you’re a parent, this is a great question to ask your children when they come home with a success story. Rather than shower them with praise, simply say: “Congrats. So h...
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Big Data: A Revolution That Will Transform How We Live, Work,
Here are three simple questions that we recommend you use when holding these conversations: • What should we start doing? • What should we stop doing? • What should we keep doing?
write this stuff down, because if they write it down, it will happen. Things just start to fall into place,”
Ask employees to submit suggestions that will: 1. Increase revenue. 2. Reduce costs. 3. Make something easier/better for the customers or employees.
At a minimum, let an employee know why an idea can’t be implemented.
we suggest that you track the number of days it takes to implement the ideas gathered from your employees.
In contrast, the “great” companies — which, like Enterprise Rent-A-Car, were growing considerably faster — spent roughly 20% of their leadership team’s meeting discussing feedback from customers.
