The Formula For Business Success

The 6 Key Elements for Controlling Your Market

I will not waste one minute of your time…

• I have a ton to cover and I will go pretty fast.• Please take lots of notes, think/work hard and feel free

to ask questions or give comments at ANY time.• I am happy to answer any of your questions, offer advice

and recommend books at any time after this session.• John@JohnSpence.com

The slides are already posted at:

www.SlideShare.net/johnspence

A few of my clients:

For the past 21 years…

What does this mean to me?

How can I use this idea?

What can I do right away?

I am NOT a guru…

To get the most from our session together…It is absolutely critical that you be brutally honest with yourself today.

So let's get started with a little self-test on page 2

The Four – I’s

• Ignorance• Inflexibility• Indifference• Inconsistency

Page 3

How to avoid the Four I’s

• Aggressive external market focus.

• Ridiculously high level of customer focus.

• Keep the “Main Things” the main things.

• Bullish on knowledge sharing and learning.

• Teamwork is mandatory – not optional

• Passion and commitment at all levels.

• Foster a healthy paranoia.

• Revel in change.Page 3

The Pattern of Business Success

(T + C + ECF) x DE = Success

Talent

Talent + Culture

Cecil Van Tuyl

“It is all about people, people, people. You can kid yourself about a lot of things in your business, but at the end of the day it will always come down to people.”

The level of highly satisfied and engaged EMPLOYEES in your business.

The number one factor in increasing the level of highly satisfied and engaged CUSTOMERS in your business is…

Key Drivers of Customer Satisfaction and Loyalty

Financial Performance

Quality P&S&

Customer Relationship

EmployeeSatisfaction

Empowerment High Standards

Long-termOrientation

Enthusiasm, Commitment,

Respect

Training &Development

Fair Compensatio

n

CR= 104.12% increase in profits

CR= .404

CR=.334

CR=.277

CR=.275CR=.249

CR=.280 Coaching

CR=.285

CR=.371

CR=.365

CR=.191

CR=.247

TolerateNothing

Less

From: Practice What You Preach by Maister

Global study:16 countries529 companies15,589 respondents

Chart: 4Workshop: 5

Customer satisfaction drives customer loyalty… and customer loyalty drives profitability

100%

90

80

70

60

50

40

30

20

Extremely Dissatisfie

d

SomewhatDissatisfie

d

SlightlyDissatisfie

dSatisfied

Very Satisfied

Zone of Defection

Zone of Indifferenc

e

Zone of Affection

Loyalt

y

Customer Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best customers…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

NITB

Your competition can copy…

• Products• Prices• Promotions• Location• Advertising• Systems• Social Media• ENVIRONMENT

60%

What do engaged employees look like?

1. They give more discretionary effort.2. They consistently exceed expectations.3. They take more responsibility and initiative.4. They receive better customer service ratings.5. They offer more ideas for improvement.6. They promote and model teamwork.7. They volunteer more for extra assignments.8. They anticipate and adapt better to change.9. They persist at difficult work over time.10. They speak well of the organization.

1 - 10

Workshop: 6

5

1-10

Workshop: 7

The key elements of a winning culture

The Six Universal Drivers of Engagement

1. Caring, competent, and engaging leaders.

2. Effective managers who keep employees informed, aligned and engaged.

3. Effective teamwork at ALL levels.

4. Job enrichment and professional growth.

5. Valuing employee contributions.

6. Concern for employee well being.

1 - 10

Workshop: 7

1,300,000 interviews: Basic 4 + 1

Goal Setting

TrustAccountability

Communications

RECOGNITION

Page 8

Extreme Customer Focus

Web of Value: VOC + MOT + WOM

Page 8

Extreme Customer Focus

VOC

Moments Of Truth

Page 8

VOC + MOT Workshop: Page 9

WOM = Your BEST form of advertising!

78.9%23.4%

43% - 74% of purchasing decision = WOM/T

You MUST have a WOM Referral System

Identify Ideal

Customer

ReferIdeal

Customer

From John Jantsch: The Referral Engine

WOM page 10: Best Ideas from the Group

Kaizen

For those who are prepared…chaos brings opportunity.

The Evergreen Project

10 year study of 160 top companies

40 distinct industries

200 management practices

Winners, climbers, tumblers, losers

Winners had an average Total Return to Shareholders of 945%...

The Losers only averaged a TRS of 62%

From: What (really) Works by Joyce, Nohria, Roberson

The Four Primary Practices:

1. A sharply focused, clearly communicated and well-understood strategy for growth.

2. Flawless operational execution that consistently delivers the value proposition.

3. A performance-oriented culture that does not tolerate mediocrity.

4. A fast, flexible, flat organization that reduces bureaucracy and simplifies work.

The Secondary Management Practices:

• Talent = find and keep the best people.

• Key leaders show commitment and enthusiasm for the business.

• Embrace strategic innovation.

• Master the power of partnerships.

From: What (really) Works by Joyce, Nohria, Roberson Workshop 11

10 – 15%

Accountability

1. 100% Clarity

2. 100% Agreement

3. Track & Post

4. Coaching

5. Reward / Punishment

Workshop Page 12

Strategy Map / Word Cloud: Pages 13 & 14

Final Workshop: Pages 15 - 17

THANK YOU

If you have any questions at all please do not hesitate to send a note or call. My email address is: john@johnspence.com

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Lastly, these slides have already been uploaded to:

www.slideshare.net/johnspence