CEOs as The Next Team Builders

The New York Times recently published an article entitled "C.E.O. Evolution Phase 3," in which it showcased the profiles of prominent CEOs of the 1990s who built empires, then the "Fix-It Men," whose job it was to repair the excesses and mistakes of their predecessors.

"Now, management experts and longtime watchers of corporate America say the current environment demands, and is attracting, yet another kind of chief executive: the team builder."

The article's premise?

• "CEOs must be able to ...assemble a team that functions as smoothly as a jazz sextet,” said Warren Bennis, a professor of management at USC.
• CEOs need to make sure the top hundred people know that they’re in this together, that their fates are correlated,” Mr. Bennis says. “That’s what it will take to succeed in this century.”

BOTTOMLINE: What will be the main challenge in the next 5 to 10 years? The prediction is it would be achieving double-digit growth internally, without the benefit of huge deals or accounting sleight-of-hand. “That’s why I think the baton will go to the manager who will stimulate a division and will be creative and innovative."

Trust and Execution

Jeffrey Phillips, over at Thinking Faster, posts his views on "A Matter of Trust."

His premise?

• Trust is probably the most important and least discussed aspect of working effectively and efficiently.
• Trust is something that is earned by a manager or by a co-worker.

Trust comes from:

1. Doing what you say and saying what you'll do.
2. Trust comes from being honest about your skills, your abilities, the things you know and can share with others.
3. Trust is built when people can look around and see that the "values" in the value statements and mission statements aren't just words but are put into practice by the people in the organization
4. Legacy - what you leave behind.

BOTTOMLINE: At Six Disciplines, our research shows that top-performing organizations have a high-trust culture. High trust cultures lead to higher execution of strategy.

• What does your firm do to establish and retain your trust?
• Does it enforce a positive and effective culture?
• Does it do the right thing, regardless of the consequences?
• Is the communication open and honest?
• If not, what can you do to change it?"

The ROI of Employee Engagement

Several studies over the past few years reiterate the return on investment of strategy-driven employee engagement programs, confirming the importance of an engaged workforce on bottom-line results.

• The 2007 Global Workforce Study by Towers Perrin established a definitive link between levels of engagement and financial performance. Firms with the highest percentage of engaged employees collectively increased operating income 19% and earnings per share 28% year to year.
• A 2006 Watson Wyatt study involving 12,750 workers across a range of different sectors demonstrated that the three-year total return to shareholders was 36% higher in organizations with high-employee commitment.
• A 2005 ISR study (now Towers Perrin) showed that companies with above average employee engagement profits rose by 2.06% and operating margin rose by 3.74% over the same period.
• A 2004 Sirota Consulting study of 28 multinational companies found that the share prices of organizations with highly engaged employees rose by an average of 16% compared to an industry average of 6%.

BOTTOMLINE: Employee engagement starts with a strategically-aligned recognition system that is directly tied to the strategy (mission, vision, values) of the entire organization. This does not mean motivational posters and a simple pat on the back. Successful engagement programs must be embraced company-wide, supported by senior executives, and executed strategically.

Four Dimensions of Employee Engagement

Excerpted from their new book Human Sigma: Managing the Employee-Customer Encounter (Gallup Press, November 2007), authors John H. Fleming and Jim Asplund explore the four dimensions of employee engagement.

Their premise?

"Executives cannot legislate culture with mission or vision statements or through values clarification; it must also grow organically one workgroup at a time."

So how do we manage people for success and high levels of productivity in the new economy?

BOTTOMLINE: "The answer is employee engagement or the ability to capture the heads, hearts, and souls of your employees to instill an intrinsic desire and passion for excellence. Engaged employees want their organization to succeed because they feel connected emotionally, socially, and even spiritually to its mission, vision, and purpose."

Read the entire excerpt here.

The Strategist Notebook Reviews Six Disciplines for Excellence

Kim Soon Lye, editor of The Strategist Notebook has posted a review of Six Disciplines for Excellence.

The review steps through the book, chapter by chapter and offers a good summary of Gary Harpst's top-rated business improvement book Six Disciplines for Excellence.

(Speaking of books, watch for Gary Harpst's new book, coming in mid 2008, entitled "Execution Revolution"....stay tuned to this blog for more details coming soon!)

Execute the Things That Matter

Good friend Bud Bilanch, The Common Sense Guy, offers this timely post on "Successful Businesses Skillfully Execute the Things That Matter," which come from his book 4 Secrets of High Performing Organizations.

The focus of his post is on our favorite topic: EXECUTION.

According to Bud:

"Execution is where the rubber meets the road. An outstanding mission, vision and business plan and the most committed people in the world, still must do what it takes to turn an organization’s vision into reality. They start with well defined metrics that are linked to their strategic and annual business plans. They use these metrics to manage their business and measure progress towards their goals. They use both quantitative and qualitative measures to determine their performance versus metrics. They revise their plans based on the information they glean from regular reviews of their performance versus metrics."

(And, what's NOT to like about Bud's collection of expert quotes on the importance of execution?)

Check 'em out here.

Stephen M.R. Covey Speaks in Atlanta

Stephen M.R. Covey, author of the best-seller The Speed of Trust, was in Atlanta on Monday, speaking to business leaders about the importance of building trust and its effect and return on organizational performance. The event was sponsored by Six Disciplines and the Vail Leadership Institute.

In the picture, L-to-R: Gary Harpst (Six Disciplines); John Horan-Kates (Vail Leadership Institute); Riz Shakir (Six Disciplines Atlanta); Stephen M.R. Covey (CoveyLink)

Six Disciplines Client Featured In WSJ Forum

The Oct. 22 Small Business Link in the Wall Street Journal looked at ways small companies had planned for a change in management at the top.

Wall Street Journal reporter Simona Covel asked Tim Berry, founder and president of Palo Alto Software Inc. in Eugene, Ore., and Andrea Fetterman, director of corporate-image consulting at City Apparel, an offshoot of uniform and dry-cleaning business Kramer Enterprises Inc., in Findlay, Ohio, (and a Six Disciplines client) to be guest moderators.

Here are the edited excerpts of the reader forum on WSJ.com about succession planning.

Author Gary Harpst Appears on iBusinesschannel.com

Six Disciplines for Excellence Author, Gary Harpst, Talks Exclusively with Ruth King on iBusinesschannel.com.

Listed as Accounting Today magazine’s “Top 100 Influential People in Accounting”, Gary Harpst’s reputation does more than precede him. As a veteran corporate executive he’s dynamic and brilliant, but as the founder and CEO of Six Disciplines Corporation and noted author of the acclaimed Six Disciplines for Excellence he’s inspiring.

Gary Harpst will make his debut on Atlanta’s premier internet broadcasting network, iBusinesschannel.com, as he talks about his latest book and long-term fitness program for an empowered, successful, and better quality of life.“Having a guest like Gary Harpst appear on our network is both thrilling and motivating. We aim to bring our viewers top-notch professionals with a genuine story to tell, and we’re proud to say that we’re achieving that.” says Susan Roman, Production Manager for iBusinesschannel.com about the quality of guests invited to appear on the network.

Gary Harpst was interviewed by Ruth King on iBusinesschannel.com’s breakout program “Cover Stories”. Designed to spotlight authors of business books, “Cover Stories” has garnered tremendous support from publishers and the media because of its high quality content. Internationally-known speakers-turned-authors have appeared on the program, and Gary Harpst will help in maintaining that standard. The methodologies and principles illustrated in Gary Harpst’s book parallels the insightful and timely programming iBusinesschannel.com strives to sustain. In addition to its compelling content, iBusinesschannel.com offers and interactive experience for its viewers by allowing people to chat in questions during the live program. This innovation is what makes “Cover Stories”--and the network as whole—an industry leader in internet broadcasting.

Viewers can watch Gary Harpst's web TV interview for free here.

(Thanks to Jennifer Colter at Biz Biz for the coverage)

Effective Succession Planning

Succession planning, along with workforce performance management in general, is increasingly regarded as a significant influence in determining the success of an organization. If it is undertaken effectively, you can ensure that your organization has capable and trained managers to guide its growth.

So what are the benefits of an effective succession planning process?

• A study of more than 100 companies found that organizations that routinely use a formal succession planning process to help workers advance, are also consistently high-performing firms, as measured by total shareholder return. (Source: Hewitt Associates, November 2003)

Unfortunately, many people think of succession planning too narrowly, as if it were something done only to plan for CEO transitions, emergency contingencies, etc.

1. Succession planning is a part of the process of preparing for the future of your company.
2. Succession planning is a learning process.
3. A succession plan is also a documented road map.
4. Succession planning is about sustaining your firm throughout constant change.

Kramer Enterprises is an example of a company in transition. They've adopted the Six Disciplines program to help them with the challenges of succession planning. Read about them here in this Wall Street Journal article.

When Success Isn't Enough

The November issue of Entrepreneur Magazine offers an article entitled "When Success Isn't Enough."

The premise of the article?

"Business is good, but it could be better. So get out of that rut and take it to the next level--here's how. "

This is exactly the scenario we at Six Disciplines find many companies in. A few years ago, we conducted quantitative research with over 300 CEOs from small and mid-sized companies. We asked the senior leadership, “If you could only choose one area of focus in your business, what would it be?” (The graph above indicates their responses.)

What appears from our questioning of top performing businesses that their leaders want something beyond being successful.

These CEOs are very passionate about their businesses, and their companies are financially sound. They have strong leadership teams and they attract and retain quality people. They’re already disciplined in their approach to business, they use technology strategically, and they effectively engage external trusted relationships. Using Maslow’s hierarchy of needs as an analogous construct, these CEOs had already experienced success. What they sought was Maslow’s highest level of attainment: the business form of self-actualization . . . or what they responded to as “business excellence.”

Six Disciplines Client Video - TRUFAST

TRUFAST, great at aligning resources to manufacture fasteners, worked with Six Disciplines to better align its people for sustaining that success.

Brian Roth and Kip Winzeler of TRUFAST talk about how Six Disciplines helped them to optimize operating efficiencies and to get its workforce to become more engaged and accountable.

Watch this short video as Brian and Kip explain the benefits of Six Disciplines, and what it does for their growing company.

How Can We Pursue Enduring Business Excellence - Video

Watch this short video as Six Disciplines CEO and founder Gary Harpst explains "How Can We Pursue Enduring Business Excellence?"

During the interview, Harpst talks about the years of field research that went into the development of the Six Disciplines program, and about the four essential component of an enduring business excellence program.

Employee Engagement Starts With Leaders

From The Employee Factor blog comes this post "Employee Engagement Starts with Leaders!"

Their premise?

"A number of studies and other literature related to employee engagement shows similar definitions for employee engagement:

• Commitment to the organization
• Job ownership and pride
• Passion and excitement
• Commitment to execution and the bottom line

Engagement is an amalgamation of commitment, loyalty, productivity and ownership.

What can leader’s do to drive employee engagement? Companies need to spend more time helping their leader’s be authentic, consistent and real."

Read the entire post here for nine specific suggestion on how to drive employee engagement.

BOTTOMLINE: While employee engagement starts with leaders, they are not the only ones who drive engagement. Six Disciplines uses both a top-down and bottoms-up approach to drive total organizational engagement. It's the only way cultural change can be endure over the long-term.

How Does Six Disciplines Actually Work - Video

Watch this short video as Six Disciplines CEO and founder Gary Harpst explains "How Does Six Disciplines Actually Work For My Company?"

During the interview, Harpst talks about the changes that occur in companies as they begin to adopt the Six Disciplines business excellence program.

Six Disciplines Co-Sponsors Stephen M.R. Covey Jr. to Speak in Atlanta

Stephen M.R. Covey Jr. - author of the bestseller “The Speed of Trust – The One Thing that Changes Everything” is speaking on November 5 from 3:30 p.m. - 6:30 p.m., including a Q&A session at the Gwinnett Performing Arts Center, 6400 Sugarloaf Pkwy, Duluth, GA 30097.

Covey will be speaking on the topic “High Performance Organizations at The Speed Of Trust.” In this fast-paced and engaging presentation, Covey will demonstrate the leadership benefits of trust from the informed perspective of a CEO and show how to establish and grow a high-trust, high-performance organization.

Covey is the former CEO of Covey Leadership Center, the largest leadership development company in the world. He led the strategy that propelled his father’s book, “7 Habits of Highly Effective People,” to one of the most influential business books of the 20th century. Covey is currently CEO of CoveyLink—which is a learning and consulting practice focused on enabling leaders and organizations to increase and leverage trust to achieve superior performance.

Business owners, executives and managers; non-profit leaders and board members; community leaders and public officials are encouraged to attend.

Individual registrations – $45/person, group registration (5+ people) – $35/person, $55 if paid in person at the event. Local Chamber of Commerce members - check your Chamber's website for discounted pricing code.

REGISTER HERE: www.SixDisciplines.com/Atlanta

Six Disciplines and the Vail Leadership Institute are co-sponsors of the event.

Employee Engagement A Key Factor

Interesting findings from a recent Gallup Management Journal ( GMJ) survey of U.S. employees.

Gallup researchers studied employee responses to see which factors differed most strongly among engaged employees (26% of respondents) and those who were not engaged (56%) or actively disengaged (18%).

Gallup uses its employee engagement survey, the Q 12, to measure workplace engagement and glean insights about the kinds of manager behaviors that are most likely to cause employees to disengage from their workplaces.

Not surprisingly, engaged employees aren't the ones wanting to bid their manager farewell. Just 6% of engaged workers say they would fire their boss if they had the chance.

BOTTOMLINE: Engaged employees consider their relationship with their manager to be crucial to their success. Employees' disengagement with their supervisor can have real -- and negative -- consequences for their companies.

CEOs Describe Benefits of Six Disciplines - Video

Six dynamic CEOs tell you how Six Disciplines transformed their companies like no other business improvement program could.

From publishing to technologies to nonprofit, the business categories are diverse, but the results are the same – remarkable!

View the short video here.

Six Disciplines Client Video - Flexware Innovation

Flexware Innovation is a 10-year old leading provider of manufacturing software.

Scott Whitlock, President of Flexware Innovation, talks about how Six Disciplines helped him to optimize operating efficiencies and to get its workforce to become more engaged and accountable.

Watch this short video as Scott explains the benefits of Six Disciplines, and what it does for his growing company.

Implementing A Framework for Accountability

In his post about Risk Management Made Easy…, Mike Myatt, the chief strategy officer for N2Growth (and author of the N2Growth blog) asserts that:

"Accountability is the lowest cost, most practical and most productive form of risk management and quality assurance that can be implemented across an enterprise. It is really nothing more than a common sense understanding that decisions made within a framework are going to have a greater chance of success than those made in a vacuum."

In his post, Myatt "examines not only the benefits of accountability, but also how to implement a framework for accountability within your business…"

His solution? Setting up an enterprise wide framework for accountability is as simple as implementing the following three items:

1. Have a clearly articulated statement of corporate values.
2. Have a written delegation of authority.
3. Implement a good leadership development program.

Read Mike's entire post on accountability here.