Governance, Strategy and the Imperative of Performance by Mac Van Wielingen, the  founder and Director of ARC Financial Corp.

In this article, Mac goes in-depth into the structures, processes and authorities that direct and control a business.

Download the PDF to read more

Listening is the most necessary capacity for developing leadership and the most significant commitment for being related. Indeed, relationships are a function of listening.

And yet we often reduce listening to a skill that can be trained and transacted. Given its importance, I will devote a four-part series to the topic. Part one will distinguish the topic through four levels or mindsets, and part two will expand and distinguish Level 2 Listening, which is pervasive in organizational life. Part 3 will develop Deep listening from Empathy, and Part 4 will complete with deep Listening from Being.

Download the PDF to read more

Great Companies that Execute at a High Level of Consistency are Defined by a High Performance Culture

Introduction:

In today’s hyper-competitive business world, companies that are delivering sustainable performance are masterful at executing their promises and commitments to clients and to shareholders. What is it that allows companies like STEP Energy Services, Disney or Starbucks to be so successful? From working with CEO’s for the last 15 years to create Transformational Leaders who are able to build sustainable performance within their organizations, we at Awesome Journey see that a critical component of their success is that the CEO and the Senior Leadership Team made the commitment to build a High Performance Culture. In this article, we will demonstrate how to build a High Performance Culture to support your goal to design a company that is able to deliver sustainable performance.

 

What is Culture?

Every organization has a culture; however, is the culture in your company, High Performance/Healthy or a Low Performance/Unhealthy Culture? A culture is a “Network of Conversations” that people in the organization are having. It is common beliefs, values and behaviours that demonstrate an organization’s culture.

Many organizations have an unhealthy or low performing culture, typically because the Senior Leadership Team does not understand the role that they play in building a Healthy or High Performance Culture.

If you do not develop your corporate culture, it will develop itself. Corporate culture doesn’t happen by accident–and if it does, you’re taking a risk.”

— Monique Winston

 

Definition of an Unhealthy or Low Performance Culture

An unhealthy or low performance culture is characterized by “Background Conversations” that staff are having that lead to people eroding trust within the company. This leads to staff becoming disengaged, which leads to poor execution. This is visible in the company through the following:

1. Low employee engagement – employees are late for meetings, employee sick days are high, etc.
2. KPIs are not defined or measured
   • Missed sales targets
   • Profit targets and budget overruns
   • Operational targets are not clear
3. High turnover of staff or worse – warm bodies showing up everyday
4. Time wasted on ‘firefighting’
5. Micro-management by leaders
6. Unacceptable levels of frustrated clients
7. Little recognition and appreciation to staff
8. Non-accountable behaviours:
   1. Deadlines aren’t clearly established and agreed to
   2. Poor communication
      • People do not feel safe in expressing their real thoughts
      • People listen with the intent to respond, not hear
      • Issues are not being discussed and dealt with
      • Little real time quality feedback

3. Absence of consequences for poor execution

4. Lack of collaboration among team members and departments – hoarding of information

 

Definition of a Healthy or a High Performance Culture

A healthy or high performance culture is characterized by “Intentional Conversations” that staff are having that build trust in an organization. The foundation is a set of core values that influence staff to behave in a way that drives deliberate action towards a set of clear outcomes. This is exhibited in the company through the following:

1. High employee engagement, staff go the extra mile willingly
2. KPIs are being achieved – sales, profit margins and budgeted targets are met Operational targets are being achieved
3. Low employee turnover – staff love working for the company
4. Time is used wisely and colleagues are respectful of others’ time
5. Leaders trust and empower their staff
6. There are many long term and loyal clients
7. Employees are recognized and appreciated regularly
8. Accountable behaviours
   1. Deadlines are clearly understood and regularly achieved
   2. Effective communication occurs
      • People feel safe and share how they honestly feel in private or in a group setting
      • People listen with the intent to understand each other
      • Key issues are addressed and resolved in peaceful ways
      • There is an abundance of real time quality feedback occurring throughout the company
   3. Strong performance management system in place to support high quality execution
   4. Plenty of collaboration and sharing between team members and departments

 

How does a Senior Leadership Team (SLT) go about creating a High Performance Culture within their organization?

Step One: Commitment

The first step is understanding it will be fraught with highs and lows, progress and setbacks. It will take time and commitment. The SLT needs to understand they will author the culture and they need to own it. Making the commitment to be a High Performance organization starts with being accountable to the promises and agreements we make with each other? The organization needs a set of “Guiding Principles or Core Values” so everyone in the organization can decide if they can align with and support them.

Step Two: Core Value Discussion

The SLT needs to define a set of “Guiding Principles or Core Values” that will define the personality of the company. This will involve a passionate debate within the SLT in order to create four or five core values and a clear definition of each value that everyone agrees on. One example may be to choose the core value ‘Excellence’; and define what that means so everyone in the organization understands it and can live by it.

Excellence: We are committed to being masters of the details in everything we do. This will ensure that the decisions we make and the service we deliver to each other and our clients will be flawlessly executed.

Step Three: Make it Real Through Intentional Conversations

Once you have defined the “Guiding Principles or Core Values” that you are committed to living by, the next step is to present the core values to the organization and get everyone to decide if they can support and live by them. Here are some examples of what successful companies are doing to achieve alignment to their core values:

Hiring new staff

High performing companies incorporate a series of questions in their hiring process that include their core values to ensure that the candidates they hire are aligned with the company’s culture.

Repetition and reinforcement

Whether it is a safety meeting, sales meeting, executive meeting, operations meeting or a company-wide staff meeting, talk about the core values. Ask individual staff members this question, “Tell us how one of the company’s core values had an impact on you this week.” Or, “Share with the team how one of the company’s core values allowed you to deliver great service to a colleague or client.”

On-boarding new staff

Ensure that managers or a member of the SLT have an intentional conversation with all new employees to review the core values, what they mean to the entire organization and how they are expected to live them.

Decision making

When making decisions ask, “How does this decision align with the company’s core values?” 

Example: You decided to go to your boss and ask for an extension on a project deadline. You reflect on the company’s core values before you have the intentional conversation with your boss and you realize that one of the core values is ‘Accountable’. To the company accountability means, “I will honor my word and do what I say I will do.” As a result, you decline to ask for an extension and decide to stay late to get your work done and meet the deadline.

Company events

Design a set of intentional conversations around celebrating individual and corporate success. If one of your company’s core values is ‘Excellence’, the following are examples of how you can use company events to re-enforce the core value of ‘Excellence’:

1. Staff Meetings – share client success stories and real client feedback
2. Staff Birthdays – hold monthly birthday parties to honour staff celebrating a birthday in that month
3. Staff Anniversaries – recognize individual staff for their length of service to the company
4. Individual Staff – celebrate individual staff success stories, both professionally and personally

Unique Company Language

All High Performance Cultures have developed their own unique language that supports building a company personality.

At Disney some of the key words they are committed to speaking to honour their unique culture are:

1. All employees are called “Cast Members”
2. When Cast Members are working they are either “On-Stage or Off-Stage”
3. Staff that design shows or movies are called “Imagineers”
4. All customers are called “Guests”
5. All cast members are focused on providing “Magical Guest Experiences”

At Starbucks some of the key words they are committed to speaking to honour their unique culture are:

1. All employees are called “Partners”
2. Staff that make the coffee are called “Baristas”
3. Your total pay package is called “Your Special Blend”
4. The size of coffee you order is not small, medium or large it is “Tall” (small), “Grande” (medium) or “Venti” (large)

At Step Energy Services some of the key words they are committed to speaking to honour their unique culture are:

1. All staff are called “Professionals”
2. All field staff are called “Field Professionals”
3. We deliver “ECE” to our clients – Exceptional Client Experiences
4. We deliver “EEE” to our staff – Exceptional Employee Experiences
5. Customers are called “Clients”

 

Four Stages of Developing a High Performance Culture

There are four stages to developing a High Performance Culture:

Stage One: Forming

The SLT presents the company’s core values and strategic goals for the upcoming year to the team. Done successfully, staff are energized by the event; they are grateful for the clarity and attitudes are positive for the future potential.

Time duration: 0 to 3 months

Stage Two: Conforming Through Repetition

Through leadership from the SLT, the team is buying into the new company culture and what you see or hear is staff supporting each other, staff being accountable for their commitments, and staff sharing ideas for company improvement – staff is engaged.

Time duration: 3 to 6 months

Stage Three: Storming

The team’s commitment to living by their core values will be tested by performance issues that can arise by events such as the economy declines, product deliveries are delayed or sales soften. This puts a strain on employees and will test the individual’s and organization’s resilience to living its core values. You may see and hear the following non-accountable behaviours emerging:

• Staff members deferring blame – it wasn’t my fault that the client didn’t renew their contract with us
• Staff members not collaborating with other members of their team – it is another group’s fault
• Staff members reacting negatively to feedback given to them to improve
• Staff giving excuses, justifying or rationalizing as to why their performance is not meeting targets

This is a crucial time in the company. By living the core values through intentional conversations directly related to building a high performance culture, the SLT can keep things on track.

Staff members will demonstrate through their behaviours and attitudes if they are willing to transform to the new culture. This will be a true test of the SLT commitment to the new culture. Turnover will occur as people self-select and leave or others are identified for release because they do not live the values and support the culture. It will be particularly tough when a previously top performer needs to be released because they are choosing behaviours and attitudes that don’t support the new culture. The SLT needs to trust that this individual can be replaced by someone who will still deliver results yet live by the company’s new culture and values.

Time Duration: 6 to 12 month

Stage Four: Transforming

The team is consistently living the company’s core values and demonstrating the following behaviours of a high performance team:

• Team members holding their colleagues and the SLT accountable to their commitments
• Team members requesting feedback
• Team members challenging each other
• Team members sacrificing for each other
• Team members celebrating their success and wanting to set new stretch goals
• Team members brainstorming solutions to challenges
• Team members having courageous conversations with each other

Time duration: 12 months to 18 months

 

Conclusion

Companies that are deeply committed to building a High Performance Culture realize that a key component to differentiating themselves in a crowded marketplace is their commitment to having “Intentional Conversations” throughout their organization, on a daily basis, at all levels in the organization to build a unique culture of Trust, Discipline and Learning.

Step Energy Services has a high performance culture. Step has created this culture with the support of Awesome Journey and we work with Awesome Journey coaches throughout the organization in support of our culture.

 

This paper is written by: Eric Crowell, BSc, President of Awesome Journey and, Regan Davis, CEO of Step Energy Services

“The thing I have learned at IBM is that culture is everything.”

— Louis V. Gerstner, Jr. former CEO IBM

 

To be authentically powerful leaders, we need to learn to focus on what it is we want to create. We all have internal distractions and mental filters that create blocks to clear thinking and achieving our goals.

To remove distractions, we need to be intentional about designing quality time to focus, and be aware of the thoughts and obstacles we need to “Let Go” of to get clarity.

 

As C-Suite Leaders, here are 5 things to consider “Letting Go” of:

 

1. Your Mindset of “Playing Small”

When you play small, you play to achieve less than the possibilities you are capable of. Leaders who play small are often restricted by a fear of failure of going beyond their comfort zone.

When you embrace the mindset of “Playing Big”, you give yourself permission to think beyond conventional borders.

• What does Playing Big mean to you?
• How would Playing Big affect your life?

 

2. Control

Letting go of control is one of the toughest things for most leaders to do. Powerful leaders hire great people and trust that great things will happen.

They let go of “Control” and learn to embrace “Trust”

Ask yourself – who do you need to trust that you are currently struggling with?

Design an intentional conversation with them about what you need from them to begin developing stronger trust.

 

3. Listening to Fix

For many leaders, as soon as they hear something is wrong, they instinctively go into “fix-it” mode; meaning they are no longer listening to create, but listening to speak.

When you embrace the art of listening to connect and co-create with others, you will engage in generative dialogue that creates action.

The next time you are having a conversation with someone and you hear that something is wrong, pause and think about this question:

“What is missing for us to move forward?”

• Process/procedure (how things are done to get the right results)
• Honest and intentional conversations (providing feedback or addressing issues)
• People with the right skill sets (skill sets that provide the ability to achieve goals)
• Right practices and routines (daily practices that provide for the right mindset such as meditation)
• Tools/technology (technology requirements to achieve goals)

Once you have determined what is missing, take action to connect with others to achieve meaningful results.

 

4. Your Internal story – “I don’t have time”

Everyone always says, “I don’t have time”, but what they mean is “your request was not one of my priorities”.

Be honest and embrace the process of asking yourself – “Am I being intentional with my time, and are my actions in support of my goals?”

 

5. Your Internal story – “I’m the CEO, I am paid to know everything”

As the CEO, what happens when you don’t have all the answers and you lack certainty?

Powerful leaders embrace the mindset of being curious about the unknown, rather than being fearful.

The next time you are faced with a challenge, start by asking yourself this question, “What are the future possibilities that this challenge is show me that I am currently frustrated by?”

 

Your Weekly Learning Journey:

Out of the 5 distractions above, pick the one that you struggle with the most and practice the art of “letting-go”.

 

We would love to hear about your top distraction in the comments below!

One of the competencies that allows‎ Powerful Leaders to coordinate action with others to generate quality results consistently over time is – they are BOLD!

Powerful Leaders Drive Action by:

Asking BOLD Questions

Making BOLD Requests

Making BOLD Offers

Making BOLD Promises

 

This week I would like to challenge you to practice being BOLD.

Pick one of the challenges and DO IT:

1. Ask a BOLD Question to drive action.

Powerful leaders make BOLD declarations about how their future will be.

JFK – “By the end of the decade we will have landed the first man on the moon!”

John Hanke – “We will photograph every house in the world and provide Google Earth as a service to the world for free!”

Challenge #1: What is one thing that inspired you from this past weekend that can support you in achieving your goals for this week?

 

2. Make a BOLD Request to a colleague to drive action.

A request is a commitment to have a future action performed by someone else, made by a committed speaker who is intentional, sincere, and willing to hold another accountable.

Challenge #2: Initiate a ‘Courageous Conversation’ (honest and intentional) by Friday at noon this week with a member of your team who is under-performing and give them feedback such that they leave the conversation inspired to act now.

 

3. Make a BOLD Offer to drive action.

What is an OFFER? An offer consists of both a promise and request.

Example: Please get me a cup a coffee and I’ll show you how to install that application.

• The Request: Please get me a cup a coffee.
• The Promise: I’ll show you how to install that application.

Challenge #3: Call up a colleague this week and offer to support them in a key project that they are working on.

 

4. Make a BOLD Promise to drive action.

A promise is a commitment for future action that will be carried out within a specific time frame by a speaker who is intentional, sincere, willing to be held accountable, and competent to deliver on the future (promise).

Additional generative properties (action-oriented) of a promise include:

• A committed listener who is willing to hold the speaker accountable.
• A “by when” (date and/or time) the promise is to be delivered.
• A clear set of “Conditions of Satisfaction” that both parties agree on to fulfill the future (promise); these include specific details or options.
• A shared obviousness or background about shared assumptions, standards, expectations, so that both parties are on “the same page.”
• Complete choice: the speaker may revoke or negotiate a promise and the listener may reject the promise. Any choice ought to occur as close as possible to when a promise is made (and before its deadline) to preserve credibility.

Challenge #4: Tell your boss – My Team and I guarantee that the project will be done on-time and on budget by the end of the month, as you requested.

 

Be BOLD and Drive Action!

 

Powerful Leaders are visionary – they see the future possibilities and begin creating. Visionary leaders have the ability see further than others, and are able to leverage their support to coordinate action around themselves to bring their vision to life.

 “He who sees the furthest always wins!” – Eric Crowell

Some great examples of Powerful Leaders who built legacies on their “Vision” are: 

Henry Ford – The Founder of Ford Car Company

Henry Ford is one of the most well-known visionaries on earth. He is famous for his quote – “If I had asked the people what they wanted, they would have said faster horses.”

Henry was on a mission to design and develop a simple, reliable and affordable vehicle for the average American. He recognized that cars were a luxury item that few could afford, and he envisioned a world where every American had the ability to purchase one.

 

Jerry Bruckheimer – The Creator of CSI TV Series

Jerry Bruckheimer created the CSI series back in 2000, a few years after the OJ Simpson trial. During the trial Jerry watched from afar as millions of people were glued to their televisions obsessed with the trial of the century. Like all visionaries, Jerry asked “Why”?

Why were so many people so interested in the trial?

Jerry realized that it went beyond celebrity; people were obsessed with the forensic investigation and the mystery of what would be uncovered. This foresight led to the development of the massively successful CSI franchise.

 

Ingvar Kamprad – The Founder of IKEA

Ingvar Kamprad may not be a household name in America, but his furniture business is – IKEA.

Ingvar was a natural born business man who saw an opportunity in the furniture industry. In 1948 Sweden, furniture was a luxury item that most people could not afford. This fueled Ingvar’s mission to develop and sell affordable, good quality furniture to the masses.

 

Steve Jobs – The Founder of Apple Inc

Steve Jobs revolutionized the computer industry with a vision of making computers accessible and affordable for all, and making electronics simple, elegant and easy to use.

 

Jeff Bezo – The Founder of Amazon.com

Jeff Bezo is the “King of E-Commerce”. With a passion for electronic retailing, Jeff saw the incredible growth of usage of the worldwide web in the 90’s and envisioned the possibilities of what could be; a place where consumers could go and find anything they wanted to buy.

 

Howard Schultz – The Pioneer of Starbucks

Howard Schultz’s passion for “enhancing the personal relationship between people and their coffee” sent him on a journey to transform how North America consumes coffee.

 

Walt Disney – The Founder of Disney Inc.

Walk Disney’s vision of creating a place for children and parents to have fun together was the beginning of Disneyland. With the simple mission “to make people happy”, Walk Disney saw what others could not – a magical park.

 

Bill Gates – The Founder of Microsoft

Bill Gates is famous for his vision of “a personal computer on every desk in every home.” Bill recognized the potential growth of home computers and fearlessly went forward. He saw a future where the average person could enjoy the flexibility of buying PC’s from many different hardware companies that would all run the same software.

 

Powerful Leaders Look at the Future Differently

Powerful Leaders have a different relationship to the “Unknown” than most people. Most people fear the “Unknown”; the lack of certainty and predictability makes them feel uneasy and creates a mindset of doubt.

Powerful Leaders view the “Unknown” with curiosity and intrigue. When curiosity overtakes fear – that is where the magic happens.

Going from “Fear of the Unknown” to “Curious of the Possibilities”:

• Curiosity about “What if?” and “What could be” rather than fear
• Desire to create something better than what is currently available
• Studying trends that are emerging and recognizing what’s on the fringe (recognizing peoples behaviors and what that means on a larger scale)
• Making client intimacy and strong relationships a real business priority
• Getting “Market Smart” – understanding who in our market is winning and why
• Communicating our “Differentiation Factor”
• Designing multiple scenarios to embrace the future

Powerful Leaders have the ability to see further than others because they are fearless and unafraid of “The Unknown”. They embrace “The Unknown” and seek out the new possibilities it opens!

Challenge: Over the next 7 days make a note of every time you felt fear vs curiosity towards the future. Create a list of how you could turn that fear into curiosity and possibilities.

What defines a great leader? Why do some businesses grow and prosper, while others get stuck and eventually disappear?

What’s the secret? Great Leaders differentiate their business in a crowded marketplace by intentionally designing a strategic “Business Model”.

At Awesome Journey we believe that a strategic “Business Model” has 4 key building blocks.

• Client Value Proposition (CVP): “Why should a client buy from you?”
• Profit Formula: “How will you create revenue and profit from your CVP?”
• Key Resources: “What resources do you need to deliver your CVP?”
• Key Support Structures: “People, Process, Practices and Tools that support the CVP”

 

1. Define Your “Client Value Proposition”

To understand your “Client Value Proposition”, answer the following questions:

• Who is your key target client?
• What type of relationship does your company have with your client?

Personal (face-to-face)

Automated (through technology)

• What is the job that the target client needs done?
• What is your product and service offering?
• What is your distribution method to reach your key target client?

Two key distribution methods are:

1. Direct Distribution – a sales team or web based
2. Indirect Distribution – through a franchise network, licensing agreement, partner stores and wholesalers

 

2. Define Your “Profit Formula”

To understand your “Profit Formula”, answer the following questions:

a. What is Your Revenue Stream?

How does your company create revenue streams from your value propositions to your clients?

• Transactional Revenue stream
• Product sale
• Recurring Revenue stream
• Rent
• Franchising
• Licensing fee
• Usage fee
• Subscription
• Leasing

b. What is Your Pricing Model?

Fixed Pricing Model

• List price
• Product feature dependent (dependent on uniqueness of your products)
• Client segment dependent (dependent on uniqueness to target market)
• Volume discount

Dynamic Pricing Model

• Negotiation
• Pricing is dependent on market conditions – Hotels room and airline seats – price depends on inventory and time of purchase
• Auctions – pricing is determined by competitive bidding

Specific Pricing Models

• Lowest cost through scale advantages
• Lowest cost through scope and replication advantages
• Premium prices due to unmatchable service
• Premium prices due to propriety product features

c. What are Your Cost Structures?

• Fixed costs?
• Variable costs?
• Economies of scale?

 

3. Define Your “Key Resources”

What are your key resources that are required to deliver the “Client Value Proposition?”

• People
• Technology
• Products
• Assets – Equipment, Mineral rights, Real Estate
• Reoccurring revenue streams
• Equipment
• Information
• Partnerships/Alliances
• Brand

 

4. Define Your “Key Support Structures”

To understand your “Key Support Structures”, you need to determine – “do we have the right”:

• People
• Processes/Systems
• Practices
• Tools

 

Once you have a clear understanding of your Business Model, then the collaboration begins! Bring your team’s creativity and innovative mindsets together and see how you can alter your Business Model to differentiate your business and stand out in a crowded marketplace.

 

Challenge:

Sit down with your leadership team and find 5 – 10 gaps in your current business model to differentiate your business.

 

References:

1. “Reinventing Your Business Model”, by Mark W. Johnson, Clayton M.     Christensen, and Henning Kagermann (HBR paper – Dec 2008)
2. “Business Model Generation” by Alexander Osterwalder & Yves Pigneur (Book – 2010)
3. “Are You Sure You Have a Strategy?” by Donald C. Hambrick & James W. Fredrickson (Academy of Management Executive – Nov 2001)
4. “Disrupting Beliefs: A New Approach to Business-Model Innovation”, by Marc de Jong & Menno van Dijk (Mckinsey Quarterly – July 2015)