Excellence in the NEW Normal

For the past 22 years…

What does this mean to me?

How can I use this idea?

What can I do right away?

Organization Effectiveness Audit

Page 2Be “Brutally Honest”

Scale of 1 – 10

The Four – I’s

• Ignorance• Inflexibility• Indifference• Inconsistency

2

How to avoid the Four I’s

• Aggressive external market focus.

• Ridiculously high level of member focus.

• Keep the “Main Things” the main things.

• Bullish on knowledge sharing and learning.

• Teamwork / communication is mandatory – not optional.

• Passion and commitment at all levels.

• Foster a healthy paranoia.

• Revel in change.

3

1 - 10

The Pattern of Business Success

(T + C + EMF) x DE = Success

3

Talent

Talent + Culture

Cecil Van Tyul

“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 organization.

The number one factor in increasing the level of highly satisfied and engaged MEMBERS in your credit union is…

4

Key Drivers of Member Satisfaction and Loyalty

Financial Performance

Quality P&S&

Member 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

4

Workshop Page 41 - 10

Member satisfaction drives customer loyalty… and member 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

Member Satisfaction

Terrorist

Evangelist

A 5% increase in loyalty among your best members…

Can produce a profit increase of 25% – 85%

I hate you

I don’t care about you

I love you

NITB

Actively disengaged employees can reduce revenues by up to 22%, while highly satisfied and engaged

members can drive profits up by as much as a 189%

Culture = Cash

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.

Page 51 - 10

5

The Goal: Become a Category of ONE

Key Competitive Advantages

Products People Process

Extreme Customer Focus

Web of Value: VOM + MOT + WOM

VOM

How Many of these do you employ?

Moments Of Truth

Moments Of Truth

HOMEWORK: MOT

9

43% - 74% of purchasing decision = WOM

WOM = Your BEST form of advertising!

78.9%23.4%

You MUST have a Referral PROCESS

Identify Ideal

Member

ReferIdeal

Member

From John Jantsch: The Referral Engine

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 6

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.

From: What (really) Works by Joyce, Nohria, Roberson 6

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

Score yourself on the 1–10 scale for all eight practices on page 6

Non-negotiable Standards + Fanatical Discipline

Very Clear Expectations

Specific and Measurable Goals

Necessary Systems & Support

Robust Communication

Consistent Tracking of Performance

Regular Performance Reviews

Refuse to Tolerate mediocrity Page 71 - 10

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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Thank You