This post was first developed for the CEO membership of VistageConnect.com, Vistage International revolutionary new online community built for the express purpose of developing executives using virtual peer advisory sessions.

TV’s hottest show is Mad Men. “Viewers see Mad Men as a polished reflection of their own -- and their parents' -- life and times.”

I grew up in that world of the ‘50s and ‘60s where “a relationship” was born from and measured by  booze, lunches, expensive Christmas gifts, trips and other benefits. My grandfather was a purchasing agent for General Motors, and Christmas at his house looked like the loading dock at Macy’s with multiple Silver Tea sets, more than one color TV (rare items then), many bottles labeled “Johnny Walker,” large boxes of fruit, mixed nuts, and those cards with tickets to the Kentucky Derby, Florida and Europe showed up each and every year.

That was how to build relationships back in the day of Mad Men -- you picked the person who could do you the most good and buy -- or I mean, build a one-to-one relationship.

The Mad Men definition of creating relationships with goodwill and gifts may still persist in a few places in the world. In all but those rarest of places, the Mad Men definition of relationships has changed.

Today, all significant purchases are touched by a number of individuals, systems, metrics, reviews and laws. With all that oversight on a deal, it is hard to conceive of a sales person creating that many Mad Men relationships to cover all those players throughout the buying process to win against those competitors who deliver real value.

For many reasons, good sales people abandoned the Mad Men relationship model 30 to 40 years ago, but the myth persists for those salesmen who may not know better and for management that watches too much TV.

For these two groups, the myth of the Mad Men relationship just keeps on going -- they think a one-to-one Mad Men relationship will carry the day. Mad Men and Jurassic Park make great entertainment, but both are about things that are extinct -- dinosaurs and the Mad Men relationship.

So move on!

Today, not only has the definition of the relationship changed, but so has who the relationship is between.

In 2012, the relationship is not about gifts (lunch, trips, golf, etc.). It is about value shared between the buyer and seller. The relationship is between your customer and your “brand promise.”

If there is a gift today, it is the gift of your brand promise, which creates the relationship. Sales or any other member of your team may develop a personal relationship with members of the buyer team. These relationships are a result of delivering your brand promise and helping solve your customer’s business problems, but today it is brand promise first and personal relationship second.

The biggest change wasn’t the definition of the relationship but the forms of the relationship. A relationship can still be person to person or it can be person to brand or brand to brand or brand to person. In this virtual, transparent world, even a trusted adviser relationship does not have to be with a person.

Many of us trust and rely on the brand promise from Apple, Facebook, Mayo Clinic, IBM, Amazon, Expedia, Coca Cola, Google, McDonalds, Southwest Airlines and many other relationships that don’t require a golf game, a drink, a gift or even another human.

Steps to take if you want to build the right 21^st-century sales relationships:

1. Build a brand promise that your customers, staff and partners can count on.
2. Solve a problem for your customers that no one else solves -- be sure the problem you solve will compel customers to engage with you.
3. Declare a niche to dominate so your customers see you as a necessary part of their business model where you provide high value as well as being easy to acquire and consume.
4. Make sure you stay in integrity with your brand promise -- that relationship with your brand promise is what your customer wants in this new transparent economy.

Finally, hire people who don't watch too much TV. (It drives them maaaaad, wink, wink.)

Related posts:

1. Thought Leadership is a Business Strategy
2. How To Fix A BOTW Business Model
3. Your business model, strategy, organization & execution: A year of CEO Challenges!
4. “Why can’t we hire a VP Sales who can deliver?”
5. “I have people who handle marketing and sales. What’s a Chief Revenue Officer and do I really need one?”

Alignment (Revenue Strategy + Execution) x (Structure)

Variable 4 - Structure:

Every organization has applied structure intentionally or unintentionally.  Companies create process, brands, messages, literature, training, software tools, etc. to help the execution deliver more results.  The variable of structure needs to be measured for its impact on the ability for execution to deliver results.

The structure investment can come in the almost unlimited forms and always needs to be recognized and measured against the change in execution.  If the resulting change in execution creates a positive ROI – great!  If it is not positive decide if it can be modified to become positive and most importantly compare each structure investment to every other structure option (in every part of the organization) to determine the combination that gives the greatest overall return when plugged into the formula.

There is ONLY ONE PURPOSE for structure and that is to improve execution.  NEVER invest in structure without knowing the organization's current assumptions about the benefits the new structure will provide for the improvement in the execution of “Revenue Generation.” After investing in the structure measure what really happens at the point of execution and compare that to the investment to determine if you can make changes to further improve execution to secure the best possible return on resources.

Alignment (Revenue Strategy + Execution) x (Leverage x Structure)

Variable 5  - Leverage:

We all want leverage and since the purpose of structure is to leverage an organizations ability to improve execution related to growth and profitability.  Leverage is either positive or negative.  The impact of the leverage shows up in the ultimate metric of more profitable revenue for the dollars invested short-term and long-term.

If there is a powerful brand that draws customers or if aligned execution creates repeat business and referrals then the leverage is positive.  Conversely if the whole organization goes to product training to learn how to pitch the product in detailed PowerPoint’s, how to deliver specification heavy demos and to create web videos that talk about company history the buyers will be convinced that the company’s goals aren’t about solving the buyers problems, but are about creating a transaction for the buyer, then the leverage is negative.

Strategy, Execution, Alignment and Structure individually and as a group control both the nature (positive or negative) and the amount of leverage, which changes the results from execution.

Summary:

Alignment (Revenue Strategy + Execution) x (Leverage x Structure)

Most organizations only focus on two things (execution and structure) and they both require budget.  Execution and structure are the two things a leader can buy with the expectation that things will get better, which may or may not be true.

In truth large amounts of money are misspent on these two parts of the formula.  CRM, training, advertising, trade shows, and websites are far too often large investments with little or no alignment and large negative leverage.  That means not only don’t they help get more profitable revenue but they actually increase the Cost of Chaos, while holding down topline growth.

As the Cost of Chaos increases any additional growth requires spending more and more money (on execution and structure) to get smaller and smaller returns (both topline and profit).

This is why an organization can be operationally excellent, win all kinds of awards for excellent structure (training programs, websites and super bowl ads) while their problems get bigger and bigger.

Everything a team does, every dollar spend is either aligned to the revenue strategy (assuming there is one with the 5 answers) or it isn’t.  Each action and every resource invested creates either positive or negative leverage and has a corresponding impact on growth and profits.

The choice is to apply this formula in an intentional way which requires the organization to apply the discipline of revenue science focusing on all five variables or let the world decide how to apply the formula to the organization.

Any organization that wants help applying this formula to win The Revenue Game should join those of us thinking like a CRO to implement the formula as part of the science of “Revenue Generation.”

Related posts:

1. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 2
2. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 1
3. “I have people who handle marketing and sales. What’s a Chief Revenue Officer and do I really need one?”
4. Uuuuuuuuuh, So WHAT’S My Job Again? The CEO’s Top Concern Is …
5. The Cost of Chaos – Part II

Revenue Strategy + Execution

Variable 2 - Execution:

Execution is what separates survival and success from frustration and failure.  Great execution is a variable that leaders have control over.  Leaders have control over how their teams engage, how many hours are worked, the level of training, who is hired and the words that are spoken.

As important as the ability to execute is remember that what is being executed should be spelled out in the revenue strategy so the combination of the first two variables looks like this:

(Revenue Strategy + Execution)

It is the combination that creates profitable results in the market.  The better these two are done the greater the result.  If one is strong the other gets stronger and if one is weak the other is weakened.  That is why they are placed in the formula together and multiplied by the degree of alignment.

Alignment (Revenue Strategy + Execution)

Variable 3 - Alignment:

The alignment variable is always between 0 and 1 with 1 being perfect alignment.  So if the revenue strategy is great and the execution is great and they are aligned with each other the result is the largest return possible for the revenue resources investment.  Whatever the value the strategy offers plus the results from perfectly aligned execution defines a maximum return on investment.  Anything less than perfect alignment decreases the overall return on invested resources accordingly.

When strategy and execution are not fully aligned then the alignment variable is less than 1 and when you multiple the alignment variable times the total possible from strategy and execution the actual return (topline and profit) is decreased by the same percent that alignment is less than 1.

Lack of alignment is one of the major causes for the Cost of Chaos, so focus on aligning revenue strategy and execution.

Related posts:

1. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 3
2. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 1
3. “I have people who handle marketing and sales. What’s a Chief Revenue Officer and do I really need one?”
4. Uuuuuuuuuh, So WHAT’S My Job Again? The CEO’s Top Concern Is …
5. The Cost of Chaos – Part II

The science of “Revenue Generation” has uncovered a formula for CEOs and CROs (Chief Revenue Officers) to use to successfully manage the growth of profitable revenue.

This formula has 5 variables that determine the revenue outcome.  The 5 variables aren’t optional the only question is how are they managed - intentionally or unintentionally? If you influence the variables then you have control over the revenue outcomes, which is how to exercise control over the growth and profitability of the business.

The CEO’s Formula:

Alignment (Revenue Strategy + Execution) x (Leverage x Structure)

Variable 1 - Revenue Strategy

Everyone understands that winning The Revenue Game is about success in the market.  Revenue leaders need clarity about what needs to be accomplished and the value accomplishing that brings to the market.  Telling that story to the leadership team and customers is critical.  The Revenue Strategy variable and the clarity it creates is a key way to assist in the execution of the dream as opposed to no clarity where each situation is treated as one of a kind.

The quality of the strategy determines the maximum value of the offer, what can be charged and ultimately the profitably of the offer and the business.  If the strategy has no value on its face the seller can’t ask a lot of money for it from the buyer and the seller will receive even less.

Intentionally developing value and clarity make the engagement safer for the customer and more profitable for both the buyer and the seller.  To have a strategy that safely delivers high value requires answering these 5 questions:

1. What is the brand promise (the experience the customer, partners and staff can count on every time)?
2. What’s the customer “problem” that that is solved that no one else solves?
3. What niches are dominated or will be dominated in the near term?
4. How is the ideal customer defined?
5. What are the key offer(s) to dominate the niche?

When these 5 questions are successfully answered there is a framework to link the next variable in the formula which we will discuss next week in the second part of this 3 part series.

Related posts:

1. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 2
2. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 3
3. “I have people who handle marketing and sales. What’s a Chief Revenue Officer and do I really need one?”
4. Uuuuuuuuuh, So WHAT’S My Job Again? The CEO’s Top Concern Is …
5. The Cost of Chaos – Part II

This post was first developed for the CEO membership of VistageConnect.com, Vistage International's revolutionary new online community built for the express purpose of developing executives using virtual peer advisory sessions.

What is the one job the CEO must be accountable for?

Imagine you just got the right people on the bus, and they are in the right seats.

Imagine that, in addition, you have successfully implemented 360 feedback, nailed down a good health insurance program that’s affordable, successfully tested a cross-generational leadership model, your team developed an offshore strategy, started receiving great customer service metrics from the CRM, and (finally!) you have a way to address capital requirements.

You have listened to all the experts and applied their thinking, backed up with reporting systems and process like ERP, CRM and ISO -- but when you go home at night and sit down at your desk with a glass of wine, your stomach is in knots from the fear that you can’t predictably grow profitable revenue.

So the question to you and every CEO who is trying to build that great customer service company culture is: “What is the one job the CEO must be accountable for?”

If I were a member of a Vistage group processing your issue of “What is the one job the CEO must be accountable for,” my feedback to you would be:

In this ”new economy,” you are accountable for only one thing – continually growing PROFITABLE REVENUE.  STOP focusing on all those other things that sound nice and focus only on predictably growing profitable revenue.  Align your company to anything that ethically supports growing more profitable revenue.  If it aligns and creates execution leverage, it deserves attention and resources.

Anything that cannot be shown to support growing profitable revenue is a distraction, creates chaos in your business, confuses the market and puts you at risk.  Remember you can do everything else right, but if you don’t keep growing profitable revenue, you will first become irrelevant and then go out of business.

The right people on the bus, Green business, high customer satisfaction levels, CRM, ERP, ISO or a great culture are only really great when they align with your revenue strategy and leverage revenue execution. Any program, process, tool or methodology that is not aligned to a very specific revenue strategy, while at the same time providing leverage to help the field execute profitable revenue growth, is a threat to your existence no matter how well intentioned, implemented or operated. Anything not aligned to your revenue strategy is an anchor holding down growth while reducing cash flow and profits.

Steps to take if you want to challenge what you THINK you know:

1. Focus on your revenue strategy and structure in order to leverage aligned execution, which virtually guarantees your success in the 21^st Century. Everything else either supports profitable revenue or gets in the way.
2. Ask your team to help.
   • Have them write down a one- or two-sentence description that defines your current revenue strategy. Now you review the results for alignment and clarity.
   • Then have them answer the question: “Do they believe the total organization’s primary focus and commitment is to align around this revenue strategy: Yes or No?”
   • Next ask, “Will this strategy produce long-term profitable revenue growth: Yes or No?” (You need a “yes” to both.)
   • Make a list of the Top 5 areas that you commit resources to today, by function: Finance, HR, Operations, Supply Chain, R&D, Sales, Marketing, Senior Leadership, Planning, Business Development, etc. Then ask your team to put a “+” or “–“ next to each to reflect that function’s alignment and contribution to profitable revenue. A “+” requires both alignment and positive contribution --  and everything else is a minus.
3. Summarize your results and decide what you think the next steps to an aligned revenue strategy are – once you have them, present them to your coach in your next one-on-one session.
4. After your one-to-one, take your plan for an aligned revenue strategy into an issue-processing group to have your answer questioned.
5. After the feedback from your Vistage group, field test your answer with at least 5 prospects, 5 customers and 5 past customers.

Adjust your plan, be flexible, don’t cling on to old-school ideas that no longer work, get out there and make sure you win The Revenue Game!

Related posts:

1. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 1
2. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 2
3. Your business model, strategy, organization & execution: A year of CEO Challenges!
4. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 3
5. Growth through Focus: It’s Clear as a Bell

That perfect set of circumstances that you’re waiting for is simply not going to happen. And you know that the longer you wait, the worse things get and the more difficult the issue becomes to address. So instead of procrastinating and suffering, have the conversation!  The key is to prepare in 3 separate steps.

1.  Prepare yourself emotionally.

• Draw on your emotional intelligence to become self aware of how you’re feeling.  Understanding your tendencies, what pushes your buttons and why, will help keep you from doing and saying things you’ll later regret. Don’t have the conversation when you’re rushed, upset, or unprepared for it.
• Ignore the assumptions you’re making and stories you’re telling yourself about WHY the person is behaving the way they are. People make up scenarios from their own perspective and that frequently leads  to false conclusions before the meeting has even started. Those pre-conceived ideas rarely lead to a good outcome.  After all, if the person you’re talking to  is a reasonable, rational, well-meaning person in general, than there must be something causing them take the actions they’ve taken. A common error is to assume people do what they do because of a flawed personality as opposed to the situation they’re in (she gets angry at people because she has a bad temper).
• Make a conscious decision to control body language because the body will convey more than 50% of the message. The employee will read the body language at the very beginning of the conversation, so decide in advance what you want to convey and how best to demonstrate that message with your body.  Without advance planning, body language is reflective and can torpedo the discussion without warning.

2. Gather data.

One of the biggest mistakes executives make is to go into a difficult conversation with an employee armed with either too little data or incorrect data. This leads to defensiveness, emotional arguments, and a loss of credibility. Do the homework that can make a difference between an explosive and damaging conversation, and one that is effective and builds the relationship.

3. Prepare for the conversation itself.

Once you know the key things that need to be said and have a format for organizing them, things become easier. Don’t fall for the myths that bad news needs to be coupled with good news, or that small talk is a good lead-in, or that the employee need a host of examples to “prove” your  point.

Susan Scott, an internationally recognized leader in skillful dialog and author of the book Fierce Conversations, recommends the following 7 steps to open the conversation:

Summary

Once the conversation has been opened in this clear and concise manner, keep it focused on the specific named issue and the path to resolution. The goal is to help the other person want to take appropriate action. Help them  understand what needs to be done and why it’s important, then decide together what the next step and ultimate solution will be. Always make sure that follow-up is part of the plan so that the conversation does not have to take place again.

A results-focused organization must possess the skills and the courage to execute on difficult and uncomfortable conversations.  Otherwise, problems grow and the organization stagnates.

Use these three steps to stay on track and keep the forward momentum going.

Related posts:

1. What are your odds?
2. The Accountability Conundrum
3. Your business model, strategy, organization & execution: A year of CEO Challenges!

"If your business leader does not love customers and is not committed to delivering value to them, your venture will fail."

~Ken Morse, serial entrepreneur & co-founder of 3Com Corporation

Does your company love your customers? The harsh truth is that most companies don’t love their CURRENT customers. Instead, they love acquiring NEW customers. New customers are sexy and exciting, so that’s where they spend their money and efforts; that’s where star salespeople earn their stripes. After the deal is signed, those formerly exciting new customers become “current customers” and are handed off to less experienced account managers for servicing.

Yet your current customers are the most important customers you have. Instead of losing touch or relegating them to second-class status, you need to deepen these relationships. You need to understand their problems, partner with them to find new solutions, and turn them into evangelists for your company.

Further, if you’re focused on acquiring new customers to replace revenue from current customers who stopped buying from you, you’re investing precious resources in the wrong place. I experienced this issue a few years ago when a $10M operation became part of my division. As a way to re-charge growth, I began working with the General Manager and the team to re-establish the importance of the customer and customer service. I asked the General Manager to go out and start talking to customers (both current and former).

A few weeks later, the General Manager called to tell me about a meeting that he had just had with the President of one of their former customers. This company, one of the largest potential customers in the market, had done business exclusively with our operation until about five years earlier.

In precise detail, the President told the General Manager the story of why they stopped buying from us. Our company had let the customer down on a critical and time-sensitive job. Our product was late; we then lied directly to the President about the shipping status of the product costing the customer more money and delays; we never followed up; and we certainly did not apologize for our mistake. It was no surprise that the customer never placed another order with us.

In our discussion, my General Manager and I determined that this atrocious customer service and lack of follow-up had cost this $10M operation about $7.5M in revenue over the previous five years.  Combining together the lost margin and the additional sales and marketing costs to acquire new customers, that one job cost this business $3.0M!

In short, loving your current customers and treating them well matters!

Tips for Creating a Customer-Loving Company

• Know your customers. Top management needs to get out in the field and meet with your current customers.  In this way, they can ask about other needs and requirements that can lead to additional sales, new product or market ideas, or even a partnership that binds your organizations more closely. Your salespeople may not be able to get to this depth, but a senior executive often can.
• Listen to your customers. A survey by Harvard Business Review reported that what customers most wanted was salespeople that 1) understood the customer’s problems and 2) understood how the salesperson’s product and services could help the customer resolve these problems. Understanding a customer’s problems means that the salesperson has to ask the right questions and listen closely to the answers, always remembering that the customer is tuned to radio station WII-FM - What’s In It For Me!!
• Measure customer satisfaction and act on it. What has your customer churn rate looked like over the last few years?  How many customers have you lost? How many customers are buying less? In reviewing this data, don’t blame the economy or excuse a customer whose business is suffering. Instead, follow up with these customers and ask why they stopped buying or are buying less. In addition, if you survey your customers, follow up on the results of the survey so that the customers know that they were heard.
• Perform: Performance is very simple: do what you say you’re going to do. Be especially careful to deliver on a customer’s hot buttons by ensuring that your expectations match and that your solution solves the customer’s problem. Performing also means always treating your customers well. Return their phone calls and respond to their emails; even if you don’t have an immediate answer to a question or problem, reply that you’ll get back to them by a specific date. Always be upfront and honest with your customers, especially when there are problems.
• Align the organization to love the customer. This starts with the leaders -- they need to get actively involved in customer problems to understand and resolve these issues. In his effort to transform IBM into an integrated, customer-friendly organization, Lou Gerstner required his top 200 executives to make face-to-face problem-solving visits to at least five customers each, and then get personally involved in every visit report. By constantly teaching and preaching customer service, autopsying customer service failures, and sharing and praising customer satisfaction success stories, leaders will go a long way to creating a customer service culture where each employee has the right attitude and right focus on serving the customer and being easy to do business with.

Summary

Think about it. Your current customers are already in the habit of giving you money. If you continue to earn and retain their trust and love by delivering on your promises day in and day out, they will remain loyal. With loyal current customers, all the work to win new customers and penetrate new markets will be an add-on to your current revenue stream, allowing you to re-charge growth.

Related posts:

1. Uuuuuuuuuh, So WHAT’S My Job Again? The CEO’s Top Concern Is …
2. 8 Ways to Listen to Your Market
3. Have the Courage to Create a Brand!
4. Your business model, strategy, organization & execution: A year of CEO Challenges!
5. The Cost of Chaos – Part II

With a few years under my belt, I believed that the additional processes and skills I learned through training would allow me to achieve even greater success.

Yet when I became a professional salesperson, I discovered a painful truth: no matter how good I was, how hard I worked, or what I tried, I would never be more successful than my organization allowed me to be.

My most difficult competitor was MY OWN COMPANY!

Talent isn't enough

After 30 years of working with multinational corporations and midsize companies alike, I can confidently tell you that my painful discovery is shockingly common. Great sales, marketing, operations, and finance talent isn’t enough. A solid strategy isn’t enough either. The true success factor is this:

ALIGNMENT

In my experience, more often than not, merely competent people in an aligned organization produce better results than teams with more raw talent and experience. The difference is alignment. Misaligned companies have functional groups competing with each other, operating in their own silos, and measuring their success on their own metrics rather than those of the organization.

Why does this happen? Competitiveness among employees? Complacency or satisfaction with the status quo? Lack of experience running an organization that is truly aligned across every business unit and function?

Whatever the reason, you CAN and SHOULD drive change in this area. Alignment is the first step of nine in creating sustainable, profitable revenue growth. If you’re not convinced that alignment is a critical success factor, ask yourself these six questions right now.

The solution

There’s no room for error these days, and fixing your alignment issues should be a top priority. It’s the first principle of successful, sustainable revenue generation (full list below). The second principle is that alignment starts with strategy, so look for our next two-minute drill on that topic.

Related posts:

1. Your business model, strategy, organization & execution: A year of CEO Challenges!
2. “I have people who handle marketing and sales. What’s a Chief Revenue Officer and do I really need one?”
3. Uuuuuuuuuh, So WHAT’S My Job Again? The CEO’s Top Concern Is …
4. The CEO’s Formula for Applying the Science of “Revenue Generation” – Part 2
5. Thought Leadership is a Business Strategy

A note from Rick McPartlin

This post is the first of many guest posts we’ll begin publishing for the CEO Challenge. As we announced yesterday, Jane has launched Sherpa Advisory and will focus on guiding companies with 25-500 employees to achieve excellence in EXECUTION. Don’t worry, we will continue delivering our popular strategic planning service together, and Jane is still a tightly integrated partner of The Revenue Game!

Please check out her website and sign up for her blog, the Sherpa Journal (sign up via email here).

The Accountability Conundrum

by Jane Adamson

We hear it all the time … that dreaded phrase ... the one that conjures up fear, trepidation, annoyance, irritation ...

"We need to hold people accountable!"

Naturally, your reaction is based on whether you're giving or receiving this loathsome missive, “accountability.” It's so packed with emotional land mines that just talking about it is like skating across spring ice.

• If you're being HELD accountable, it's natural to feel trepidation thanks to the belief that “accountable" is just corporate-speak for “blamed.”
• If you’re HOLDING someone else accountable, you're probably annoyed and irritated that you aren't sure how to negotiate the middle ground between saying nothing at all and firing someone.

Yet it's even worse to just ignore the issue. After all, an organization that doesn't embrace accountability is an organization headed for extinction.

Let’s change the word to "responsibility."

Individuals, managers and leaders are all responsible for results. This has never been more true than it is today thanks to three intersecting forces:

1. The complexity of business is increasing. And if a business wants to grow, even more complexity comes with growth.
2. We're experiencing an explosion of change throughout the marketplace.
3. The greatest market share changes occur during the upswing of a recession, not during the recession.  That combination makes it imperative that business leaders focus first and foremost on executing for results.

As with most things in an organization, it starts with leadership.

To create on organization that responsible people want to work in, your leadership team must relentlessly demonstrate personal responsibility every day.

Individuals, managers and leaders are all responsible for results.  This has never been more true than it is today.  We arrive at that conclusion based on three intersecting forces:

1. The complexity of business overall is increasing.  And If a business wants to grow, it’s a given that even more complexity comes with growth
2. We are experiencing an explosion of change throughout the marketplace
3. The greatest market share changes occur during the upswing of a recession, not during the recession

That combination makes it imperative that business leaders focus first and foremost on executing for results.  We no longer have the luxury of either time or extra dollars to hope that the organization will start improving.

As with most things in business, it starts with leadership. Leadership must relentlessly demonstrate personal responsibility every day, and leadership must create on organization that responsible people want to work in so that you attract the best and the brightest.

Almost every leader would say that he/she is responsible. However, there are levels of responsibility.  It’s our job to model responsible behavior for everyone else in the organization.  Then, our employees will know what responsible behavior looks like and it will start to become part of the culture.  People want to do a good job and meet your expectations. Show them, through your own actions, what you expect and how their behavior impacts results.  That way, you are taking personal responsibility for teaching and providing employees with a high bar that they’ll be challenged to reach.

Let’s have some fun.

Below are just a few examples of behaviors and habits that instill responsibility into your culture. How would you rate YOURSELF in these areas?  Use a 1-7 scale with 1 being "always true" and 7 being "never true."

1. When I talk with employees my conversations are more about producing results than describing activities.
2. I take the time to nurture responsibility in others instead of carrying the load on my own shoulders.
3. I set my own personal goals and adhere to them.
4. I regularly challenge commonly held beliefs and assumptions (even my own) in order to ensure that the company strategy and goals are realistic.
5. I embody the company values (if our value is to “respect each other," you would never hear me berate an employee or fail to acknowledge an accomplishment).
6. I make sure the organization is problem solving effectively by  eradicating root causes.
7. I do not make excuses. Period.
8. I don’t simply communicate to the organization. I ensure that every person understands.
9. I am responsible for knowing the customer and for providing the experience that the customer wants and needs…not simply providing the product or service.
10. Problems are resolved, not just discussed.
11. I own the results.
12. I have the courage to proactively seek what’s real.

How did you do?

• Whenever you gave yourself a 5 or higher, start finding a way to improve that particular skill or habit. There probably aren't simple fixes, but don't let that stop you. Just start identifying specific steps that you can take to improve over time.
• When you scored a 1 or 2, congratulations -- you’re doing a good job of modeling the behavior. Your next step is to make sure you TEACH that skill so that your company can learn and follow your lead.

In The Sherpa Journal, we'll continue to explore this accountability/responsibility issue in order to further dissect the “We need to hold people accountable” phrase.  It all starts at the top. Being honest with yourself and acknowledging where you’re personally strong and where you need improvement is the first step.

If you'd like some assistance in identifying small steps that would lead to a particular skill improvement, contact us. We'd be happy to provide you with ideas and suggestions based on what has worked for others.

Start today in developing a responsible organization that focuses on results!

Related posts:

1. What are your odds?
2. Your business model, strategy, organization & execution: A year of CEO Challenges!
3. “We have a great strategy but have trouble executing it.”
4. You know the saying about assumptions. Why are you still making them?
5. “I’m lying awake worrying about sales!”

After going through that exercise for The Revenue Game, we’ve decided to split our Revenue Strategy > Structure > Execution consulting work into two separate entities. That means we can provide even clearer FOCUS in our respective areas of expertise AND continue partnering for our highly effective and popular strategic planning service.

Here’s what it will look like:

Jane’s new firm, Sherpa Advisory, is dedicated to helping leaders build accountable, results-driven organizations. Her perfect client is a company that has moved past the start-up phase when a small and passionate few – up to about 25 employees -- did all the work. Once the company grows past that phase and reaches 100, 200, 500 employees, the world transforms, and the executive team needs to evolve with it. The emphasis is no longer about individual effort – it’s about working through others. Execution becomes more challenging and critical to the company’s success, and it’s a difficult transition for many organizations.

"Sherpa" is a perfect analogy for what Jane’s company will do. "Like the iconic Sherpas of the Himalayas, our advisors are guides who lead the way, walk side by side with our clients, provide instruction, and cheer them on to execution excellence,” she told me. "In other words, we don’t simply deliver a report and tell companies what they should be doing.  We’re there to take the journey with them."

"I’ve found through my experience leading companies and then working as a consultant, that leaders generally know what to do. It’s the how to do it that presents the challenge," she explains. "As change accelerates and competition becomes global, a company that can’t execute on its goals won’t survive very long."

Please join me in congratulating Jane on her new venture! And don’t worry – she is still tightly involved with our joint engagements and will continue writing for the CEO Challenge. In fact, we’ll publish her first guest post tomorrow.

I encourage you to check out her incredible new website, sherpaadvisory.com, and subscribe to her Sherpa Journal blog.  You can sign up for it via email here or via RSS here.

Related posts:

1. The Accountability Conundrum