< class="pagetitle">Archive for the “Mission” Category
I witnessed something remarkable recently. After delivering the opening keynote speech for First American Equipment Leasing’s annual sales kick-off meeting, the Chairman and co-founder, delivered his state of the company address.
I have seen and heard these hundreds of times. The Chairman/CEO runs through the results from the previous year, acknowledges a few folks, talks about how important the upcoming year is and tells the audience they are the “best team in the league” and “together we deliver a huge years this year”.
That was only part of what the Chairman of First American did. After the review and the projections for the year he came down from the platform, among the people. Then, he asked if they could have a candid conversation. He went back to 2008 and reviewed 6-8 goals that had been outlined for the next 3 years. He asked the group for their candid opinion on what had been done well, which areas they had missed the mark on and which were not worth pursuing at all.
As the opinions and comments began to come forward he did not try to defend, convince or persuade. He actually listened. He noted what was being said, asking others if they agreed. An actual dialogue ensued the likes I have rarely seen. As the outsider in the room I was totally impressed while at the same time being somewhat envious. I had always wanted to work for or with a company like this.
The Chairman admitted that neither he nor the executive leadership team had all the answers and that the company was only as good as the great people in the room. As I looked around the room I could not help but notice a confidence, a belief, a commitment, an attitude of pride and determination. Each person, in their way, seemed focused on what they could do to help the company take on its mission for 2011. This is a company with a goal to revolutionize an industry. Now, that’s a big goal! Creating ownership in that vision is the first step to making it happen. The Chairman accomplished both, in my mind, in a 30 minute session. It was a pleasure to watch a revolution in the making.
It all started when he did not presume to know it all.
Be Well & Be Contagious,
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 The Leaders Institute
It was one of those typically spectacular sunny March afternoons in Fountain Hills, Arizona. Tops were down on many cars and the golf courses were buzzing with activity. It seemed as though everyone was outside. Everyone, that is with the exception of seventeen business leaders engaged in an enthusiastic leadership conversation at the home of Bob Ditta, former President of Dental Services Group.
 George Obst and Bob Ditta, former Chairman and President of Dental Services Group George Obst, DSG former Chairman, and Ditta were there to contribute to The Leaders Institute, a collaboration between the Fountain Hills Chamber of Commerce and John Hersey International. It’s mission is to provide business leaders with an opportunity to tune into a high level leadership conversation by exposing them to a variety of businesses and business leaders. The opportunity today was for these local leaders to learn from two leaders that led their team to purchase the Dental Services Group business and then grow that business, in a highly competitive category of 14,000 Dental Labs serving 118,000 Dentist, to double it’s size in fourteen years, without acquisition.
When Obst and Ditta, along with two other DSG executives, purchased the business through a leveraged buyout, it consisted of 34 Dental Labs across the United States doing approximately $30 Million in annual revenue. When the group sold DSG in 2005 it’s revenue’s were in the $60 million range.
This Livingroom Leadership session covered topics like:
- the 4 original partners are as different, behaviorally speaking, as different could be. How were they able to allow those differences and still run a successful company. George Obst offered that the solution was a clear delineation of responsibilities, largely tied to the individuals strengths. Ditta added that there was a remarkable consistency in values. Each of the partners was committed to growing the business through employee relations and development. Unlike many of their competitors, DSG took on training, at all levels, like no other company. The strategy was to help the employees learn more and achieve higher levels of knowledge and competence in their jobs. The belief was that it would actually lead to significantly lower turnover levels, more loyalty and thereby increased customer support and service. It worked!
- Creating Your Own ceremonies. Each year DSG spent gobs of money to put on it’s annual leadership meeting in Scottsdale (where else?). The teams would arrive with great expectation, primarily for the awards dinner. A pretty extravagant affair for nearly 300, the recognition awards always stole the show. Obst and Ditta agree that “recognition has always and will always be the key to motivation and employee loyalty.” Obst encouraged all the Leaders Institute participants to create ceremonies, even if they were solo-preneurs.
- Performance accountability and reviews. Everyone at DSG, from the person working on a bench crafting, grinding and polishing the caps ordered by our dentists, to the Chairman and President, had annual goals. And, the leadership team, some 65 strong were trained to manage to those goals. Every employee had an annual review and the subject of goals was always discussed. As Bob Ditta put it, “Goals don’t lie. You either achieved the goal or you didn’t. If you didn’t, the why is relatively unimportant. How we can do better next quarter or next year is the key.”
- Educational goals. Everyone in the company had to have an educational goal. What were they going to do to get better at their job? DSG was willing to invest in these classes and seminars because, in keeping with the values of the 4 partners, training and development would pay dividends way beyond the cost.
- Listening. Listen to your customer, listen to your prospects, lost customers and employees. Then have a system in place where what you have heard can be acted upon. This is the bullet to excel, be the best. You will hear and observe everything you need to dramatically improve on a regular basis.
Dental Services Group implemented strategies that were way ahead of the competition, at the time. We look at these strategies as sound, basic leadership habits that work every time. Well, I don’t know about every time, but these sure did work for George and Bob and Dental Services Group.
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Friday, October 16, 2008 was a very cool day!
 Ron Johnson, Sr. VP, Apple Retail & John Hersey Beverly and I had the opportunity to travel to Cupertino, California to spend the day at Apple. More specifically, we met with Ron Johnson, Senior Vice President, Apple Retail. For the past ten years Ron has been the architect of Apples retail strategy, a truly remarkable success story.
In May, 2001, Ron and other executives from Apple traveled east to Tyson Corner, Maryland to present plans for Apples entree into retail to a large group of financial analysts and representatives from the media. According to Ron, not a single person thought the idea had any merit at all. One attendee was quoted as saying I give them two years…
Well, here they are, 7 years later, 250+ stores worldwide, and with an absolute smash hit on their hands. What happened?
Apple defied conventional retail wisdom, launched a retail initiative when others suggested it was foolhardy, shifted thinking about what it is to be in retail, gave us more proof that mission trumps tactics every time, and everyday shows us the massive results that accrue to companies that dedicate themselves to serving customers, rather than selling stuff.
The Apple Retail mission is to ENRICH LIVES. It is very clearly not about selling stuff, although they do plenty of that. And, they do it because they instill an unyielding dedication to the mission in every employee. As we speak, they are developing an employee retention strategy. The goal is to increase the average tenure of store employees by 1 year. We expected Ron Johnson to discuss how that would reduce turnover costs. Nope! The strategy is all about having a more experienced staff in order to enrich the lives of customers. Not once did he mention costs efficiencies or increasing sales margins. In fact, every decision, from location to store design to employee training and retention strategies appears to be held up against the overriding mission of Enriching Lives, customer lives and employee lives.
 Ron Johnson, Apple Sr. VP and Beverly Belury The Apple mission appears quite simple, not easy necessarily, but simple. Apple believes if they can design inviting stores around the life enriching Apple products, engage truly qualified and caring employees who come from a place of serving customers rather than ringing cash registers success will follow. What a concept!
The statistics supporting Apples success in retail are jaw-dropping. From sales per employee, to sales per square foot, to increases in year-over-year sales to sales trajectory, the numbers are staggering.
Several months ago we wrote a column for the Phoenix Business Journal titled Leadership: Live your company’s brand out loud . In January we had the opportunity to speak in Cairo for 300 top line managers for Vodafone, Egypt. Never before had we been witness to an organization that was so clear on its mission and, more importantly, drove that mission deep into the organization. The clarity and dedication was evident everywhere we looked at Vodafone. The same is true for Apple.
When the rest of the business world appears to be operating out of total, complete and paralyzing fear and uncertainty Apple has clarity, commitment, and confidence. And, it is not just an ad slogan. As we walked throughout the Campus the culture was palpable. We could almost reach out and touch it. Happy, engaged and challenged employees were everywhere. There is an unmistakable pride on the faces of employees that we have rarely seen, outside of Cupertino and Cairo.
According to Ron Johnson there are two things that distinguish Apple. They have become masters at getting the Big Idea and they have a passion for details. The Big Idea is an uncompromising dedication to enriching lives and a passion for every employee delivering on this mission in every way possible.
The ultimate job of a leader or leadership team is to develop a clear mission and vision, translate that into every decision and then communicate it with an unbending commitment as frequently as humanly possible. As we say, it becomes contagious. It works for Apple (and Vodafone) so why not give it a shot. After all, the fear strategy does not appear to be working.
This was truly an unforgettable day.
John & Bev
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