Moving an Organization from Good to Great Based on the book by Jim Collins

John C. SmithChief Executive Officer

TMA Systems

What is a CEO’s Responsibility?

Take care of all stakeholders Customers Employees Owners

Is the answer that we need just Great Companies?

We need great leaders We need great managers We need great peers We need great contributors

“Great management of resources (people) equals great companies”

Elements of Great Management

Element 1: Job Clarity

Individuals need to have job clarity I know what is expected of me It is not about understanding what my job

is but how it fits into the roles of others It is not what we need to do, but what we

need to achieve – clarity of outcomes

Element 2: Necessary Materials and Equipment

Individuals need to have the tools to do their job I have the necessary materials and equipment to

do my work right Understanding that a lack of materials and tools

is a major stressor at work I understand what I need so I can do my job

Element 3: Matching Strengths to Jobs

Managers need to match an individual’s skills with their work

Having the ability to do what you do best at work every day

Matching an individual’s innate talents to their work– Greater engagement– Higher productivity– Ability to focus on strengths versus improving

weaknesses makes for better managers

Element 4: Recognition and Praise

Individuals need to be recognized and praised At least every seven days, recognize the individual for

doing good work The best leaders always find something to praise Praise should outnumber blame for very high

performing individuals (5.6 to 1) We are hardwired to notice bad things – eliminate

your negativity bias We are hardwired to feel strange giving praise –

eliminate this

Element 5: Be a Caring IndividualCare about the people you work with

Individuals feel good about themselves when they know someone cares about them

Individuals feel like they belong if someone cares Listening and caring generally is important to

individuals People who feel cared about are 22% less likely to

leave an organization It is important to be real: show humility and be

human

Element 6: MentorMentor individuals within the organization

Be the person that encourages another’s development

Having an individual who can help us steer our life is important

Informal mentoring is more successful than formal mentoring

Note: Two people find each other when they are in need. One is in need, one is willing to give help.

Element 7: Value Individual OpinionsValue the opinions of all individuals

Individuals need to feel that their opinion counts

People who come to work with their brains use them for the collective good

Ask people for their solution rather than telling them, and use their input

Element 8: Connect to a Noble Cause

Connecting to a noble cause makes people feel good

If a company has a noble mission or purpose, it will make individuals feel good

Feeling a sense of or being part of the community is important to individuals

Element 9: Team is Important Being committed and part of a team is

important to individuals– Knowing your fellow team members are

committed to quality work is important– Identify and remove the slackers

As a leader, set high standards that are fair and work towards achieving them

The lowest performer sets the standard for the team

Element 10: Having a Best Friend at Work

Having a best friend at work provides a feeling of security– Knowing you will not be left alone when you are in

trouble– Having a level of trust that you will be pulled out of

the water if you are in trouble Having the safety of knowing that you are

allowed to learn from your mistakes Creating an environment where it is possible for

people to become friends

Element 11: Providing Feedback It is important to talk to individuals

about their progress at least once every six months

Formal appraisals are good, but regular person-to-person coaching and feedback is more important

Element 12: Opportunities to Learn and Grow

It is important for individuals to be able to look back on an annual basis and say that they had the ability to learn and grow

Have an understanding of what drives a person to grow– Care about what the person is trying to achieve – and

listen– Attempt to understand what makes the person tick– Help each individual sort out a plan for growth

Element 13:Create a Fair and Just Culture

What is a fair and just culture? – Learns and improves by openly identifying and

examining its own weaknesses– An organization that is as willing to expose areas of

weakness as they are to display areas of excellence– Provides an environment where individuals feel

safe and emotionally comfortable A culture where every individual feels

respected in each work interaction they have

The Consistent Features Your Organization Needs

Empowerment Dignity Respect Appreciation Fairness Trust

The Cost of Not Invoking These Features in Your Organization

Cost of recruiting Cost of training Effect on customers and co-workers Ultimate negative effect on revenue

“Great management of resources (people) equals great companies”

Questions?

Please complete the evaluation.