The Disciplines of Getting Things Done

THE GROWTH PARTNERSHIP The Disciplines of Getting Things Done Secrets of Flawless Execution Presented to the 2020 Group

Introduction • People on your work team know the firm’s most important goals. • People know exactly what they are supposed to do to help achieve the firm’s most important goals. • Your team consistently plans together to achieve the most important goals. • People on your team know how they’re doing on those goals. 58% 54% 47% 35%

Building Capability Specific Business Results Leadership & Management Development Individual Effectiveness Sustained Superior Performance Sustained Superior Performance Today’s Performance (P) Long-term Performance (PC) Execution Process / Strategy Implementation Disciplined Thought/ Disciplined Action “Level 5 Leadership” Disciplined People

Execution Check Pg. 44

Execution Framework

They know the critical activities and actions People are clear about “thegoal” They do it Execution Happens When… Sounds Simple?

Agenda • The “Execution Challenge” • 2. The 6 Root-causes of Execution Breakdowns • 3. The 4 Disciplines of Execution

They know the critical activities and actions People are clear about “thegoal” They do it % % % Model Not Yet Never The Execution Challenge Goal: How? Who? Do What Differently? Question 2: What group of people must learn something new or do something different for us to be successful? Question 1: What is the most important goal of my organisation or business unit? What is it worth? Question 3: Who is modeling the behavior? Who is not yet there, but could get there? Who is never going to get there? Enabling _____ Synergy _____ Accountability _____ Clarity _____ Commitment ______ Translation _____ Commitment _____

Strategic Bet Execution Bet know activities and actions Clear about “thegoal” They do it How? Cross-sell/Provide more services Who? Sr. Accountants/Partners % % % Do What Differently? • Sr. Accountants – Question clients to ID opportunity • Partners – Strategic Account Reviews • Firm – At least quarterly face-to-face client contact Model Not Yet Never Accounting Firm Execution Challenge 75% Client Retention

Root-causes of Execution Breakdowns Are they clear about “thegoal”? 1. Clarity Do they know what is most important?

Root-causes of Execution Breakdowns Do they know the critical activities? Are they clear about “the goal”? 1. Clarity 2. Translation Do they know what to do and how to do it?

Root-causes of Execution Breakdowns Do they know the critical activities? Are they clear about “the goal”? 1. Clarity 2. Translation 3. Commitment Are they committed to the goal and their role in it?

Root-causes of Execution Breakdowns Do they know the critical activities? Are they clear about “the goal”? Do they Do It? 1. Clarity 2. Translation 4. Enabling 3. Commitment Do we make it easy for them?

Root-causes of Execution Breakdowns Do they know the Critical Activities? Are they clear about “the goal”? Do they Do It? 1. Clarity 2. Translation 4. Enabling 5. Synergy 3. Commitment Do we work effectively together?

Root-causes of Execution Breakdowns Do they know the Critical Activities? Are they clear about “the goal”? Do they Do It? 1. Clarity 2. Translation 4. Enabling 5. Synergy 6. Accountability 3. Commitment Do we hold each other accountable all of the time?

know activities and actions Clear about “thegoal” They do it Discipline 1: Focus on the “Wildly Important” The team is clear about and committed to the most important objective(s) and people stay focused despite all the other competing priorities. Discipline 1 The 4 Disciplines of Execution

know activities and actions Clear about “thegoal” They do it Discipline 1 The 4 Disciplines of Execution Discipline 1: Focus on the “Wildly Important” Common Thinking: We can effectively accomplish 6, 8, or even 10 important goals at once with excellence. Reality: The more we narrow our focus the greater our chances of achieving our goals with excellence.

Important Goal Discipline 1 The 4 Disciplines of Execution A goal with significant consequence or value.

Discipline 1 The 4 Disciplines of Execution WILDLY Important Goals (WIG)Our most leveraged goals. Goals that drive our vision, make all the difference, and that take us to a new level. Perhaps, failure to achieve these goals renders any of our other achievements inconsequential.

45+ business units $25.5 billion revenue General Electric - The Power of Focus 1980 1981 • Jack Welch (CEO) announces that GE will leave any business line where they cannot hold the leadership position or a very close 2nd place 2000 • 12 business units • $129.8 billion revenue • 40-fold increase in stock price • Outperformed S&P 500 by more than three times over the two decades

Discipline 1 What It Takes to Focus • Identify what’s wildly important • Focus significant activity and resources on it

“I believe that this nation should commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.” President John F. Kennedy Discipline 1 The Focus – JFK’s Speech to Congress

“I believe we possess all the resources and talents necessary. But the facts of the matter are that we have never made the national decisions or marshalled the national resources required for such leadership. We have never specified long-range goals on an urgent time schedule, or managed our resources and our time, as to insure their fulfillment. This decision demands a major national commitment of scientific and technical manpower, materiel and facilities, and the possibility of their diversion from other important activities where they are already thinly spread. It means a degree of dedication, organization and discipline which have not always characterized our research and development efforts.” President John F. Kennedy Discipline 1 The Commitment of Resources

Charan & Bossidy on Execution “Leaders who execute focus on a very few clear priorities that everyone can grasp.” —Execution: The Discipline of Getting Things Done

Jim Collins on Focus Jim Collins, in Good to Great, calls this focus the “Hedgehog Concept.” He found that great companies tend to focus on “one big thing,” at the intersection of their economic engine, their strategy (or what they can be best in the world at), and their organizational passion. (Recall the 2005 2020 Conference)

Peter Drucker on Focus “I have never encountered an executive who remains effective while tackling more than two tasks at a time.” —Peter DruckerManagement Guru Harvard Business Review, June 2004

Discipline 1 The 4 Disciplines of Execution Creating Goals that… ❑AreFocused (3 or fewer) ❑ Create Line-of-sight ❑ Are Well-crafted (specific|clear|deadline driven) ❑ Have Team Commitment

WIG Filter

3 WIGs WIG 2 WIG 2 WIG 1 2 WIGs 3 WIGs 3 WIGs 3 WIGs 2 WIGs Discipline 1 The 4 Disciplines of Execution Firm Level WIGs Litigation Support Auditing & Accounting Tax Construction Manufacturing Professional Services

Multiplication of Goals

know activities and actions Clear about “thegoal” They do it Discipline 2: Create a Compelling Scoreboard We have a highly visible scoreboard of the critical few measures that motivate our players to win! Discipline 2 The 4 Disciplines of Execution

know activities and actions Clear about “thegoal” They do it Discipline 2 The 4 Disciplines of Execution Discipline 2: Create a Compelling Scoreboard Common Thinking: Once we have communicated the goal people will know we are serious about it. Reality: They won’t believe we’re serious until we start keeping score.

Lagging Lagging measures provide an historical look at past performance. Leading Leading measures provide indicators that are predictive of future results. Real-Time Real-time measures show where things are right now. They allow corrective action to be taken immediately to affect the outcome. Three Types of Measures • Must drive the lag measures • Should be sensitive enough to move every week • Behavioral, not “quick lag” measures 23

Lead Measure Client Retention + Client “touches” Revenue WIP Profit Number of Strategic Reviews Discipline 2 The 4 Disciplines of Execution Lag Measure Measures Goal Achievement Predictive of the Goal Difficult to Influence Easier to Influence Easier to Measure Harder to Measure

Discipline 2 The 4 Disciplines of Execution Compelling Scoreboards… ❑Are Simple ❑ Are Visual and Highly Visible to the Players ❑ Exist at allLevels ❑ Have the right “Lead” and “Lag” Measures

Accounting Firm Example Wildly Important Goals and Measures • Develop and “Professionalize” the Automotive Niche to achieve desired market position . • Develop marketing campaign by June 30. • Meet with 15 prospects by October 31. • Convert 5 clients by December 31. 2. Develop online accounting systems capabilities for top 50 clients within 12 months. • Get system up by June 30. • Complete first five pilot companies by November. • Bring “five live” every month until August of next year. 3. Achieve the most successful product launch in firm history with Cost Segregation Studies. • Generate 20 percent of sales from new clients. • Generate 30 percent of sales from referral sources. • Generate 50 percent of sales from existing clients. • Achieve total revenue of $500K by year-end.

Personal Scoreboard for Jeff Pawlow Recovery Debtor Aging

know activities and actions Clear about “thegoal” They do it Discipline 3 The 4 Disciplines of Execution Discipline 3: Think Differently, and Translate New Goals Into Specific Action We think “new and better” and have a process for individually selecting and activating the critical few weekly objectives that will drive the goal.

know activities and actions Clear about “thegoal” They do it Discipline 3 The 4 Disciplines of Execution Discipline 3: Translate Goals Into Specific Action It’s not uncommon to think… However, in reality… The best ideas come from interaction between leaders and the front line. Goals will never be achieved until everyone on the team thinks critically about what must be done to achieve goals and then does it. The best ideas come from the leaders. If people know the goal and see the scoreboard, they will know what to do about it… and do it….

Discipline3 The 4 Disciplines of Execution Key Questions… Do you think “new and better” What are the three most important things I can do this week to impact the scoreboard?

Discipline3 The 4 Disciplines of Execution “New and Better” Einstein’s definition of Insanity? Getting to Synergy: 1+1= 3 10 100

Discipline 3 The 4 Disciplines of Execution What would it be worth if everyone in your firm actually did the three most important things they could do to move the goal forward each week?

Is your week happening to YOU… or are YOU happening to your week? An Important Question

A Typical Week M T W Th F Sa Su

An Effective WIG Week M T W Th F Sa Su

Monday Tuesday Wednesday Thursday Friday 8:00 9:00 10:00 11:00 12:00 1:00 2:00 3:00 4:00 Discipline 3 Translate Goals into Specific Action 1 2 3 3 Team Goals Increase Number of Referral Sources Identify 3 New Sources 1_______________ 2 referral meetings ID 3 Sources Taylor Assoc. Meeting 2_______________ Citibank Win-win 3_______________ Nic Jones Meeting Citibank Win-win

know activities and actions Clear about “thegoal” They do it Discipline 4: Hold Each Other Accountable All the Time We have a process for reporting to each other on the critical few weekly objectives that will drive the goal. Discipline 4 The 4 Disciplines of Execution

The Disciplines of Getting Things Done