Achieving Business Excellence with John Spence

“Must Read” Business Books from 2016

shutterstock_397576393A friend of mine, Jake Kostan, sent me a question asking: What is your number 1 must read book of 2016 in each category for sales & marketing, business and culture?

That’s really tough question, I read more than 100 business books this year (not all of them were written this year), many of them very good, but if I had to list just one in each one of those categories, here they are…

Sales

The Only Sales Guide You’ll Ever Need” by Anthony Iannarino

**Also in sales, if you have not read these two books, go read them right away**

SPIN selling” by Neil Rackham

Let’s Get Real or Let’s Not Play – transforming the buyer/seller relationship” by Mahan Khalsa and Randy Illig

Marketing

Marketing: A Love Story – how to matter to your customers” by Bernadette Jiwa

Leadership

Leadership Lessons from a UPS Driver – delivering a culture of we, not me” by Ron Wallace

Extreme Ownership – how US Navy SEALs lead and win” by Jacko Willink and Leif Babin

Culture

It’s My Pleasure – the impact of extraordinary talent and compelling culture” by Dee Ann Turner

Business Excellence

Simply Brilliant – how great organizations do ordinary things in extraordinary ways” by William Taylor

Personal Development

The Daily Stoic – 366 meditations on wisdom, perseverance, and the art of living” by Ryan Holiday

I could easily list another two dozen, and this was especially hard because many of my friends wrote excellent books this year, so I put links below to all of my recommendations over 2016.

If you read something that you thought was extremely valuable, please add it to the comments for all the rest of us.

Thanks so much and I hope that 2017 is your best year ever!!! Love, John

 

My book recommendations from 2016

Two Superb Books I Highly Recommend

Leaders Are Readers

Awesome Sales Book

What Is Your Legacy

Three Great Books

How To Become The Best in the World

How Do You Want To Feel?

 

 

 

6 Key Business Ideas to Help You Succeed in 2017

Mercedes, John, Sheila, Esther

Mercedes, John, Sheila, Esther

On behalf of myself, my wife and business partner, Sheila Spence, our Operations Manager, Mercedes Petrus and our Financial Manager, Esther Mallard – thank you VERY much to all of our clients from 2016 for trusting us to be involved in your businesses.

 

I hope you will share this video with your network, and if you have not already, please sign up for my blog – I only post good stuff!  blog.johnspence.com

 

The Big Trends From 2016

shutterstock_150443150I am sitting in my hotel room in San Diego taking in the view from the 16th floor. I’ve just delivered my last speech of the year, it was on advanced sales, teamwork and the future of work. This year I had the opportunity to work with clients in six countries, dozens of different industries, from small startups to the Fortune 10. Here are a few big trends that stuck out to me as I look back over 2016.

Communications: I have not worked for a company in my entire career that did not have some sort of communication challenges, but this year they seem to be even more prevalent. In business after business I encountered organizations which had trouble clearly communicating their vision and strategy for growth, their purpose and core values, and the critical information needed to keep their employees engaged and aligned.

The key to successfully overcoming this ever challenging issue is simply to over communicate using every channel available; one-on-one meetings, town halls, weekly meetings, email, social media, video… any way you can think of to share important information with your employees, vendors and customers. When you think you will get sick if you talk about the vision and strategy one more time, the lowest person in your organization just heard it for the very first time.

Execution: The lack of disciplined execution is the single biggest problem I see in companies around the world. I meet a lot of very smart people who develop unique and compelling strategic plans that would surely give them a strong competitive advantage, only to see them struggle mightily in taking their plans and turning them into results in the marketplace.

The key to successfully overcoming this challenge is to make sure you spend as much time building your execution plan as you do on creating the strategic plan. Your plan must have clear, specific, measurable and binary goals. As I often say: Ambiguity Breeds Mediocrity. For a strategic plan to be successful it MUST have extremely clear expectations of what is required, who is responsible, how the work is to be done and when it is due. Then, you have to have the discipline to consistently work the plan and make sure it stays at the forefront of everyone’s mind. I promise you this, if you could increase the effective execution of your strategy by just 10%, it would have a massive positive impact on the success of your organization. This was a major focus of my work for clients this year and I anticipate it will be again next year because even the best strategy in the world is useless without superb execution.

Technology: For the last several years people have been talking about the, “hyper-speed of technological change,” but I don’t think they really understood just how fast technology is actually changing and the mind-boggling impact is going to have on every business in just the next few years. A number of my clients have asked me to deliver speeches on the future of leadership and business, which has forced me to invest a large amount of my time into studying the various trends in emerging technologies. To name just a few; robotics, artificial intelligence, big data, Internet of Things, genetic decoding and recoding, synthetic medicine, virtual reality and augmented reality are all accelerating at a pace that will leave many, many companies and people completely unable to keep up. Even though I have devoured all of the information I can get my hands on, it is still exceedingly difficult for me to comprehend just how monumental the changes to our lives, businesses, communities, and the world will be in just the next decade.

The key to successfully dealing with this change is to dedicate a minimum of 10% of your time to studying all of the technologies that will potentially impact your business. I currently work with several clients who are directly connected to the auto industry and have challenged them that unless they become “experts” on autonomous cars and other forms of transportation technologies their business might not exist in 5 years. Let me make this Awesomely Simple: Learn or Die.

Talent: For many, (if not most) businesses, two of the only sustainable competitive advantages left are the quality of the people they can get, grow and keep on their team – and the relationships they create with their customers. This means that talent acquisition, talent development and talent retention should be a major strategic objective. However, I still see many companies tolerate mediocrity, do not invest sufficiently in training and development and have difficulty retaining their very best employees (the bad employees don’t want to leave because they know they can’t get a job anyplace else). The success of your business is directly determined by the talent on your team and creating a culture of engagement, customer focus, collaboration, accountability and disciplined execution.

The key to successfully overcoming this challenge is to make getting and keeping wildly talented people as a major focus of your business. Build a talent pipeline to ensure a steady stream of quality recruits, implement a focused and consistent interviewing process, create a robust onboarding system, develop a focused and intensive training program to take great people and make them even better, and have a career pathing program with mentoring, assessment, feedback and coaching to keep your top performers engaged and thinking long-term about their role in the company.

Sales Effectiveness: Nothing happens until somebody sells something. Let’s face it, all of the other stuff I’ve mentioned is useless if at the end of the day nobody buys anything from your company. Sales are the lifeblood of every business, or as Peter Drucker famously said, “The purpose of a business is to create and keep a customer.” Unfortunately, the vast majority of salespeople that I meet are NOT prepared for success. They have not had enough good quality training, they don’t have the right attitude, they don’t spend enough time investing in their own development, they don’t do their homework on their products and services and they don’t spend enough time asking superb questions and being an intense listener when they are in front of their customer. In other words, they waste their customers time, which is the single biggest complaint that executives have about dealing with salespeople.

The key to successfully overcoming this challenge is to be highly selective and targeted in who you hire as a salesperson and then ensure they get all of the training, support and resources they need to be successful in the field. Set clear and specific sales targets, coach and mentor for them for success, over-train them on both sales skills and product knowledge, and align their compensation plan to strongly encourage their full engagement and a strong desire to be successful in their sales efforts.

Leadership Development: I have been teaching leadership skills for nearly 25 years and I can say with great confidence that in the last few years the requirements for being an effective leader have actually changed quite a bit. Theory X, command-and-control and “do as I say not as I do” has not worked in a long time, yet I still see people trying to “lead” this way. Currently just over 50% of the workforce is made up of millennials with this number growing every day, and millennials definitely have a different way they want to be led. If you agree with me that talent is a critical element in building a successful company, then it is important to remember the single biggest reason millennials leave a company is poor leadership. Several research studies also show up to 50% of lost revenues are a direct result of ineffective leadership. Those numbers should be eye-opening to you.

The key to successfully overcoming this challenge is to understand everyone in your organization needs to be a leader. That begins with treating them like a leader, training them, supporting them and rewarding them for superior leadership skills. It also means having the courage to remove people from the team who are ineffective in leading in your organization. I’ve also stumbled across a new idea this year that I think is an important complement to creating great leaders: helping people to learn how to be great followers. Although everyone in your organization needs to be a great leader, they won’t be leading all the time, actually they are typically “following” a good amount of the time as well. So it is also essential to help people understand the importance of being a supportive, encouraging and productive follower.

There are other issues I came across during the last 12 months, but these are the major ones my clients specifically hired me to help them with. I hope my recommendations above will help you if any of these sound familiar.

I look forward to your feedback and comments, what have you been seeing?

A Lesson About Team Culture

636103432294773262-0925-kcsp-utfl-068-asbThis is not a sports story, but it does revolve around a story about sports. I live in Gainesville, Florida which means it is mandatory for me to be a Florida Gators football fan. Last weekend we played the Tennessee Volunteers, they have not beat us in 11 years, the smartphone did not exist the last time Tennessee actually beat the Gators! However, this weekend they beat us… no, they crushed us. The final score of Tennessee 38 – Florida 28 does not come close to representing the thrashing our team took. The funny thing is, we were winning 28-3 at halftime, then Tennessee scored 35 unanswered points. By the middle of the third quarter the Gators had completely given up, they were walking with their heads down or sitting on the bench. There was an opportunity for us to come back and win in the fourth quarter, but the Gators had already decided they were going to lose. On the other side of the field, the Volunteers, even though they came into the second half needing at least five touchdowns to win, were motivated, focused and playing like a real team.

The big lesson for me came at the end of the game when Tennessee broke their decade-long losing streak and won a huge game for their school. The players had every right to dance around the field and celebrate, pumping their fists and mugging for the cameras, but instead they ran over to jump in the stands and celebrate with the other students. The head coach ran over to the sideline, climbed up on a ladder next to the conductor of the school band, and led the musicians in playing the Tennessee fight song. The attitude and conduct of the two teams during the second half of the game, and after the game, highlighted a big lesson about organizational and team culture and how, in a very large way, the leader sets the tone. One team quits halfway through the game and mopes off the field humiliated, the other team stays optimistic, cohesive, determined and then celebrates the win for everyone in the school, not just themselves.

So the question I have for you: How does the team at your company play?

 

*** If you are interested in learning more about how to build and sustain a winning culture, I have written a short and very focused e-book that outlines my very best ideas and tools. Here is a link so you can take a look: Winning Culture eBook

 

The Six Fundamentals of Business Success

blog-money-1This evening I’m giving a speech to 350 CEOs of small to medium-size businesses and I’ve been asked to talk about some of the fundamental elements necessary to build and sustain a highly successful organization. After running several companies and spending the last 22 years of my life helping businesses around the world be more successful, here are a few things I think every business owner needs to focus on:

1. Start with a clear vision and purpose for why you are building the company. By the way, if the only reason you’re starting the company is to make money, there’s a good chance it will fail. Success comes from a genuine passion to help your customers, if you are focused intently on that and charge a price that allows you solid profit margin, everything should work out fine in the end.

2. Solve a real problem. You also have to make sure that your vision and purpose are focused on delivering products and services that the market eagerly wants to buy. It does not matter if you think what you sell is really cool, the only critic whose opinion counts is the customer.

3. Build a world-class team. Competitors can copy your products, beat you on price, outspend you on marketing, but one thing they cannot do easily is beat a company that truly values top talent and gets them engaged and passionate about serving their customers.

4. Extreme Customer Focus. I have said this a million times and I am more than happy to say it a million more: whoever can attract, grow and retain the best talent, and also “owns the voice of the customer,” has a huge market advantage. Fantastic employees who build great customer relationships are a key to success in every business.

5. Quality and control. This one is very fundamental, but without it the other things above can’t work. You have to have very high quality products and services, deliver consistently superior customer service and manage the financials of your business with extreme discipline. There is a reason that one of the most often used clichés in business is: Cash is King.

6. Disciplined Execution. Once you’ve got all of the above factors in place, then you must be incredibly vigilant in always focusing on the most important things in your business and making sure they get done. If you do not take the time to make these things your top priorities, then you will likely have to make time for bankruptcy court.

How To Achieve Customer Service Success

shutterstock_2246461dqs72I think pretty much every business understands that giving great customer service is important. However, it confuses me why so few businesses actually deliver consistently good (not even great – just good) customer service when they know it is critical to their success. In my opinion, I think it’s because they have skipped some of the fundamental elements of creating a culture of great service, they simply talk about how important service is, but do not do the things necessary to achieve a high level of superb customer service. Here are a few questions to get you thinking about how well you have prepared your employees to consistently deliver an absolutely delightful shopping, buying and owning experience for your customers.

  • Does your company have a written Customer Service Credo that clearly explains exactly how your business and employees should be treating customers?
  • Has everyone been thoroughly trained (with plenty of on-going training) on all of the things they need to do in order to meet or exceed your Customer Service Credo?
  • Do they have all the resources they need to deliver the level of service you have promised your customers?
  • Do you specifically hire people that enjoy giving great service?
  • Do you assess your current workers by their ability to deliver superb customer service?
  • Are people who do not deliver great service removed from your company?
  • Do you do a minimum of two customer satisfaction surveys per year?
  • Do you have an awards program for employees that deliver superior customer service?
  • Do you benchmark against other companies that are recognized for customer service excellence?
  • Has your company won any awards recognizing you for great customer service?

If you can say “yes” to all these questions, then you are likely one of the few companies that can actually claim outstanding customer service as one of your unique differentiators in the marketplace. If you answered “no” to several of these questions, you’ve got some work to do.

*** By the way, I recently wrote a short and focused e-book on how to build and sustain a winning culture. It sells for just $4.99 and is available on Amazon. Here is a link to learn more about the book: Winning Culture e-book

First Class Customer Service???

kelly-server-thousand-oaks-restaurantI have made a commitment to never use my blog to just complain. So I’m going to outline a few service failures as a lesson to all of us who understand the importance of delivering superior customer service is essential to business success.

I recently had a trip to New Zealand on business, on the way there my wife and I flew First Class with Air New Zealand and had an absolutely spectacular experience. The staff was extremely friendly, the food was excellent, great wine, laydown bed, everything you could possibly ask for on a 14-hour flight to the other side of the world. On the way back, we flew First Class on American Airlines. Once on board we noticed they were serving champagne to other folks in First Class cabin and when we asked for some they apologized and said they had just run out, catering had not put enough on board for everyone in First Class. Several hours later, I was getting ready to go to sleep and needed to take some medication so I asked the flight attendant for a bottle of water, to which she replied, “No, only one bottle of water per person, 36 people in First Class, 36 bottles of water.” I spent well over $10,000 for the ticket and American Airlines was kind enough to let me know I only got one bottle of water for the entire flight across the Pacific Ocean. Not what I would call “First Class” customer service.

During a recent trip to Idaho, I went out each morning for breakfast and had an extremely hard time finding a restaurant with any waiters or waitresses. Place after place I walked into were beautiful, well-appointed, upscale locations with signs directing you where to order, then wait to pick up your food and carry it to your table on your own. There was also a sign on my table explaining I had to clean up after myself so I could leave the table clean for the next patron. Perhaps this is a backlash from trying to set higher minimum wages, or simply a way to increase the profit of the restaurant by not having any servers, however, I will tell you every time I walked in one of those restaurants, I walked right back out to look for someplace I could sit down, get an actual live server and enjoy a relaxing breakfast while I read the news. I didn’t want self-service, I wanted First Class service.

The reason I tell you these stories is as a warning. Company after company will readily insist that delighting their customers is essential to growing and sustaining the success of their business, and yet I experience horrifically bad customer service all too often. So, before complaining about how bad the service is at other businesses, take a long hard look in the mirror and make sure you are NOT making some of the same mistakes with your customers.

Create a Customer Service Credo, develop a specific plan and set of processes for consistently exceeding your customer’s expectations, train your people like crazy to follow those processes and focus on the customer, reward employees who do a great job and remove employees that don’t. It’s just this simple, but apparently the businesses I mentioned above did not think it was important.

Loose-Tight Controls for Business Success

37827-watches_teaserI recently presented several workshops for client company with an absolutely brilliant CEO, among the best I’ve ever met. He was a new to the organization and had been brought in to turn around the company, which was facing very severe financial troubles. This was very bureaucratic organization whose main customer was the government. They were slow to make decisions, reluctant to take any risks, complacent in their attempt to grow their business and keep margins strong, which landed them to more than billion dollars in debt. The CEO gave an impassioned speech about the need to be more entrepreneurial, while still having a culture of disciplined execution around the core strategies. He described it, much like Tom Peters did in his wonderful book In Search of Excellence, saying that the company needed to have “loose-tight controls.” They need to have elements of loose  control around entrepreneurship, innovation and prudent risk-taking, while maintaining areas tight of control around their values, strategy, alignment and accountability for positive business results. He told them that in order to be successful they would have to balance a strong entrepreneurial ethic while still embracing a focused culture of discipline – and summarized his idea in the graph below.

So, where does your company sit in this matrix?

Best Managed Companies graphic

What Is Your Legacy?

 

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