Leadership is the solution: especially today.

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Leadership is the solutionespecially today.
Silver Fox Advisors
Lunch Learn

• Lane Sloan
• Bruce Anderson
• Bill Spitz
• Carl Wilson

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Managers are people who do things right, while
leaders are people who do the right thing.
Warren Bennis
Actions Lead to Habits
Principles Guide Actions
Habits Lead to Character
Respect
Accountability
Integrity
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Character Leads to Creating Your Destiny
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1. Turknett Leadership Group
2. Lars Harrison
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The Extraordinary Leader
Zenger Folkman
Build on your Strengths
Leading Organization Change
Character
Interpersonal Skills
Focus On Results
Personal Capability
Fix Fatal Flaws
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Situational Leadership
Long Term
Must Manage Stages Simultaneously Proact vs. React
Manage the vision
Mid Term
Sustain vs. Transform
Manage for Brand, Culture, Reputation
Short Term
Lead vs. Be Led (Servant Leadership)
Return vs. Invest
Manage for Value
Achieve vs. Train
Survive vs. Grow
Task vs. People
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Evolving Nature of Leadership
Industrial Revolution
Information Revolution
Molecular Revolution
Altering Nature
Sequential Linear
Real Time
Focus
Data Flow Virtual
Time Motion
Designer
Process
Reacting
Acting
Action
Pro-acting
Change is Constant
Change by Exception
Change accelerating less predictable
Mindset
Autocratic Hierarchical
Consultative Participative
Management Style
Meta- visionary
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Lane Sloan
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Leadership Development

• A Function of Adult Development

Bruce M. Anderson Thinking Partners, Inc.
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Adult Development

• We continue to develop after childhood.
• These adult stages of development involve an
  increasing awareness and consciousness and at
  some level it is hidden from us. It just evolves.
• At a particular stage of development, we dont
  see the next stage. We are stuck in our world
  view and the way things should be done.
• We only get to see the previous stage until we
  have gone to a higher stage.
• This a huge factor in understanding the
  development of leaders

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Leadership Developmental Levels
Synergist
Co-Creator
Catalyst
gt1
Achiever
gt4
Expert
gt5
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Heroic
Post Heroic
Supervisor
Holistic Leader
Servant Leader
Leader
Manager
Self Awareness
Less
More
More
Less
Control
Team Orientation
Inspires While Flexible
Team for Strategy
No Team
Team for Buy in
Team for ideas
Frame of Reference
World Centric
Egocentric
Ethnocentric
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Leadership Strategies For A Growing Business In
Tough Times Presented ByWilliam J. (BILL) Spitz

14 Greenway Plaza , Suite 29 F, Houston, TX
77046 713-552-9791 FAX [phone] email
Bill_at_Williamspitz.com
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• Satisfaction Alone
• Is No Longer A Guarantee That Customers Will
  Come Back.
• We Must Develop
• Customer Loyalty!

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Have You Ever Calculated What It Costs To Get
A New Customer?

• All Marketing Costs?
• All Sales Commissions And Salaries?
• All Sales Development Costs?
• All Start Up Costs?

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Have You Ever Calculated What Customer
Turnover Costs You?
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Have You Ever Figured Out How Little You Make On
A One Time Sale?

• Compared To The Increased Profit You Make On A
  Repeat Customer?

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One Time Customer

• Is Satisfied
• Not Angry
• Bought And Paid For Products/ Services
• Dont Come Back!

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• Lured Away
• By Competitor Because That Customer
  Never Became A Loyal
  Customer Of Yours!
• They Defected!
• They Simply Went Elsewhere!

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Measurement Is The Key To Understanding The
Impact Of The Loss Of No Return
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Compilation

• Case Histories Of My Business
• Case Histories Of Others
• Harvard Business Review Article Entitled Zero
  Defections Quality Comes To Services By
  Frederick E.Reicheld W. Earl Sasser Jr.
• Work Done By Prestigious Research Organizations.

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The Same Basic Concepts, Methods, Techniques
Can Be Used By You!
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Lets Go Back To The 80s

• Manufacturing Executives Looked At Their Scrap
  Heaps And Realized --
• Poor Quality Was Expensive!

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Harvard ArticleQuality Is Not Just An
Integrating Slogan, But The Most Profitable Way
To Run A Business
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Continuous Improvement In Service/Quality Is
Not A Cost But An Investment In A Customer Who
Generates More Profit Than The Margin Of A One
Time Sale
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Executives Can Therefore Justify Giving
Priority To Investments In The Service/ Quality
Vs. Things Like Cost Reduction
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Zero Defects Was The Guiding Light And The
Quality Movement Took Off
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Service Companies Have Their Own Scrap
Heaps. Customers Who Will Not Come Back
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Service Company Executives Began To Strive For

• Zero Defections
• Keeping Every Customer That Could Be Served
  Profitably

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• Resulting In A
• Surprisingly Powerful Impact
• On The Bottom Line

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Harvard Research Found" Companies Can Boost
Profits By Almost 100 By Retaining Just 5
More Of Their Customers. The Longer A Customer
Stays With You The Higher The Level Of
Profit They Bring.
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• Can We Count On Continued High Growth?
• Sooner Or Later Cycle Will Change
• Will You Be Prepared?

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Harvard, It Is Common For Business To Lose 15
- 20 Of Its Customers In A Year.
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Simply Cutting Defections In HalfWill More Than
Double The Average CompanysGrowth Rate.
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I Was Very Lucky I Had A Mentor For Over 16
Years
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His Impact!
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The Caveat He Gave Me In The Early 80s

• Before The Houston Depression
• Before The Oil Bust
• Before Zero Defections --
• When Houston Was Riding High
• Other Parts Of Country Suffering

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Times May Not Be Bad In Houston Yet

• I Can See From Reports
• Youre Too Satisfied!
• You Are Losing Your Edge!

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• Can Your Customers Be Lured Away By Hungry
  Competitor?
• Now While Things Are Good You Need To Build A
  Loyal Customer Base
• Basics, Blocking And Tackling

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Hank Moore

• Service is Presently At An
• All Time Low
• And Getting Worse

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• Be The Best At What You Do!!
• Make Sure Your Customer Is Aware Of That Fact

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That Advice Was Pure Gold!

• Carried Us Through Toughest Time Houstonians
  Had Ever Experienced

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• Leadership Team Meeting - Reduce Losses To 5
  Per Year.
• Resulting Enormous Impact On Our Profits

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Develop An Action Plan To BeThe Best At What We
Do

• Make Your Service Memorable
• Ask Client What Can We Do
• To Serve You Better?
• Help Me With Market Research. Very Important
• It Worked Like A Charm

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Retain The Gain King On Throne

• Message Customer Is King
• 8 1/2 x 11 Posters
• 2 x 2 Stickers Everywhere

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Story That Had Huge Impact On Me And On My
Business Career.Hows Your Business?
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I Redoubled My Commitment To Be The Best
At What We Did And To Build A Loyal Customer
Base
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It Was Time To Have A Meeting With All Of
Our Employees To Discuss The Future Of Our
Company
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Raise The Bar

• Take Additional Steps To Improve Level Of
  Service
• Measure Actual Number Of Complaint Calls
• Count Each And Every One
• Rechecks

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You Are AllVolunteers
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You Are Bill Spitz Live Up To All Commitments
No Matter What It Takes
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How This Program Helped Us To Retain A Major
Customer
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We Were About To Embark On A New Marketing
Program
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• Skilled Market Research CO.
• Phone Contacts - Focus Groups
• Final Report - Huge Book
• Bottom Line Your Customers Are Fiercely Loyal

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• Reflected On Our Customer Retention Program
• Significant Increase In Profit Over What We Used
  To Consider OK
• We Grew During Depression
• Many Benefits Having Zero Defections And
  Building Customer Loyalty

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What Does It Take To Achieve Customer Loyalty?

• Pay Attention To What Is Important To Your
  Customer!
• What You Think What I Think May Be Terribly
  Unimportant
• Find Ways To Listen To Customer

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• Challenge Your Assumptions
• Probe Deeply - Customer Concerns
• How To Get Beyond Satisfaction?
• What Do Customers Value Most?

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Message Factors, Inc. Research Company

• If You Are Not Hearing Voices
• You Are Crazy!

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• If You Are Not
• Listening To Customers,
• You Cant Know
• What They Expect-
• What They Value,
• What They Could Live Without

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• Your Customers Will Tell You
• How To Keep Them Loyal
• And How To Persuade
• Your Competitors Customers
• To Become Your
• Loyal Customers As Well

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• This Information Allows You To Allocate Your
  Resources Accordingly

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Focus!

• Focus On What Part Of What You Do Is Most
  Important To Your Customer
• Example Clean Truck - Uniform
• Most Important - Be On Time
• Get Back To Work, Or Car Pool, Or Whatever

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Deliver What Customer Wants

• You May Not Be Providing What Is Most Important
  To Customer
• Of All Things You Do, Find Out Which Is Most
  Important To Client

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Start To Measure Defection Rate

• Different For Every Business
• Information - Trade Association
• As CEO What Is Acceptable ?
• Compare Yourself To Best

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Your Defection Rate Will Not Get Any Better
If You Dont Measure
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Develop Relationships

• Loyalty And Retention
• Technician Jimmy

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Understand The Difference Between Customer
Loyalty Customer Satisfaction
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Customer Satisfaction

• Everything Was OK
• Nothing Special
• Not Unhappy
• May Return If Convenient

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Loyalty Is

• I Love The Service
• You Have Added Value To .
• Everything Was Better Than Expected
• I Will Come Back
• I Will Tell My Friends
• Described The Pursuit of Wow!

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Market ResearchNot IdentifiedOn A Scale Of 1
to 5At What Point Will A Customer Become Loyal?
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ResultOnly At 5!
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Capitalize On Your Strengths! Can You Compete
With The Big Guys?

• Advantages Closer To Customer
• Communicate Directly
• Ability To Respond In Way To Promote Loyalty

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If And When There Is A Problem You Have A
Special Opportunity To Create Loyalty.

• When Something
• Needs To Be Fixed,
• Replaced Or Repaired
• Do It With A Smile!

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• Do It Quickly
• Give Reward For Inconvenience

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Small Companies Can Run Circles Around Big
Organizations - Bureaucracies

• Bureaucracies Lose Creativity
• Not Nimble
• Slow To Respond
• Do Not Engender Loyalty
• Example Photos

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Guarantee Your Work

• Our Guarantee Was Unconditional, Money Back
• Customer Was The Sole Judge
• Complaints Resolved Immediately

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• Thank You For Bringing This
• You Have Done Us Great Favor..
• Then Do It!
• Real Differentiation!

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Have You Ever?

• It Is Not My Job
• Im Doing The Best I Can
• You Will Have To Talk To Another Department

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What Does It Take? What Must We Do?

• Begins With Clear Vision Of What You Want Your
  Organization To Be
• You Must Articulate To Your Entire Organization

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Statement Of Purpose - Tell Your Team Why You
Exist
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We Were In The BusinessOf Protecting The Health
Property Of Our CustomersWithout
EndangeringOur Environment
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Core Values That Are Changeless And
Inviolate Of What You Stand For Integrity,
Ethics, Commitment To Achieve Customer Loyalty
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Example Mastercare

• In Part To Provide The
• Service Buying Public
• With A Superior Buying Experience That Will
  Encourage Them
• To Return Willingly
• And To Share Their Experiences With Others

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Example Don Grogg

• Core Value Deliver On Time No Matter What It
  Takes

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There Are Essential Basics That The Team Must
Understand In Order To Reach The Pinnacle Of
Customer Service Resulting In Customer Loyalty
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Clearly Enunciated So That They Become An
Integral Part Of The Company CultureIn Order
To Achieve Desired Results
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Must Select Quality People Who Can Carry Out
Your Vision

• Attitude
• Brain Power
• Commitment

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Training

• Absolutely Essential
• Some Say It Costs Too Much
• Pay Me Now, Or Pay Me Later
• Prevents Loss Of Customers
• Motorola

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Customer Selection

• Target Customers Willing To Pay For Your
  Superior Services, Profitably!

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Watch The Door

• Telephone
• Your Call Is Important To Us
• Create An Alert System

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Example

• Railroad Loss Part Of Business

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If Customers Defect Bring Em Back Alive

• Swat Team - Convince Them To Stay
• Example Food Plant

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If Unable To Retain Benefits Are Still
Available

• Gather Information And Insight As To Why
  Customer Is Leaving
• Get A View Of Your Business Not Available From
  Those On The Inside
• Early Warning System-Prevent Others From
  Defecting- Improve Your Score

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• Feedback - Concrete, Specific, Relevant, Not
  Hypothetical
• Understanding Why Is Important
• Need Someone Skillful At Probing

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Defections Can Help Companies Decide Which
Service/ Quality Investments Will Be Most
Profitable

• Should You Invest In Computerized Cash Register
  Or A New Phone System?

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• Which Of These Two Will Address Most Frequent
  Causes Of Irritation And Possibly Defection?

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Questions?OrYour Case Histories Showing
Value Of Loyal Customers
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Leadership in Action

• Carl Wilson
• cwilson_at_silverfox.org

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There are no extraordinary men, just
extraordinary circumstances that ordinary men are
forced to deal with. Admiral William F.
Halsey
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Purpose
Perspective
Process
POEMS
TM
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Economy Market Culture Technology

Strategizing
92 58 30
To Slide 10
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Marketing/Ops/Finance Plans/CRM Summary Strategic
Plan 12 month Perpetual Forecast Formal
Delegation Follow Up

Planning
Create a Profit Equation Commit to a 30 Sales
Increase Maintain Current Personnel
Level Establish Incentives
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Organization Charts Job Descriptions Process Flow
Diagrams Action Logs

Organizing
Top Grade Personnel Document Delegation
Process Cross Train Motivate Personnel
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Summary Strategic Plan Formal Delegation/Follow
Up A Clear Inspiring Mission

Executing
Initiate Weekly Progress Meetings Increase
Sales/Reduce Costs/ Improve Margins/Cash Position
Create a Flawless Profit Process
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Monthly Financial Statements Industry
Statistics Salary Surveys. Key Profit Indicators

Measuring
Contacts/Inquiries/Quotes Average Sale
Value Prospects/Customers/Clients
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Strategizing
?
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