Exec's Program #16: The CEO

THE EXECUTIVE’S PROGRAM SESSION 16 THE CEO

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PURPOSE AND LEARNING OBJECTIVES Purpose: To step back and see how far we have come, and to explore the role of a CEO Learning Objectives: To learn…

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How everything we have covered is connected and what is next

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Why the CEO role exists

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What a top performing CEO does

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How to “be” a top performing CEO

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AGENDA 1. Comprehensive Recap 2. Why a CEO exists 3. What a top-performing CEO does 4. How to be a top-performing CEO 5. Breakout

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PART 1: COMPREHENSIVE RECAP

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REMINDERS 1.

This is just the beginning: The formal learning concludes this week. Implementation begins! We want you to succeed – so we will be starting coaching, implementation check-ins and running refreshers. Learn  Do  Teach

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We will be gathering your company data: RENEW will gather company specific data to track your progress (it is confidential). We will analyze your info with you.

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Refresher sessions: We will hold refresher sessions with alumni. Use this time to network, learn and ask questions.

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After the Exec Session: 1.

Graduation – May 25, 2021 (virtual)

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Implementation – 6 months of check-in coaching sessions

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Gathering data via surveys

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Networking

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SUMMARY:YOUR LEGACY HOW TO BECOME GENDER-SMART? 1.

Become aware: Approximately half the world population, and addressable market is women…no brainer.

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Balance the board and exec team: Reserve positions on the board and in management for women. Actively recruit women board and executive team members. Do not check a box.

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Focus on women as a target market: In some markets women make more of the purchasing decisions. Conduct market research to develop products and marketing strategies that better meet women’s needs

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Develop women-focused HR systems: Develop recruitment procedures and mentorship programs to increase the mobility of women employees to move into management positions.

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Serve women: Developing facilities on office premises that are more appropriate to women, i.e., child feeding rooms, childcare facilities, or flexible working hours

Sources: GEM Framework, MEDA and USAID “ Gender Equality Mainstreaming for Business Growth and Impact”

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COMPREHENSIVE REVIEW: PART 1 PLANNING 1.

Develop good personal habits: Have a disciplined morning routine! Use your calendar – this is a “keystone habit”. This will allow help you build other good habits. Set 3 “I Musts” for yourself and your team each week and map time to complete those I Musts to your calendar.

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Make clear plans: Always write down your plans. Start with the plans farthest to your left and cascade the big goals into more specific, more near-term goals. The guiding statements are your “north star”. Then your 5-year plan, AMP, Quarterly/Monthly OKRs, Weekly Legend, Daily Calendar. Remember, Great plans have “coffee stains” on them, because you read them every morning. “Plan your work and work your plans” If you don’t you will certainly lose focus and struggle to be successful.

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Have good governance to hold you accountable: Have a diverse, gender-balanced group with authority (ideally a board) to give you feedback and holds you accountable to your plans. Ask for their feedback! Follow your own rules – set the example for your company. Everyone is watching you. The stronger your governance the stronger your performance.

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COMPREHENSIVE REVIEW: PART 2 EXECUTIONS 4.

Master execution 101: Ideas are good, execution is everything! How do you execute: Have Plans + An Organized Team + Position Agreements (PAs) + SOPs + A Meeting Battle Rhythm to measure TvA = This is how executives manage execution.

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Master execution 201: Write an operations binder for your company - a set of all the SOPs needed to run your business! Get your team saying, “Hey, I will write that down.” Writing SOPs is one of the best ON the business work you can do. SOPs are the treasure.

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Organize your team and company: The org chart is used to organize everything you do, specifically your management team – who reports to you; what they are accountable for; what you expect of them. This is documented in the PAs. Your org structure also organizes your SOPs, KPIs, and meetings.

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Write position agreements: Makes it clear what your management is accountable for, responsible for, and your expectations of them. And it’s signed and used when you have one-on-one meetings with them.

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Run great meetings: Purpose, Outcomes and Agenda – ALWAYS! You’ll have three types – informational, brainstorming, decisional.

Have a leaders, someone to capture notes, and always end with clear next steps. Well-run meetings drive superior execution of your plans.

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Master reporting: Measure 5-10 KPIs for your company – ideally daily or weekly. Align them to the org structure and make a manager accountable for the KPI. Keep the frequency regular enough so you can spot changes and make decisions (daily, weekly or monthly). As you measure it, you will manage it and you will see improvements.

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COMPREHENSIVE REVIEW: PART 3 FINANCE 10. Be the Co-CFO: Accounting is in the past. Finance is in the future. Don’t abdicate either – be the co-CFO. Just know it’s not that complicated but you need to be disciplined. It starts with closing your books by the 10th of every month and holding a finance meeting on the 15th.

11. Analyze your financial statements Part 1 & 2: Review your monthly TvA (targets in the budget, actuals in the financial statements). Ratios to see how your margins and liquidity are doing. Ask Why 7 times during your TvA meeting. Look for red flags.

12. Forecast cash flow Part 3: Cash Flow is the most important thing to watch because cash is king/queen. Revenue and net income can fool you if you use accruals accounting (most do). So look at your CCC (see the tool we provided). Find our where cash is being held and get it back by pulling one of the 7 levers. And ALWAYS use a 13-week Cash Flow. Update it every week. If you’re black for the quarter (the next 13 weeks) you’ll sleep better. And start putting aside 2 months of operating cash to weather any storm.

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COMPREHENSIVE REVIEW: PART 4 GROWTH AND LEGACY 13.

Master marketing – know who leads: Focus and invest in “one thing” - cost, quality or service - and put it above all others but keep the other two in the competitive range. This is strategy. First, know your target market much better than you currently do; Next, know who leads and who serves in the marketing and sales department. Finally, build marketing plans (4Ps) and drive a marketing battle rhythm. And always measure marketing KPIs to determine if your plans are delivering results!

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Master sales – have more touch points: Write down your ideal sales experience for your customer. Turn that into your sales SOP and then make sure your team follows the SOP. Don’t give up on a prospect too early – most do.

Use a pipeline to make sure your team doesn’t let a prospect slip through the cracks. Have a trustworthy, competitive and disciplined sales leader that works the pipeline and hits targets. Sales is an early indicator of business health, so watch it closely.

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Leave a legacy: What you give you get back 10-fold. Take care of the environment, your people, and your community.

ESG is used to ensure your company does no harm. CSR is an opportunity to use your business to make things better.

Becoming a gender-smart company, for example, improves financial performance, lowers turnover, and opens you up to huge pools of capital.

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Be the CEO: TODAY

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SHORTER VERSION ORIENTEERING: STEP-BY-STEP Session Topics

If you did just one thing…

The Habits

Have a morning routine! Use your calendar.

Set 3 “I Musts” each week and map them to your calendar.

Strategic Planning

Write down your 5-year plan.

Start with your Guiding Statements, and KISS and use it (Coffee Stains) to set your annual plans.

The AMP

Write down you AMP. Look to the Left!

Strategic plan is the input. Use the AMP to set quarterly and monthly OKRs. Chop up your goals into bite-size work that ultimately becomes weekly projects and I Musts.

Governance

Have a diverse group with authority (ideally a board) to give you feedback and holds you accountable to your plans.

Ask for their feedback! Follow your own rules – set the example. Everyone is watching you.

Execution

Build your binder! “I should write that down.” Write SOPs. They are the treasure. Plan + Organized Team + PAs + SOPs + Battle Rhythm = Results!

Management Teams

Have an org chart and use it to organize your company.

Write PAs for those connected to you (your management team).

Meetings

Run great meetings! Use them to drive execution.

Use meetings to drive execute. Have P, O and A for every meeting.

Reporting

Start measuring 5-10 KPIs for your company. Weekly or monthly. As you measure it, you will see improvements.

Intro to Finance

Close your books by the 10th and hold your finance meeting on the 15th. DO NOT ABDICATE this work. You are the coCFO.

Financial Analysis Part 1 & 2

Calculate your monthly TvA and ratios and do a quick common size and trend analysis. Ask Why 7 times during your TvA meeting. Observe red flags in trends and common size.

Finance Part 3: Mastering Cash Flow

Build and use a 13-week Cash Flow. Update it every week.

Marketing Mastery

Focus and invest; Define and know your target market; know who serves who - marketing or sales; build marketing plans and drive a marketing battle rhythm. And measure it!

Mastering Sales

Write down the ideal sales experience. Use a pipeline.

Legacy

What you give back to your people, the environment and your community, you get back 10-fold. Start now. This is your legacy. Becoming gender-smart is a great way to do this and drive growth!

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PART 2: WHY A CEO EXISTS

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WHY IS A CEO NEEDED • People need leaders to guide them (plan), and managers to ensure they execute to the plan to the right standards (SOPs, KPIs, meetings, org structure, PAs).

• Company shareholders needs one person to be accountable for the overall execution of the company’s plan.

• A company needs someone to drive change. A company is constantly changing but most people do not want to change. For a company to grow it must change – constantly and the CEO guides a company through this process – both the systems and people.

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BASIC ORGANIZATION

Shareholders

COO

Board of Directors

Chairperson

CEO

CFO

Modeled from CFI: LINK 14

PART 3: WHAT A TOP-PERFORMING CEO DOES

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AT EVERY STAGE CEOS… 1.

Manage their mental state and emotions: People do not like instability.

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Communicate clearly: With shareholders, management, new recruits, staff, key customers, shareholders, government entities, the public. Always start with “why?”

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Develop simple and compelling plans: Leading the development of the company’s short- and long-term strategy and plans. Setting strategic goals and making sure they are measurable and describable

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Execute and get results: Creating and implementing the company or organization’s vision and mission, long-term and short-term plans. Evaluating the work of other executive leaders within the company, including directors, vice presidents, and presidents

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Obsess about their market/strategy: Maintaining awareness of the competitive market landscape, expansion opportunities, industry developments, etc.

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Sell, sell, sell: The vision, the business, the services/products

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Walk the walk: Be the example of what you want others to be.

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Protect the company’s legacy/ESG/CSR: Ensuring that the company maintains high social responsibility wherever it does business. Assessing risks to the company and ensuring they are monitored and minimized

Adapted from CFI: LINK 16

THE ROLE OF THE CEO EVOLVES WITH THE BUSINESS Hard to balance internal with growing external role

Hard to make the hard decisions to save/reinvent the company

Hard to shift from Manager of “The Team Captain” to Manager of Managers Hard to shift from visionary technician to manager/business builder

Idea: Creativity and risk taking, getting seed capital. Get first customer

Start-up: Refining product/market fit, team building and culture, business development (writing SOPs), selling, raising angel capital, selecting founders/equity partners

Scaling: Managing a big team - HR, training, living values, clarifying w/ comms, landing bigger clients, marketing/PR, raising bigger money, refining systems (Kaizen) building and managing a board

Growth: Leading leaders - a select few and ensuring they live your values and meet your expectations, face of the company, managing stakeholders, PR, bigger investors

Maturing / Turning Around: War-time, getting cash ASAP, new or refreshing strategy based on market, bringing in fresh leadership, risk/stakeholder management, redefining the culture, setting clear priorities, making hard decisions, liquidating assets if needed

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CEO IS A LEADER AND A MANAGER – WHICH ONE WHEN? Am I a balanced CEO?

Management

Leadership

Planning and Budgeting

Setting Direction

Quality Assurance

Motivating People

Organizing and Staffing

Aligning People

If there’s a lot of work but little results If product/service quality is slipping If people are confused about who does what

If energy and moral are low People are not sure how their work fits into the big picture There’s tension among managers The company has lost it’s edge

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MEETINGS THE CEO LEADS 1.

Status update (accountability) – usually Monday morning planning meeting.

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The all-hands meeting (transparency) – every other week or once a month.

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One-on-ones (performance) – coaching and feedback to your management.

Quarterly or more.

4.

Retrospectives (feedback) – what went well, what didn’t, what can we improve? Every other week or once a month. After a big event.

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Friday wins (recognition) – “shout outs.” Recognize people for their hard work and results. Weekly on Friday.

20% of your time and 80% of your leverage as a CEO David Bailey: LINK 19

A DAY IN THE LIFE OF A CEO 1. Gathering information – Structured and unstructured meetings 2. Conveying information – Structured and unstructured meetings and communications 3. Making decisions – Big and small. Forward looking (allocating capital) and responding to a crisis.

4. Setting an example – internal training, coaching, one-on-ones 5. Selling – meeting with clients and stakeholders

Adapted from “High Output Management” by Andy Grove 20

PART 4: HOW TO BE A TOP-PERFORMING CEO

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KNOW HOW TO EVALUATE YOUR PERFORMANCE – HIGH LEVEL GROW THIS

Return on Equity (ROE) = Net Income / Owner Equity

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SOME ADVICE It’s lonely at the top. Here’s how to help…

Practice self-awareness: This helps you to 1) adapt to the right stage of your business, 2) to constantly learn and 3) to bring the right people around you.

Becoming a CEO requires a transition with the company’s growth: CEOs must learn to move from specialist to generalist, analyst to integrator, tactician to strategist, bricklayer to architect, problem solver to agenda setter, warrior to diplomat Build balance: If you’re optimistic, bring in a CFO that is more conservative. Build diversity: …of gender, experience, style and thought. Do not isolate yourself: Danger!

Fear this

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SOME ADVICE (CONT.) It’s lonely at the top. Here’s how to help… Practice mental toughness: Whatever you are feeling right now…you are not alone. We all either feel that or have felt that; good or bad. Watch motivational videos. Journal. Have a good morning routine. Seek wisdom from the experienced: Either through your board, advisors or outside peer group, bring your challenges to them and ask for their opinion. Don’t just do everything they say - listen and process. Go easy on yourself…and push yourself: It’s a tough job. Beating yourself up does no one any good. But journaling, reflecting on mistakes and accomplishments – challenging yourself and rewarding yourself – will help you manage this healthy tension.

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SOME ADVICE (CONT.) Advice from Harvard…

• Watch yourself when your disoriented: Common issues when feeling unsuccessful is executives will overmanage the function they know well and drop the ball on the other things they are working on - when an emergency happens, or things start going sideways, you default back to your comfort zone which is not what the business likely needs. Be aware of this trap and avoid.

• Carve out time for your mental and physical health: CEOs need to train themselves. Like an elected athlete allocating time for this is critical. Health fitness test reading yoga.

• Use your calendar: The more structured a CEO’s calendar the more successful they feel.

• Delegate or die: Failure to delegate well is a major anchor that holds leaders back from achieving superior performance. Always “Start with why.” Make it clear what good looks like - the expectation. Be explicit who is accountable if you’re talking to a team (major problem if you just expect someone to do it).

• The best leaders are great teachers: Modeling behavior, knowing the art and skill of the business, showing how it’s done.

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SOME ADVICE: THERAPEUTIC LEARNING Read and listen…  Read: E-Myth and High Output Management: How to be a great entrepreneur and manager/CEO.  Listen: How I Built This, Podcast by Guy Raz: Hear amazing, real stories of founder CEOs that had many ups and downs and how they got through them.  Read Autobiographies: Straight from the Gut, Jack Welch; Shoe Dog, Phil Knight; The Ride of a Lifetime, Robert Iger; Tough Choice, Carly Fiorina; Grinding it Out, Ray Kroc; Lean In, Sheryl Sandberg; The Hard Things about Hard Things, Horowitz; etc.

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Have fun!

You only live once. You are the master of your fate. The captain of your soul. You have a vision, and you are working towards it. If you don’t like something, change it.You can!

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PART 5: BREAKOUT

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DISCUSSION 1. What are your key take-aways?

2. How much time do you think this will take to implement?

3. What do you commit to doing different?

4. What do you need?

5. What’s next?

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FINAL EXAM PREP • Written test on Thursday • Read through the summary slides • Listen to the recordings

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REFLECTION TIME

Take 5 minutes to fill out your module question: • What do you commit to doing after this program?

• What should we enhance for future sessions?

• What else can we do after the session?

Proprietary and Confidential to Renew LLC

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Thank you! www.renewstrategies.com

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ACROSS ALL STAGES 1. Develop a simple plan for your strategy (long term goals) 2. Make the culture real - and matter.

Live it. Walk the talk.

3. Build teams that are true teams – not just a bunch of high performers. But team players.

4. Lead transformation – growth = change. Be very good at driving change.

5. Really listen – 6. Handle a crisis – 7. Master the inner game of leadership – Adapted from The CEO Test 33