Exec's Program #6: Execution 2.0 and Management Team

THE EXECUTIVE’S PROGRAM SESSION 6 EXECUTION 2.0 AND A WELLRUN COMPANY

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PURPOSE AND LEARNING OBJECTIVES Purpose: To continue learning about execution how to run your company.

Learning Objectives: To learn…

• Why, what and how to organize your company • What a well-run company and team looks like • How to organize and run your company and team well

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AGENDA 1. Recap of Session 5 2. Why organize your company/team 3. What a well-run company/team looks like 4. How to run your company/team 5. Deep Dive: Delegation 6. Deep Dive: Recruiting and compensation 7. Breakout 8. Summary and assignment

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SECTION 1 RECAP & ORIENTEERING

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THE PLANNING & EXECUTION SYSTEM 20 years Guiding Statement Vision, Mission, Strategy, Values, Business model, Operating model Used during onboarding, input to the strategic plan, to read in the morning to get you energized

5 years

Annual

Quarterly

Monthly

Weekly

Daily

Strategic Plan Annual Management Plan & Budget Quarterly Board Report, OKRs

Annual Planning Meeting All Hands Meeting

Co m

mu nica

tion s

Quarterly Board Meetings

Monthly Mgt. Reports

&R e po rtin

You You should should all all have have aa weekly weekly Legend Legend and and all all management management should should set set 33 “I “I Musts” Musts” and and map map those those to to their their calendar. calendar.

g

The Weekly Legend

Monthly Mgt. Meetings

Daily Calendar The Monday Legend & Friday WIR Team Meetings

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THE EXECUTION SYSTEM The Execution System A Planning System

Organizational Structure For organizing

Position Agreement For unit managers

Standard Operating Procedure For functions

Strategic Plan Role and Purpose (why)

Battle Rhythms For accountability Meetings

AMP - OKRs

Steps Accountable for

Reporting / Targets

Quarterly - OKRs

Person Accountable List of Responsibilities

Monthly - KRs

People Responsible Standards (KPIs)

Weekly - Legend

Standards at each Step

Daily - Calendar

KPIs

You You should should be be thinking thinking “I “I should should write write that that down.” down.”

Part 1

Part 2 6

BUILDING AND MANAGING A GENDER-SMART EXECUTIVE TEAM

You You should should be be convinced convinced that that becoming becoming aa gender-smart gender-smart company company improves improves access access to to $$$ $$$ and and improves improves your your performance. performance.

Source: Catalyst

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CAUTION: BE AWARE OF GENDER BIAS You You should should be be checking checking your your biases. biases.We We all all have have them them –– men men and and women. women. Be Be aware aware of of them. them.

Source: Catalyst

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BUILDING AND MANAGING A GENDER-SMART EXECUTIVE TEAM Key corner stones: 1.

Gender-smart recruitment, retention and promotion

2.

Gender balance on recruitment and promotion panels

3.

Avoid implicit gender bias in position adverts (language, channels), scorecards, etc.

4.

Ensure fair compensation and pay equity

5.

Set gender diversity targets and

You You should should keep keep itit simple. simple.

Don’t Don’t over over complicate complicate it. it.

promote women to leadership positions

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ASSIGNMENT 1.

Use your calendar: Write down three I Musts for the week and map all your time to your calendar. Set one of the I Musts to work ON the business. I recommend 2, 3-hour segments.

2.

The ON the business I MUSTs: 1.

Draw your org structure and put it into a PowerPoint

2.

Develop one position agreement for one of your direct reports (manager)

3.

Send these in by next Tuesday. And be prepared to present to the group on Tuesday.

Proprietary and Confidential to RENEW LLC

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Q&A

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Payment and Prizes

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PROGRAM PAYMENT • 80% of the cost is covered by RENEW’s development partners.

• 20% of the fee or $500 or ETB 20,000 is to be shared by attendees • Funds collected are put into a pool and allocated to the 3 winners • Links starting session #8 will be shared to attendees who have completed payment. Payment methods for all 3 countries will be shared on our follow up email.

• If you cannot cover this cost-share RENEW will provide a scholarship.

However, you must provide written commitment to implementing everything you learn. We will provide scholarship criteria via email.

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PROGRAM AWARDS • Participants will be evaluated 3 months after the program ends • Awards will be given to 3 winners: – Best attendance, completion and quality of assignments submitted – Best implementing what you have learned – Highest gender-smart score

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SECTION 2 WHY ORGANIZE YOUR COMPANY/TEAM?

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UNORGANIZED VS ORGANIZED 96% Fail

4% Succeed

Management Management

Operations Operations

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THE RESULT IS A SHIFT You work for your business

Your business works for you

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The first step in building a wellrun company.

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PART 3 WHAT DOES A WELL-RUN COMPANY/TEAM LOOK LIKE?

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POORLY RUN COMPANY • Everyone (customers, employees, suppliers) comes to the CEO with any decisions and problems.

• People step on each other’s toes and do the same or similar work.

• Things fall through the cracks and no takes responsibility for mistakes.

• You “sense” that employees are not performing but you don’t really know.

• Everyone seems to be “very busy all the time” but very little is getting done.

• You have high turnover.

From E-Myth 20

WELL-RUN COMPANY  It is clear who does what, when, how and what good looks like.  Key functions of the business are documented in SOPs and neatly bound in a binder (physical or virtual or both).  The binder is used for onboarding, training, employee evaluations, day-to-day work, reporting and innovating.  The CEO can measure success at each level of the business via a corporate dashboard.  It is clear when someone is missing, meeting, or exceeding performance standards.  Decisions are made efficiently and at the appropriate level.  The CEO spends most of their time in Q2, on strategic growth work.  The CEO and anyone can go on vacation, and the business still works.

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PART 4 HOW TO RUN YOUR COMPANY/TEAM

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THE CORE ELEMENTS Your Execution System Organizational Structure

Position Agreement

CEO

Purpose (why) Workflow

Admin

List of Responsibilities Steps

Operations

BU

BU

Standard Operating Procedure (SOPs)

BU

BU

Accountable for (position KPIs)

Standards (process KPIs)

Division

Org Org Structure Structure

Get organized

Your YourMgt. Mgt. Team Team

Position Position Agreement Agreement

Be clear what you expect

Standard Standard Operating Operating Procedures Procedures

Performance Performance Metrics Metrics

Write down how “it” should be done 23

USE THE ORG STRUCTURE 1.

Reporting lines: People, files, budget, internal meetings.

2.

Writing your Position Agreements: Outlines who is accountable, and what they are accountable for, which is formally documented in the Position Agreements (PAs)

3.

Building and using SOPs: Each unit should have a few key functions. Each function should have an SOP. SOPs are used to train new hires, review quality of work and improve the business.

4.

Monitoring results: The org structure should help you outline the most critical metrics (KPIs) you need to understand how your company is doing.

Main point: Use the org structure! Most do not use it.

Make it gender-smart

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POSITION AGREEMENTS • Tool: Provided a “Position Agreement Template” • Sections: – Title of the position – Expected Results: What they are accountable for.

– Work List: What they are responsible for.

– Standards: Company and title level.

Quantitative and qualitative.

– Signatures

Hint: The HR department or managers prepare job descriptions for vacancies. But once hired, they don’t use them.

HINT: Use the JD as a starting point for your Position Agreement (PA).

Use them during your bi-annual and annual performance review meetings.

Make these gender smart!  Sidebar 25

THE STANDARD OPERATING PROCEDURE (SOPS) 1.

Purpose: Why the procedure is critical for the company. (e.g. ,to generate new customer leads).

2.

Accountability: Who is ultimately accountable for this function? HINT: use the org chart. (e.g. ,the VP Marketing)

3.

Expected Results: What is the measurable outcome of this function. This is the KPI (e.g., number of qualified leads per week)

4.

The Processes (Steps): A flow chart, checklist or step-by-step description of activities that must occur to achieve the desired result. (i.e., 1: Post blog on LinkedIn with link to Contact Us form. 2) Review website to make sure contract us form is working, 3) Monitor traffic each week, 4) Inform Sales VP as soon as lead comes in, 5) Report KPI in weekly Marketing meeting.).

5.

Standards: Quantitative and/or qualitative statements for each step. (e.g., Blogs must be reviewed and copy edited by Legal team before posting to LinkedIn)

6.

When: When each step must occur (e.g., Blog should be posted no later than the 5th of each month)

7.

Who: Who is responsible for executing the step.

Remember:This is where you demonstrate that your company is gendersmart

(e.g., Marketing Content Manager is responsible for drafting Blogs) 26

STEP 3: SOP sEXAMPLE e Key Process Purpose:

m a e /t Accountability: u o Y Expected Results:

he t ir teSourcing is a critical activity for investment firms and for RENEW.The quality of our portfolio is directly Sourcing SOP

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related to the quality of companies we find, attract and invest in during sourcing. Therefore sourcing is the first critical step of having a successful portfolio and investment firm.

The Sr. Finance Manager is accountable for sourcing and reports to the Chief Investment Officer.

10 new companies sourced per month, and 2 new companies promoted to the active pipeline.

Steps

Standard

When

Who

1.

Attend networking events

Attend one per month or 12 per year

Every month

Sr. Finance Manager and Analyst or PM (support)

2.

Run PE trainings

One per month

Last Thursday of every month

Sr. Portfolio and Project Manager and PM (support)

3.

Document companies in pipeline

No less than 10 new companies per month

Within 1 day of meeting with a company

Sr. Finance Manager and all RENEW staff that meet companies

4.

Evaluate companies in pipeline

No less than 10 companies graded per month

Within 3 hours of entering company into pipeline

Sr. Finance Manager and all RENEW staff that meet companies

5.

Present companies to IC

No less than 5 companies per month that meet RENEW’s investment criteria

During A-Pipeline Meeting

Sr. Finance Manager

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SOP DEVELOPMENT PROCESS 1. Write it down: Start immediately.

Refine it (phase 2, 3, 4, 5…)

Identify opportunities to make SOPs gender-smart

2. Train the team: Done at different levels.

Done by managers.

4. Evaluate: is it working?

3. Monitor / Enforce: Is the team doing it?

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WRITING SOPS 1.

Start with the Org Chart – functional level

2.

Baseline the KPI for the function (i.e., 3 deals per month)

3.

Bring together the team

4.

Write down the steps in a sequence, who is accountable (function), who is

Who? Genderbalanced team!

responsible (steps), how you measure success of the function (KPI), specific “standards” for any steps.

5.

Train the team on the newly written SOP (2-3 hours). Ask them to begin implementing.

6.

Monitor SOP is implemented (critical). The KPI is what you will be watching, and you can quality spot check the steps.

7.

Track the KPI for the function for 2-3 months to see if it is improving. Check in with the manager and team to get feedback. Maybe after a month.

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COMMON MISTAKES • Writing but not using: Creating the Org chart, Position Agreements / Job Descriptions, and SOPs documents versus management tools. HINT: Use for performance review, training and ON the business work.

• Getting overwhelmed and not doing anything: “This is too much.” OR worse, “This is not for me. I’m too small.” HINT: Step by step. Do a little at a time, and continuously improve (Kaizen).

• Stopping short of metric/KPI: No KPIs or dashboard. A lot of work, but not results. “I don’t know why I am doing this. But it’s in my job description.”

• Not tracking the metric: Scope creep and no accountability. “Boss isn’t paying attention. So, who cares?”

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STEP 3: PREVENTING SOP INSANITY 1.

Build an SOP plan. Aim for one function per month.

2.

Prioritize your SOP plan to focus on writing SOPs for the functions you have the greatest pain points with.

3.

Ask for help. Enlist your team.

4.

Don’t let perfect be the enemy of good.

5.

Use a template.

6.

Start writing!

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PART 5: DEEP DIVE IN DELEGATION THE ART OF BEING AN EXECUTIVE

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DELEGATION

“One of the most difficult transitions for leaders to make is the shift from doing to leading.”

“To know if you’re guilty of holding on to too much, answer this simple question: If you had to take an unexpected week off work, would your initiatives and priorities advance in your absence?”

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DELEGATION MISTAKES AND SOLUTIONS Problem

Solution

Not wanting to let go:; holding onto something too long for fear of others messing it up.

Understand that to become a top performing executive, “it” must be delegated.

Abdicating and not delegating: abdicating is turning something over to someone without guidance or oversight – no SOPs or training.

“Delegate, don’t abdicate.” Delegation takes more time and effort, at first. Delegation requires you to become a trainer and a coach.

Being a poor communicator: thinking they will read your mind. “#$%&@! They should know what I want!”

To delegate well requires that you become exceptional at communicating the “why” and “what good looks like.” The SOP is how.

Being impatient: thinking they will get it over night.

A newly delegated task may take far more time than it takes you. Manage your expectations. Be patient.

Assuming “yes I understand” means “yes I understand”.

Ask them to repeat back the “why”, and the “what”. Then have them describe their “how.”

Not using your delegation tool

Use your SOP. This is your main delegation tool.

Use it, red pen it, love it.

Checking out too fast – being too distant

Hold periodic check-in meetings using the SOP as the discussion tool. Hotwash!

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HOW TO DELEGATE 1.

Start with “why” “When people lack understanding about why something matters and how they fit into it, they are less likely to care.” - HBR

2.

Be extremely clear about the outcomes you want “They can’t read your mind…” – HBR Write your SOP – set the standard in the SOP.

3.

Engage at the right level Train them on the SOP, then trust but verify. Hold periodic check-in meetings to review work and give/get feedback. Update the SOP.

4.

Practice saying “yes,” “no,” and “yes, if” Nose in but hands off. Don’t dive back into the work when asked. Don’t save them or rip the ball away. Coach them.

5.

Be patient. Use your tools!

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DELEGATION TOOLS • The Standard Operating Procedure (SOP): Your key delegation tool and delegation blueprint. This gets used and updated as you delegate more, “moving from doing to leading”.

• The “Hotwash”: The close-to-real-time review and feedback process. Done immediately after.You are the coach: This worked well. This is what you want to do different next time.

• An honest and caring tone: “Recognize that tough love is both the hardest and the most important love to give (because it is so rarely welcomed).” Ray Dalio, Principles • A continuous improvement (“Kaizen”) culture: Become a company that loves to try, fail, review, fix and then try again.

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PART 6: DEEP DIVE: RECRUITING AND COMPENSATION HOW TO FIND, SCREEN, AND COMPENSATE GOOD MANAGEMENT

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YOUR MANAGEMENT TEAM • Recruiting: Starts with a clear understanding of what you need. Which should come from your org chart. Then, prepare a good job description.

• Compensation: This is where your budget and finance team will help you. If you do not have one, you’ll need to spend time thinking about what you can afford. When possible, use a base salary and bonus tied to the accomplishment of KPIs. Having clear KPIs for the position you are hiring also help you determine the salary you can afford.

• Evaluations: CFRs (conversation, feedback, recognition) – monthly check-ins to see how your managers are doing. What they need to be more successful. Give them feedback.

Feedback is a gift. Semi-annual review of their position agreements.

• Promoting & Bonuses: Annual and if they accomplished their targets.

• Corrective Action and Firing: The hardest one.

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GENDER-SMART RECRUITING & COMPENSATION 4 Key Points 1. Ensure advertising and recruitment does not create implicit gender bias because of the location/ type of adverts.

2. Ensure recruitment panels include both men and women.

3. Ensure all HR decisions are based solely on candidate merit and not based on gender.

4. Promote men and women equally.

Source: CDC Toolkit 39

GENDER-SMART RECRUITING Guidance

Software can help you develop gender neutral job descriptions.

• Avoid gendered job titles (e.g. ‘Waitress’, or implicit such as ‘Superhero Sales Manager’. Better: ‘Waiting Staff ’ or ‘Sales Executive’)

• Ensure your language is balanced when describing roles, responsibilities and requirements. (ambitious, competitive and determined are considered male-gendered, while words like committed and collaborative are considered female-gendered)

• Be clear and concise in your requirements. Avoid industry jargon that may exclude certain groups. Studies show that female applicants are less likely to apply if there are long lists of requirements, whereas male applicants are less likely to apply if there are short lists. Strike the right balance.

• Tell the applicant about your organisation in a gender-neutral way • Be explicit about your commitment to diversity and inclusion.

Source & Toolkit: CDC Toolkit – Gender Neutral Job Descriptions Guide 40

GENDER SMART COMPENSATION Guidance: Gender Pay Gap Analysis • Ensure the process is collaborative • Analyze data by function and department to understand differences, gaps and good practice • Ensure insights are clear, evidenced by data and arranged in an easy-to-read report • Data gathering and analysis • Further Guidance & Key Data Points: Guide

Source & Toolkit: CDC Toolkit – Gender Pay Gap Analysis 41

PART 7 GROUP EXERCISE

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GROUP EXERCISE 1.

Practice Leadership Communications: What are you top 3 priorities for the year?

2.

Practice Management: What are the 3 most critical functions at your company (org structure)? Which have SOPs? If not, which are you working on this week? Are you using a simple list format or a more detailed table format?

3.

Practice Delegation: What is one activity you are doing that you should delegate? Who will you delegate it to?

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Part 6 Summary

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THE EXECUTION SYSTEM The Execution System A Planning System

Organizational Structure For organizing

Position Agreement For unit managers

Strategic Plan

Standard Operating Procedure For functions

Role and Purpose (why) AMP - OKRs

Battle Rhythms For accountability Meetings

Steps Accountable for

Quarterly - OKRs

Reporting / Targets Person Accountable

List of Responsibilities Monthly - KRs

People Responsible Standards (KPIs)

Weekly - Legend

Standards at each Step

Daily - Calendar

KPIs

This is how you run your company 45

HOMEWORK ASSIGNMENT 1.

Use your calendar: Set your three I MUSTs for the week and map all your time to your calendar. Set one of the I MUSTs to work ON the business.

2.

The ON the business I MUST: Take three hours to write one SOP that you discussed in the break-out session and once written delegate that to someone. Be ready to share what you delegated.

3.

Submit your SOP via Google Drive.

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Please complete your evaluation forms

Proprietary and Confidential to RENEW LLC

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Thank you! www.renewstrategies.com

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GENDER NEUTRAL HIRING Mind your language • Language can serve to break down gender disparities or further enforce them.

• There are certain qualifications or characteristics that are interpreted as more masculine, which can deter well-qualified female candidates.

• Changing the language to be more gender neutral can attract a more gender-balanced pool of applicants.

Source: CDC Toolkit 49

GENDER SMART COMPENSATION

Ensure fair compensation & pay equity Video: Kids prove that gender equality is child's play in viral video 50

GENDER-SMART CULTURE The 5 hallmarks of inclusion

Company Culture

1.

Valued:You are appreciated and respected for your unique perspectives and talents.

2.

Trusted:You make meaningful contributions and are influential in decision-making.

3.

Authentic:You can bring your full self to work and express aspects of yourself that may be different from your peers

4.

Psychological Safety – Latitude:You feel free to hold differing views and make mistakes without being penalized.

5.

Psychological Safety – Risk-taking:You feel secure enough to address tough issues or take risks.

Source: Catalyst 51

GENDER SMART COMPANIES ATTRACTING NEW INVESTORS Recap: New sources of capital for companies with female leaders Case Studies: How SMEs achieved gender diversity in leadership Video: PEG 2X investee, responsAbility fund manager

“A more gender-balanced leadership team makes better decisions and a more genderbalanced staff creates better products for its market.”

Stefan Issler, head of direct investments at responsAbility Investments AG on PEGAfrica, an off-grid solar company in Ghana.

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GENDER SMART COMPANIES ATTRACTING NEW INVESTORS Recap: New sources of capital for companies with female leaders Case Studies: How SMEs achieved gender diversity in leadership Video: Food Concepts 2X investee, DPI fund manager

“We decided we wanted to be a genderequal company and that’s where we are today: 51% female and 49% male” David Butler, managing director of Food Concepts PLC. Thanks to the Nigerian company’s gender-equality policy and 2X members support through the fund manager Development Partners International (DPI), women are able to increase their own opportunities.

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