1 THE PROGRAMEXECUTIVE’S SESSION 6 EXECUTION 2.0 AND A WELLRUN COMPANY
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 2
PURPOSE AND LEARNING OBJECTIVES
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 3
SECTION 1 RECAP & ORIENTEERING 4
20 StatementGuidingyears energizedgetmorningtostrategicinputonboarding,UsedmodelOperatingmodel,BusinessValues,Strategy,Mission,Vision,duringtotheplan,readinthetoyou 5 years Annual Quarterly Monthly Weekly Daily THE PLANNING & EXECUTION SYSTEM 5 Team Meetings Strategic Plan PlanManagementAnnual&Budget BoardQuarterlyReport,OKRs MonthlyReportsMgt. TheLegendWeekly Daily Calendar AnnualMeetingPlanning AllMeetingHands BoardQuarterlyMeetings MonthlyMeetingsMgt. The LegendMonday&FridayWIR Communications&Reporting You should all have a weekly Legend and all management should set 3 “I Musts” and map those to their calendar. You should all have a weekly Legend and all management should set 3 “I Musts” and map those to their calendar.
THE EXECUTION SYSTEM 6 The Execution System Part 1 Organizational Structure For organizing Position Agreement For unit managers Role and Purpose (why) Accountable for List of StandardsResponsibilities(KPIs) Standard StandardsPersonForProcedureOperatingfunctionsStepsAccountablePeopleResponsibleateachStepKPIs Battle Rhythms For ReportingaccountabilityMeetings/Targets A Planning QuarterlyStrategicSystemPlanAMP-OKRs-OKRsMonthly-KRsWeekly-LegendDaily-Calendar Part 2 You should be thinking “I should write that down.” You should be thinking “I should write that down.”
BUILDING AND MANAGING A GENDER-SMART EXECUTIVE TEAM
7Source: Catalyst
You should be convinced that becoming a gender-smart company improves access to $$$ and improves your performance. You should be convinced that becoming a gender-smart company improves access to $$$ and improves your performance.
Source: Catalyst
You should be checking your biases.We all have them – men and women. Be aware of them. You should be checking your biases.We all have them – men and women. Be aware of them.
CAUTION: BE AWARE OF GENDER BIAS
You Don’t You keep it simple. Don’t
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 promote women to leadership positions 9
over complicate it.
should keep it simple.
should
over complicate it.
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. 10Proprietary and Confidential to RENEW LLC
Q&A 11
Payment and Prizes 12
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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 14
SECTION 2 WHY ORGANIZEYOUR COMPANY/TEAM? 15
UNORGANIZED VS ORGANIZED 16 ManagementOperations ManagementOperations 96% 4% Fail Succeed
THE RESULT IS A SHIFT
17 You work for your business Your business works for you
The first step in building a wellrun company. 18
PART 3 WHAT DOES A COMPANY/TEAMWELL-RUNLOOKLIKE? 19
POORLY RUN COMPANY
Everyone seems to be “very busy all the time” but very little is getting done. You have high turnover.
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• People step on each other’s toes and do the same or similar work.
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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 (customers, employees, suppliers) comes to the CEO with any decisions and problems.
20 From E-Myth
21
The CEO can measure success at each level of the business via a corporate dashboard.
Key functions of the business are documented in SOPs and neatly bound in a binder (physical or virtual or both).
It is clear when someone is missing, meeting, or exceeding performance standards.
Decisions are made efficiently and at the appropriate level.
The CEO and anyone can go on vacation, and the business still works.
It is clear who does what, when, how and what good looks like.
The CEO spends most of their time in Q2, on strategic growth work.
The binder is used for onboarding, training, employee evaluations, day-to-day work, reporting and innovating.
WELL-RUN COMPANY
PART 4 HOW TO RUN COMPANY/TEAMYOUR 22
THE CORE ELEMENTS 23 Organizational Structure CEO Operations BU Division BU BU BU Admin Position ListPurposeAgreement(why)ofResponsibilitiesAccountablefor(positionKPIs) Standard Operating Procedure (processWorkflow(SOPs)StepsStandardsKPIs) Get organized Be clear what you expect Write down how “it” should be done Your Execution System StructureStructureOrgOrg Performance Metrics Performance MetricsYour YourTeamMgt.Mgt.Team Standard Operating Procedures Standard Operating ProceduresAgreementAgreementPositionPosition
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. 24 Make it gender-smart
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 25 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
7. Who: Who is responsible for executing the step. (e.g., Marketing Content Manager is responsible for drafting Blogs)
1. Purpose: Why the procedure is critical for the company. (e.g. ,to generate new customer leads).
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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)
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 SalesVP as soon as lead comes in, 5) Report KPI in weekly Marketing meeting.).
3. Expected Results: What is the measurable outcome of this function.This is the KPI (e.g., number of qualified leads per week)
6. When: When each step must occur (e.g., Blog should be posted no later than the 5th of each month)
THE STANDARD OPERATING PROCEDURE (SOPS)
Remember:This is where you demonstrate that your company is gendersmart
2. Accountability: Who is ultimately accountable for this function? HINT: use the org chart. (e.g. ,the VP Marketing)
2. Run PE trainings One per month
into pipeline Sr.
Manager and all
Manager
PM
staff that meet companies 5. Present companies to IC No
Purpose: Sourcing is a critical activity for investment firms and for RENEW.The quality of our portfolio is directly 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.
all
than 5 companies per month that meet RENEW’s investment criteria During A-Pipeline Meeting Sr. Finance Manager 27 You/teamwritethese
STEP 3: SOP EXAMPLE Key Process Sourcing SOP
graded per month
month Sr.
than 10
Expected Results: 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
company
that meet companies 4. Evaluate companies in pipeline No
3. Document companies in pipeline No less than 10 new companies per month Within 1
Manager
entering
Accountability: The Sr. Finance Manager is accountable for sourcing and reports to the Chief Investment Officer. (support) Last Thursday of every Portfolio and Project and (support) day of meeting with a Sr. Finance and RENEW staff less companies Within 3 hours of company Finance RENEW less
SOP DEVELOPMENT PROCESS 28 1.Write it down: Refineimmediately.Startit(phase 2, 3, 4, 5…) 1.Write it down: Refineimmediately.Startit(phase 2, 3, 4, 5…) 2.Train the team: Done at differentmanagers.Donelevels.by 2.Train the team: Done at differentmanagers.Donelevels.by 3. Monitor / Enforce: Is the team doing it? 3. Monitor / Enforce: Is the team doing it? 4. Evaluate: is it working? 4. Evaluate: is it working? gender-smarttoopportunitiesIdentifygender-smarttoopportunitiesIdentifymakeSOPsmakeSOPs
balancedGender-Who? team!
1. Start with the Org Chart – functional level
3. Bring together the team
4. Write down the steps in a sequence, who is accountable (function), who is responsible (steps), how you measure success of the function (KPI), specific “standards” for any steps.
2. Baseline the KPI for the function (i.e., 3 deals per month)
WRITING SOPS
6. Monitor SOP is implemented (critical).The KPI is what you will be watching, and you can quality spot check the steps.
5. Train the team on the newly written SOP (2-3 hours).Ask them to begin implementing.
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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• Not tracking the metric: Scope creep and no accountability.“Boss isn’t paying attention. So, who cares?”
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.”
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COMMON MISTAKES
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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! 31
PART 5: DEEP DIVE IN DELEGATION THE ART OF BEING AN EXECUTIVE 32
DELEGATION most difficult transitions for leaders to make is the shift 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?”
33 “One of the
“from doing to leading.” Toknowifyou’reguilty
Checking out too fast – being too distant Hold periodic check-in meetings using the SOP as the discussion tool. Hotwash!
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 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.
To delegate well requires that you become exceptional at communicating the “why” and “what good looks like.” The SOP is how.
Being a poor communicator: thinking they will read your mind.“#$%&@! They should know what I want!”
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.
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DELEGATION MISTAKES AND SOLUTIONS
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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.
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.
5. Be patient. Use your tools!
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
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.
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• The “Hotwash”:
• A continuous improvement (“Kaizen”) culture: Become a company that loves to try, fail, review, fix and then try again.
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 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
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PART 6: DEEP DIVE: RECRUITING AND COMPENSATION HOW TO FIND, SCREEN,AND COMPENSATE GOOD MANAGEMENT 37
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• 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.
• Corrective Action and Firing: The hardest one.
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.
• Promoting & Bonuses: Annual and if they accomplished their targets.
gender. 4. Promote men and women equally. 39 Source: CDC Toolkit
4 Key Points
2. panels include both men and all HR decisions are based solely on candidate merit and not based on
RECRUITINGGENDER-SMART&COMPENSATION
Ensure advertising
1. and recruitment does not create implicit gender bias because of the location/ type of adverts.
Ensure recruitment
women. 3. Ensure
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Software can help you develop gender neutral job descriptions
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Avoid gendered job titles (e.g.‘Waitress’, or implicit such as ‘Superhero Sales Manager’. Better:‘Waiting Staff’ or ‘Sales Executive’)
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40 Source & Toolkit: CDC Toolkit – Gender Neutral Job Descriptions Guide
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GENDER-SMART RECRUITING
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.
Guidance
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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)
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 41 Source & Toolkit: CDC Toolkit – Gender Pay Gap Analysis
PART 7 GROUP EXERCISE 42
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?
GROUP EXERCISE
43
1. Practice Leadership Communications: What are you top 3 priorities for the year?
Part 6 Summary 44
THE EXECUTION SYSTEM 45 The Execution System Organizational Structure For organizing Position Agreement For unit managers Role and Purpose (why) Accountable for List of StandardsResponsibilities(KPIs) Standard StandardsPersonForProcedureOperatingfunctionsStepsAccountablePeopleResponsibleateachStepKPIs Battle Rhythms For ReportingaccountabilityMeetings/Targets A Planning QuarterlyStrategicSystemPlanAMP-OKRs-OKRsMonthly-KRsWeekly-LegendDaily-Calendar This is how you run your company
46
3. Submit your SOP via Google Drive.
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.
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.
HOMEWORK ASSIGNMENT
Please complete your evaluation forms 47Proprietary and Confidential to RENEW LLC
48 Thank you! www.renewstrategies.com
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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.
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49 Source: CDC Toolkit
GENDER NEUTRAL HIRING
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GENDER SMART COMPENSATION
50 Video: Kids prove that gender equality is child's play in viral video Ensure fair compensation & pay equity
2. Trusted:You make meaningful contributions and are influential in decision-making.
The 5 hallmarks
4. Psychological Safety – Latitude:You feel free to hold differing views and make mistakes without being penalized.
1. Valued:You are appreciated and respected for your unique perspectives and talents.
51 Company
5. Psychological Safety – Risk-taking:You feel secure enough to address tough issues or take risks. Culture
Source: Catalyst
GENDER-SMART CULTURE of inclusion
3. Authentic:You can bring your full self to work and express aspects of yourself that may be different from your peers
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 52 “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. Video: PEG 2X investee, responsAbility fund manager
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.
Video: Food Concepts 2X investee, DPI fund manager
and
Recap: sources of with achieved in gendercompany that’s where 51% female 49%
gender diversity
leadership 53 “We decided we wanted to be a
and
New
GENDER SMART COMPANIES ATTRACTING NEW INVESTORS
capital for companies
equal
female leaders Case Studies: How SMEs
we are today:
male”
