Orchestrating Buy In

1. Orchestrating Buy-InThe DNA forSuccessful Change1

2. What is buy-in?2

3. Buy-InThe alignment of thought to action.“I am, buying into that idea!”“Count me in!”“Yes, I agree, let’s get it done.”“I understand.” “I getit.”3

4. Lao Tzu Tao Te Ching“The way of subtle influence”Superior leaders are those whose existence is merely known;The next best are loved and honored;The next best are ridiculed.Those who lack beliefWill not in turn be believedBut when the command comes from afarAnd the work is done, the goal achievedThe people say, “We did it naturally.”4

5. Sixth Century Buy-InThe best leaders are unknown, the people say they did it themselves naturally.Conversely the leader did not seek fameThe leader did not seek acclaimThe leader lead others to accomplish the objective as if it were their own natural way. 5

6. The agendaPersonal5 WsAvoiding failureWinningSuccess looks likeCase Studies (B2B)Consumer (B2C)Change reviewBoard of DirectorsThe Toughest Buy-InBack to BusinessSetting up for success6

7. Personal lifeGetting the Family, Spouse, Children to buy-in.7

8. Start with the end in mind.Who will benefit if you are successful.How will they benefit if you are successful?How will they acknowledge this benefit?How will it be measured?8

9. FamilyEveryone with a family (that is all of us), have experienced the challenge of trying to get one member or an other of the family to buy-in.Maybe it is the childrenMaybe it’s a grandparentMaybe it’s a in-lawMaybe it’s a spouseRegardless we have all shared the experience.9

10. TechniquesThe two most common techniques arePersuasionEdictBusiness reported these results from similar techniques:81% used persuasion or edict. Persuasion failed 53% of the time , Edict failed 65% of the time.Informally, I have surveyed audiences for their results, the similarity of results is striking.10

11. What Works?Thinking about your own experience would you agree:Seeing it from their point of view – helpsTalking about what good happens for them when they buy-in – helpsUncovering the risk as they see it – helpsExperiencing a small success at the change helps -11

12. Removing the Training Wheels1st reaction – I can’t.I will fall.I will get hurt.Someone will see me fall.They will make fun of me.I don’t know how.You promise you won’t let go?12

13. Did YOU?Did you YELL?Did you Demonstrate?Did you Support?Did you encourage Failures? (fail fast, fail often, fail cheap)Did you stand by and watch as they got it wrong?Did you allow them unlimited Opportunities to get it Right?Were you the biggest FAN?Did you encourage every small success?So what is different NOW?13

14. The Wheels Came OffAnd they never looked back.They found their own balance.You never got the credit, nor did you try to take it – it was always about themYou never reminded them of what they owe.You encouraged them to take the next risk A ride to the end of block ~ alone.14

15. Orchestrating Buy-InFamily • Board of Directors • B2C • B2BRegardless of the stakeholderThe steps are the sameStart with the end in mind.How will they benefit from the success?How will they acknowledge the benefit?How will it be measured?“When you help enough other people get what they want you get what you want.” ~ ZigZiggler15

16. Why Buy-In?Most change initiatives fail –From Buy-outs to Cost reduction toNew incentive plansEstimates vary from 70-80% of change initiatives fail to meet their expectations.Most common reported cause – lack of buy-in.16

17. To avoid failure - 17

19. The Reorg. is fairly straightforward.19

20. Success Rates DependOn the criteria usedGenerally financial performance and shareholder value issues are constructed to be successfulBehavioral change, like client satisfaction or management behavior, has proven to be somewhat less successful 20

21. Failure factorsHalf hearted or No Buy-In from stakeholdersParalysis by analysisConsultants silver bullet syndromeWrong measures21

22. Even good ideas failBy the time we finish this presentation, over 46 businesses will have ceased operations. 3 will have filed for bankruptcyBy the end of the day 2.1 million new businesses will have followed their lead. 22

23. The GAP“91% of business people are as confident as ever in their ability to make decisions.” – Dr. P. Nutt (818 surveyed)The book Business Think; p.16 & 17 outline why these decisions fail2/3 never explored alternatives81% used persuasion or edict. Persuasion failed 53% of the time , Edict failed 65% of the time.7% considered long-term priorities 23

24. Stinking ThinkingThinking is the nucleus of business ~ it drives not only what gets created and launched, but also what lives on. It’s the “big bang” that sets everything else in motion. If you want to change your results, you must first change your thinking. ~ Dave Marcum, Steve Smith & Mahan Khalsa from business THINK24

25. It is not always easy to seeWhat you need to see.The old adage measure twiceCut once was sound advice.When it comes to Orchestrating Buy-InDon’t leave stakeholders guessing.25

26. 60% of Statistics are liesIn a report on more than 40,000 organizations, Martin Smith reported in his book Success rates for different types of organizational change published success rates vary widely depending on the type of change.26

27. How to get off on the right foot.27

28. Silver Bullet The consultant Silver Bullet approach The consultant is smartTherefore if the consultant tells us what he knows we become smartProblem solved Not so fast – Transfer of knowledge is not DOINGDOING something different is what counts.28

29. The 5 ws29

30. Success is in the 5 WsWhatWhyWhoWhenWhere30

31. What?Starting with the end in mind – what needs to be different? (Be very specific)When you get what you want what will it look like? (seek specificity) Who will know? (exactly by name / title)Why is it important? (To whom is it important?)How will it be measured? (give me an example)What will be result for the participants? (How do they know this is meaningful work?)31

32. Why?Why does this particular thing need to change NOW?Who is being impacted by the lack of this change? (Specifically what is the impact?)Who will be impacted when the change in completed? (Besides you who else?)When does this need to be finished? What is it costing us not to change?32

33. Who?Who made the decision to seek this change?Who else was involved in the process?How were they impacted?Who needs to be involved in making the change happen?What is expected by this individual as a result of this change?How will it impact anyone involved or effected?33

34. When?When did you first notice the need for this change?How did that occur?When does the change need to be in place?Why is that the target date? Or Result?Who will know? When will they know? How will they know?34

35. Where?Where has the need become self evident?Where shall we being?Where shall we engage others? How shall we engage others? What is in it for them?Where will we first notice the change impact? (LPI)Where will we acknowledge the results?35

36. Using QuestionsThe Socratic Method: Socrates used questions to get his students to see the lessons he wanted them to learn. This method works for all type of learning experiences. It is particularly powerful when employed within experiential learning opportunities.Often it is useful to gain clarification by asking example questions – like the ones that follow.36

37. Evidence QuestionsHow will we know if we improve brand loyalty?How did we become convinced we were losing client trust?What specifically pointed out that quality was down?What will we observe to know business acumen has improved?37

38. SpecificitySuccess or failure of your Orchestrated Buy-in may often be determined by the degree of specificity you were able to solicit during your step up, assessment or evaluation.Good beginning beget good endings.38

39. winning39

40. WinningTeams win when they work together.It is easy to stop a single individual on a mission.It is more difficult to stop 100 people with a passion for an objective.40

41. How does the Coach do it?Consider how the coach does it.Explain the rulesPractice new things off the fieldEncourageDemonstrateRe-think everything41

42. Another Voice – Dr. Paul NuttOhio State Unv., Fischer College of Business356 Companies studied19 years “more than 50% of all decisions failed; they were quickly abandoned, only partially implemented, or never were adopted at all. “42

43. Confidence UP Success DOWNIf the numbers are statistically accurate – one major cause of failure in any change initiative is the decision makers unwillingness to seek advice, or question his/her decisions once made.Often the real challenge is WHY are we making this change?43

44. Hire the whole unitJack Stack reported in his book The Great Game of Business that he learned the value of engaging the employee wholly. He asked the question, why just pay for the worker from the neck down?When you get their head in the game everyone wins. A believer in the power of buy-in.44

45. Are we fooling ourselves?Here is a question that should be asked by someone with every change initiative undertaken.Followed by – is this the right RISK to be taking now?Well thought out answers to these two questions can avoid many of the failures of other change projects. 45

46. Ballpark to BoardroomWhen we examine the companies that win consistently we find many similarities to sport teams that win consistently.Why?No “I” in team Everyone knows how to keep score Everyone knows what it takes to win all the time46

47. David NadlerAuthor of Champions of ChangeDifficult to create value afreshCorning – 150 yrs oldCommitted itself to innovationResisted defining itself by productsDefines itself by ways it develops products47

48. When buy-in worksEveryone wins48

49. InnovationStatistically companies that innovate are 5X more successful than their competitors.Companies that learn to create patentable solutions are 20X more successful.It is not about the patent – it is about the process49

50. In every case BUY-IN WINSExamine any of these issues and you will find team effort, and employee buy-in.Ask people at Corning what they do… Corning is the world leader in specialty glass and ceramicsJack Stack’s company Started with D/E 800:1 – share value $10Today D/E 6:1 – share value $31050

51. More Buy-In SuccessMichelin D/E 8.3:1D/E 1.6:1Diesel Mechanic Shop (14 man)Took 5 min. out an hr. effort Added $4K a week to the net profit 51

52. More Buy-In SuccessBank Trained employees – within a weekExisting customers brought in new customersAttorneyTrained employees and PartnersReferrals increased 30% the following month 52

53. More Buy-In SuccessProfessional Svc FirmHeld one meetingA/R was reduced by 50% within 90 daysManufacturing FirmDoes Innovation WorkshopNew product captures 90% market share 53

54. Buy-In WorksOur examples can continue – The point – Buy-In WorksIt works to create an unstoppable force It works to get everyone understanding how to winPeople generally don’t come to work looking to fail or be a problem – they want to make a contribution.54

55. Gung Ho!This Ken Blanchard book – tells us about the value of Meaningful WorkPeople want to understand how their work makes the world a better place. If you don’t have employee buy-in, it would not be possible to understand “meaningful work”.55

56. Steven Covey “Business basically is run by the economic rules of the marketplace, but organizations are run by the cultural rules of the workplace. They are often not in alignment.”Buy-in is about gaining alignment.56

57. Symptoms of NonalignmentGeneral confusion about the Goals.People believe in the mission statement but don’t act like it in day – to – day activities.A gap exists between dreamers and implementers.Silos abound.Right hand doesn’t know what the left is doing.Change is like a Slinky57

58. More warning signsWhile hard data may inform our intellect, it is largely soft data that generates wisdom… Henry Mintzberg, The Rise and Fall of Strategic Planning.Richard Neustadt, Harvard Unv. “It is not information of a general sort that helps. Not surveys, not the bland amalgams. It is the odds and ends of tangible detail that pieced together… illuminate the underside of issues.”58

59. Keeping ScoreEveryone knows how to keep scoreHow important is this?90% of surveyed employees believe their company’s profit margins are greater than 70%.DoC reports >80% of small business owners can not properly interpret their own financial reports.Winning is easy when you know how to keep score.59

60. Business Score CardFinance is the way we keep Score in Business.60

61. Understanding the LanguageIt is hard to do business when you don’t understand the language.The language of business is finance.Therefore the more people who understand the language of finance the better the performance of the business.61

62. CASE studiesB2B – getting on the same page = Buy-In62

63. Case StudiesWe will examine the use of buy-in to facilitate results over various industries and differing challenges. Success is do to the teams.Cross functional teams formed with assigned ownership These only work when you have orchestrated buy-in – When the team gets the 5 Ws and owns them.63

64. Case StudyBusiness Jets ManufacturingLeading manufacturer of business jets

65. On-time delivery and quality issues affecting levels of new business

66. Gaining employee buy-in ~ criticalResultsAircraft production cycle time reduced 32%

67. Aircraft production first pass yield up 10X

68. Engineering change cycle time down 74%

69. Engineering change first pass yield up 3X

70. Rework hours reduced 62%

71. Overall labor hours per aircraft reduced 56%

72. On-time delivery increased 28%ChallengesLong engineering change cycle time resulting in large backlog and poor on-time performance

73. Manufacturing cycle time and first pass yield severely affecting on-time delivery performance

74. High level of manufacturing rework

75. Failure of previous self-medication efforts64

76. Note how often the use of Team is used.Business Jets ManufacturingHow AchievedBusiness Improvement Team “BIT” formed

77. Focus on six high leverage processes – Engineering, Production, Completions, Materials, Quality and Product Integrity, and Service

78. Customized architecture was developed that included a rollout plan prioritizing these key processes

79. Cross functional teams formed, assigned process ownership

80. Engaged &trained line and staff personnel in methodology

81. Mapped each process (“as-is” and “should be”)

82. Established hierarchical measurement set and linked results to confirm acceptable performance toward objectives

83. Established and assisted teams at all levels in identifying and removing prioritized barriers

84. Metrics focused accountability

85. Implemented drumbeat meetings leading and driving change

86. Guided the internalization of the methodology and established an environment of continual process improvement throughout the organizationResultsAircraft production cycle time reduced 32%

87. Aircraft production first pass yield up 10X

88. Engineering change cycle time down 74%

89. Engineering change first pass yield up 3X

90. Rework hours reduced 62%

91. Overall labor hours per aircraft reduced 56%

92. On-time delivery increased 28%65

93. Case StudySemiconductor ManufacturerLeading producer of static memory devices

94. Strong reputation for product innovation

95. Lacked employee ownership of challengesResultsReduced order to delivery cycle time by 57%

96. Improved time to market cycle time by 79%

97. Reduced inventory by 52%

98. Increased productivity by 87%

99. Boosted revenue by 43%

100. Improved return on assets by 304%ChallengesRelentless global competitive price pressures drives need for substantial year over year cost improvements

101. Desire to provide customers improved service levels while achieving improved return on assets “Something that would kill three-quarters of our competitors just gives us a bad cold” - COO66

102. Once again teams and buy-in are critical along with stepped measures of success.Semiconductor ManufacturerHow AchievedOrchestrated Employee Buy-In

103. Established hierarchical measurement set from business level to daily drumbeat metrics by operation group – ec, photo, etch

104. Formed cross-functional teams for key operations – fab, probe, packaging, test and production control

105. Trained supervisors to dynamically adjust operator schedules throughout shift to balance wip across multiple processes, equipment groups and masking layers

106. Paretos and root cause identification of defects in fab yield and defect densities

107. Reduced photo rework to zero

108. Provided skills training for equipment maintenance organization increasing overall uptime from 70% to 85%

109. Improved furnace utilization by 30%

110. Guided the internalization of methodology and established an environment of continual process improvement throughout the organizationResultsReduced order to delivery cycle time by 57%

111. Reduced inventory by 52%

112. Increased productivity by 87%67

113. Case StudyHOW? – Employee team meetings, training, process improvement with support.Hand and Power ToolsSupplier of hand operated Power Tools

114. Global Operations and Development

115. World Wide Sales with significant local market differentiation

116. Seasonal markets – 50% Christmas, 15% Father’s day

117. Employee Buy-in , full engagement – drove resultsChallengesCould not reliably launch products to meet the seasonal sales windows.

118. Small market share in Cordless products, which were the fastest growing market segment.

119. Return-On-Investment for newly developed products consistently missed goals.ResultsAverage Time to Market has been reduced by 35%, and new product revenues have increased to 25% of total sales.

120. Return-On-Investment for newly developed products has improved over 30%.

121. Production start up time has been reduced by 80% and most new products are launched on time.

122. Launched entire line of new cordless products increasing market share.68

123. Case StudyGlobal Communications ManufacturerNeeds to create new demand pull

124. Must Orchestrate Customer Buy-In

125. Faces Major Competitor Results $60 M in annual sales

126. 50% Market Share wonHow achieved Comprehensive CRM program launched

127. Extensive interviews

128. Leverage technology & timing

129. Trained sales and major customers

130. Gained strategic partnership relationsChallengesFace dominate competitor

131. Poor Brand Recognition

132. Increased sales in US69

133. B2B Lessons Learned Participants must be actual stakeholdersParticipants must commit to the team approach.Participants must commit time, and resources for the entire period the group remains active.Participants must be representative of organized groups that are capable of implementing agreed upon solutions.Participants must enjoy the support of the respective groups they represent.US Corp of Engineers70

134. Lessons LearnedStrategic Change, internally or externally, requires buy-in from the impacted parties to be successful.Today – with instant communications customers announce their position on your product, offering, or service to the world via blogs, Twitter, Facebook, and email.Employees demonstrate their support by voting with their engagement.71

135. Consumer (B2C) buy-inLook for the hidden agenda72

136. What would your company do?If you had a product that was delivered in a box & new designs were under evaluation.Would your company:Print up hundreds of versions and display them publically and take a poll?Ask the marketing people what they thought and then go to market?Review the designs with a management committee who votes?Which of these creates buy-in?73

137. Consumer ProductsEven CiCi’s Pizza has grasp the value of experiential marketing.Everyone entering was asked to choose from 9 different delivery boxesEach box had a different designChoose the design you like bestThis is the most basic of marketing getting the customer to tell you what they like.74

138. CiCi’s ResultsThe jury is still out.Not all votes have been counted.What happened when customers were asked about a delivery box?Most of them never get their pizza delivered.Was this a waste of time and money?75

139. What were the results we wanted?When marketing asked the question, what was the answer?Create awareness of our delivery service!Engage the customers, show them they are important to us.Demonstrate our willingness to listen to any customer. Oh, buy the way pick a new box design.76

140. AlternativesCiCi’s could have run an internet poll.They could have run a major TV ad campaign.They could have let the marketing research team decide. They could have let a management team decide.77

141. OutcomesCiCi’s is running a promotion $3.99 buffet lunch M-F.This brings in customers.Customers are engage in box survey.Customers talk about box survey at lunch and with others. (ads are true, food is ok, place is clean, service is fast & friendly – good value)New customers! Oh yea new delivery box design.78

142. Would you pay $1In order for CiCi’s to have this promo work they discounted their buffet $1.Look at what they got for their $1 per customer.Would your company be willing to get similar results for $1 per customer?Key is customer – not prospect – these are proven buyers of the product – THAT IS BUY IN!!!79

143. Your ChallengeNot B2C.You are all about B2B.Does this still work?Remember the case studies. All of them were B2B. Would you accept those results?80

144. Change in BusinessTypically the financial issues have models and metrics that keep them on track.Softer issues are more challenging.Regardless some lessons to avoid failure and insure success can be gained.When gathering team members regardless of their role:81

145. How do you insureThe nature of the participant?TestInterviewExperienceStrong facilitation skills – with barrier removal agreement in place with top management.82

146. Key to successTop line leadershipThe slightest waver here and you are swimming up stream, chance of success below 50%.Facilitates/ Supports barrier removal committee.Clear objectivesClear metricsDeliver clear resultsMeasurable results83

147. The Process of ChangeGet everyone engaged.84

148. Orchestrating Buy-InWhen everyone understandsThe rulesHow to keep scoreWhat good looks likeWhat is in it for themHave some idea about what to expectHave a hand in the processIT CREATES BUY-IN ~ WHICH DRIVES SUCCESS85

149. Let’s examine a successful approach to changeLEAN Manufacturing has made significant impacts on manufacturing profitability.LEAN is taught through simulations and modeling.Why?Adults learn and retain what they learn when:They can see the resultsParticipant in the learningGet to ask questions= Buy-In86

151. The board of directorsThe toughest buy-in.88

152. Board Buy-InBoards should ask the tough questions.They should challengeThe ideaThe timingThe resourcesThe resultsThe NEED89

153. Gaining Buy-InUnderstand the audienceAddress the easy stuff in the documentationDiscuss the reasoning with the thought leadershipPrepare your evidenceAnswer the 5 WsSee it from their point of viewNow prepare to fully engage them in experiential learning90

154. Educating the BoardSometimes what is needed is an educational experience.The board needs to learn something new or different about the business, the market or the rules of governance. Without this new knowledge they are under prepared to make decisions on change issues.OK I GetIt Now!91

155. Buy-in resultsFamily felt included and educatedThe risk was clearly addressed Everyone was convinced the decisions were rightSupport from Customers, Vendors, Lenders, and Leadership –joined into one voice 92

156. Board as StakeholdersBoard members are included in the list of stakeholdersEven if they don’t own stock Stakeholders will be impacted by the decisions and directions of the enterprise.When we think of the board as a subset of stakeholders we have a better approach to orchestrating their buy-in.93

157. Cash is King“Businesspeople never let cash out the door that doesn’t strictly, ultimately, bring more cash back.” - business THINK94

158. Case StudyClosely held job shop manufacturingFamily Business

159. 30 years same location

160. 3rd Generation leadershipChallengeSales off

161. Profits off

162. A/R slow

163. Reluctant to add $Solution New business plan

164. New innovations introduced

165. Board Engaged in ERM workshopResultsSales up 20% in 90 days

166. Profits recovering

167. A/R reduced 3.5% 95

168. The Buy-in an ERM WorkshopHow did an ERM Workshop convince the board to add more equity to the business?1st Gen relies on profits for retirement income2nd Gen relies of profits for expenditures3rd Gen struggled to make goalsERM defined and quantified the risk that needed to be taken.The ERM addressed the unknowns.The ERM revealed vendor partnership opportunity.96

169. One Corporate Vision97

170. Stakeholder Engagement/ Buy-In Stakeholder engagement - one of the objectives that supports our Mission - happens when a company engages in dialogue on issues of mutual concern.98

171. Full Circle – taking the keysThe toughest buy-in ever.99

173. Starting with the end in mind.This can be the most challenging buy-in ever.Children taking responsibility for their parents.How difficult is it to consider how your parents might actually benefit if they relinquish the keys to the car.Where your parents live can influence your approach.101

174. Who will benefit?ParentsNo more car insuranceReduced risk of liability from accidentsDrawing closer to those that love youReduce fear of injury – self & othersThe ChildrenReduced fear of the unknownCloser relationship102

175. How will they benefit?We answered a few of these previously – in fairness what will be the challenges? Seeing it from the stakeholders point of view:Loss of IndependenceLoss of controlAcknowledgement of diminished capacityChallenge of getting aroundMore difficult in rural areas than in urbanTaxi, Bus, Children, Neighbors, Friends, Family103

176. How will they acknowledge benefit?This depends on their conditionFolks that are ill have less difficulty Folk that live in isolated areas have more difficultyFarm folks and Seniors in small towns with no public transportation can be challenged.Similarly small town and farm communities come together in support of their senior citizens with informal networking to insure everyone is covered.104

177. Acknowledge the BenefitOnce they accept the need –They acknowledge the need and their challengesEventually they begin to tell stories that of close calls that will curl your hair.They grow closer to friends and neighbors as they come to rely upon them from time to time.105

178. MeasurementEventually your parents are still just as smart and they love you.They come to accept the necessity and acknowledge the love you displayed in making the tough call and getting them to buy-in.106

179. Back to businessThe DNS of success107

180. Start with the end in mind.Who will benefit if you are successful.How will they benefit if you are successful?How will they acknowledge this benefit?How will it be measured?DNA of Success108

181. 7 Step Measurement ProcessBusiness Unit SignoffPerformance ConsultingPre-AssessmentEvaluation 1 for learnerEvaluation 1 for managerFollow up evaluation with learnerFollow up evaluation with managerThe Training Measurement Book –Josh Bersin109

182. ExamplesHere I will insert success stories from others that prove the format we outlined110

183. ClosingReview the DNA of SuccessReview the 5 WsHighlight the lessons learnedPoint to the opportunity to winProvide contact information and outline some of the workshops we offer to Orchestrate Buy-In111

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