Case Study

THE ACME ANVIL COMPANY: A HYPOTHETICAL CASE STUDY

(100% Individual Performance x 100% Team Performance = 100% Financial Performance)

Before our Virtual Partner SM Business Coaching Program

  • 7-member Leadership Team
    • CEO (Wile E. Coyote) and 6 Vice Presidents
    • 2 A Players (top 10% performers in their roles)
    • 4 B Players (top 20% performers in their roles) including the CEO
    • 2 C Players (top 30% performers in their roles)
  • $4,900,000 annual revenue
  • $1,470,000 annual profit (30% gross profit margin)
  • 70% of 100% Individual Performance X 70% of 100% Team Performance = 49% of Potential Financial Performance

After our Virtual Partner SM Business Coaching Program

  • Revenue doubled from $4,900,000 to $10,000,000
  • Profit increased from $1,470,000 to $4,000,000 (from 30% to 40% gross profit margin)
  • Product/service quality maintained during growth
  • Most important change: improved performance of the CEO

TAKING INDIVIDUAL PERFORMANCE FROM 70% TO 100%

  1. All A Players. Improve to 100%
    • Replace C Players with coachable B Players or better
  2. Coaching B Players to A Players. Improve to 100%
    • CEO is a B Player. Coach to A Player performance by addressing:
      • Chronically overestimates his skills and fails repeatedly
      • Chronically underestimates the competition (The Roadrunner)
      • Over controlling, discourages negative feedback and suggestions for improvement
    • Coach other Leadership Team B Players to A Player performance
  3. Team Members in the Right Roles. Improve to 100%
    • Create the right roles for the new, improved Leadership Team
    • New roles fit the passions and skills of the Leadership Team members

TAKING TEAM PERFORMANCE FROM 70% TO 100%

  1. An Effective Strategy. Improve to 100%
    • Clear, focused mission
    • Clear, focused vision
    • Clear, focused core values
  2. Effective Execution of the Strategy. Improve to 100%
    • Create realistic targets and clear measures of performance
    • Create an effective organizational design
    • Create clear roles and accountability for results
    • Create an effective communication and teamwork plan
    • Create the right products/services mix
    • Create an effective marketing plan
    • Create the right financial plan improving gross profit margins from 30% to 40% (100% of industry average)
    • Create an effective production system
    • Create an effective distribution system
    • Create an effective sales plan
    • Create an effective customer service plan
    • Create effective talent acquisition and retention plan
    • Align organizational and individual goals with a simple and effective performance management system
    • Create an effective compensation system that rewards both individual and team performance
    • Document processes and systems and create an effective leadership succession plan to maximize valuation for a potential future sale
  3. A Culture of Continuous Innovation. Improve to 100%
    • Insure that team members feel safe to give honest feedback on what’s working and what isn’t
    • Insure that team members feel safe to suggest innovative ideas without fear of ridicule
    • Insure that team members feel safe taking reasoned risks and failing without punishment
    • Create a structured plan to provide ongoing innovation opportunities

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