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Flashcards in Scaling Up by Verne Harnish Deck (202)
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1

Two entrepreneurs went way beyond the call of duty to review the galley copy and provide extensive, critical, and detailed feedback, which resulted in significant changes to the style, approach, format, and design of the book: Kevin Daum,54

Scaling Up by Verne Harnish

2

If you want to teach people a new way of thinking, don’t bother trying to teach them. Instead, give them a tool, the use of which will lead to new ways of thinking. — R. Buckminster Fuller Designer, inventor, futurist122

Scaling Up by Verne Harnish

3

there is a huge market for the myriad number of books supporting these entrepreneurs — the two best being Michael E. Gerber’s The E-Myth Revisited and Eric Ries’ The Lean Startup.171

Scaling Up by Verne Harnish

4

read Verne’s interview in Business Review Europe titled “Give the Gazelles a Break”.177

Scaling Up by Verne Harnish

5

Steve Jobs, “I’m always amazed how overnight successes take a helluva long time.” If you’ve been in business less than 25 years, you still have time to make it big; if it has been more than 25 years, and you’ve not scaled up, it’s never too late!190

Scaling Up by Verne Harnish

6

Senior leaders know they have succeeded in building an organization that can scale — and is fun to run — when they are the dumbest people in the room! In turn, if they have all the answers (or act like they do), it guarantees organizational silence,196

Scaling Up by Verne Harnish

7

Every business is more valuable to the degree that it does not depend on its top leader.199

Scaling Up by Verne Harnish

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our tools and techniques focus on three deliverables: • Reduce by 80% the time it takes the top team to manage the business (operational activities) • Refocus the senior team on market-facing activities • Realign everyone else (onto the same page) to drive execution and results203

Scaling Up by Verne Harnish

9

• In leading People, take a page from parenting: Establish a handful of rules, repeat yourself a lot, and act consistently with those rules. This is the role and power of Core Values.215

Scaling Up by Verne Harnish

10

You don’t have a real strategy if it doesn’t pass two tests: First, what you’re planning to do really matters to enough customers; and second, it differentiates you from your competition.219

Scaling Up by Verne Harnish

11

Set a handful of Priorities (the fewer the better); gather quantitative and qualitative Data daily and review weekly to guide decisions; and establish an effective daily, weekly, monthly, quarterly, and annual meeting Rhythm to keep everyone in the loop. Those who pulse faster, grow faster.221

Scaling Up by Verne Harnish

12

many people dream of summiting Mount Everest (or its equivalent in their life). Those who do it create a plan.226

Scaling Up by Verne Harnish

13

Guided by a set of Core Values and a purpose, it chooses a Big Hairy Audacious Goal (BHAG®)* to achieve in the next 10 to 25 years.231

Scaling Up by Verne Harnish

14

To break up the journey, the leadership team sets a series of three- to five-year targets divided up into annual goals. These are further broken down into specific actionable steps the business takes over the next few weeks or months, adjusting tactics as the market conditions dictate.232

Scaling Up by Verne Harnish

15

Everything in between this quarter and the next 10 to 25 years is a WAG: a wild-ankle guess! There are no straight lines in nature or business.238

Scaling Up by Verne Harnish

16

Albert Einstein: “Everything should be made as simple as possible, but not simpler.”254

Scaling Up by Verne Harnish

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Most of the teams we work with are wicked smart. With enough perseverance and grit they’ll find answers. Our concern is they might be working on the wrong question.277

Scaling Up by Verne Harnish

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4 Decisions Assessment available at scalingup.com to help you determine your starting point.285

Scaling Up by Verne Harnish

19

People KEY QUESTION: Are the stakeholders (employees, customers, shareholders) happy and engaged in the business; and would you “rehire” all of them? Do you have the “right people doing the right things right” inside the organization?289

Scaling Up by Verne Harnish

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the best for the size of the organization and future plans? The toughest decisions to make are when the company has outgrown some of these relationships and you need to make changes.295

Scaling Up by Verne Harnish

21

One-Page Personal Plan (OPPP): Our personal and professional lives are intertwined — and best if aligned. This tool looks at four key decisions — Relationships, Achievements, Rituals, and Wealth — which mirror the four key decisions for the business: People, Strategy, Execution, and Cash.299

Scaling Up by Verne Harnish

22

You want to delegate these functions to people who fit your culture and pass two tests: 1. They don’t need to be managed. 2. They regularly wow the team with their insights and output.308

Scaling Up by Verne Harnish

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Next designate one or two key performance indicators (KPIs) for each function, defining objectively what activities each senior leader needs to be focused on day-to-day.310

Scaling Up by Verne Harnish

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Process Accountability Chart (PACe):This chart provides a place to delineate the four to nine processes that drive the business316

Scaling Up by Verne Harnish

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Next, designate who is accountable for each process,318

Scaling Up by Verne Harnish

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Last, decide on two or three KPIs that track the health of the process320

Scaling Up by Verne Harnish

27

In retaining employees and keeping them engaged, we’ll cover the five activities of great (vs. good) managers: • Help people play to their strengths. • Don’t demotivate; dehassle. • Set clear expectations and give employees a clear line of sight. • Give recognition and show appreciation. • Hire fewer people, but pay them more (frontline employees, not top leaders!).326

Scaling Up by Verne Harnish

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Strategy KEY QUESTION: Can you state your firm’s strategy simply — and is it driving sustainable growth in revenue and gross margins?330

Scaling Up by Verne Harnish

29

Strategic thinking requires a handful of senior leaders meeting weekly (it’s not sufficient to do strategy work once a quarter or once a year) in what Jim Collins calls “the council.” It’s a meeting separate from the standard executive team meeting. Rather than getting mired in operational issues, the strategic thinking team is focused on discussing a few big strategic issues including those outlined in the SWT and 7 Strata tools334

Scaling Up by Verne Harnish

30

Execution planning, in turn, requires a much larger team engaged in implementing the broader strategy. Setting specific annual and quarterly priorities, outcomes, and KPIs338

Scaling Up by Verne Harnish

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