Why Only 13 Percent of Companies Successfully Execute Their Strategy
I had the privilege to interview business consultant, and bestselling author, Dan Prosser. He wrote the book, Thirteener: Why only 13 Percent of Companies Successfully Execute Their Strategy – and How Yours Can Be One of Them. The title speaks for itself.
After growing his company to over 250 employees before the age of 27, he decided to sell his company and move into the Telecomm industry.
At the time, people did not know the best way to buy telephone systems and process setting them up. You had to contact multiple vendors offering different products and then you had to set up everything on your own. In addition, long distance was bought in outgoing watts from a local independent provider.
Dan became relatively well known as an outsource provider for telecommunications management systems primarily serving the hospitality sector.
Interestingly enough this business did not exist before. At the time, internet was not big and people did not have PC’s on desks. Competitors copied Dan’s business model by becoming an outsource provider for desktop computers in the same way Dan became an outsource provider for telecomm. This business is still going on today. He created this business model.
Dan’s inspiration to write the book Thirteener resulted from overhearing a gentleman talking about how he stayed at a hotel and when he went to checkout he was being billed for a long distance call that he did not make.
He challenged it and the lady at the front desk said not to worry about it. The man said, “Won’t you get in trouble?” She replied, “They don’t care.”
It was at this point a light bulb went off for Dan. He made a graph that listed the amount of money that the hotel gives away at the front desk. Gave the data to the hotel owner who taped it on the wall by the front desk so all employees could see it when they checked in for work. The hotel owner said nothing to the employees about this verbally.
This changed the conversation within the hotel from, “they don’t care,” to they obviously do care. What happened? The expenses went down and profit went up for this hotel significantly in the area of telecomm specifically.
Dan says, “Business is a conversation. When you dive deep into a business you find the conversations and realize that they are not pretty. I call them a virus of the collective mind of the organization. The collective mind within the hotel was, “they don’t care.” This is a virus that runs the organization, not the CEO.
These conversations serve as limiting beliefs within the organization and it can serve as a powerful discovery. By changing the language and words within the organization, you can create a new possibility.
When you create a new possibility, you can see your business differently. When you see your business differently, you can determine what is standing in the way from going to where you want to go.
These conversations of “they don’t care” are really running the organization and keeping them small. That’s why 87% of companies fail to execute their strategy every year and that leaves 13% of businesses who execute successfully. Hence, my book Thirteener.”
Dan has been studying this concept for over 40 years now and I wanted to learn more about Dan Prosser.
What is Thirteeners about?
“Its about two things. The breakthrough solution framework which is a framework used for creating strategy and a promise based management system to execute that strategy. The strategy is done in four parts:
- Declare a seemingly impossible goal.
- Find the conversation standing in the way between your organization and achieving your seemingly impossible goal.
- Determine WHO you have to become to achieve your seemingly impossible goal.
- Identify key result areas by seeing where they are currently and compare them to where they want to be.
(1) It must be seemingly impossible or the company would just do it. For example, one of my clients lost 75% of his business due to some bad hires for management positions. It took them a year to recover back to where they were. At one point, the seemingly impossible goal was to achieve this. Now it’s, “How can we expand into North America?”
(2) We found this out by seeing what people said to themselves when they fail. If people are totally honest about it, it can be pretty nasty. This is what is truly running the organization keeping it small and preventing action.
(3) This is done through a series of 14 questions. We have to find out who they have to become to get what they want. It’s not what they to need to do, it’s who you need to be first. You have to be clear with who you are, not only for yourself but also to your clients. Because your clients do not buy what you do for them, they buy who you are for them. Most companies are working on avoiding failure. But when people understand and and declare their identity by publicly saying this is who we are and commit to it, then anything is possible. Now that they have a place to stand from, their perspective changes. Perspective is everything.
(4) Understanding key performance areas of where they are currently at compared to where they need to be, shows you the gaps. You can easily see what needs to be put in place to eliminate those gaps. Key performance areas include marketing, sales, finance, shipping, distribution, etc. This is the breakthrough solution framework.”
What is the promise based management system?
“By creating a framework, you are able to take action and the promise based management system creates accountability for these actions. When someone makes a promise to take an action and speak it, they are declaring what they are going to do and when they are going to have it done.
Its very important for people to declare their goal and publish it for everyone to view. Now everyone on the team can see what everyone else is doing. There is no mystery to what everyone is working on.
You have to publish it because when there is a mystery then people start making up things and you get new viruses like, “that guy is not working,” or “why should I work?”
After you declare your goals, you get together every month or week and evaluate your results as a team. Did the team complete their goals 100%, 80%, 60%? By evaluating results as a team, you create an atmosphere that pulls the team together to get results.
87% of companies don’t operate this way. Dr. Harville Hendrix wrote the forward to Thirteeners and the book Getting The Love You Want: A Guide for Couples. Dr. Hendrix is a marital expert that appeared on Opera numerous times.
Dr. Hendricks talks about how my system changes the value system within an organization from transactional or individual value system to a relational value system. This creates a deeper level of connectedness.”
How do you gain first mover advantage in a crowded marketplace?
“The first mover advantage is seeing reverse salients and identifying the opportunities to which most people will see as weaknesses or failures. A reverse salient is a military term referring to a backward bulge in an advancing front. When a military force is advancing on an enemy they do it in a bow. And if the enemy pushes back successfully it creates a backward bow (dent) in that forward motion creating a weakness.
Most people see that weakness as a failure or something to avoid. People don’t want to have the marketplace push back on and will avoid that at all costs. However, if the market place is pushing back then the market place is trying to tell you something. That little reverse salient that you see to be as a failure (weakness) it is rather an opportunity to build something new that will give you first mover advantage.
Some people can see them without help. If you can see that reverse salient both in your business and the marketplace, then you can help companies escape from where they are and arrive at where they want to be. I was able to identify the weakness in the telecomm business and this allow be to build a profitable consulting business.”
What are some practical ways to identify reverse salients?
“Weaknesses show up in all kinds of places. I mean if people begin looking for weakness they will see them. I mean they are everywhere.
For example, Edison was born in 1847 but the light bulb was invented in the early 1800s. Edison gets credit because he created the first light bulb that could be manufactured commercially. He identified the reverse salient, the weakness, that was keeping the light bulb from moving forward (from past inventors) and found the solution.
An indicator of a viable reverse salient is multiple companies and people working to solve it. In Edison’s case, their were 7 other people working on the light bulb.
Most of the time when you fix one reverse salient, close one gap, it usually creates another reverse salient or gap within another system.
If people really want to make a strong business or have a business, they need to really be thinking about finding out where the weaknesses are and how they can solve them. This will make them a lot more powerful as a business owner, entrepreneur, and an innovator. That is where innovation comes from.”
What advice would you give people who have identified the reverse salient, identified the weakness, and now they need to find the right people to accomplish their goal?
“Find team members that can address the gaps. Once you find the gaps, you will know who to hire. You have to know whats missing. Where are the gaps? What don’t you have? If you imagine your seemingly impossible goal and ask, “how did we get here,” then you will have a new sense of clarity. By asking, “If we had ____, where would we be?”
Most people start with a conversation with how do we get there. “How do we get there,” is why most people struggle. Where are you looking when you ask this question? You are looking up at where you want to go. If you look at your seemingly impossible goal standing where you are currently at, then you will get the same results because you are living in the past.
There is no such thing as the present. The present is immediately upon saying the present is the past. All we have is the past and the declared future. Most people will try to get to the future informed by their past, but that is not going to accomplish a seemingly impossible outcome.
You have to be able to stand in the future, an imagined future, something seemingly impossible, something you will have no idea of how you will accomplish it and be able to ask the question, “What’s missing,” or, “How did I get here,” not, “How do I get there?”
People try to get to their goal by trying to take this step, then this step, then this step, and go up like a ladder. This is the wrong way to think about the future. You have to put yourself in the future to become the future.”
What is the biggest mistakes you see business owners and entrepreneurs making today?
“Business owners do not know themselves. They have not declared who they are and who they are for other people. Many want their why, but your WHO trumps your why. People don’t do business with you because you have a nice widget or service. They do business with you based on who you are for them.
The millennial generation especially is not interested in WHAT you are doing for people, they want to know WHO are you, who are you for me?
What most people do is jump into business and get wrapped up in what they do by thinking what they do is so powerful. It is not as powerful as understanding who you are and working on that and then taking that out to the market place. It just happens that you do something, but the bottom line is that people want to do business with you based on who you are.”
What are some practical skills business owners should develop to become a Thirteener?
“Sales. If you are the CEO of the company, you are the chief sales person. You are driving that conversation and the message. That message has to resonate with you.
Allowing other people to contribute to you. A lot of CEO’s aren’t. They think they have the answers. When you think you have the answers, there is no room for any other possibility.
Accountability. People don’t know how to hold other people accountable. Most people befriend their employees but this holds them back form holding them accountable because they are afraid to offend them.
You have to be willing to hold them accountable and they have to be willing to be held accountable. From here, you can have the conversation about taking action.”
What are holding people back?
"Fear to spend the money that needs to be spent to build their business. You are in business as an entrepreneur because you are willing to the risks. If you want to save money, then you will end up in part of the 87% failing to execute strategy.
Lack of accountability and ability to make promises lead to failing to execute strategy. What ends up happening is that meeting are held and people “talk” about the problem. They spend all this time talking about it, but nothing gets done because no one is making promises or being held accountable for them.”
What advice do you give the person who is scared to take of action because of fear?
“Get up 30 minutes early and write 3 pages of long hand notes of what is going on in your life and what your concerns are. What you are you struggling with? Do this for 30 straight days and see the impact. It always does. I call it morning papers and it must be written not typed.
The other is obvious. Get a coach. The best athletes in the world have a coach. The best business people have a coach as well.”
What advice do you give someone looking to write a book?
“Think about who do you want to be in communication with and what message do you want to communicate to them.
The best business books talk about a process or a system. Thats what people buy. They buy systems, they want to know the step by step process."
Can you talk about the writing process of forming your book?
“Leaders write books and all leaders are readers. Not all readers are leaders. If you want to be a leader, start reading other peoples work. People say “I don’t have time to read a whole book,” but you don’t have to as you just go to summary.com."
What is the paradigm shift that needs to be made to become a Thirteener?
“I think the biggest problem that occurs in the business is thinking that you know. Thinking you know kills possibility. Be open to ideas or ways of thinking and letting other people help you.
I had the opportunity to meet and work with Joel Arthur Barker, the author of The New Business of Paradigms. He asks me, “Do you know the source of wealth?” I reply, “Whatever I say as an answer is going to be wrong so why don’t you just tell me.”
Joel states, “The source of wealth is innovation and the source of innovation is diversity.” America is the most innovative company because we are the most diverse country.
The more diverse of ideas that you can bring into your organization the more successful you will be if you listen to them and allow them to contribute. Don’t go into business thinking you know all the answers. Let others contribute.”
What books do you recommend?
1. Awaken the Giant Within by Tony Robbins
2. Building a Story Brand by Donald Miller
3. Millionaire Success Habits by Dean Graziosi
4. Blue Ocean Shift by Mauborgne and Kim
5. The Last Word on Power by Tracy Goss
What is your favorite quote of all time?
“Vulnerability is the birthplace of innovation, creativity, and change.” - Brene Brown
When you change you look at your business, your employees, how your business operates, then your business changes. That has proven out to be accurate to be accurate in my life.”
Dan Prosser just released the accountability scorecard in December 2017 which is a SAAS software in the cloud used to create more accountability within an organization.
If you enjoyed reading Dan’s perspective, check out his blog, LinkedIn, or website. You can also support Dan by purchasing his book: Thirteener: Why only 13 Percent of Companies Successfully Execute Their Strategy – and How Yours Can Be One of Them.
Become a Thirteener and start accomplishing your seemingly impossible goals!