Presentation on theme: "Mark Helow 10XCEO.com. Number of CEO’s Return on investment Source: Correlation Ventures 21k funding rounds, 2004 to 2013 Top 4% = 10X return."— Presentation transcript:
Mark Helow 10XCEO.com
Number of CEO’s Return on investment Source: Correlation Ventures 21k funding rounds, 2004 to 2013 Top 4% = 10X return
Number of CEO’s Return on investment The next 6% = 5X to 10X return Source: Correlation Ventures 21k funding rounds, 2004 to 2013
Number of CEO’s Return on investment The next 25% = 1X to 5X return Source: Correlation Ventures 21k funding rounds, 2004 to 2013
This is your curve. CEO skill is the primary determining factor for your company’s place on the curve. Any CEO skill rating rating below the top 10% (for venture backed companies) is not really good enough. Most business challenges for the bottom 90% are really CEO skill challenges. This reality can either be frightening or empowering, depending on your perspective.
CEO effectiveness is largely predicted by six individual skills: three personal skills and three business skills. The difference in these observed CEO skills is gigantic. Like an athlete, these skills can be observed, quantified, practiced and usually elevated. What to do about it…is to study and train your skill like you are an elite athlete.
Skill #1 – Extreme Time Focus The ability to select and focus only on the most vital priorities (3 or less) that unlock the enterprise’s primary constraint and make your future job easier. Skill #2 – Accelerated Learning Ability The motivation, skill, and practice to learn at an accelerated rate. Skill #3 – Motivation and Skill Match The desire and ability to master the skills required at each business growth stage.
Business stageObjectiveCEO roleFatal flaws I — Prototype Sales: <$3 Mil Employees: <25 Venture Stages: Angel, A II — Business Validation Sales: $3-$25 Mil Employees: Venture Stages: B,C, D III — Growth Sales: $25-$100 Mil Employees: Venture Stages: D or Later IV — Maturity Sales: +$100 Mil Employees: 500+ Venture Stages: Public or Sale 1. Validated product/market fit 2. Delighted customers 3. Reasonable profit/value assumptions One-man band (or small team), with helpers 1. Customer need isn’t there 2. Solution doesn’t work 1. Customer need isn’t there 2. Solution doesn’t work 1. Business grows without CEO involved in operations 1. Leaders and processes still work. 2. Innovation happens faster than existing business dies 1. “Emergency” player 2. Selector of players 3. Coach for players 4. Process architect 1. Chief culture officer 2. Selector of coaches 1. Seeing what’s next 1. Competition gets tougher 2. CEO is a good player but lousy coach or architect 3. ROI isn’t good enough 1. Processes don’t scale 2. Leaders don’t scale 3. CEO becomes bottleneck (can’t hire leaders or let go) 1. Leaders get distracted 2. Processes don’t scale 3. The ability to create dies
Skill #1 – Business Model Creation Creating a product/market fit where customers can be delighted and served with significant profit. Skill #2 – Process Design Creating and refining processes where sales are easy and customers are predictably delighted at scale. Skill #3 – Talent Environment Creating a culture of high-performing individuals and teams.
Your 10X Rating Extreme Time Focus Accelerated Learning Ability Motivation and Skill Match Talent Environment Process Design Business Model
#1 Watch Game Film (CEO X-RAY) A framework that analyzes both your business and your true CEO effectiveness #2 TOP THREE PRIORITIES Identify and focus only on your three highest leverage priorities #3 ACCELERATED LEARNING Apply an accelerated learning process to those top three priorities #4 CASCADE Cascade the 10X discipline throughout your organization
#1 – Focuses only on the highest leverage CEO priorities. #2 – Uses a written learning document that can be shared and updated. #3 – Creates and leverages an “Expert Network” that includes books, frameworks, best practices and smart people that are beyond the CEO’s usual range of experience and contacts. This Expert Network must be greater than 5 people/books/frameworks. #4 – Cascades learning methods, best practices and smart people to build the company’s “learning muscle”.