StrategicManagementPhilosophy CompanyObjectivesandCEOInitiatives

MichaelL.Klyne June25,2011

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CompanyObjectivesandCOEInitiatives Servantleaders
The concept of servantleadership describes the belief that people should first seek to serve, andthenleadasawaytoexpandandimprovevaluetotheircompany. Servantleadership encourages collaboration, trust, empathy, and the ethical use of power. ExecutivesandBoardmemberswhoapproachleadershipfromthisperspectivefindthemselves lesspreoccupiedwithwhosreallyinchargeandmorefocusedonhowbesttohelpeachother andtheorganization.ThisrequiresfullparticipationbytheBoardofDirectorsandleadershipon thepartoftheCEO. Anorganization,nomatterhowwelldesigned,isonlyasgoodasthepeoplewholiveandwork in it. Ultimately, what determines the organization's performance is the approach to managementitsleaderstake.(DeeHock)

KeyCriteriatoSuccess
As CEO, challenges will not be met if management is not working together as a true team. When the management team has the same focus on business objectives, this common focus will generate improved performance and drive better results. Therefore, having a focused managementteamisthekeytodevelopingcompetitiveadvantage.Inordertodothisthere are four key strategies that the organization must embrace and the CEO must master, which consistsofthefollowingcomponents;

#1Ethics
Hire and promote first on the basis of integrity; second, motivation; third, capacity;fourth,understanding;fifth,knowledge;andlastandleast,experience. Without integrity, motivation is dangerous; without motivation, capacity is impotent; without capacity, understanding is limited; without understanding, knowledgeismeaningless;withoutknowledge,experienceisblind.Experienceis easytoprovideandquicklyputtogoodusebypeoplewithalltheotherqualities. (DeeHock)

#2Creatingaculturethatembracesandadaptstochange
Because business is about survival by definition, it must also be about change. Furthermore, because business is also about growth it must also be about continuouschange.(Dr.MichaelHewittGleeson)

#3Stimulatingemployeesinnovationsandcreativity
The real winners in life are the people who look at every situation with an expectationthattheycanmakeitworkormakeitbetter.(BarbaraHetcher)By surrounding ourselves with subject matter experts who can add value to our expertise,whenwelistentotheirrecommendationsandimproveourbusiness
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CompanyObjectivesandCOEInitiatives
processes as a result, they feel valued and experience a higher degree of job satisfaction, which empowers them to attain peak levels of performance. Winning such recognition and respect dramatically improves employees efficiencyaswellastheireffectiveness.

#4Gettingthewholecompanytounderstandgoals&executestrategies
Our goals can only be reached through a vehicle of plan, in which we must ferventlybelieve,anduponwhichwemustvigorouslyact.Thereisnootherroute to success. A goal without a plan is merely a wish without a hope. (Stephen A. Brennan) Toaccomplishtheseinitiativesrequirescommonfocus,whichmeansgettingeveryoneonthe same page and also on the right page so everyone works together efficiently in the most effectivemannerpossible.

Efficiencyvs.Effectiveness
OftenEfficiencyandEffectivenessarethoughttobethesamehowever,theyarequitedifferent concepts. Efficiencycommonlymeansgettingthejobdonequickly,onbudgetandwithoutloss.Onthe otherhand,effectivenessmeansdoingtherightthings.Ofcoursebotharekeytosuccessbutif wecontinuetomerelybeefficientbystrivingtodothingsright,itdoesnotnecessarilymean that we are doing the right things effectively. Therefore, in order to drive better results we mustgobeyondbeingefficientandstrivetobecomemoreeffective. Forexample,efficientcrisismanagersarealwaysworkingontasksthatareurgentorseento be urgent. And while problem solving never actually goes away, crisis management methodology allows very little time to coordinate and communicate, because it takes away fromthetimenecessarytoadequatelyplan,ortomonitortheplansweneedtoimplement. AneffectiveCEOmustalwaysfocusonprioritytasksthatcausethemostproductiveresultsand enhancethecompanyssuccesstowardsprogressingtoahigherlevelof,notonlyefficiencybut moreimportantly,ahigherlevelofeffectivenessaswell.Thissameprincipalholdstrueforkey management staff and is the reason why getting the company to understand and execute effective strategies is one of the primary responsibilities of the CEO. This however, requires directinputandbackingfromtheBoardofDirectorsinordertobetrulyeffectiveandwillnot beaccomplishedwithouttotalbuyin. ResultOrientedActivities In order to meet our maximum potential we are most effective when we work on Result OrientedActivities(ROA),whichconsistsoftheactivitiesthatgeneratethehighestdegreeof
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CompanyObjectivesandCOEInitiatives
successandproductivityatourindividuallevelsofresponsibility.Resultorientedactivitiesare usuallynoturgent.Theydonotactonus;wehavetoactonthem.Themoretimewespendon ourROA,themoreeffectiveandsuccessfulwebecomeindividually,andasanorganization.The CEOisresponsibleforsettinghisownROAandthenequallyimportantisestablishingwhatthe ROAofkeymanagementis,whichmustbeagreeduponbytheBoardofDirectors.

ROA are the proactive ways to increase success which is why it is so it is important that we establishwhatourcombinedROAsconsistof.OnceweidentifywhatourROAsare,itisalso importanttosetmeasurablegoals.Fromacompanyperspective,itisextremelyimportantto understandwhatthecollectiveROAsare,andthenworktowardsachievingcoordinatedresults together. The role which the CEO plays in this is to generate strong focus for the company whichisaccomplished,inpart,byholdingindepthdiscussionswiththeBoardofDirectors,as well as key managers, and then setting goals for accountability and monitoring progress through weekly or biweekly meetings so the team is working together as a cohesive unit. In this manner, the team can work together towards achieving coordinated results in the most effectivemannerpossible.

ExamplesofROA

The most important of our ROA is to regularly plan and organize our time by placing those activities most important to our success into our daily routine. CEOs have functional responsibilities which, after planning, are often the most important ROA. Beyond performing these functional responsibilities, the CEO must work on the organization rather than in the organization.TrueROAfortheCEO,aswellasseniormanagement,areactivitiesthatdevelop and stimulate employees through coaching and mentoring, building a culture where people wanttodotheirbest,monitoringresults,anddevelopingleadershipqualitiesofemployees.In short, developing ROA throughout the organization is necessary for the future success of the company, then following up with weekly or biweekly meetings to monitor progress and prioritizehighpayoffactivities.

To be most effective as a CEO, or senior manager, is to understand that working on the organization cannot be accomplished solely by adhering to an ABC set of predefined duties. WemustembraceandadapttochangebycreatingROAthatcontinuallymodifiesourattitudes aboutworkbyconstantlyevaluatingwhatwecandoto:

createaclearvisionforthepartofthebusinessthatImanage? encourage myself and the people who work for me to think more strategically everyday? providethepeoplewithwhomIworkclearperformanceobjectives? createacultureinwhichpeoplefeelincludedandvalued? helpmypeopletosucceed? communicatebetter? beabetterleader? createsystemstomakeworkmoreerrorfree? increasethevalueourcustomersreceive?

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CompanyObjectivesandCOEInitiatives ResultsofROA
Although we tend to stress the importance of becoming more efficient, while efficiency is important,ifwearetoreachhigherlevelsofsuccess,weneedtoworkonthoseactivitiesthat focusonourfuture.Theseactivitiesarenoturgent;wehavetoactonthembyidentifyingthem andplacingthemonourschedule. Knowing which duties are high payoff activities is important to developing personal focus. Accordingly, the CEO must work with the senior management team to help them define the ROAwhicharemosteffectiveingettingtheteamfocusedandplayingfromthesamesheetof music. Focusdrivesperformanceandperformancedrivesresults.AneffectiveCEOsmainobjectiveis to create focus within himself and within his management team, which is the key to the companys success. If we want a future that is different from our present and want to accomplishthisinaproactiveandtimelymanner,wemustfocusonthoseactivitiesthatdrive success, and while it is a natural tendency to work at being efficient at the expense of being effective,itiseffectivenessthatdrivessuccess.

RolesandResponsibilitiesoftheCEOandRelationshipwiththeBoardofDirectors
The role and responsibilities of the CEO can vary widely depending on an organizations size, structure, and history. There is no one right role for the chief executive, and no standard positiondescriptionthatisapplicabletoallorganizations,infact,theroleoftheCEOtendsto evolveascircumstanceschangeandthecompanyembarksonnewinitiatives. ThelineofdemarcationbetweentheBoardofdirectorsresponsibilitiesandthoseoftheCEOis imprecise. Therefore, the importance of creating clear expectations and a shared understandingofthemutuallysupportiveandcomplementaryrolesoftheBoardofDirectors andtheCEOisimperativetothesuccessofthecompany. AneffectivepartnershipbetweenBoardofDirectorsandCEOrequiresabalanceofpowerand authority. The Board must have enough power and independence to carry out its legally mandated responsibilities and to supervise/guide the CEO pertaining to what the Board of directors views as high priority ROA and specific action items. On the other hand, the CEO needs adequate authority to manage the organization and exercise leadership on a broader scope. Finding and maintaining this balance is one of the central challenges of executive leadership. The role of the CEO in an organization changes over time based on shared history and trust, changing skills and personalities on the Board and amongst key managers, the growth and professionaldevelopmentoftheCEO,andotherfactors.InordertobesuccessfultheCEOmust recognizethathisroleisnotstaticandmustembrace,aswellasplanfor,inevitablechangesin hisroleandtherefore,alsoofhisROA.
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CompanyObjectivesandCOEInitiatives FunctionalResponsibilities
CEOs have many responsibilities that are distinct from those of the Board, and also manage manyotherimportantrelationshipsincludingstaff,clients,subcontractors,publicofficials,and leadersofotherorganizations,and/orJVpartners.BecausetheCEOsjobissomultifaceted,it cannot be easily captured in a shortform checklist. The 11 functions that follow indicate the breadthandcomplexityoftheCEOsrole,andservesasabenchmarkfromwhichtoprioritize themosthighlyeffectiveROAs. 1. Planning: Engage the Board in Planning and Lead Implementation of Overall companystrategy,StrategicPlan,OperationalPlan 2. Organization:Organizationchart;Jobdescriptions,Authoritylevels 3. Managementrecruitmentanddevelopment:Successionplanningtoensurethat employeesarerecruitedanddevelopedtofilleachkeyrolewithinthecompany through inhouse training, outside training, promotion from within, human resourceplanning,newpositions,andactiverecruiting 4. Policy:FollowtheHighestEthicalStandards,EnsureAccountability,andComply withtheLaw.Corporatepolicies,newpolicies,managementinput,review 5. Standardsofperformanceandperformancereviews:Standardsofperformance, performancereviews,performanceimprovementplans 6. Controls:Monthlyreports,quarterlyreviews,supplementalactionprograms. 7. Managementmorale:Involvementinplanning,salarydiscussions,accesstoCEO, managementturnover 8. Business & Service development: Overall strategy, quarterly priority meetings, statusreports,newbusinesscenters,developmentexpense 9. Communityrelations:publicrelations,communityparticipation 10. Profitability and growth: Profit objectives, results compared to industry, sales objectives,dependencyonsingleproduct/customer,marketshare,profitability ofoperations 11. Relationship with Board of Directors: Communications, Reports by executive managers,Boardcomplaints,CEOJobdescriptionandstandards

Duties
1. Settingstrategyandvisionwiththehelpofseniormanagementteam 2. Developastrategicplantoadvancethecompany'smissionandobjectivesandto promoterevenue,profitability,andgrowthasanorganization 3. Implementthestrategicgoalsandobjectivesofthecompany 4. Providedirectionandleadershiptowardtheachievementoftheorganizations philosophy,mission,strategy,anditsannualgoalsandobjectives 5. Setthedirectiontodevelopthebusinessplan 6. Approvecompanyoperationalprocedures,policies,andstandards 7. Supervise staff by evaluating performance in conformance to established policiesandtheircontributionstowardattainingobjectives
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CompanyObjectivesandCOEInitiatives
8. Oversee company operations to insure production efficiency, quality, service, andcosteffectivemanagementofresources 9. Identifyacquisition&mergeropportunitiesanddirectimplementationactivities 10. Decide upon and set budgets, form partnerships, hire team to steer the companyaccordingly 11. Buildingcultureofthecompany 12. Resolve differences between senior team members, and keep them working togetherinacommondirection 13. Setdirectionbycommunicatingthestrategyandvisionofwherethecompanyis going 14. Plan, develop, and implement strategies for generating resources and/or revenuesforthecompany 15. Program,productsandservicesdelivery,overseesdesign,marketing,promotion, deliveryandqualityofprograms,productsandservices 16. Financial,Tax,RiskandFacilitiesManagementRecommendyearlybudgetfor Board approval and prudently manages organization's resources within those budgetguidelinesaccordingtocurrentlawsandregulations 17. Review activity reports and financial statements to determine progress and statusinattainingobjectivesandreviseobjectivesandplansinaccordancewith currentconditions 18. MeetfinancialannualtargetssetbytheBOD 19. Target of Businesses to be brought to the company during the year 2011 is assigned$50millionandforyear2012$100million(year2012tobereviewed) 20. Project Planning and execution of the projects and meeting profit and lost targets 21. Promote the company through written articles and personal appearances at conferencesandonradioandTV 22. Represent the company at legislative sessions, committee meetings, and at formalfunctions 23. Promote the company to local, regional, national, and international constituencies 24. Buildafundraisingnetworkusingpersonalcontacts,directmail,specialevents, andfoundationsupport 25. PresentcompanyreportatAnnualStockholderandBoardofDirectormeetings 26. Providing monthly progress report + Profit and Lost Report, based on annual plan 27. Directcompanyplanningandpolicymakingcommittees. 28. Oversee foreign operations to include evaluating operating and financial performance 29. CoordinationmustbeobtainedwiththeBoardofDirectors,thePresident,CFO, COO,CTOandSeniorContractsManager. Amongstthedutiesportrayedabove,notallofthementirelypertaintocurrentcircumstances relatingtothepresentstatusofthecompany,butcouldhavedirectrelationshipinthefuture.
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CompanyObjectivesandCOEInitiatives
AstheCEOandBoardofDirectorsworkstowardsestablishingthenecessaryROAtoachieveits present goals and the fulfillment of particular duties listed above, concentrated focus will be exerted upon highest payback activities from that time forward and will include targeted revenueof$50mfortheyear2011asprioritynumberone.

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