Alan: Welcome back I’m here today with Justin Hyde he’s a founding partner at the a Hyde-Norton Group Inc. A company focused on performance management. Justin, welcome to today’s show.
Justin: Thanks Alan, I appreciate you having me out. So Justin can you give me some background on how you got to where you are today? Absolutely, by nature I guess I really enjoy being an entrepreneur, so I’ve had a number of early successes early on in life and I started out actually with a window washing company. And I built that up to about 1700 clients and was able to take and turn that for a pretty good profit and in the process got into investing in real estate before the crash. And we were able to do pretty well in that business and eventually started a risk management and then a business consulting firm and now we work in close all 50 states doing management consulting.
Alan: You’ve really moved on a fast track and that is an example truly what an entrepreneur is. Thanks. You're under 35-years old?
Justin: I’m 31 years old. Thirty-one years old and in all these businesses. So where you’re at today, you’ve moved up to the side of helping people to do performance management? Justin: That’s correct.
Alan: So, I use the words performance management, what does that mean? Justin: Yeah absolutely, early on in my career I met an individual by the name of Tyler Norton, and Tyler's father ran strategy for Kraft Foods worldwide and a handful of other companies. And his partner Jim Kilts was the CEO of Kraft Foods, Nabisco and Gillett. And I was shown a process that I was really fascinated by and I realize how, that if I had that process, and if how I’d been able to apply that to my businesses early on I would have had even greater success in the outcome. And so when we talk about performance management we’re really talking about accountability, we find that most organizations don't really have an understanding of what winning is. If you ask someone, anybody in any organization what winning looks like for this company, we find that most people are rowing in different directions they don't really understand what winning looks like as an organization. You have a boss or CEO that's calling for commitment and we use a really simple model in our firm called “UAC” which is understand, agree, commit. So, you have somebody that's asking for commitment yet they don't have an agreement because there's no understanding. So, for example, I may get home in the afternoon my wife will say to me how can you haven't most of the yard? So, I’ll say, I didn’t know I was supposed to mow the yard. So, she’ll say, let me help you understand, if you don't mow the yard today, if you don’t cut the grass, you're not sleeping our bed and not having dinner in my house. So I go out to cut the grass and I’m pretty committed because I now understand, I now agree, and uncommitted.
Alan: And I think it another way to put that is you need to listen to your wife. Justin: Exactly, what we all know, that's first and foremost in our homes.
Alan: Absolutely. So in, performance management then is when you get people to agree, to understand to commit each other. There is a common thread that you're trying to build then throughout the whole company that everyone's rowing in the same direction? Justin: Yes, that's exactly right.
Alan: So, how’s a company gets started using performance management? Justin: Very good, I may share quick a story along those lines. When my partner graduated from college he finished at the top of his class and was excited about getting out in the corporate world and he decided to have dinner with his father who was living in Chicago at the time. And his dad says hey, I’m going to take you out on a dinner boat cruise and I’m going to share with you the secret to business. Tyler got very, very excited he went out on the lake and, and in the process of this this dinner his dad said I’m going to share the one secret. And Tyler thought man, and got out his pen and paper. His dad said think, most people don't take the time to think. And Tyler felt really ripped off he felt like he’d been given some really bad advice and contemplated this all night long. And so we’re kind of the enemy to Nike. Not just do it, but do what, before you decide that you're going to do it. And you need to get really clear on what winning is, as an organization.
Alan: You know, this is all good stuff. And Justin, we need to take a quick break. But after we get back, I want you to talk more about building accountability into your company. Justin: Great. Alan: We'll be right back after these messages.
Alan: Welcome back and we’re visiting here today with Justin Hyde who’s a founding partner of the Hyde Norton group, a firm focused on performance management. Before the break, we were talking about what is, performance management and how companies build that into the system. Essentially, if I can summarize that, it’s the process in making people accountable is that correct? Justin: That's exactly right.
Alan: So how do you enforce accountability into a company? Justin: Like we mentioned in the segment before really you have to make sure that the teams on the same page. So, you got to make sure everybody on the team really understands what’s the goal, learned the objective of your company is. Once everybody understands what the goal or objective is, then you need to make sure that they’re committed to their objective. You need to make sure that they’re committed to their role or their responsibility.
Alan: And what is the role of a supervisor then? Justin: You know, really the role of the supervisor is not to just manage but it's to lead, and there's a real difference between being a leader and a manager. A leader is a guy that doesn't do things just for the numbers that he pays attention to the ethics and he pays attention to the things that are critical to those guys that are around him and he does what's right all of the time. So really, you know in order to be as supervisor and to take that role or responsibility as a manager you need to make sure that you're leading those around you as well.
Alan: I’m going to switch over to moving from the manager to how a person should define strategy within a company. Justin: Excellent, okay great, the best definition of strategy I've ever heard is; “strategy is nothing more than leveraging or capitalizing on resources to create competitive advantage”. So, strategy is really nothing more than leveraging exploiting or capitalizing on key resources to create competitive advantage. So, I think about strategy this way, we've got a partner in our firm who has a three-year-old son that had a health problem. He was limping around the house and our partner was kind of amped up about it, and worry about it. His son couldn’t describe to him what was bothering him, but his leg was really hurting. So, my partner took him to the to the doctor's office and the doctor said that we’re to go and put a cast on this leg and we’ll watch it after week after we pull the cast off, and if he’s still limping, then we’re going to need to run a bone scan. So, they casted his leg, they took the cast off, they watched him for a week and he still was limping around the house. So, they took him in and they did a bone scan, in ordered to do a bone scan they had to inject an isotope with a half radio life into this blood and I watch it on the scanner. They asked my partner to leave the room. He said that this my three-year-old son, I'm not leaving the room. He said tell me what I'm looking for on the screen. And they looked at the screen he said were looking for Christmas lights, we’re looking for anything that lights up, anything that flashes on the screen. And He saw on the screen some flashing lights in my partner started to freak out, he said don't worry about that, that's growth plates and were looking for off growth plate Christmas lights. So, they found on the bottom of his leg there's little area that was, was lighting up and he said that's a pain point now they were able to come in and solve that. But as we go in and help organizations to find their strategy. We’re looking to solve not only growth for organizations but also pain points. And those pain points are called critical issues, every organization no matter the age, stage pace or place, as 6 to 8 critical issues that need to be solved to help take them to the next level or keep them above water so to speak.
Alan: How often should a company be redefining strategic initiatives? Justin: Often, at least once a quarter you should be meeting together is an executive management team and really making sure that your aligned and that you have the right strategies in place. And your achieving your, your goals that you set forth to achieve. So, having it, having an organization that hires you guys to come in, you not there to be anybody's friend? Sure, that’s why we occasionally make a handful of enemies, but in the end it always works out best for the organization.
Alan: And that and that's how companies grow. Justin: That’s it absolutely.
Alan: I'm visiting here with Justin Hyde, the founding partner of the Hyde-Norton group a firm focused on performance management. We need to take a quick break Justin, but after we get back s I want to talk more about measuring performance management. Justin: Thanks Alan. Alan: We’ll be right back after these messages.
Alan: Welcome back, I’m visiting here today with Justin Hyde one the founding partners of the Hyde-Norton Group; a firm focused on performance management. Before the break we were talking about performance management, accountability in organizations, and I want to move over right now to get into talking about measuring performance. Justin: Absolutely.
Alan: So, how do you do that? Justin: Measuring performance really is a team effort, and I'll share a story of a company that we helped out nearly 7 years ago. We came in and worked with the organization there was two employees, they were just launching. They didn't really have revenue at the time and we got a call from this organization who implemented accountability and performance management system from the top down. He shared a story, we went down we visited his office and he showed us in his boardroom, they’ve got several hundred employees and they've gone through a couple rounds, rounds of funding from Goldman Sachs a handful of other private equity and venture capital firms. And he told us a story about his first round of funding, he said that one of the venture capital firms walked into his office and he saw his performance management system taped up on the wall. And he said you don't really run your business this way? And this was in Arizona and the sun was shining through the window and, and the gentleman stood up and walked over the wall and he pulled the tape back on the piece of paper and he wanted to see if the paint had faded on that wall if you really day after day a quarter after quarter ran off of the system. And when he realize there was a bunch of pinholes in the wall and realize of the paint had faded from the sunlight that this was a culture in their organization, he quietly walked over closed the door and he said were going to fund your business. And that was a great success story of someone that really uses accountability within the organization and it helped them go to the next level. On the other hand we worked with an organization not too long ago, I flew down I sat down with the President, the CEO, the chairman of the board and the whole executive staff, and we got a few minutes into our initial discovery process and the chairman of the board looked at me and said I don't think we need your help. In 15 minutes I knew their organization was a mess, and I said that, would everybody around this table please take your piece of paper, flip it over and tell me what your five strategies are for this organization? And on the top of that piece of paper, help me understand what winning is for your team over the next three years so that I know are all 700 year employees in this office are doing? And they all looked around the table of each other and kind of got sheepish and they flipped over their pieces of paper, and not one of those individuals out of all 30 had the same thing written down for winning nor the same strategies compiled on this that the piece of paper. And so you couldn't expect any one of the 700 employees to really understand what they're being held accountable for, nor expect any a performance if they don't have a clear understanding at the top.
Alan: You know, once companies start getting their performance management together and measure performance, growth is the next step. So, how do you manage growth? Justin: That's a great question and that's a question that most big organizations or small organizations that would like to be big ask themselves. One of the gentlemen that were behind the process that we use suggests that if you don't have your growth plan on one page, you don't have a growth plan. We see these big long elaborate business plans and vision statements and things that get put on the bookshelf and never used, but really, it again, it's just clearly articulating and defining what that growth plan or strategy is, and helping those that need to execute on it understand it, and know what they need to accomplish or be held accountable to. A great story along those lines is a credit union, one of the largest credit unions in the country, that we did some work for. My partner walked in several months or even a year after the engagement and visited with one of the tellers and he kind of smiled and looked at her and he said, hey could you tell me what the five strategies to your organization or your corporate headquarters your bank is? She smiled and she told him all five strategies and he was kind of taken back in and he said that how do you remember those? And she said, well we execute them on a daily basis and she quietly reached behind her cubicle pulled out a one-page plan that had the entire growth strategy for the reorganization, right there behind her desk at the teller.
Alan: That's a great story, and also a testimony to a well-run company when an employee can bring that out there. That's right. Bringing this back at companies, a startup growing, they’re like we need some help, what was the biggest challenge companies have implementing their first strategic initiative? Justin: Really, you need to clearly define what resources you're going to build your strategies around and so typically, one of the main resources, or one of the 3 to 5, and an organizational no matter how big or how small should never have more than 3 to 5 strategies. Now, one of those 3 to 5 strategies almost every time is around people, and you must have good people to grow your organization and to be able to scale. And so I would suggest that in order to build a growth plan and to execute on a growth plan you've got to go out and find the right people.
Alan: Justin, all good content today which you brought about performance management putting companies on the right track. If somebody wants to hire you, how do they find you? Justin: We've got a website, Hyde-Norton.com HYDENORTON.com and would love to visit with whoever is out there and who would like to figure out how to take their company to the next level.
Alan: And what is the normal process, do you come out and visit them do they call by phone? Justin: Absolutely, we’ll start with a phone interview and really try to understand what their objectives are, and where the company is currently. Where they'd like to go? And if there's a fit, then we’ll get on an airplane and come see them wherever they’re at and try to figure out really what winning is for their organization.
Alan: Very good, I’m visiting here today with Justin Hyde, he is the founding Partner of the Hyde-Norton Group. A firm focused on performance management. Justin thank you for being on today’s show. Justin: Thanks Alan, it's been great. Alan: We’ll be right back after these messages.
About Justin Hyde
Justin Hyde is a founding partner and president of the The Hyde-Norton Group an award winning strategic planning and risk management firm. He also manages his firms partnership interests in multiple auto dealerships, health clubs, resort, ranch, and hotel properties, as well as mobile and bio technologies. Recently The Hyde-Norton Group purchased interest in the Utah Blaze a professional arena football team. Justin also founded the Annual Rocky Mountain Economic Summit & Retreat. The event is hosted every year in Jackson Hole, Wyoming and features many of the world’s foremost experts on world and US economies. The event is covered live by Bloomberg T.V., CNBC, and Reuters. Attendance is by private invitation only.
Justin is very active in the community both in charity, civic and church organizations. He sits on the Board of Trustees for the Columbus Community Center, a foundation created in 1968 that serves individuals with disabilities within the local community of Salt Lake and its surrounding cities. He also sits on the board of the Global Interdependence Center, a Philadelphia based nonprofit organization with global reach, founded in 1976. It's mission is to encourage the expansion of global dialogue and free trade in order to improve cooperation and understanding among nations, with the goal of reducing international conflicts and improving worldwide living standards. He recently formed the Bronze Buffalo Foundation and is chairman of the board. Justin currently serves on Mitt Romney’s Finance Team as the Wyoming State Finance Chair. He also enjoys being a leader in the Boy Scouts.
Recently he was selected as one of Utah Business Magazine's 40 under 40 picks for 2012, a highly selective annual recognition program.
Justin is married to his beautiful wife Stefanie and has one son named Bentley. Justin and his family reside in Holladay, Utah.