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POSTS FILED UNDER "drive-one-direction"

03-25-25

HOW STARBUCKS UNLEASHED THE ACCELERATING POWER OF ALIGNMENT (UPDATED))

LinkedIn-Post_Starbucks

Note:  This is an excerpt from my latest book, Drive One Direction: How to Unleash the Accelerating Power of Alignment. In the One Way chapter, we highlight companies who unleashed the accelerating power of alignment with an intense focus on their corporate standards. 

Starbucks (NASDAQ: SBUX) has 254,000 employees working in 24,000 retail stores in 70 countries.

Although there are roughly 100,000 permutations of drinks, there is only One Way to make each One.

Coffee has always been my favorite beverage. So, when Starbucks barged on the scene in the early ’90s, I was an early adopter. I have lost count of how many Starbucks I have visited in my life. Countless portions of this book have been written in Starbucks coffee shops around the world.

In the beginning, we all had to learn how to “speak Starbucks.” Does “decaf” come before or after “grande”? Is it “two pump no whip” or “no whip two pump?” What’s the difference between a cappuccino and a Frappuccino®?

Some people never became fluent in Starbucks and are embarrassed to go there.

Most people, however, have developed a basic level of Starbucks ordering competence.

As I am sure you have experienced, they also have a very specific process to ensure that your order is properly communicated to the barista. It is called the “Starbucks® Beverage Calling & Cup Marking System,” and even specifies that a black permanent marker be used to write beverage identification codes on cups.

And of course, they had to teach all their baristas how to make all those drinks.

My sense is that being a Starbucks barista is a lot harder than most people think. They must memorize the Starbucks beverage manual, which contains the exact specifications for every drink. And these specifications  are extremely specific.

Did you know:

  • Beverage temperature is between 150oF and 170oF not including Americanos. (Unless you order it extra hot.)
  • An espresso shot should be 15–19 seconds for Verismo and 18–23 seconds for La San Marco.
  • Blended beverages should be poured into the cup within 10 seconds of blending.

All of this is designed to fulfill The Starbucks Promise: “Your drink should be perfect, every time. If not, let us know and we’ll make it right.”

In order for Starbucks to fulfill their mission and deliver on their brand promise, they had to develop strict corporate standards.

There is only One Way to make a double-tall skim latte—my go-to drink.

Does your company have specific process standards for every product?

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03-13-25

ONE WORD - ALIGNMENT (UPDATED)

a·lign·ment

One word.  Three syllables.  Thousands of applications.

But, what does alignment actually mean? 

The etymology origin of “align” is French.  Webster’s says the first known use of the word was in 1693.  Some of the common uses include: 

  • to arrange things or people in a straight line.
  • to bring things or people into alignment.
  • to bring people into agreement with a particular group, party, cause, etc.
  • to bring things into a proper coordination (such as the wheels of a car).

Align is a verb.  Aligned is a past participle.  Aligning is a gerund.  Alignment is a noun.

Okay, enough of that. 

What does it mean for your company?

If your company is a global conglomerate, alignment means one thing. If your company is a dance company, alignment means a totally different thing.

In addition, our review of the research articles about alignment confirmed that even the scholars don’t have a common definition of alignment.

There are multiple reasons for this.

First, every company is radically different.  Synagogues are radically different from symphonies.  The United Auto Workers is radically different from the United Nations.  3M and IBM have one letter in common … and that’s about it.

Second, companies are in different life stages.  (See the chapter entitled One Life Stage.)  Startups are worried about survival, and spinouts are worried about cutting the corporate umbilical cord.

Third, companies have different operating models and management philosophies. (See the chapter entitled One Model.) Some companies run like denominations, and some churches run like corporations. 

Thus, every company is different, and you must define alignment in your unique One-of-a-Kind Way. 

After all, how can everyone Drive in One Direction if you don’t show them the way?

ACTION POINT:

One Way to get started is to take the One Definition challenge.

Ask a group of people to write a basic definition of the word “alignment.” Share the results around the table. Then, ask them to modify that definition as follows, “What does alignment mean for our company?”

03-12-25

HOW LEGO UNLEASHED THE ACCELERATING POWER OF ALIGNMENT (UPDATED)

LinkedIn-Post_Lego

Note:  This is an excerpt from my latest book, Drive One Direction: How to Unleash the Accelerating Power of Alignment. In the One Portfolio chapter, we highlight companies who unleashed the accelerating power of alignment with an intense focus on their product portfolio.

LEGO® (www.lego.com) was founded in 1932 by Ole Kirk Kristiansen. The privately held, family-owned company with headquarters in Billund, Denmark, has over 19,000 employees and operates 132 LEGO brand stores.

They have built an amazing business, One Brick at a time.

My mom recently spent time cleaning and sorting the LEGO bricks my brothers and I played with as kids so she could donate them to a local church. These bricks are almost 60 years old and they are still viable. In fact, all LEGO bricks produced since 1958 are fully compatible with the bricks produced today.

Every year, LEGO sells over 75 billion bricks and other components that they call “elements.” There are more than 3,700 different types of pieces, including bricks, wheels, motors, swords, figures, and more.

These are manufactured with incredible precision—the molds used to produce LEGO elements are accurate to within 0.004 mm—less than the width of a single hair. This accuracy ensures that the bricks will have what LEGO calls “clutch power.”

Since LEGO’s mission is to “inspire and develop the builders of tomorrow,” they often take on special projects to demonstrate the amazing things that can be built with LEGOs.

In 2018, they built a full-scale copy of the $3M Bugatti Chiron sports car out of LEGO bricks! It took over 13,000 man-hours to build and used over 1 million LEGO elements. It has 2,304 LEGO motors and a top speed of 12 MPH (versus 261 MPH for the real one!) The Bugatti factory test driver and multiple Le Mans champion Andy Wallace had the honor of the first drive.

The LEGO Chiron is truly amazing. But let’s just say you only have six two-by-four bricks. There are 915,103,765 ways to combine them! I spent hours as a kid building things, breaking them down, and then using my imagination to build something else.

LEGO is an amazing example of how a standardized product architecture can create alignment. There are a number of key insights that companies should consider applying.

First is backward compatibility. LEGO bricks that were built sixty years ago still interoperate with the current ones.

The second key insight is the power of modularity. People can mix and match LEGO elements to build virtually anything. Many companies struggle to create cross-divisional product portfolios. Creating a common architecture can ensure that products from division 1 interoperate with products from division 2.

It worked for LEGO. The company is worth over $7 billion, making it the world’s most valuable toy brand by far, according to consultancy Brand Finance.

Does your company have One unifying product architecture that keeps everything aligned?

02-19-25

LESSONS FROM THE ONE CSX TRANSFORMATION

CSX Corporation (NASDAQ GS: CSX), is one of the nation's leading transportation suppliers. The CSX transportation network encompasses 20,000 route miles of track in the US and Canada. They operate over 1,800 trains per day, transport more than 3.5 million carloads of material per year. Their fleet includes over 3,500 locomotives and 51,000 freight cars.

In addition, CSX employs over 23,000 people and 85% of them are represented by fourteen different unions.

Joe Hinrichs was appointed as President and CEO of CSX in September 2022. Prior to joining CSX, Hinrichs had a distinguished 30-year career in the automotive industry, notably serving as President of Ford Motor Company's global automotive business. 

During Hinrichs’ tenure at Ford, they hired Alan Mulally, an industry outsider, as CEO. Mulally implemented the famous "ONE FORD” initiative, which transformed the company.

In a striking parallel, Hinrichs was the first industry outsider brought in to run CSX. As one of his first actions, Hinrichs launched the “ONE CSX” initiative to unify and transform the company.

ONE CSX is creating a cohesive organizational culture that values every employee's contribution. By promoting teamwork, CSX is breaking down internal silos and encouraging employees to work together towards common goals.

In addition, the ONE CSX initiative is strengthening relationships with both employees and customers. As a result, CSX is improving service delivery and operational performance.

The ONE CSX initiative has also transformed the dynamic between labor and management. For example, the company recently unveiled a specially painted ONE CSX locomotive featuring the logos of the fourteen labor unions, symbolizing the company's appreciation for its workforce and commitment to unity.

ONE CSX is all about improving the employee experience and bringing everyone together to be one team,” explained Hinrichs. “This will allow us to serve customers better and create value for all of our stakeholders.

The ONE CSX initiative is producing results. In 2025, the company was named one of Fortune magazine’s 2025 World’s Most Admired Companies, one of America's Most Responsible Companies by Newsweek magazine, and Hinrichs was named the 2025 Railroader of the Year by Railway Age.

01-02-24

ONE WORD - ALIGNMENT (2024)

a·lign·ment

One word.  Three syllables.  Thousands of applications.

But, what does alignment actually mean? 

The etymology origin of “align” is French.  Webster’s says the first known use of the word was in 1693.  Some of the common uses include: 

  • to arrange things or people in a straight line.
  • to bring things or people into alignment.
  • to bring people into agreement with a particular group, party, cause, etc.
  • to bring things into a proper coordination (such as the wheels of a car).

Align is a verb.  Aligned is a past participle.  Aligning is a gerund.  Alignment is a noun.

Okay, enough of that. 

What does it mean for your company?

If your company is a global conglomerate, alignment means one thing. If your company is a dance company, alignment means a totally different thing.

In addition, our review of the research articles about alignment confirmed that even the scholars don’t have a common definition of alignment.

There are multiple reasons for this.

First, every company is radically different.  Synagogues are radically different from symphonies.  The United Auto Workers is radically different from the United Nations.  3M and IBM have one letter in common … and that’s about it.

Second, companies are in different life stages.  (See the chapter entitled One Life Stage.)  Startups are worried about survival, and spinouts are worried about cutting the corporate umbilical cord.

Third, companies have different operating models and management philosophies. (See the chapter entitled One Model.) Some companies run like denominations, and some churches run like corporations. 

Thus, every company is different, and you must define alignment in your unique One-of-a-Kind Way. 

After all, how can everyone Drive in One Direction if you don’t show them the way?

ACTION POINT:

One Way to get started is to take the One Definition challenge.

Ask a group of people to write a basic definition of the word “alignment.” Share the results around the table. Then, ask them to modify that definition as follows, “What does alignment mean for our company?”

10-20-20

A CASE STUDY IN CULTURAL TRANSFORMATION: BERKSHIRE HATHAWAY

LinkedIn-Post_TEAMWORKBerkshire

Note:  This is an excerpt from Dave Ramos' latest book, Drive One Direction.

Berkshire Hathaway (NYSE: BRK.B) is a multinational conglomerate holding company that owns 63 companies, from Acme Brick to the XTRA Corporation. The diversity of industries where they compete includes candy confectionery, retail, railroad, home furnishings, airlines, publishing, manufacturing, real estate, utilities, and more.

This eclectic mix of businesses is held together by One amazing Team.

Warren Buffett met Charlie Munger in 1959.

They have been business partners for six decades and have created billions in corporate and personal wealth.

"We've had so much fun in our partnership over the years," Buffett told CNBC in a joint interview with Munger, who called the partnership "almost hilarious, it's been so much fun."

Munger added they "don't agree totally on everything, and yet we're quite respectful of one another."

Buffett quipped that when they do disagree, Charlie says, “Well, you'll end up agreeing with me because you're smart and I'm right.”

(I tried using this line with my wife, but it did not go over very well!)

Jim Collins made “getting the right people on the bus” part of the business lexicon. But the real issue is aligning all the bus drivers to work as One Team … driving in One Direction. Fragmentation and infighting among the leadership team is one of the most caustic problems an organization can face. Yet, it is far too common.

Teamwork, alignment, and trust start at the top. The organization is never more aligned than the executive team.

But addressing executive team alignment issues will take courage. Skeletons will have to come out of the closet. Dysfunctional interpersonal relationships will need an intervention. People will have to address the conflicts they have been avoiding.

Someone will have to tell the emperor that he—or she—has no clothes.

Unfortunately, most executive teams never really deal with their misalignment issues.

Why? Because executives are afraid to speak their minds. Their need for self-preservation kicks in.

We see this all the time. We can tell that executives are holding something back. We can see their discomfort with the discussion or the decision that is about to be made. Yet, they are afraid to speak up.

Google just did a fascinating study about teams. They concluded that “psychological safety” was a key component of high-performance teams. It is this psychological safety that creates the environment for executive teams to have vigorous and candid debates about the company.

Psychological safety is the prerequisite to candor. And candor is the key to productive debates.

Creating psychological safety starts at the top. CEOs must create an environment where candor is valued, and opinions can be expressed without retribution.

How does your company’s executive team resolve conflict?

10-07-20

A CASE STUDY IN CULTURAL TRANSFORMATION: ONE FORD

LinkedIn-Post_TEAMWORKOneford
 
Alan Mulally was the CEO of Ford (NYSE: F) from September 2006 to June 2014.
 
During his tenure, Mulally led a highly successful alignment initiative called ONE FORD.
 
Perhaps more than any other exemplar we studied, the ONE FORD plan embodied the Drive One Direction mindset. That is why it is our first One.
 
Besides, what better way to start the exemplars than with a car company that is driving in One Direction!
 
Mulally’s turnaround of Ford is now legendary. Business “Hall of Fame” legendary.
 
The ONE FORD plan had several components that were so simple that Mulally had them printed on the back of business cards he would hand out. Here’s what they said:
 
ONE TEAM: People working together as a lean, global enterprise for automotive leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and Community Satisfaction.
 
ONE PLAN: Aggressively restructure to operate profitably at the current demand and changing model mix; Accelerate development of new products our customers want and value; Finance our plan and improve our balance sheet; Work together effectively as one team.
 
ONE GOAL: An exciting viable Ford delivering profitable growth for all.
 
In addition, Mulally created sixteen “expected behaviors” that formed the basis of the cultural transformation. (This list is available in my book, Drive One Direction.)
 
Mulally also instituted a new management process known as the Business Plan Review. Every Thursday, Ford’s entire global leadership team was required to attend. This provided a very practical and hands-on way for Mulally to add management discipline to the ONE FORD plan.
 
“The expected behaviors and the Business Plan Review created the culture and management system to align everyone around a compelling vision, a comprehensive strategy, and a relentless implementation plan” said Mulally. “Everyone knew the plan, the status against that plan, and all the areas that needed special attention. Everyone was working together to change the reds to yellows to greens.”
 
In 2014, FORTUNE magazine named Mulally the third best leader in the world, following Pope Francis and German Chancellor Angela Merkel.
 
The ONE FORD plan produced amazing results. During Mulally’s tenure, Ford rebounded from a $12.7 billion loss in 2006 to a $6.3 billion pre-tax profit in 2014. The stock price roughly doubled during his 8 years as CEO and rose an astonishing 1,640 percent from the low during the financial crisis.
 
Does your executive team work as One Team?
08-23-20

WINNING TEAMS DON'T JUST HAPPEN

LinkedIn-Post_TEAMWORKbusEvery team has people. 
 
But most executive teams struggle to get the right people in the right roles.

Previously we stated that clarity of purpose is a prerequisite to building a high-performance executive team. 
 
Once the purpose is clear, you must apply The Discipline of Design.  Answering a few questions can accelerate the process:

  • What are the skills, strengths, and experiences required to accomplish your executive team’s unique purpose?
  • What are the skills, strengths, and experiences of the existing executive team?  What are your gaps? How can you close them?
  • What roles are required?  Which executives are best positioned to fill those roles? (Note: these roles do not have to be linked to the executive’s title.  For example, if the CFO is the person with the most experience with employee engagement, perhaps they should lead that initiative, not the VP of HR.)


Of course, there are many other questions that impact the design of the executive team.  The key point is that great executive teams don’t just happen.  They are designed.

READ MORE: DEVELOP ONE TEAM

08-10-20

WINNING TEAMS HAVE EXECUTIVES WITH EXCELLENT VISION

LinkedIn-Post_TEAMWORK_winningvisionEvery company has a vision.

But most of them are pretty blurry.

Only 35 percent of adults have 20/20 vision, and an even smaller percentage of companies do.

Most companies suffer from some sort of vision disorder, such as myopia—where they can’t focus on the long-term, or tunnel vision—where they get blindsided by market shifts and discontinuities.

Worse yet, according to Achievers’ 2015 North America Workforce report, a whopping 60 percent of employees did not know their company’s vision.

Fast-lane companies create alignment by having just One Vision. After all, how can you create One Company when every division has a different vision?

While it is critical to have One Vision, there are many ways to articulate one. In fact, we discovered four common ways:

  • The “visionary” vision
  • The “inspiring” vision
  • The “company ambition” vision
  • The “Big Hairy Audacious Goal (BHAG)” vision

In fast-lane companies, the process of defining the vision is as important as the vision itself. They use a collaborative process that combines top-down aspirations with bottom-up forecasts.

Assumptions are debated. Competitors are studied. Trends are extrapolated.

Of course, smart companies do a gut check before launching the vision. They understand what it will really take to turn the vision into reality. They have “counted the costs.”

There is nothing more demoralizing to a company than a unilateral, top-down vision that is more of a delusional pipe-dream than a vision.

And finally, high-performers make the case for the vision. Every executive—not just the CEO—can passionately articulate the vision and can explain why this is your vision.

Of all the visions you could have chosen, why did you select this One? If you can’t answer that question, no one will buy in.

Our Pit Stop Program provides a timely and efficient way to reconsider these questions.  Find out more.

Note:  This is an excerpt from my latest book,Drive One Direction: How to Unleash the Accelerating Power of Alignment. In the One Vision chapter, we highlight companies who unleashed the accelerating power of alignment with an intense focus on One Vision.

07-20-20

ONE TEAM

LinkedIn-Post_OneTeam

Note: This is an excerpt from Dave Ramos' latest book, Drive One Direction.

In his landmark book, Good to Great, Jim Collins introduced the concept of “first who, then what.”

So, let’s start by clarifying your “who.”

We believe that your corporate executive team is ultimately responsible for creating alignment. Therefore, Step One is for them to accept that responsibility.

This starts with your CEO. Your CEO must operate as the company’s Chief Alignment Officer.

Randy Papadellis, the former CEO of the cranberry cooperative Ocean Spray, referred to himself as the “Chief Alignment Officer.” Papadellis joined Ocean Spray in July 2000 as the Chief Operating Officer and was promoted to Chief Executive Officer in 2002. Here is how he described the transition,

“I believe the biggest difference between being CEO and COO is the job of alignment. When I became CEO, I realized very quickly that it was my responsibility to take the many constituencies we have in our business—our grower owners, our Board of Directors, our key suppliers, our key customers, or most importantly our employees—and make sure that they were aligned and moving in the same direction.”

Aligned and moving in the same direction! My sentiments exactly.

Second, the entire corporate executive team must embrace alignment as a critical corporate initiative. There are several reasons for this:

  • The corporate executive team is ultimately responsible for aligning the company’s multiple divisions, departments, functions, and geographies.
  • The corporate executive team is ultimately responsible for aligning the interests of the company’s multiple stakeholders, including investors, creditors, employees, boards, vendors, customers, governments, the communities where you operate, and more. These stakeholders often have competing interests which must be aligned.
  • The corporate executive team is ultimately responsible for aligning the company’s multiple strategies, tactics, goals, priorities, and initiatives into a coherent corporate strategic plan (One Plan).
  • The corporate executive team is ultimately responsible for aligning the company’s resources— both human and financial—with the corporate strategy. Budgets must be allocated. Headcounts must be approved. 
  • Each corporate executive has the responsibility to align their functional area. The Chief Financial Officer must consolidate the budgets. The Chief Marketing Officer must integrate the marketing plans. The Chief Sales Officer must roll up the sales forecasts. 
  • Finally, the corporate team “sets the bar” for alignment. If they are not aligned as One Team, the rest of the organization will be dysfunctional. They must be role models for alignment. A misaligned executive team will never create an aligned company.


Let me say that again. A misaligned executive team will never create an aligned company.

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