Wednesday, June 17, 2009

The HTG Way

This is the first in a series of posts around HTG and exactly what it is.......

HTG is built upon the premise that peers working together and investing in each other can impact our businesses, leadership and life. We live by the Go-Giver mentality – pay it forward if you will. The purpose of our peer group program is to drive value into our member companies and collectively raise the value of all members’ organizations as we apply sound business principles and execute those in a culture of accountability. That value should take a couple forms. First the valuation of member companies should be higher than those of the industry when a member decides to sell, merge or pass on his organization. We believe that peer to peer interaction causes our members to grow more quickly and profitably than the industry at large. HTG is currently participating in a study being led by the University of Nebraska Kearney to measure the impact of HTG on our member organizations. It is our belief that because of the way HTG members collaborate, execute and manage through accountability relationships, that their company has more value than the one down the street. This longitudinal study by UNK will measure and verify our belief.

The second area where value occurs is in the people who participate in HTG. Operating in a culture of accountability is a competitive advantage for owners and managers in our industry. The peer board of directors format causes behavior that does not occur without accountability. That behavior changes companies, leadership and lives. That is evident through observing hundreds of interactions and measuring the impact of goals and execution. Peer pressure works equally well on executives of companies as it does on the playground in kindergarten. HTG is focused on creating an environment of positive peer pressure that drives change.

The basic premise of HTG is execution driven by accountability. As Thomas Edison once said “vision without execution is hallucination”. It does no good to learn without doing. HTG quarterly meetings are focused on driving that execution. Each quarter every company has to set three goals which are due in 90 days. As the next meeting starts, companies must defend their accomplishment of those goals to their peer board. Failure to execute is not accepted lightly. HTG uses the “Survivor” model where non-performing companies are voted “off the island” in their individual groups. This is serious business. HTG members understand that each seat in their 12 member group has significant value and must be filled by a member that performs. So accountability is a key tenant of how HTG functions. Goals need to be set using the S.M.A.R.T. method so they can be fairly measured and evaluated.

No comments: