Good to Great Review

Jim Collins and his research team have done a wonderful job identifying what it takes for a company to go from good to great. I found this book to be extremely interesting and would like to share several of my thoughts.

I agree with Jim Collins when he states that people can develop into level 5 leaders. The main focus of a level 5 leader is not on themselves, but on the company and how they can make it great. People need to find that cause, work, or activity that pulls the level 5 out of them. If you’re not doing something that you are passionate about, you can never become a level 5 leader. Level 5 leaders will do whatever it takes to make their company great, and finding that something special you care about will help you in becoming a level 5 leader.

I think most people think of great leaders as very famous, wealthy, charismatic, and powerful. This is probably why many level 5 leaders aren’t chosen for top spots in organizations. Many people feel that these big, outspoken, much publicized leaders are going to be the best for an organization. When, as Jim Collins has pointed out, that couldn’t be further from the truth.

It’s interesting to read about the great leaders discussed in this book and that they are very different from what most people think. Many great leaders are quiet, shy, reserved, and modest. I had never heard of any of the good to great CEO’s that Jim Collins talks about in this book. It’s too bad they weren’t more well known which might have influenced other CEO’s to follow some of their methods and ideas to transform more companies to great.

Getting the right people on the bus (and in the right seat), getting the right people off the bus, and then deciding where to drive it are important concepts that the author has frequently referenced. These concepts are essential to a company if they want to become great. A great quote from the book is “People are not your best asset, the right people are.”

So how do you know if you have the right people? It starts with the hiring process. I love the idea of hiring outstanding people whenever and wherever you find them, even if you don’t have a specific job for them in mind. Wells Fargo has a great approach to hiring. They hire the best people they can find, build them into the best managers in the industry, and accept the fact that some of them will be recruited to become CEO’s of other companies. Hiring people outside of your industry can also be another good way to get great people. They may not know much about your industry, but if they have the potential to become a level 5 leader based on successful prior experiences, they can adapt and potentially become a great asset.

Incentive shouldn’t play a part in getting the right people on board your bus. If you find the right people, they will be motivated, not by the incentive system of your company, but by the work they are doing and the desire to make the company great. The right people will do the right things and deliver the best results regardless of the compensation they are getting.

Companies need to hire self disciplined people. If you hire these people, they don’t need to be managed and leaders can focus on managing the system. Companies must find people that understand they have a responsibility and not just a job. People who understand that they have a responsibility will be self motivated to fulfill all the responsibilities they were hired to do. People who just have a “job” will show up and not care if the organization is successful or not. Hiring people who “rinse their cottage cheese” is one way to make sure you have the right people in your organization. People need to understand the organization’s Hedgehog Concept and having the discipline to only operate within those three circles. Knowing what is and what isn’t important for your business to be the best is crucial.

I have talked before about my old company and how they would just pick up anyone and allow them to get on the bus. What a mistake for the company to do this. I had doubts about one person we hired. She ended up being a cancer to our department. She didn’t get along with anyone, her work was always incorrect, and she complained about everything she did. This was not the right person to hire. If you’re ever in doubt about hiring someone, don’t hire them. Keep looking and wait for someone who you think will be great. Your company will be better off in the long run.

Good to great leaders create an environment where people have the opportunity to be heard. A good way that leaders can do this is by asking questions. Leaders should not have all of the answers. They need to hear from the