Download - Team 3
Good to Great
Cal WallaceIsabel CastanedaPat McGregor
Ch 3First Who Then What
First get the right people on.Then figure out where to drive it.
Ex. Wells Fargo- 70s CEO Dick Cooley built the most talented
management team in the industry Ex. Bank of America- weak generals,
strong lieutenants
Right people on, wrong people off and where to drive
toThoroughness needed of people decisions in order to take the
company from good to great.
Company is a platform for the talents of an extraordinary
individualThe genius does not want a team, only good followers to
implement great ideas. Ex. Eckerd Corporation- drugstore empire and
the fall of the empire
Most would think compensation is key in going from good to
great. People dont do what you tell them to do, people do what you
pay them to do FALSECollins found no systematic pattern in the
process of good to great.
No systematic differences on the use of stock, high salaries, bonus incentives, or long-term compensation.If you have the right executives on the bus, they will do anything to build a great company.i.e. Nucor, and most recently AIG
Good-to-great companies are rigorous not ruthless.Ruthless
hacking and cutting people without thoughtful
consideration.Rigorous consistently applying exact standards at all
times and at all levels.I.e. Wells Fargo Crocker
consolidation
How to be rigorous (3 principle disciplines)When in doubt, dont hire keep looking.When you know you need to make a people change, act.Put your best people on your biggest opportunities, not your biggest problems.
Balance Your Life(Colman Mockler CEO Gillette)with the right
people around you can do the things you enjoy.Stay activeLove Your
JobGeorge Weissman (Phillip Morris)Another passionate marriage of
his life.the hall of wizards was
I never had anyone in Kimberly-Clark in all of my forty-one years say anything unkind to me. I thank God the day I was hired because Ive Been associated with wonderful people. Good, Good people who respected and admired one another.
Dick Appert (Kimberly-Clark) p62
INTRODUCTION
PRACTICAL DISCIPLINES FOR RIGOROUS DECISION MAKING
Get the right people on the bus and the wrong ones off.First Who,
then What, as a disciplineGenius with a thousand helpers, usually
deteriorates. Rigorous not Ruthless, with difficult
decisions.
When in doubt, dont hire- keep looking. Act on people changes, or
change seat placement.Put your best people on the biggest
opportunities,
GOOD TO GREAT COMPANIES
Debate for the best answers, yet also unifyExecutive compensation
is not a motivational tool it keeps them there.
The right people are your most important assetThe right person is
those with good character, background, knowledge, and
skills.
Collins, Jim (2001). Good to Great. New York, NY:
HarperCollins.