Good To GreatChapter 3: First Who…. Then What

Group3 John Wise

Ethan NobleJacob Weems

Charles HodgesAmanda Barrientes

People vs. direction

Three Simple Truths:◦ Who then what◦ Right people self-motivated◦ Great people > Great Vision

Wells Fargo◦ Injecting an endless stream of talent◦ CEO success

First Who…. Then What

Bank of America◦ Opposite approach◦ Weak generals, strong lieutenants◦ Plastic People

How is this new ?◦ 1.right people before choosing direction◦ 2.sheer rigor in people decisions

“You can’t fake it at Fannie Mae”

First Who… Then What cont’d

Not a “Genius With A Thousand Helpers”

Level 5 + Management Team

(good to great companies) Level 5 Leader

First Who Get the right people on the bus. Build a superior executive team.

Then What Once you have the right people in

place, figure out the best path to greatness

A “Genius With A Thousand Helpers”

(Comparison Companies)

Level 4 Leader

First What Set a vision for where to drive the

bus. Develop a road map

Then Who Enlist a crew of highly capable

“helpers” to make the vision happen

It’s Who You Pay, Not How You Pay Them

Does the amount and structure of compensation play a key role?

You can’t teach work ethic

The right people are the most important asset.

Rigorous not Ruthless “Rigorous means constantly applying exacting

standards at all times and at all levels.” (Good to Great)

Wells Fargo and Crocker Bank (1986)

First become rigorous about top management

Endless restructuring and mindless hacking doesn’t make a company go from good to great

Practical discipline #1: When in doubt don’t hire, keep looking.

Never compromise

Circuit City vs. Silo

Practical Discipline # 2:When you know you need to make a people change, act. The best people don’t need to be managed.

Attention spend on poor workers draw the attention away from the great employees.

It is unfair keep an unsuitable employee when he or she could flourish elsewhere.

Shift employees at the positions that they can be the most successful.

Take the time to make a rigorous A+ selection right up front.

Practical Discipline # 3: Put your best people on your biggest opportunities, not your biggest problems.

Managing your problems can only make you good, where as building opportunities is the way you become great.

It is not a question of what can be accomplished, but who can accomplish it.

A level 5 employee should be strong and challenge decisions, but should also meld that strength into doing what ever it takes for the company.

Remember that all debates should be for the common good of the company, not your own interests.

A Great Life Is it possible to be wildly successful and

have a well rounded life?

Surround yourself with the right people.

Balance=Success

Well Rounded?

◦ Member of the Business Roundtable in D.C.

◦ Director for the Peterson Institute for International Economics in D.C.

◦ Director of the FM Global Insurance Company

◦ Director of Alcoa◦ Director of IBM◦ Member of the President’s Advisory

committee for trade policy and negotiations

◦ Member of the White House Economic Recovery Advisory Board

◦ Serves on NC States board of trustees

Chairman and CEO Jim Owens