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.