Cal Wallace Isabel Castaneda Pat McGregor Team 3 Cal Wallace Isabel Castaneda Pat McGregor

Good to Great Jim Collins Ch 3 First Who… Then What

The Bus First get the right people on. Then figure out where to drive it. Ex. Wells Fargo- 70’s CEO Dick Cooley built the most talented management team in the industry Ex. Bank of America- “weak generals, strong lieutenants”

Main Point Right people on, wrong people off and where to “drive” to Thoroughness needed of people decisions in order to take the company from good to great.

Not a “Genius with a Thousand Helpers” “Company is a platform for the talents of an extraordinary individual” The “genius” does not want a team, only good followers to implement great ideas. Ex. Eckerd Corporation- drugstore empire and the fall of the empire

It’s Who You Pay, Not How You Pay Them Most would think compensation is key in going from good to great. “People don’t do what you tell them to do, people do what you pay them to do” – FALSE Collins found no systematic pattern in the process of good to great.

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

Rigorous, Not Ruthless 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

Rigorous, Not Ruthless How to be rigorous (3 principle disciplines) When in doubt, don’t 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.

First Who, Great Companies, and a Great Life Balance Your Life (Colman Mockler CEO Gillette) with the right people around you can do the things you enjoy. Stay active Love Your Job George 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 I’ve Been associated with wonderful people. Good, Good people who respected and admired one another.” Dick Appert (Kimberly-Clark) p62

Practical Disciplines for Rigorous Decision Making Review 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 discipline “Genius with a thousand helpers,” usually deteriorates. “Rigorous not Ruthless,” with difficult decisions. “When in doubt, don’t hire- keep looking.” “Act on people changes,” or change seat placement. “Put your best people on the biggest opportunities,”

Good to Great Companies Summary Good to Great Companies “Debate for the best answers, yet also unify” “Executive compensation is not a motivational tool it keeps them there.” “The right people are your most important asset” “The right person is those with good character, background, knowledge, and skills.”

Work Cited Collins, Jim (2001). Good to Great. New York, NY: HarperCollins.