Chapter 3: First Who…. Then What Group3 John Wise Ethan Noble Jacob Weems Charles Hodges Amanda 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

 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”

 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

 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 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

 Never compromise  Circuit City vs. Silo

 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.

 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.

 Is it possible to be wildly successful and have a well rounded life?  Surround yourself with the right people.  Balance=Success

◦ 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