Vol. 2 — No. 1

Jim Collins and Kansas City: Can your company be great?

As many of you may have heard Jim Collins, renowned author of Good to Great, spoke in Kansas City on May 24. I recommend his book to many of my clients as a good primer to our strategic planning work. Mr. Collins does a great job of basing his strategic concepts on analytical insight while understanding the importance of the human spirit in success. Here are some highlights of what he shared with us at his recent presentation:

  • Greatness is not circumstantial—ever—but the product of disciplined people, thought and action. That requires planning and discipline to stick to the plan. Did you know that Southwest Airlines is the best returning publicly traded company from 1972-2002? Better than Wal-Mart. Their strategic model is exported into every nook and cranny of the company and all aspects of their operation are aligned to it.
  • People are the hedge against uncertainty in planning. According to Mr. Collins it is not that people are the most important attribute of your business as is commonly stated in mission and value statements around the country, but the RIGHT people are. Level 5 leaders are a key factor in great companies' success. They are not charismatic but lead with humility and demonstrate a burning passion for the business--not their own agenda. Their ambition is for the cause not themselves.
  • How do you know if you have the right people? Here is the litmus test:
    • They fit with your company's core values
    • They don't need to be tightly managed
    • They understand that they don't have a job but a responsibility
    • They recognize that there are only three options on commitment:
      • Fulfill it; die trying; or get absolved from it
    • They are a window (let it pass through) when they get the credit; they are a mirror (take personal responsibility) when things don't go well
    • They have a genuine passion for the organization and its cause
  • Disciplined thought is the unwillingness to capitulate in the face of challenging circumstances. It is the unique ability to confront brutal facts with an unwavering faith that you will prevail. In fact, success requires that you constantly seek out the hard data while remaining positive about your course of action. Mr. Collins cited the Stockdale Paradox, which demonstrated that prisoners of war who were unrealistically optimistic perished while those who confronted their circumstances and yet were able to remain committed to survival and eventual release were able to overcome and return home.
  • Great results are more often because a good program was executed brilliantly—not because the program was excellent. Many companies, when the going gets rough, look for a better option. According to Mr. Collins, the signal of mediocrity is chronic inconsistency or the constant search for an easier path. It is a constant tension between preserving the core and stimulating progress. His advice to us is to preserve the core values and strategic purpose and keep dynamic the culture, goals and operating practices. Therefore, every great business should have a stop doing list—the discipline to stay focused on what really matters.

As you approach your strategic planning, be sure you have defined your core purpose or strategic position, are clear on your corporate values, and have the right people in the right seats. Add in a passionate search for the brutal facts and discipline to execute a few well-chosen programs.... and enjoy the ride from good to great!