"Good to Great" is one of the highest selling business books of all-time with millions of copies sold and still about 300,000 each year. I will be the first to say that I like the book, and I am in particular agreement with author, Jim Collins' description of what he calls a Level 5 leader. However, there is portion of this book that I'm not too thrilled with, and whether you like it or not, I'm going to tell you why.
Let's first briefly describe what Collins' does in "Good to Great". Basically, Collins and a team of whiz kid graduate students from the University of Colorado determined a group of companies whose stock price outperformed the general stock market by at least 4 times over a fifteen year period.
Regardless of the fact that two (that I know of) of the "Good to Great" companies (Fannie Mae and Circuit City) have collapsed miserably with stock declines of about 80% for each, Collins and company made some useful observations about these companies that were successful for a sustainable period. However, I have a bit of a problem with their little people on the bus philosophy.
One of the biggest action items coming from this book was that you need to get the right people on the bus and if you don't have the right people on the bus, get rid of them. We have to remember that people are lazy, and if they read, skim, or just browse this book, they want to leave with items in their head to take back to the conference room. If the image in their mind is of a bus with a bunch of people that they like sitting quietly in their seats, well, that is what you are going to get.
While Collin's doesn't explain exactly what he means by getting the right people on the bus, I do know that there are going to be plenty of managers that think this means they need to break out the guillotine and get to work. Isn't that what managers do? If they ain't hirin', then they better be firin' or new career opportunities they'll be inquirin'.
I don't think this is what Collins' meant. I think he meant that great companies hire great people that are aligned with the core values of the company. And while this is excellent advice, it is not a remarkable discovery.
What I'm trying to say is that just because a manager doesn't like someone (for personal or professional reasons) or they are not the typical type of employee the company would hire, it doesn't mean that they should be kicked off the bus. The bus is full of a diverse group of skills, talents, and personalities. I don't think Collins should suggest that we get the right people on the bus, but rather, work toward figuring out the right mix of people to have on the bus.
I think the "Get the Right People on the Bus" mentality that people may walk away with from this book encourages autonomy and biased hiring and firing choices. I like what Collins has to say about Level 5 leadership, but this bus stuff is just a little bit off.
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I think you are doing exactly what Collins tried to prevent. You are getting way to specific.
ReplyDeleteWhat he was saying is: "Get the right people on the bus". A level 5 manager will get people on the bus that are the best for the COMPANY! You are describing someone that is looking for what is best for HIMSELF. Therefore he cannot be called a Level 5 manager. He isn't great (but he/she thinks he/she is) and will not be great and therefore the rules are irrelevant for him/her.
In my personal opinion there are 2 types of readers of the book and 2 messages:
Level 5 leaders (and everyone that is becoming one) are told they are on the right path and the path of the others isn't more succesful, it is more noticed by the rest of the world, that is all.
Level 4 and lower are getting a warning that they will never be as good as their level 5 competitors. "Please step away for the line" If they see a Level 5 leader come by, they at least know what hit them.
Not everyone can be a great artist like Van Gogh. The more you look at and copy the techniques he was using the less chance you have of becoming as great as him. You have to think as a great artist to become one.
Think as a Level 5 leader to become one, don't try to copy, or you'll stay only an connoisseur.
2 comments:
ReplyDeleteFirst, I think Collins was trying to suggest that it's important to get the "right people" on the TEAM, and not just to hire the person who possibly best fills the immediate needs of a particular position. I believe he was promoting a more long term view and that the people who will make the greatest contributions to the organzation over the long-haul ARE those with shared beliefs, etc. that have the skills to handle a variety of responsibilities within the organization.
On the other hand, I don't like the "bus" analogy. When I use this text for training or demonstation purposes, I take it to the next level and use a rowing scull as the analogy instead of a bus. A bus has one driver and a number of riders. The scull requires participation, contribution and teamwork by all of the players. I believe this gives a much more descriptive example of the key to success.
I tend to agree with Capser...I think that the concept of the bus may have escaped John. What Collins was trying to impart was that most companies staff according to immediate requirements as work load dictates, and the direction of the bus is determined by this. Collins suggested that if you get the right people on the bus before the bus moves, the direction will be determined by the greater synogy developed, i.e. more like a well-planned vacation as opposed to wandering around the country from place to place (although this in itself can make a good vacation, but not a good business).
ReplyDeleteCollins statistical analysis is a mess. It is data mining at its worst. If companies had simply succeeded or failed on a random basis he would picked the "winners" and then made a backward looking explanation to state why they were there.
ReplyDeleteCollins companies show a very strong return to the mean. Which indicates that at least some of the process may have been a little random.
If instead of taking companies who had succeeded, he had instead been able to point out companies with the requisite capabilities and done a reasonable job of picking future winners: that would have been impressive.
First, the bus analogy is for the C-level and near C-level within an organization. If you break the leadership team down within any organization, you have to ensure all the "seats" are full and even have a bit of overlap. The bus analogy has nothing to do with entry-level and front-line employees.
ReplyDeleteSecond, look into Packard's law. He stated it, not Jim Collins.
Third, about your comments regarding Circuit City and Fannie Mae, try reading How the Mighty Fall, Mr. Collin's hasty attempt to continue his research. Plenty of interesting and eye opening information there.
Just my two cents.
Having worked for an organization that took on Jim Collins in a consulting capacity I have my own thoughts on what he meant/did not mean in his book and what actually happens in an organization when they go down his path. While there a some good thoughts, an organization would do well to take what makes sense for their organization and ignore the rest. The organization in question is now approximately 1/10 the size it was and can be seen as not garnering success through adapting his philosophy. It is like any theory, the practical application has to work in context of the business the organization is in and the realities of forces that affect the business.It is not a checklist of steps to take, it is intended to provoke thought. Great leaders think, right?
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