October-November 2004

Where does greatness come from? Going from good to great--7 must-haves

Fierce, but humble - the unlikely seeds of greatness?

What makes a company great? When such questions are studied deeply over a long time, the answers are often surprising. And this answer is no exception: it has a lot to do with the character of the company's leaders.

You’ve probably heard about the study done a few years ago that found only 11 out of nearly 1500 Fortune 500 companies that met criteria for greatness—yielding stock returns at least 3 times the market’s—for 15 years after a major transition period.

Iron-willed professional commitment to the long-term success of the company combined with profound personal humility—giving all the credit to others when things go well, and accepting all the blame oneself when they don’t—are the two qualities that were found in the CEO and key leaders of every company that fit the definition. No other single characteristic or combination of qualities—however strong or admirable—was found in every case of extraordinary performance over the long haul.

This most-appreciated article from the Harvard Business Review, called “Level 5 Leadership: The Triumph of Humility and Fierce Resolve” by Jim Collins, inspires quiet reflection among those who hear the stories. “Can someone teach you to become Level 5?” asks an executive who admits to being known for her powerful will but also for her strong propensity to give herself full credit for success.

Collins didn’t claim to have the answer on that, although he did postulate that people are either born with the seed for Level 5 or not—the latter group those who could “never in a million years…subjugate their own needs to…something larger and more lasting than themselves.”

And while Level 5 leadership is an essential factor in making a company great, other factors—all of which are enabled by Level 5 leaders—must co-exist. Briefly, here they are:

• 1. People first—find and put the right people in the right places


• 2. Be realistic, but hold a positive vision—all the time


• 3. Sustain momentum in your processes—don’t give in to reactionary changes


• 4. Focus on 3 simple thoughts, consistently and systematically—what can you be best at, how do your economics work best, what most turns your people on


• 5. Don’t waste money on technology, but neither should you hesitate to invest heavily in any that furthers #4.


• 6. Practice discipline. Disciplined people don’t need hierarchy. Disciplined thought eliminates bureaucracy. Disciplined action obviates excessive controls.

But don’t mistake bull-headedness for fierce resolve. And don’t mistake humility for weakness. And if you know one of these rare people, watch and listen carefully.

Sincerely,
Barbara

Some of what’s going on at ReallyGoodFreelanceWriter.com:

• Quoted in this month's print issue of Inside Business on how important newsletters are for successful marketing.


• Attended NEOhio event that featured top execs from the government's Medicare division


• This could be a much longer list if we mentioned the things we didn't get to this past month because we were so busy!