1.2 First Who…Then What

The Importance of the Right People

In the second section of "Good to Great," Collins delves into the importance of getting the right people in an organisation before deciding on a direction. He states, “The executives who ignited the transformations from good to great did not first figure out where to drive the bus and then get people to take it there. No, they first got the right people on the bus (and the wrong people off the bus) and then figured out where to drive it.”

Three Simple Truths

Collins outlines three fundamental truths understood by good-to-great leaders:

1. Adaptability: Starting with the right people makes it easier to adapt to a changing world.

2. Motivation: Having the right people eliminates the need to motivate and manage extensively.

3. Necessity of Right People: Without the right people, even the best vision will fail. Great vision without great people is irrelevant.

In simpler terms:

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

Collins emphasises that the right people will inherently do the right things to achieve the best results, regardless of the incentive system. He notes, “The purpose of a compensation system should not be to get the right behaviours from the wrong people, but to get the right people on the bus in the first place, and to keep them there.” The focus should be on hiring and retaining the right people, as they are the most important asset in a good-to-great transformation.

Identifying the Right People

In identifying the right people, good-to-great companies prioritised character attributes over specific educational background, practical skills, specialised knowledge, or work experience. Attributes like character, work ethic, basic intelligence, dedication to commitments, and values were deemed more important.

Rigorous, Not Ruthless

Good-to-great companies maintain rigorous cultures by consistently applying high standards at all levels, especially in upper management. Collins explains, “To be rigorous, not ruthless, means that the best people need not worry about their positions and can concentrate fully on their work.” Removing the wrong people is crucial to avoid burdening the achievers with non-performers.

Practical Disciplines for a Rigorous Culture

Collins outlines three practical disciplines to ensure a rigorous culture:

1. When in Doubt, Don’t Hire - Keep Looking:

• Do not compromise; find other ways to manage until the right people are found.

1. Act When a People Change is Needed:

• Removing the wrong people promptly is fairer to the right people and prevents them from compensating for inadequacies. Two key questions to guide this decision:

• If it were a hiring decision, would you hire the person again?

• If the person decided to leave, would you feel disappointed or relieved?

1. Put Your Best People on Your Biggest Opportunities, Not Your Biggest Problems:

• Focus on leveraging your best people on the greatest opportunities to maximise impact, rather than using them to solve the biggest problems.

Summary Points: First Who…Then What