Thursday, April 24, 2008

I want to reach Level 5!

Jim Collins - Good to Great

"Greatness is not a function of circumstance, it’s a function of conscious choice and discipline.”

Jim Collins really focused on how to be great – outlining some of the traits of a great manager, steps to take to make your organization great, and how to be disciplined…

How organizations (bus analogy) become great…
1. The question we often ask first, and *shouldn’t*, is “where are we going to drive the bus?” The correct first question should be “what people should be on the bus?” and specifically “what people should be in the front row seats?” We also should know the answer to the following:
  • How many seats are on your bus?
  • How many seats are filled with the right people?
  • What are you going to do with those seats that are *not* filled with the right people?

    Six traits of people you want on your bus…
  • The right person fits with your core values coming in the door (this isn’t easily taught)
  • The right person does not need to be tightly managed
  • The right person realizes they do not have a job, they have responsibilities. (Ask your staff to answer this – “I am the person ultimately responsible for a. ____ b. ____ and c. ____”)
  • The right person will do what they say they will do
  • The right person practices window and mirror maturity. They DO NOT point to others when things go wrong and to themselves when things go well. Instead, when things go wrong, they take responsibility and when things go right, they recognize their entire staff for a team effort.
  • They have passion for your cause

    When Jim Collins evaluated many businesses, the good and the great companies all had *good* leadership in place (see levels 1-4). The difference is, the great companies had Level 5 Leadership (the highest form of leadership).
  • Level 5 Executive – Builds enduring greatness through a paradoxical blend of personal humility and professional will. This is the leader who will do whatever it takes for the cause, and not for themselves.
  • Level 4 Effective Leader – Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards.
  • Level 3 Competent Manager – Organizes people and resources toward the effective and efficient pursuit of predetermined objectives.
  • Level 2 Contributing Team Member – Contributes individual capabilities to the achievement of group objectives, and works effectively with others in a group setting.
  • Level 1 Highly Capable Individual – Makes productive contributions through talent, knowledge, skills, and good work habits.

    2. Jim Collins also discussed the Hedgehog Concept for leaders and their organization. Imagine three circles interlocking in a triangular shape (making a common triangle in the middle). One circle represents passion for what you do, another represents being good at what you do (and wanting to be the best), and the third represents the economic denominator (can you make a living). Those that fall into all three and have that middle triangle shaded makes leaders great.

    3. Ying and Yang diagram – (you should never divert from your core values, but you should be willing to make changes and be flexible in how you get there)
    - Black – Preserve the core, preserve your core values and your core purpose. This is the standard that never changes, on which you base all your decisions.
    - White – Stimulate Progress, change according to cultural and operating practices, change goals and strategies, be flexible, be willing to evolve and meet new needs.

    4. One other thing – Jim Collins mentioned that 90% of good to great CEOs came from within and only 10% came from the outside (ergo, grow your own). Having said that, Collins also said that you shouldn’t put people in a leadership position or key seats until you have seen empirical value that they can actually do it.

    Culture of Discipline – only great companies have a true culture of discipline.
    “Disciplined people take disciplined thought and turn it into disciplined action.”

    Elements of Discipline –
    1. Enviable standards/performance, high expectations
    2. SMAC – Systematic, Methodic, and Consistent
    3. Disciplined action is not about having a to-do list, it about having a stop-do list. Those that are disciplined have a stop doing list for themselves, but also for their organization. In every strategic plan where organizations develop what they will start doing (or doing better), they also should have a list of what they will stop doing.

    Well, not as eloquent or dynamic as Jim Collins, but that’s the 411 on the morning session. Loved it! I was so motivated I walked to Barnes and Noble this evening to buy this book Good to Great (yes, to read it). They didn’t have it (darn…) but I did pick up what appears to be a sort of cliffs notes version that focuses on the social sector (schools, churches, educational facilities), as opposed to big business. It’s really good!

    He tasked all attendees to do the following once we left the session:
    1. create a stop-doing list
    2. think about who they want on their bus (I thought about it and heck, as long as there is a seat for me on Debi and Robert’s bus, I’m all good!)

    So, what would be on your stop-doing list? (besides making to-do lists that you never finish)

    Michelle
  • 3 comments:

    RK said...

    Jim Collins sounded really interesting and you did a good job of summarizing his philosophy. (I know we have his book because for some reason, Vinita wanted to read it about two years ago!)

    This is something I will talk to you more about once you get back but at the Leadership Academy, our teacher (former City Manager at Arcadia) said that when he was at Burbank, he created something called the "Division of the Dead". Here is the premise: He said that in a typical organization, if you graded your employees, it would look like a bell curve, with 10% on the right being your "stars", 80% in the middle being competent to very good, and then on the left, another 10% ("failures") whose sole purpose in life is to make yours miserable. What our teacher was saying was that as a leader, you need to do everything you can to keep the failures from infecting the 80%. (One reason people are "stars" are that they are self-motivated and need little guidance, much like what Collins is saying).

    Anyway, in Burbank, what our teacher did was create a "Division of the Dead". He found an abandoned hangar at the Burbank Airport, set up offices, and relocated the 10% there. Just physically removed them from the rest of the workforce. Didn't care what these people did. He knew that he couldn't fire them so he just isolated them. Some of this 10% changed into being competent, some left, and as far as he knows, some are still in the hangar.

    I just thought this was really interesting!

    Michelle said...

    This is hilarious! Hey, wait a minute, I better not find my desk has been moved to the doghouse or something when I get back!

    I can't believe he got away with this.

    Michelle

    Casey said...

    If you were motivated enough to go to B&N (!) to buy the book, Jim Collins' message must be fantastic. Some of his suggestions sound very intriguing. Now let's see, what would I put on a stop-doing list...maybe to never do homework on Sunday unless I must.