Making a Good Organization Great...
Organizations dependent on charismatic leaders often can't be sustained, particularly if the leader leaves, while executives "afflicted with charisma bypass" get things done on the basis of fact and logical arguments, and have organizations that prevail over time. This does not mean that charismatic leaders are doomed to failure in building enduring greatness
According to Jim Collins, the organizations have become addicted to the concept of good leadership. However, his research shows that greatness is not necessarily the result of charismatic, good leadership. Collins noted a negative correlation between charismatic leaders and great organizations.
Rather than depending on charismatic leaders, organizations can become great by following a process.
Organizations must develop a defining concept, or hedgehog, by determining
- Who are the right people
- What its people are most passionate about,
- By what it can do best in the market, and
- By the level of supporting resources at its disposal.
This needs patience since it can take four to five years, in an iterative process, to define the hedgehog
Disciplined people are a must. First decide who, then what. Many organizations say that people are their most important asset. That's not exactly accurate. The right people are organizations' most important asset. Organizations need to be rigorous, not ruthless, in finding and attracting the right people, When the right people are "on the bus,” organizations can figure out the best path to greatness
Great organizations achieve a culture of discipline in which the entire team focuses on the hedgehog. With this freedom in context, people do not require traditional management. "The moment you feel you need to manage someone, you've made a mistake,
- The secret to creating sustained greatness is, knowing what shouldn't be changed? And then changing everything else.