First Who Then What
“People are not your most important asset the right people are.” — Jim Collins
Just like the laws of physics govern nature, there are laws of management that govern building great companies that outlast individuals.
The transformation from being a Good and becoming a Great Company begins by first getting the right people on the bus and the wrong people off the bus before you can figure out where to drive it. Note: the idea is not just getting the right people on the team, the key point is asking the “who” questions before asking the “what” questions to guide your decisions. (“What” questions are like what is the vision, strategy, organization structure, tactics.) To build a lasting great business constantly apply the principle of first “who then what” as a rigorous discipline. Whether someone is the “right person” has more to do with character traits and innate capabilities than with specific knowledge, background or skills.
How to become rigorous in people decisions
Discipline #1: Packard Law — No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth and still. (So-called because it was first learned in a previous research project from David Packard, co-founder of the Hewlett-Packard Company.) Those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology or competition, or products, it is only one thing above all: the ability to get & keep enough of the right people. This would explain why year in year out great companies (most companies) search for the best talents and attempt to keep them. When in doubt, don’t hire — keep looking. (Corollary: a company should limit its growth based on its ability to attract enough of the right people)
Discipline #2: When you know you need to make a decision or change Act. letting the wrong people hang around is unfair to the right people as they inevitably find themselves filling for the inadequacy of the wrong people. Waiting too long is also unfair to the wrong people at the time and effort could have been spent well finding where they fit well. In summary, the moment you feel the need to manage or be managed, you have made a hiring mistake. The right people don’t need to be managed rather guided, taught and led. When you know that you need to make a people change, act! (Corollary: first be sure you don’t really have someone in the wrong seat.)
Discipline #3: Put your best people on your best opportunities, not your best problems. Managing problems can only make your good whereas building your opportunities is the only way to become great. This point is well illustrated by Phil Knight in his book Shoe Dog which captures the evolution of Nike Inc.
The right people want to be part of building something great. Next time you are looking for an internship or Job or hiring people to remember to look for “who before what” as this will lead to greater success fitting the shoe?
This article series is not a stand-alone work of the consulting club rather a vivid reflection of the great work by Jim Collins in his book Good to Great. The book is an amazing read recommended to all business executives and students that uncover through 5-year research on what enables a company’s transformation and transition from being good at what they do to Great. Since this is a fairly long book over 300 pages we shall recap in a series of reads.
