Good to Great (3)

The second factor of good-to-great company transformation is the “who” factor. A level 5 leader starts the transformation by looking for the right persons to accompany him at the executive level. Together they determine the company’s direction, strategy, and system. This is called “first who… then what” by Jim Collins. Consistent with this principle, the level 5 leader is then very decisive in getting the right persons in the bus and getting the wrong persons off the bus. However very decisive, the level 5 leader does this “getting in and getting off” in quite a sensitive and careful way. He is not a tyrant, though very committed to the “first who… then what” principle.

In managing people, a level 5 leader practices the following habits. First, he will not recruit a person if in doubt of his competence, although still monitoring him for a while. Second, if change has to be made, he acts immediately without delay. Third, he puts his best man in the most potential initiatives, not in positions with problems.

Decision-making lead by a level 5 leader can be full of discussions and debates. Nevertheless, after a decision is made, all adhere to it. Probably surprising is the fact that management compensation is not that important because the right persons are self-motivated. They do not need an excessive motivation measure. Last but not least, probably equally surprising is the fact that the right people are not determined by certain knowledge, background, and expertise, but more by character.