From Good to Great — by Dan Lynn
By Dan Lynn
Do you want to create a truly great company? Not just good but great? One of the best?
Well, we certainly don't know all of the answers. But one thing that has driven us across all of our business ventures is our burning desire to create truly great companies.
So, how do you start? Well, it starts by attracting and retaining the best and brightest talent in your industry - period. But how do you get the best talent? Believe it or not, there is a formula: The best place to work = the best people = the best clients = the best company. It all starts with creating the best place to work. That's how you get the best people, the best clients, and ultimately create the best company. So then, the question is really "how do you create the best place to work?". Our findings to date: First, the company must have a never-ending commitment to being the best. Every decision must be bounced up against the question - "What would a truly great company do on this issue?"
Second, you've got to say you are going to be the best right from the start - when it sounds funny to do so. Then, you've got to say you are the best before most people can even see that it has actually happened.
Third, you've got to be committed to measuring how good you really are on a regular basis and then putting a plan in place to improve the weaknesses. We recommend an annual survey. It can certainly be painful to learn the truth about how you are doing - but that's the only way to get better.
Fourth, you've got to have a core set of principals that you follow on a day-to-day basis. For us: 1) A clear and compelling vision for the future and a demonstrated willingness to make the tough decisions required to turn that vision into a reality. 2) Action vs. inaction - make things happen. 3) A culture of excellence - success, growth, innovative "want to change the world" solutions, hard work, attention to detail, refuse to lose, planning, financial management, and fun. 4) An unwavering respect for each individual. Loyalty, commitment to diversity, accountability, empowerment, recognition. 5) A never-ending desire to learn and a true willingness to be humble. 6) Open, honest and frequent communications at all levels in multiple forms. 7) A commitment to hiring only the best.
Questions this Key Learning answers
How do I build a company that attracts the best people?
The author’s formula begins with creating the best place to work: that attracts the best people, who help win the best clients and ultimately build the best company. This requires a constant commitment to excellence, respect for every individual, open communication, learning, accountability, empowerment, recognition, and hiring only the best.
How can leaders tell if employees truly like their workplace?
The author recommends measuring workplace quality regularly through an annual survey, even when the truth is painful. Our analysis adds that measurement matters only when leaders share what they learned and act visibly on weaknesses. Otherwise, employees may conclude that honest feedback changes nothing.
How do company values become more than words?
The author says principles must guide day-to-day decisions, including the tough choices required to turn a vision into reality. Our analysis emphasizes testing stated values when revenue conflicts with quality, a star performer mistreats colleagues, or bad news reaches leadership. What leaders decide under pressure reveals the company’s real values.