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Thursday, March 01, 2007

Myth Busters : Leadership & Management

Jim Collins busts many prevalent myths that pervade the art & science of management:
1. Entrepreneurs & Leaders : It's simply a myth that entrepreneurs can't evolve into company builders. He says research shows quite the opposite: In great companies the entrepreneurs generally grow as the company grows. Here is a short list of those who evolved into company builders: Henry Ford, Sam Walton, Hewlett and Packard, J.W. Marriott, Sony's Akio Morita, Walt Disney, Intel's Robert Noyce and Gordon Moore, Southwest Airlines' Herb Kelleher, and of course Gates and Phil Knight. They made the shift from time telling to clock building - to seeing their primary creation as the company itself: what it stands for, its culture and how it operates.

2. Success & Pride : He finds willful humility in the best CEO’s who display tremendous ambition for their company combined with the stoic will to do whatever it takes, no matter how brutal (within the bounds of the company's core values), to make the company great. They ascribe much of their own success to luck, discipline and preparation rather than personal genius.

3. Executive Compensation & Business Performance : He highlights that no correlation exists between executive compensation and shareholder returns. Excessive executive pay tends to lead to one thing: even more excessive pay, not increased shareholder value.

4.Entrepreneurs Start With A Great Idea : Research shows that there is a negative correlation between pioneering a great idea and building a great company. Starting a company is like scaling an unclimbed face - you don't know what the mountain will throw at you, so you must pick the right partners, who share your values, on whom you can depend, and who can adapt.

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