Good to Great to Gone

[Vigilante]

The following is an interesting excerpt from a book called "Good to Great to Gone," written by the son of the founder of the now defunct Circuit City. This prologue is the summation of his advice from the rise and fall of one of the United States greatest retailers.

Be Humble, Run Scared: Continuously doubt your understanding of things. Business success contains the seeds of its own destruction. Worry about what the competition knows that you do not. Andy Grove, the legendary co- founder of Intel, got it largely right in his book Only the Paranoid Survive.

Curiosity Sustains the Cat: The world is constantly changing. Be open and curious and strive to learn from others. Continuously try to understand the market and the changing economic, demographic, and other relevant forces at work that impact your business. Study your competitors. They may have insights and practices worth emulating or refining.

Evidence Trumps Ideology: In business, as in politics, decisions are too of- ten based on unproven assumptions about what works and what doesn’t. We all need operating assumptions about human nature, the economy, and the like, but when things do not work out as planned, we need to determine whether our assumptions were based on evidence or ideology. Evidence about the real world trumps ideological assumptions every time.

Confront the Brutal Facts:: The worst person you can fool is yourself. Ig- noring or denying reality does not help it go away. Once you understand the issues, be bold enough to take decisive action.

Chase the Impossible Dream: Do not be limited by what Collins and Por- ras, the authors of Built to Last, call the “Tyranny of the OR.” Be willing to embrace the “Genius of the AND.” Two worthwhile goals that seem mutually exclusive can inspire an organization of “ordinary” employees to achieve extraordinary results.6

Maintain a Current Road Map: If you don’t know where you are going, any road will take you there. Regular strategic planning based on how the company relates to its external environment, including the economy, competition, and the customer, is essential to success.

Boldly Follow Through: Big ideas require bold leadership and attract loyal followers. The effort comes to naught if the execution is tentative or not well disciplined.
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Mind the Culture: Create a caring and ethical culture where employees can make mistakes without fear of adverse consequences. Beware of employees who are more concerned about their own success than the success of the business. Understand, exemplify, and reinforce the company’s positive his- tory and culture.

Pass the Torch with Care: Succession is critical. Most companies cannot withstand successive top management failures. CEOs need to select and groom their successor with care. Boards need to be bold enough to replace the CEO when necessary and to take the time to be sure the right succes- sor is in place.

Encourage Debate: Learn from dissent. Involve senior staff and the board of directors in an open process to find the best answer. Create a board that will raise thought-provoking questions and challenge management to justify its plans.

Keep It Simple and Accountable: Develop a clear and well-articulated set of policies for dealing with customers, suppliers, and employees. For any organization to succeed it is essential that each and every employee internalize the company’s goals and values. Employees should also be held accountable and incentivized to pursue those goals and values every day.

Focus on the Future: Manage for the long term and not the short. Don’t let short-term earnings swings divert a long-term strategy. Ignore the skeptics and short-term market gyrations. If things go well, the value of your company, whether public or private, will respond over time.

 

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[Vigilante]

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