Chapter 4 - Confront the brutal facts (yet never lose faith)
- There is nothing wrong with pursuing a vision for greatness. After all, the good-to great companies also set out to create greatness. But, unlike the comparison companies, the good-to-great companies continually refined the path to greatness with the brutal facts of reality.
- Indeed, for those of you with a strong, charismatic personality, it is worthwhile to consider the idea that charisma can be as much a liability as an asset. Your strength of personality can sow the seeds of problems, when people filter the brutal facts from you. You can overcome the liabilties of having charisma, but it does require conscious attention.
- Yes, leadership is about vision. But leadership is equally about creating a climate where the truth is heard and the brutal facts confronted. There's a huge difference between the opportunity to "have your say" and the opportunity to be heard. The good-to-great leaders understood this distinction, creating a culture wherein people had a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
- Leading from good to great does not mean coming up with the answers and then motivating everyone to follow your messianic vision. It means having the humility to grasp the fact that you do not yet understand enough to have the answers and then to ask the questions that will lead to the best possible insights.
- Like Nucor, all the good-to-great companies had a penchant for intense dialogue. Phrases like "loud debate", "heated discussions", and "healthy conflict" peppered the articles and interview transcripts from all the companies. They didn't use discussion as a sham process to let people "have their say" so that they could "buy in" to a predetermined decision. The process was more like a heated scientific debate, with people engaged in a search for the best answers.
- When you conduct autopsies without blame, you go a long way toward creating a cliamte where the truth is heard. If you have the right people on the bus, you should almost never need to assign blame but need to search for understanding and learning.
- Indeed, we found no evidence that the good-to-great companies had more or beter information than the comparison companies. None. Both sets of companies had virtually identical access to good inforamtion. The key, then, lies not in better information, but in turning information itno information that cannot be ignored.
- Scott Paper's and Kimberly-Clark's differing reactions to P&G bring us to a vital point. In confronting the brutal facts, the good-to-great companies left themselves stronger and more resilient, net weaker and more dispirited. There is a sense of exhilaration that comes in facing head-on the hard truths and saying, "We will never give up. We will never capitulate. It might take a long time, but we will find a way to prevail."
- The stockdale paradox - Retain faith that you will prevail in the end, regardless of the difficulties. and at the same time, Confront the most brutal facts of your current reality, whatever they might be.
*chapter summary*
- All good-to-great companies began the process of finding a path to greatness by confronting the brutal facts of their current reality.
- When you start with an honest and diligent effort to determine the truth of your situation, the right decisions often become self-evident. It is impossible to make good decisions without infusing the entire process with an honest confrontation of the brutal facts.
- A primary task in taking a company from good to great is to create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
Creating a climate where the truth is heard involves four basic practice:
1. Lead with questions, not answers
2. Engage in dialogue and debate, not coercion.
3. Conduct autopsies, without blame.
4. Build red flag mechanisms that turn information into information that cannot be ignored.
- The good-to-great companies faced just as much adversity as the coparison companies, but responded to that adversity differently. They hit the realities of their situation head-on. As a result, they emerged from adversity even stronger.
- A key psychology for leading from good to great is the Stockdale Paradox: Retain absolute faith that you can and will prevail in the end, regardless of the difficulties, AND at the same time confront the most brutal facts of your current reality, whatever they might be.
- Charisma can be as much a liability as an asset, as the sterngth of your leadership personality can deter people from bringing you the brutal facts.
- Leadership does not begin just with vision. It begins with getting people to confront the brutal facts and to act on the implications.
- Spending time and energy trying to "motivate" people is a waste of effort. The real question is not, "How do we motivate our people?" If you have the right people, they will be self-motivated. The key is to not de-motivate them. One of the primary ways to de-motivate people is to ignore the brutal facts of reality.
