Yesterday I finished reading In Search of Excellence: Lessons From America’s Best-Run Companies  by Tom Peters and Robert Waterman. Tom was interviewed by Ryan Hawk on The Learning Leader Show, and after listening to that interview, I decided the book would be worth reading even though it was first published in 1982. Despite the age of the book and a few references to some companies that aren’t nearly as excellent almost 40 years later, there were still some great lessons to be learned about how to lead not only businesses, but any type of organization.

The thing that may have stuck with me most was this list of the 7 dominant beliefs of excellent companies. As I read through that list, I thought each of them very much applied to organizations of all types, and that is why I want to share them here with you. That being said, let’s get down to it.

Excellent Companies Share A Belief….

In being the best – This is a belief that is echoed in Jim Collins’ Good to Great when he discusses the “hedgehog” concept. Collins asks, “What can your company be the best in the world at?” It doesn’t necessarily mean we have to believe that we will be the best business, school, or organization in the world, but it certainly means we need to have a belief that we will be the best at something. Identify what that thing is, and go all in. Believing that we are the best at something is motivating. It instills pride in us. It challenges us to push harder, and it challenges us to stay on top of the changes that are constantly coming at us. Excellent organizations share a belief in being the best at something.

In the importance of the details of execution, the nuts and bolts of doing the job well – We have to be able to execute. That’s a simple concept. We also have to have high expectations for everyone in the organization. If your people lack the knowledge and skills needed to execute, you have to invest in the necessary training. It does us no good to aim at being the best if we cannot execute on the tasks that will get us there. Excellent organizations have extensive onboarding processes, and they continuously develop their people because without those things, execution will suffer. Identify the skills needed to ensure excellence within your organization, and train your people accordingly.

In the importance of people as individuals – Hire great people, and trust them to do the work they have been asked to do. There is no room for micromanagement in excellent organizations! As Shane Snow recommends in his book, Dream Teams, hire an intellectually diverse team, and create an environment where they can thrive. Value their opinions, and listen to their ideas. We may not use every one of their ideas, but they deserve an ear.

In Superior quality and service – Anything worth doing is worth being done with our best effort. We cannot accept “good enough.” It either meets the standard, or it doesn’t. Have high standards. Communicate those standards often. Create a belief among your people in the importance of providing superior quality and service. One of the things that frustrated me as I read this book was the authors’ discussion of McDonald’s. Apparently, in 1982, McDonald’s was at the top of its game. As I read about their focus on quality and service, I couldn’t help but wonder what has happened to that company because “quality and service” aren’t even close to the words I would use to describe any of my experiences with them in the last several years. If you truly value something, It should be at the forefront of everything you do.

That most members of the organization should be innovators and that the company must be willing to support failure – Steve Jobs once said, “We hire really great people, and we create an environment where people can make mistakes and grow.” Do people feel comfortable trying something new in your organization? If they try something new, and it doesn’t go well, how do you respond? I’ve worked for people that would say, “You should have known better” or “I wish you would have talked to me first.” If every idea has to be run by the boss, you end up in gridlock. I don’t remember which leader it was, but he said something along the lines of “I have to push YES as far as I can down into the organization. If I am the only one who can say yes, we aren’t going to get very much done, and we are going to miss out on a lot of opportunities.” Who has the power to say “yes” in your organization?

In the importance of informality to enhance communication – If the chain of command is too rigid, communication slows down. The authors talk repeatedly about MBWA, the concept of “management by walking around.” The “leaders” should be interacting with the front line employees. Get to know them. Get to know what it is that the leadership can do to make their jobs better. Front line employees should feel comfortable expressing their ideas and concerns with those at the top of the organization. The only way that happens is if we eliminate the bureaucracy that creates barriers to this type of communication.

In the importance of economic growth and profits – This was a tough one for me for one simple reason. I work in education. Profit isn’t a thing. Then I thought back to something I read last week in Jon Acuff’s Do Over. He says, “Every job has a currency.” That makes sense to me. No matter what your organization does, it has a currency; a quantifiable measure of success. Once I thought about it that way, it made a lot more sense to me. What makes your organization “profitable?” We cannot lose sight of what it is that makes us profitable. If we do, our organization could cease to exist.

That’s quite a bit to take in. There are a couple of things that I think are really important here. First, these 7 things can relate to any company or organization. Second, and more importantly, your organization has to nail down its values and beliefs, and those values and beliefs have to be shared by everyone within the organization. That’s when great things can start happening.

One last thought!

I know this has been a long one, but I’d be really frustrated with myself if I left this thought out. As I read through the rest of the book, one theme came up over and over again in “excellent” companies… PEOPLE. Nothing happens without PEOPLE. Hire great ones. Invest in them. Take care of them. Recognize them for their contributions. No matter what business you are in, you are in a PEOPLE business.

Thank you so much for taking the time to read my blog today. If you enjoyed it or got something out of it, I’d love it if you shared it with someone else.

See you next week!