Paul Salazar

A review of the new Jim Collins book “Great By Choice”

I admit it. I’m a total Jim Collins fanboy.

Ever since my friend Paul Salazar first introduced me to the book Built to Last back in 2002, I’ve been a willing member of the cult of Jim Collins. During my time at Red Hat, we took some of the ideas from Built to Last as inspiration for the process we used to uncover the Red Hat values. Then we later employed many of the principles from Collins’ next book Good to Great as we further developed the Red Hat positioning, brand, and culture.

Check out this picture of my copies of Built to Last and Good to Great, with little Red Hat Shadowman stickies marking the key sections I refer to the most. (I’m such a nerd.)

While many of the Big Concepts (TM) expressed in these books may initially seem a bit cheesy and Overly Branded (TM), I’ve come to love and occasionally use some of the terms like BHAGs (Big Hairy Audacious Goals), the Tyranny of the OR, Level 5 Leadership, and my longtime favorite The Hedgehog Concept. Why?

Because they are just so damn useful. They make the incredibly complex mechanics behind successful and not-so-successful organizations and leaders simple and easy for anyone to understand. They are accessible ideas and you don’t have to be a former management consultant with an MBA from Harvard in order to understand how to apply these principles to your own organization.

I’d go so far as to say that over the past fifteen years, no one has done more than Jim Collins to democratize the process of creating a great organization.

So when I found out that Jim Collins had a new book coming out, his first since the rather dark and depressing (but no less useful) How the Mighty Fall in 2009, and that he’d been working on this new book with his co-author Morten Hansen for the last nine years, I was ready for my next fix.

I finished the new book, entitled Great by Choice: Uncertainty, Chaos, and Luck–Why Some Thrive Despite Them All a few nights ago, and here are my thoughts.

This book comes from the same general neighborhood Collins explores in his previous books (I’d describe this neighborhood as “what makes some companies awesome and others… not so much”), but instead of simply rehashing the same principles, this book explores a particularly timely subject. From Chapter 1, here’s how Collins and Hansen set up the premise:

“Why do some companies thrive in uncertainty, even chaos, and others do not? When buffeted by tumultuous events, when hit by big, fast-moving forces that we can neither predict nor control, what distinguishes those who perform exceptionally well from those who underperform or worse?”

In other words, what common characteristics are found in companies that thrive when the going gets wacky? (Times like, for instance… right now.)

In this book Collins and Hansen clearly did an immense amount of research to answer this question. In fact, as with Built to Last and Good to Great, the appendixes at the end “showing the math” for how they reached their conclusions take a third or more of the book.

Their research led to a set of companies that they refer to as the “10x” cases because, during the study period, these companies outperformed the rest of their industry by 10 times or more. After looking at over 20,000 companies, the final organizations that made the cut were Amgen, Biomet, Intel, Microsoft, Progressive Insurance, Southwest Airlines, and Stryker.

Now you may look at this list, as I did, and say to yourself, “Okay, I get Southwest Airlines and Progressive Insurance… but Microsoft????”

Well, as it turns out, the period they were studying wasn’t up until the present day. Because this research began nine years ago, they were studying the companies from 1965 (or their founding date if it was later) until 2002. So in that context, the choice of Microsoft makes a lot more sense. In 2002, Microsoft was still firing on all cylinders (believe me, I remember).

I won’t spoil the whole book for you, but Great by Choice has an entirely new set of Big Concepts (TM) that will help you understand the characteristics that set these companies apart from their peers. This time around, we are introduced to:

–The 20 Mile March: Consistent execution without overreaching in good times or underachieving in bad times.
– Firing Bullets, Then Cannonballs: Testing concepts in small ways and then making adjustments rather than placing big, unproven bets (basically akin to the open source principles of release early, release often and failing fast). But then placing big bets when you have figured out exactly where to aim.
– Leading above the Death Line: Learning how to effectively manage risk so that the risks your organization take never put it in mortal danger.
– Return on Luck: My favorite quote from the book perfectly articulates the concept: “The critical question is not whether you’ll have luck, but what you do with the luck that you get.”

Many of these concepts come with an awesome allegorical story to illustrate them. That’s the great thing about a Jim Collins book: you can’t always tell whether you are reading a business book or an adventure book. In this case Collins (who is also an avid rock climber himself) shares tales from an ill-fated Everest expedition, the race for the South Pole, and a near death climbing experience in Alaska interspersed with specific stories from the businesses he is profiling.

Overall assessment: The book is a fitting companion to Built to Last, Good to Great, and How the Mighty Fall. Simple, accessible, easy to digest, and with some very actionable key concepts that you can immediately put to use. And, unless you read all of the research data at the end, you’ll find it to be a quick read that you can likely finish on a plane trip or in an afternoon.

So go on, pick up a copy and let me know if you agree.

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The Wikimedia Foundation: doing strategic planning the open source way

Earlier this week I wrote a post about some of the cultural challenges Wikipedia is facing as its contribution rate has slowed. The comments you made were fantastic, including one by Dr. Ed H Chi (the PARC scientist who published the study I referred to in the post) linking to a prototype dashboard his team created to showcase who is editing each Wikipedia page (totally fascinating—you have to go try it!)

Another interesting comment was made by my good friend Paul Salazar, who pointed us to this page where the Wikimedia Foundation (the parent organization that runs Wikipedia, among other projects) is showcasing their exhaustive, happening-as-we-speak strategic planning process in all of its transparent, open glory.

From the main page, you can read the entire strategy memo that was presented to the Wikimedia Foundation board just last month. The memo itself is stunningly smart. Google must have thought so too, because they made a $2 million donation to the Wikimedia Foundation, announced a few weeks ago.

But it doesn’t stop at high-level strategy for the eyes of muckety-mucks. From this page you can find proposals (hundreds were submitted, and just like on Wikipedia, anyone could contribute), background research, and task forces that have come together to discuss some of the major strategic challenges outlined in the initial strategic plan.

[Read the rest of this post on opensource.com]

The story of how we uncovered the Red Hat values

One of the first things many new employees notice when they step inside Red Hat is how deeply held our corporate values are within our walls and how much they impact behavior within the company. The values aren’t just words to most Red Hat folks, and they show up in conversations and in actions on a daily basis. Today we probably take for granted that it has always been that way.

The four Red Hat values, in balance.

But it wasn’t. Back in 2002, I was one member of a team tasked with figuring out Red Hat’s corporate values. At that time, the company was still pretty small– about 500-600 employees.

I must admit at first I was pretty jaded about the whole corporate values business. The concept of corporate values made me think of those Successories motivational posters with a photo of a bear in the middle of a stream with a fish in his mouth and a word like “ACHIEVEMENT” in all caps at the bottom. Or whatever. Most corporate values systems didn’t seem authentic to me or were just plain lame.

The values team was made up of a cross section of folks from across Red Hat: Sean Witty, who did biz dev and M&A; Mark Cox, a security guru who is still at Red Hat; Jeremy Hogan, one of the original Red Hat community managers but who at the time was working in support; Paul Salazar, who I’ve written about before in this blog here; Jonathan Opp, who is still in the Red Hat brand team and did a lot of the original writing of the values descriptions; and myself.

We quickly decided we didn’t want Red Hat to end up with just some lame words to put on posters. We wanted to do this values stuff right.

Paul Salazar knew Jim Collins from Stanford, and encouraged each of us to read Collins’s book Built to Last (which is one of the Top 10 Books behind Dark Matter Matters). In it, Collins talks about the characteristics common to great, enduring corporations. According to him, the most important thing great companies shared was having deeply held values and core purpose. From the book:

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Measuring dark matter? We’re working on it.

Those of you who have been following this blog for a while know it is based on the simple premise that there are some things out there in the world that are pretty difficult to see or measure, yet these same things can often be the stuff with the biggest impact. The intro to the blog tells the full story.

In the world of astronomy, two of these things are dark matter and dark energy. Both hard to see and measure.

In the world of business, three of these things are brand, culture, and community. Also tough to see and measure their impact in the business world.

So while we constantly explore ways to better understand the impact of brand, culture, and community here at Dark Matter Matters, the world of astronomy is trying to better understand exactly what the heck dark matter and dark energy are.

Thought it might be worth taking a short break from our regularly scheduled program to give an update on how the astronomers are doing.

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