The Chain of Greatness

As we reflect on these three great companies, we can see that there is clearly a pattern here, with some common denominators in both the ingredients and the process. This chain of greatness becomes reinforcing and perpetuating (see Exhibit 8.5). Leadership that instills across the company a vision of greatness and an owner's mentality is a common beginning. A philosophy of perpetual learning throughout the organization accompanied by high standards of performance is key to the value-creating entrepreneurial cultures at the three firms. A culture that teaches and rewards teamwork, improvement, and respect for one another provides the oil and glue to make things work. Finally, a fair and generous short- and long-term reward system, as well as the nec­essary education to make sure that everyone knows and can use the numbers, creates a mechanism for sharing the wealth with those who contributed to it. The results speak for themselves: extraordinary lev­els of personal, professional, and financial achievement.

Exhibit 8.4   Critical Aspects of the Johnsonville Sausage Company's Transition

1. It started at the top: Ralph Stayer recognized that he was the heart of the problem and recognized the need to change - the most difficult step.

2. Vision was anchored in human resource management and in a particular idea of the compan/s culture:

continuous learning organization

team concept - change players

new model of jobs (Ralph Stayer's role and decision making)

performance- and results-based compensation and rewards

3.   Stayer decided to push responsibility and accountability downward to the frontline decision makers:

frontliners are closest to the customer and the problem

define the whole task

invest in training and selection

job criteria and feedback = development tool

4.   Controls and mechanisms make it work

measure performance - not behavior, activities, and the like

emphasize learning and development, not allocation of blame

customize to you and the company

decentralize and minimize staff

Conclusion

Most successful small business owners have nimble and responsive orga­nizations. The demands of rapid growth will stress those organizations and challenge the entrepreneur to continually reinvent the management structure. The entrepreneurial organization today is flatter, faster, more

Exhibit 8.5  The Chain of Greatness

Vision

Leadership Big picture Think/act like owners Best we can be and

Results In

Achievement of personal and performance goals

Shared pride and leadership

Mutual respect

Thirst for new challenges and goals

t which

Perpetual Learning Culture

Train and educate High performance goals/standards Shared learning/teach each other Grow, improve, change, innovate

Widespread Responsibility/Accountability

Understand and interpret the numbers Reward short-term with bonuses Reward long-term with equity

Entrepreneurial Mind-Set and Values

Take responsibility

Get results

Value and wealth creation

Share the wealth with those who create it

Customer and quality driven flexible and responsive, and copes readily with ambiguity and change. It is the opposite of the hierarchical, layered management, and the more-is-better syndrome prevalent in brontosaurus capitalism. For you to distinguish your company as a high-value firm, you must be a leader in the entrepreneurial practices of marketing, finance, management, and planning. And you will be challenged as you grow! Remember, you will likely go through the Wonder, Blunder, Thunder, Plunder, and Asun­der (or Wonder again) stages. Establishing or maintaining a culture and climate conducive to entrepreneurship is a core task for the venture. In the process of growing your company you might create the kind of "chain of greatness" that people like David Neeleman, Jack Stack, and Ralph Stayer produced.

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