First who... then what

What makes a great leader? I find myself asking this question a lot lately as our company continues to grow and I look for new ways to provide value for Peppercom and its clients.

This morning, a friend and fellow marketing agency CEO (whom I respect) told me that the most important aspect of leading a successful company is people. He said that we all need to find ways to hold on to our “players,” recruit the best talent out there, and (as painful as it is) let go of those who simply don’t measure up. We've all heard the cliché "people are your number one asset." And, it's hard to argue with that point. But, I think it goes much deeper than this over simplified principle.

This conversation made me think about the headline of today’s post, which is actually stolen from Jim Collins' “Good to Great” book. For those who haven't read it (you should), it means that finding ambitious, talented people is an absolute necessity to become a good company. But, having those people in the right positions (based on what they do best) so that they can lead, is what really turns companies from good to great.

This is no easy task (as Jim points out). I've seen many companies (and some former clients) flounder with unbelievably talented and ambitious executives leading the charge. But, using Jim’s analogy, one has to question whether those executives were ever in the “right seats to drive the bus.”

At Peppercom, we have a plethora of talent (of which I'm extremely thankful for), and the work ethic and drive for our company to succeed sometimes amazes me. But, I can honestly say that it's only been in the last 2-3 years that we’ve had the foresight to ensure that most of our leaders are sitting in the bus seats that were truly created for their skill sets. And, that has made a huge difference in how we have evolved into a much more mature, focused organization.

What does that mean? Well, for starters my partner and I have been able to step out of what he refers to as “daily minutia” on critical aspects of our company like staffing, operations, management of our offerings and strategic development because we have leaders who have stepped up to the plate on each and thrive as well.

And, I hate to admit it… but sometimes they are even more effective at these singular responsibilities than either of us were. I think that the main point of this post is actually becoming quite clear now (at least for me). Companies can only continue to evolve and get better if their CEO(s) understand how to step out of their comfort levels to take on new responsibilities that are key for the next level of growth of the organization. And, leadership also means just getting out of the way of that fast moving bus because everyone is on board and it isn’t stopping anytime soon…

Comments

[Mariana Sarceda]

I totally agree with you. People is what makes a company something more than a name or building. Managers should always look for the best people in their companies in order to fulfill the objectives.

[Steve]

I think the most important line in your post, Ed, is that you "ensure[d] that most of our leaders are sitting in the bus seats that were truly created for their skill sets."

Too often, a person who is genuinely good at one thing is then moved into a role that plays against their strengths. This turns an asset into a liability. For example, a good creative person *may* also be a good account manager or client interface--but they very likely may not be. A person who's good at operational details and "making the trains run on time" may not be able to do marketing or manage a sales force. It's up to the top leadership in a company to--

1) deploy people where they add the most value, and ideally derive the most job satisfaction;

2) provide multiple meaningful career and promotion paths, so that people can grow professionally and economically in the way that's right for them.

A flaw that many organizations have is in only providing one or a few valid promotion paths, which channelizes everyone into the same narrow direction(s) if they want to advance--even if that's not the right direction for them, or for their contribution to the organization.