Good to Great

Collins opens this chapter by juxtaposing the examples of Wells Fargo and Bank of America. Wells Fargo, a good-to-great company, placed an uncompromising value on getting the right people on (and off) the bus, while at Bank of America senior leaders would often wait for orders from a CEO with a domineering way of running the company. The tangible results speak for themselves: Wells Fargo outperformed Bank of America in the stock market by a ratio of 5:1 in 1998.

Collins also brings up the leadership of David Maxwell, former Fannie Mae CEO, who led with a “first who” approach, making sure he had the right team before making any major decisions about vision or strategy. At comparison companies that never reached or sustained greatness, Collins found that CEOs would often rely on themselves for big-picture decisions and recruit people who would simply help in executing their predetermined strategy. Furthermore, comparison companies often became ruthless, relying on layoffs and firing in times of adversity. In contrast to these models, good-to-great companies were highly rigorous in trying to maintain the right people at their companies. They also debated solutions, often vigorously, but in a way that led to practical problem solving; their debates helped create unity, not destroy it.

Anecdotally, Collins also adds that many of the leaders in good-to-great companies became lifelong friends. The focus on people in these companies made all the difference, as their shared accomplishments created bonds that transcended the professional. Collins then concludes by arguing that the “idea of ‘first who’ might be the closest link between a great company and a great life” (62). If someone enjoys the work they do, they enjoy it largely because of who they are working with, and according to Collins, a company requires this “first who” approach in order to experience greatness.