‘Performance’ is More Than the ‘Bottom Line’
Andrew Carnegie (Carnegie Steel) observed; “Put all your eggs in one basket, and watch that basket,” when he answered the question of how he became so successful, he obviously gave a simple response to a complex question. However, his answer simply places a focus on the entirety of his plans and goals, from one who mastered the art of execution and used it to his competitive advantage.
When individuals are elected to run a corporation, most often the only major thing that is taken into account, is whether or not they have the talent to get things done and to deliver on their commitments. When it comes down to it, nothing else matters.
Peter Drucker in his commentary about Alfred Sloan (General Motors) wrote, “The job of a professional manager is not to like people. It is not to change people. It is to put their strengths to work. And whether one approves of people or of the way they do their work, their performance is the only thing that counts, and indeed is the only thing that the professional manager is permitted to pay attention to. I once said to Sloan that I had rarely seen more different people than the two men who during my study had run the most profitable divisions of GM, Chevrolet and Cadillac. ‘You are quite mistaken,’ he said.‘These two men were very much alike – both performed.’ – But ‘performance’ is more than the ‘bottom line.’ It is also setting an example and being a mentor. And this requires integrity.” 
The great leaders were known for their talent to execute well. Henry Kaiser (Kaiser) exemplified this ability when he ramped up production of his Liberty Ships during the Second World War. So did James Burke (Johnson & Johnson), when faced with the Tylenol crisis in the 1980s.
Colin Powell (U.S. Army) observed, “‘The most important assets you have in all of this are the people, and if you don’t put people at the center of your process, you’ll fail. Not profit motives, not size of the organization’s headquarters, but people.’
What differentiates successful companies from unsuccessful companies is rarely the brilliant, secret, take-the-market-by storm grand plan. Indeed, the leaders of today’s great companies are inclined to freely share their plans and business models in books and magazines. Even if they weren’t, today’s fast-moving economy dictates that most organizations’ plans are on their way to obsolescence almost from the moment that they are publicly revealed.
The key to success, therefore, lies in exceptional, innovative, fast execution. Execution lies, in turn, in the capacity of people to quickly capitalize on fleeting opportunities in the marketplace; develop imaginative ideas and creative responses; generate fast, constantly changing action plans; mobilize teams and resources; get the job done swiftly an effectively—and then continue that process with relentless commitment.
That’s what this ‘people’ thing is all about, because it’s people that make all that happen. What effective leaders do is create an environment in which great people can flourish in optimal pursuit of the enterprise’s mission. In describing the famed symphony conductor Leonard Bernstein, one observer noted that ‘what Bernstein achieved—and what great leaders achieve—is a seeming paradox. He convinced his players they were free to innovate and express themselves, while convincing them to accept his vision for the music and to follow his direction.’ That description nicely captures the spirit of the leader role that Powell endorses.” 
As has been previously noted, Herb Kelleher (Southwest Airlines), Fred Smith (FedEx), along with numerous other cited examples, all built successful organizations around their employees.
Howard Schultz (Starbucks) knows not only the value of his employees and their contributions, but also knows how to extract the best from them. “Howard asks questions and will challenge you to perform. He’ll push you to go gather the data.
He’ll tell you what he would do to try and solve a problem, but he’s not always going to hand you the answer.” 
While at Carnegie Steel, where he supervised all of the plant supervisors for Andrew Carnegie, Charles Schwab rose from laborer to the executive ranks through his uncanny talent to execute.
“Schwab was not an originator, he was a builder of integrated teams. His particular genius was in handling people…”  Schwab often recalled a story, which demonstrates his talent to execute. He said,
“I had a mill manager who was finely educated, thoroughly capable and master of every detail of the business. But he seemed unable to inspire his men to do their best.
‘How is it that a man as able as you,’ I asked him one day, ‘cannot make this mill turn out what it should?’
‘I don’t know,’ he replied. ‘I have coaxed the men; I have pushed them, I have sworn at them. I have done everything in my power. Yet they will not produce.’
It was near the end of the day; in a few minutes the night force would come on duty. I turned to a workman who was standing beside one of the red-mouthed furnaces and asked him for a piece of chalk.
‘How many heats has your shift made today?’ I queried.
‘Six,’ he replied.
I chalked a big ‘6’ on the floor, and then passed along without another word. When the night shift came in they saw the ‘6’ and asked about it.
‘The big boss was in here today,’ said the day men. ‘He asked us how many heats we had made, and we told him six. He chalked it down.’
The next morning I passed through the same mill. I saw that the ‘6’ had been rubbed out and a big ‘7’ writteninstead. The night shift had announced itself.
That night I went back. The ‘7’ had been erased, and a ‘10’ swaggered in its place. The day force recognized no superiors.
Thus a fine competition was started, and it went on until this mill, formerly the poorest producer, was turning out more than any other mill in the plant.” 
- Do You Have a Zeal to Execute?
- Do You Have Faith in Your People?
- Do You Have the Fortitude and Resolve to Continue?
- Should Profit Be the Only Measure of Success?
- Drucker Peter, The Best Book on Management Ever (Fortune Magazine, April 23, 1990)
- Harari Oren, Leadership Secrets of Colin Powell (McGraw Hill, New York 2002) p.128
- Meyers William, Conscience in a Cup of Coffee (U.S. News, October 31, 2005)
- “Steel Titan: The Life of Charles M. Schwab” by Robert Hessen and “The Highest Virtue” by Alan Stang (Freeman, February 1976)
- Schwab Charles M., Succeeding with What You Have (Century Company, New York 1917) p. 39-41
Excerpt: Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Majorium Business Press, Stevens Point, WI 2011) Read a Free Chapter
Timothy F. Bednarz, Ph.D. | Author | Publisher | Majorium Business Press
Author of Great! What Makes Leaders Great: What They Did, How They Did It and What You Can Learn From It (Finalist – 2011 Foreword Reviews‘ Book of the Year)
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