Tag Archives: Jim Collins

Tony Hsieh and Delivering Happiness

There will come a time when all servant leaders become conflicted with focusing on profits or people. Tony Hsieh (1973-2020) does a great job of telling all of us how to link profits, passion and purpose. As Jim Collins tells us, it is the genius of the “and”, focusing on profits “and” people and not the tyranny of the “or”, focusing on profits “or” people. If you have not read Tony’s book on Zappos, or have not ever heard of Zappos, pick up a copy of his book “Delivering Happiness”. So many great lessons from the book and a shame that Tony is not around today to continue his journey of bringing happiness to others. All too often, those focused so much on bringing happiness to others have a difficult time bringing happiness to themselves – I also think of Robin Williams.

Tony Hsieh – Delivering Happiness

There is a great section at the end of book where Tony goes deeper on his quest on Delivering Happiness. Tony tells us that, when you ask people what their ultimate goal is (by following a five why exercise), everyone only wants to become happier.

Tony tells us that happiness is about four things:

  • Perceived control – Tony’s way to do this was to implement a “skill set system,” giving out small raises as each employee learned and mastered each of 20 skill sets laid out by the company. Having clarity and control over their raises made employees happier.
  • Perceived progress – Tony changed the practice of one large promotion into smaller promotions given on merit every six months. Employees were much happier because there was an ongoing sense of perceived progress.
  • Connectedness – the number and depth of your relationships. Tony believed happier employees made more productive employees, so Tony was always thinking about how to foster socializing and friendships at work – with initiatives like discounted food and relaxation areas.
  • Vision or meaning – being a part of something bigger than yourself. As part of this Tony brings in Maslow’s hierarchy of needs.

Once you attain happiness, it can consist of three types of happiness:

  • Pleasure – Shortest lasting and requires constant stimulation.
  • Passion – Being in the zone – time passes quickly.
  • Higher Purpose – Being part of something bigger than yourself . This is the longest lasting form of happiness.

What to do if you are able to find true happiness? You need to share it. Your happiness will never decrease by sharing it with others.

Courtesy of The Calm app

Level 5 Leadership

If you haven’t had a chance to read Jim Collins, make a point to do it at some time. Jim introduces the concept of Level 5 Leadership.

Good to Great: The Level 5 Leader – Borden's Blather

Jim found that Level 5 leaders have humility, and they don’t seek success for their own glory; rather, success is necessary so that the team and organization can thrive. They share credit for success, and they’re the first to accept blame for mistakes. Collins also says that they’re often shy, but fearless when it comes to making decisions, especially ones that most other people consider risky.

Level 1: Highly Capable Individual

At this level, you make high quality contributions with your work. You possess useful levels of knowledge; and you have the talent and skills needed to do a good job.

Level 2: Contributing Team Member

At Level 2, you use your knowledge and skills to help your team succeed. You work effectively, productively and successfully with other people in your group.

Level 3: Competent Manager

Here, you’re able to organize a group effectively to achieve specific goals and objectives.

Level 4: Effective Leader

Level 4 is the category that most top leaders fall into. Here, you’re able to galvanize a department or organization to meet performance objectives and achieve a vision.

Level 5: Great Leader

At Level 5, you have all of the abilities needed for the other four levels, plus you have the unique blend of humility and will that’s required for true greatness.

Never Waste a Good Crisis

Talking with a friend yesterday and we were discussing the recent pandemic and the lessons we had learned from a business perspective. Too often as leaders we get used to status quo and using past results to drive our strategies. I quite often ask people – Did you drive to work today looking only into the rear view mirror? Wouldn’t be the safest approach and the likelihood of getting into an accident is quite high. On the contrary, not only do we look out the front window, side mirrors and now utilize other technology such as GPS and dynamic maps. My friend told me that he has been telling his team, “Never waste a good crisis”.

When faced with a crisis situation I quite often reflect on The Stockdale Paradox. The Stockdale Paradox was introduced by Jim Collins in his book – Good to Great. For a full explanation refer to Jim Collins’ website (www.jimcollins.com/concepts/Stockdale-Concept.html).

The lesson from the Stockdale Paradox is that when faced with a crisis situation have faith that you will overcome in the end and be brave enough to face the brutal facts.

During the Vietnam War, James Stockdale was the highest ranked prisoner of war. Admiral Stockdale was held captive for over seven years. Over the seven years, Admiral Stockdale was repeatedly tortured and was given no reason to believe he would make it out of captivity alive. When asked why some prisoners survived and others didn’t, Admiral Stockdale explained it was the ability to embrace the brutal facts of the situation balanced with the faith and optimism that he would overcome. The simple advice – prepare for the worst and maintain your optimism for the future.

Built to Last

Jim Collins and Jerry Porras authored this fantastic book documenting the successful habits of Visionary Companies. The main takeaway – if you are involved in building and managing an organization, the single most important part to take away is to “preserve the core and stimulate progress”. This is referred to as clock building in the book – building a company that can prosper far beyond the presence of any single leader and through multiple product life cycles. Sound simple?

Preserve the core and stimulate progress is referred to as embracing the genius of the AND. How often in our leadership journeys do we struggle with this? Low cost OR high quality or can it be low cost AND high quality. As a parent is it living by the rules OR creating a loving environment or living by the rules AND creating a loving environment? In our personal lives is it living healthy OR enjoying the moment or living healthy AND enjoying the moment? Yes, we can have both.

In the book we are given mechanisms that have proven to be successful with other successful companies – Big Hairy Audacious Goals (BHAGs), Cult Like Cultures, Try A Lot of Stuff and Keep What Works, Home Grown Management and Good Enough Never Is. A great read and very powerful for my current business challenge.