Confront The Brutal Facts (Yet Never Lose Faith)
In Chapter 4 of the book Good to Great, Jim Collins asserts that taking good decisions represents one of the key factors for a good organization to become great. The good decisions flowed from the fact that all good-to-great companies made an effort to confront reality, while at the same time maintained absolute faith that they could prevail in the end, regardless of the difficulties. The author calls this the Stockdale Paradox. Collins also states that it is crucial to create a climate where honesty is valued and he continues by offering tips about how to create this environment. By crafting this culture where people have the opportunity to be heard and for the truth to be heard it will not be necessary to motivate people - if you have the right people, they will be self-motivated.
In this chapter we particularly noticed an abundance of examples of different companies that were in more similar situations at a specific moment in history, but which then diverged dramatically. We are first given the case of A&P vs. Kroger. A&P was led by Ralph Burger, a CEO who tried to preserve the past and was reluctant to change. For at least 20 years, he followed a past model, ignoring the reality and the changes the present was bringing. The company showed no signs of stability and consistency by often changing strategies and implementing a so-called “scorched earth policy” that did not meet customers’ needs and requirements. On contrary, Kroger, having conducted an extensive research, confronted the brutal facts it found out, and decided to act in consequence, thus becoming a great company.
Unlike the comparison companies, the good-to-great companies continually adjusted the path to greatness with the brutal facts of reality. For example, Roy Ash, CEO of Addressograph, was a charismatic visionary leader who had a bold plan for his company, but at one point, refused to believe his plan was failing and turned a blind eye to any reality inconsistent with...
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