Separating Great Companies from the Good ones
I just stumbled onto a letter from Tony Hsieh the CEO of Zappos to employees about a fairly drastic change in their business. I felt the letter was written very well and actually, as an outsider at least, inspired me to want to work for Zappos. The reason for my writing now though is that I thought it would be worth repeating the following paragraph on being a financially “great” company.
Research from “Good to Great” and “Tribal Leadership” has shown that there are two important ingredients that separate the great companies in terms of long-term financial performance from just the good ones: (1) a strong company culture and (2) a higher purpose beyond profits, being #1 in a market, or beating the competition. The research has shown that engaged and inspired employees are more productive employees, and one of the best ways to engage employees and strengthen the company culture are through values alignment (between the company’s values and the employees’ personal values) and a higher purpose vision.