Level 5 leaders who build the greatest and most durable companies think first about âwhoâ and then about âwhat.â They first get the right people on the bus (and the wrong people off the bus) and then figure out where to drive the bus.
When youâre facing chaos, turbulence, disruption, and uncertainty, and you cannot possibly predict whatâs coming around the corner, your best âstrategyâ is to have a busload of disciplined people who can adapt and perform brilliantly no matter what comes next. Our research supported what we came to call âPackardâs Lawâ (named in admiration after HPâs co-founder): No company can consistently grow faster than its ability to get enough of the right people and still become a great company. If a company consistently grows faster than its ability to get enough of the right people, it will not simply stagnate, it will fall. The number one metric to track isnât revenue or profit or return on capital or cash flow; the number one metric is the percentage of key seats on the bus that are filled with right people for those seats. Everything depends on having the right people. (Directed reading: Good to Great, Chapter 3; BE 2.0, Chapter 2.)