A Coach's Diary

The following article cites the chapter, Business: Mindset and Leadership, from the Book 'Mindset' by Carol Dweck.

What distinguished the thriving companies form other?  There were several important factors, as Collins reports in his book, Good to Great, but one that was absolutely key was the type of leader who in every case led the company into greatness.  These were not the larger-than-life, charismatic types who oozed ego and self-proclaimed talent.  They were self-effacing people who constantly asked questions and had the ability to confront the most brutal answers – that is, to look failures in the face, even their own, while maintaining faith that they would succeed in the end.

Collins wonders why his effective leaders have these particular qualities.  And why these qualities go together the way they do.  And how these leaders came to acquire them.  But we know.  They have the growth mindset.  They believe in human development.  And these are the hallmarks:

They’re not constantly trying to prove they’re better than others.  For example, they don’t highlight the pecking order with themselves at the top, they don’ claim credit for other people’s contributions, and they don’t undermine others to feel powerful.

Instead, they are constantly trying to improve.  They surround themselves with the most able people they can find, they look squarely at their own mistakes and deficiencies, and they ask frankly what skills they and the company will need in the future.  And because of this, they can move forward with confidence that’s grounded in the facts, not built on fantasies about their talent.

Collins reports that Alan Wurtzel, the CEO of the giant electronics chain Circuit City, held debates in his boardroom.  Rather than simply trying to impress his board of directors, he used them to learn.  With his executive team as well, he questioned, debated, prodded until his slowly gained a clearer picture of where the company was and where it needed to go.  “They used to call me the prosecutor, because I would hone in on a question,” Wurtzel told Collins.  “You know, like a bulldog.  I wouldn’t let go until I understood.  Why, why, why?”

Wurtzel considered himself a ‘plow horse,’ a hardworking, no-nonsense normal kind of guy, but he took a company that was close to bankruptcy and over the next fifteen years turned it into one that delivered the highest total return to its stockholders of any firm on the New York Stock Exchange.