How Excellent Companies Avoid Dumb Things

How Excellent Companies Avoid Dumb Things: Breaking the Eight Hidden Barriers that Plague Even the Best Businesses

By Neil Smith with Patricia O'Connell

About the Author

Neil Smith, the CEO of Promontory Growth and Innovation (PGI), has dedicated over 20 years to helping large corporations improve performance and profitability by growing revenues and reducing costs. His expertise lies in identifying and breaking down barriers that hinder organizational success. Patricia O'Connell, a seasoned writer and business expert, collaborates with Smith to provide insights into the intricacies of organizational barriers and how to overcome them.

Main Idea

"How Excellent Companies Avoid Dumb Things" explores the hidden barriers that even the most successful businesses face. These barriers, categorized as structural and behavioral, prevent employees from acting in the best interests of the company. Smith outlines a fast, proven process using 12 principles of business transformation to break down these barriers, leading to improved decision-making and organizational performance.

Table of Contents

1. Introduction: Hidden Gold
2. Barrier 1: Avoiding Controversy
3. Barrier 2: Poor Use of Time
4. Barrier 3: Reluctance to Change
5. Barrier 4: Organizational Silos
6. Barrier 5: Management Blockers
7. Barrier 6: Incorrect Information and Bad Assumptions
8. Barrier 7: Size Matters
9. Barrier 8: Existing Processes
10. The Twelve Principles for Breaking Barriers
11. A 100-Day Process for Breaking Barriers
12. Conclusion: Mining Gold

Introduction: Hidden Gold

Smith begins by explaining that great leaders often know the direction in which to steer their organizations but are impeded by inherent structural and behavioral barriers. These barriers prevent optimal decision-making and lead companies to make poor choices. By identifying and addressing these barriers, companies can unlock hidden potential and achieve significant improvements.

"A series of natural barriers exists in every organization simply because of the way all companies are organized and do business." - Neil Smith

Barrier 1: Avoiding Controversy

Controversial ideas are often avoided because they can cause disruption. Issues are left unresolved due to politics, personalities, and fear of conflict. This barrier stifles innovation and prevents necessary changes.

"Neutralize controversial ideas by making the resolution part of the larger process for change." - Neil Smith

To overcome this barrier, companies need to incorporate controversial ideas into a broader change process, ensuring that resolutions are not tied to any single individual or project.

Barrier 2: Poor Use of Time

Employees often use their time inefficiently, even when working long hours. This barrier encompasses poor time management, misuse of employees' time, and undervaluation of time.

"Assigning a monetary value to time addresses the value aspect that is often missed." - Neil Smith

Solutions include changing how time is managed and valued within the organization, implementing process changes, and assigning a clear monetary value to time to highlight its importance.

Barrier 3: Reluctance to Change

People are naturally resistant to change, especially when there is no urgent need. This barrier is widespread and can significantly hinder progress.

"Creating a culture that expects change to happen is the real answer." - Neil Smith

Overcoming this barrier requires fostering a culture that anticipates and embraces change. This can be achieved through a robust change process that reveals where resistance exists and provides a framework for addressing it.

Barrier 4: Organizational Silos

Organizational silos are necessary for structure but can prevent the flow of information and collaboration. These silos create barriers that are challenging to break down.

"Turn towers into tunnels and get people to cooperate across the organization." - Neil Smith

While silos cannot always be eliminated, companies can develop methods to connect them and encourage cross-departmental cooperation, thus facilitating better information flow and teamwork.

Barrier 5: Management Blockers

Good ideas often get shot down due to management blockers who feel threatened by change. These blockers can stifle innovation and prevent valuable ideas from being implemented.

"Changing people's minds is crucial to breaking this barrier." - Neil Smith