Jim Collins' Concepts of Management

Jim Collins has some unique ideas about some of the key concepts of management. It is unquestionable that these concepts have applications in many organizations. Collins ideas give readers the opportunity to question conventional wisdom in business and strategic management. For example, Collins suggests that being a charismatic leader can be both a blessing and a curse. If the individuals surrounding a charismatic leader do better work because they are in awe of the person, that can be a benefit and a blessing. However, according to Collins if a leader is too charismatic the people working for them might be in awe of their leader. This form of hero worship can result in a scenario in which co-workers are so awed by the charismatic leader that the fail to (a) challenge ideas, (b) offer suggestions, (c) question assumptions, (d) think independently and critically about the work assigned to them, and (e) assume this charismatic leader's ideas are unfailingly correct and appropriate.

Collins writes that almost everything our modern culture believes about the type of leadership required to transform our institutions is wrong and it is dangerous. He suggests that this conventional wisdom about what makes a leader great is wrong, but that these ideas are firmly entrenched in American business. Collins writes that there is perhaps no more corrosive factor to the health of an organization than the rise of what he refers to as the "celebrity CEO." The celebrity CEO is a phenomeno

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. To do so, simply look for a department that has been exceptionally successful, but where no one has stepped forward to demand recognition. It may actually be easy to find a Level 5 leader in your own organization simply by looking for these gaps in performance. Level 5 leaders tend to channel their ambition into the organization and its success and away from themselves. According to Collins, the big problem is not a shortage of Level 5 leaders; they exist all around us. The real problem is that these individuals are usually overlooked by search committees that are often enamored by flash and dazzle. The rationale for choosing a celebrity CEO over a Level 5 CEO is complex. Part of the answer is that a search committee or the Board of Directors is rarely criticized for selecting a CEO who is "too charismatic" but one may be criticized for selecting a candidate that is not charismatic. Another reason that organizations select celebrity CEOs is the perception of value. Simplified, the thought process is as follows: If this individual were not a hot commodity, there would be no way they would demand what they have demanded to take the job. Therefore, they must be something special If they were not special, they would b

Category: Business - J