Good to Great

This chapter begins with the story of George Rathmann, cofounder and CEO of biotechnology company Amgen. Rathmann’s approach to company leadership was rooted in a culture of high expectations and rigorous standards, which Collins calls a “culture of discipline.” By downplaying and even discarding traditional company hierarchies, Rathmann was able to implement a style of leadership that he had observed and applied while working at Abbott, a good-to-great company that inspired him. In Rathmann’s mind, this was the most effective way to lead. This company culture promoted freedom within a framework, empowering employees to be creative problem-solvers while also clearly communicating company standards and processes.

Collins elaborates by explaining that a culture of discipline demonstrates not only output and tangible results, but also strategic, disciplined thought. Consequently, when the time to act arrives, these actions take place within a thriving and rigorous culture. A culture of discipline is different from a culture where a central figure doles out discipline to employees. None of the good-to-great companies had this kind of “tyrant.” As an example, Collins cites Lee Iacocca, whose time as CEO of Chrysler was marked by his own egocentrism and tyrannical leadership style.