2 Dumb-Ass CEOs Discuss the Power of Learning Moments, Gratitude, and Strategy Execution
A Journey of Leadership and Culture Building
While preparing for our upcoming webinar with Garry Ridge, WD40 Chairman Emeritus and prior CEO, I had the pleasure of reading a pre-release copy of his upcoming book, Any Dumbass Can Do It. I was surprised by how many things we had in common. We both became CEOs in 1997 at our respective companies in San Diego and spent 25 years there until 2022 when we moved on to our next ventures. Garry moved on from WD40 to start The Learning Moment company, where he consults and coaches leaders to achieve bigger success through a commitment to improving culture. I moved on from InnovaSystems to start Inspire Software Solutions, to help leaders achieve greater success through a proven process and AI-enabled software tools that aid in strategy execution and culture improvement.
Garry and I also attended the same master's program at the University of San Diego (USD) after becoming CEOs, obtaining a Master of Science in Executive Leadership (MSEL). Our aim was to help build great cultures and companies. Any Dumbass Can Do It is a fantastic playbook for leaders interested in achieving success by developing cultures that foster innovation, learning, a sense of belonging and community spirit, and a new emphasis on the leaders’ responsibility to set their employees up for success.
Insights from McKinsey's Study
McKinsey recently conducted a large study to understand the impact of people development on financial performance. They analyzed 1,800 large companies across sectors in 15 countries, sorting them based on two factors: how much they focus on developing human capital and whether they financially outperform their sector peers. The companies that spent a significant amount of time on people development while maintaining a focus on financial performance were categorized as P+P winners.
The study concluded that P+P winners were 4.3 times more likely than the average company to maintain top-tier financial performance for 9 of 10 years and P+P Winners grew revenue 2x faster than performance-driven companies during the pandemic. This finding underscores the importance of investing in people development as a key driver of organizational success. By prioritizing the growth and development of employees, companies can achieve sustainable financial performance and maintain a competitive edge in the market. Article link: Managing human capital: Performance through people | McKinsey
The Power of Committing to Developing a Great Culture
One of the questions Garry addresses early on in his book is “Why do so many people hate their jobs?”. He had a life-changing epiphany while pondering this question, inspired by a quote from the Dalai Lama: “Our prime purpose in life is to make others happy. And if we can’t make them happy, at least don’t hurt them.” From that point on, Garry’s primary focus as CEO of WD-40 was to create a culture of learning and belonging, and the results of his tenure speak for themselves. Read much more about it along with great advice for all leaders by pre-ordering his book here: https://thelearningmoment.net/any-dumb-ass-can-do-it/
Before starting InnovaSystems, I spent over 10 years working in large companies with toxic cultures. Growing up in Detroit, I was able to secure a college internship at one of the big-three automakers. However, the mid-80s was not a good time to be an employee there, at least in the division that I was in. Amidst frequent layoffs and downsizing due to international competition, many of the people who remained in their jobs had little passion for their work. In my office, most would show up late, read the newspaper until the late morning coffee break, and ask me to stop looking so busy and making them look bad. Naturally, I turned down their long-term job offer after graduation.
Instead, I took a job at a large defense contractor who was doing exciting work in computer software to help military readiness. However, after several years and experiencing a culture very similar to the movie *Office Space*, it was clear that most people hated their job and were not optimistic about their future at the company. It seemed to me that the leadership styles of instilling fear of failure and showing little gratitude for hard work were major contributors to the problem.
After several years developing software for the DoD, I was able to convince a Navy commander to support me as a solo programmer to work on the navy base in San Diego and eventually build a small team of like-minded people who were passionate about our mission, technology, and work environment. We were provided free office space in a dusty warehouse on-site, so we knew as we interviewed developers, we’d have to find people who were not about the prestige of fancy offices and perks but wanted to contribute and be a part of a unique culture. We learned quickly that showing frequent gratitude, celebrating small wins, and developing people’s careers were key to creating a winning culture that would in turn provide great products, customer service, and ultimately over-execute our strategic plan and goals every year.
As we rapidly grew into a large software company, I took the next step in my learning journey to join the MSEL program at USD. During this program, we focused on applying the concepts of situational leadership from Ken Blanchard and Drea Zigarmi, change management, coaching, and strategy execution. The program was cohort-based where every month was spent with other executive leaders (including several from WD-40) working together through applying learning to our respective businesses and discussing the results. Based on these learning moments, I created Inspire Software to help better apply many of these concepts using modern tools that have recently evolved even more dramatically with AI integration. In our case, we achieved extremely high employee engagement, retention, and double-digit revenue growth until selling the company at a peak point at the end of 2022. I’m now fully focused on helping other companies achieve similar results through improved execution and cultures.
Conclusion
Our discussion on learning moments, gratitude, and strategy execution highlights the essential elements of successful leadership. By embracing these principles, leaders can create a positive and productive work environment, drive innovation, and achieve their organizational goals. The insights from McKinsey's study further reinforce the importance of people development in achieving long-term financial success.
As Garry and I continue our journeys in our new ventures, we remain committed to helping other leaders achieve success through a focus on culture, gratitude, and effective strategy execution. Any Dumbass Can Do It serves as a valuable guide for leaders looking to make a meaningful impact in their organizations and beyond.
I’m looking forward to a fun and productive conversation with Garry soon to share more. Register here to join us and receive the recording of the webinar/podcast.