A Good to Great Truck Stop Tale (#291)
A Good to Great Truck Stop Tale
Ed Common, the dedicated general manager of "Highway Haven," a truck stop nestled along I-95, loved Jim Collins book Good to Great. He loved it so much, he set out to transform his establishment using the principles from the book. As with most projects, things didn’t go exactly as he planned.
The first challenge was that Ed isn’t a Level 5 leader — he is a Level 3 leader. Level 3 leaders are competent managers who can organize people and resources to achieve specific goals. They have the ability to manage a team or department and are skilled in planning, organizing, and executing tasks efficiently.
On the other hand, Ed understood that building a successful truck stop business requires consistent effort and momentum. He knew that every small improvement, from enhancing customer service to optimizing operational efficiency, contributes to the overall growth of the truck stop. Ed didn't seek quick fixes; instead, he focused on nurturing a culture of continuous improvement, where each positive change builds upon the last. Over time, this relentless commitment to excellence generated a powerful flywheel effect, attracting more truckers and travelers, boosting profits, and solidifying the truck stop's reputation as a reliable and welcoming haven for road-weary travelers. Through Ed's patient and persistent leadership, the truck stop becomes a prime example of how the flywheel effect can drive lasting success in the competitive world of highway hospitality.
Once Ed got the flywheel moving, Ed tried to instill a sense of discipline in his staff. He introduced a punctuality policy where tardiness was met with stern reprimands. This move proved initially successful, as the staff began to show up on time, but the humorless atmosphere started to affect Highway Haven’s morale and culture.
Undeterred, Ed moved on to the "Hedgehog Concept," striving to find the one thing Highway Haven could excel at. After some contemplation, he and the team decided to focus on offering the freshest coffee on the highway. Ed ordered top-of-the-line coffee machines and meticulously trained his staff. The freshly brewed coffee became a hit, attracting weary travelers in search of a caffeine boost.
Ed knew that technological advancements could make operations smoother and more efficient. He invested in automated self-checkout kiosks which allowed customers to scan and pay for their desired items quickly and easily. However, the kiosks often malfunctioned due to technical glitches and user confusion. As a result, customers were left frustrated and perplexed at times. Although the staff got better at solving customer problems with the kiosks, the kiosksdid not deliver the technological edge that Ed had hoped for.
Ed embraced the "Culture of Discipline." He established regular staff meetings to reinforce the importance of discipline and adherence to the rules. While some staff members appreciated the clarity of expectations, others secretly plotted escape routes to avoid the endless meetings.
It was during these meetings that Ed began to evolve as a leader. He realized that strict discipline alone wasn't enough. To achieve greatness, he needed to foster a culture of collaboration and engagement. He started to encourage employees to voice their opinions and contribute ideas. This shift in leadership style took Ed from being a Level 3 leader to a Level 4 leader. A Level 4 leader, according to Collins, go beyond management; they are effective leaders who inspire and motivate their teams. They have a clear vision, strong communication skills, and the ability to influence and align their team or organization toward a shared purpose. Ed’s evolution in leadership style affected Highway Haven as well — the employees worked better together and retention increased.
After a year of trying the principles in Good to Great, Highway Haven wasn't the epitome of greatness, but Ed's journey, filled with both successes and failures, had enhanced the truck stop. It was a place where fresh coffee was served with discipline and poorly operating kiosks. Ed's pursuit of greatness was a road filled with twists and turns, but he was determined to continue the journey.
Good to Great by Jim Collins
Jim Collins published the book Good to Great in 2001. For those that haven’t read it, there are seven key points in the book Good to Great:
Level 5 Leadership: Collins introduces the concept of Level 5 Leadership, which involves leaders who combine personal humility with professional will. They are driven by a desire for the company's success rather than personal glory.
Right Bus and Right Seat: Great companies first focus on getting the right people on the bus (the organization) and in the right seats (the roles) before deciding where to drive the bus. People are more critical than the strategy.
The Hedgehog Concept: Great companies discover their "Hedgehog Concept," which is the intersection of three critical questions: What can you be the best in the world at? What drives your economic engine? What are you deeply passionate about?
A Culture of Discipline: Great companies have a culture of discipline that helps them stay focused on their Hedgehog Concept. This involves saying "no" to distractions and maintaining unwavering adherence to their core values and objectives.
Technology Accelerators: Technology should be used as an accelerator to reinforce the company's strategy, not as a primary driver of change. It is important to use technology strategically and not let it divert attention from the Hedgehog Concept.
Bullets and Cannonballs: Collins introduces the idea of firing "bullets" (low-risk, low-cost experiments) before committing to "cannonballs" (major strategic initiatives). This approach allows for testing and validation before making significant investments.
The Flywheel Effect: Collins describes the concept of the Flywheel Effect, where consistent, small actions build momentum over time. Great companies keep pushing the flywheel in a consistent direction, eventually leading to breakthrough results.
Conclusion
Most business leaders have a favorite business or leadership book that they have tried to apply to their business or their part of the business or organization. Sometimes you get your company to move from good to great. And sometimes, like Ed, you struggle. It may take a little help from an executive coach or business consultant to help you see if you are properly applying the principles to your situation. Reach out to TFCG with the button to schedule a free consultation:
In the meantime, go on the offensive and use the story of Ed Common and Highway Haven to help move your company from good to great.