Chapter One

During the 1992 presidential election campaign, Bill Clinton's inner circle decided that the troubled economy was the theme their candidate would hammer to win the White House. Whenever a Clinton staffer invested time, energy, or resources strategizing or articulating foreign policy, world trade, or environmental issues, a cohort would bluntly chastise him with the words, "It's the economy, stupid." This not-so-gentle reminder became a mantra that created laserlike focus and steered the campaign to victory.

First Things First

Leaders wanting to fix, build, or stretch their organizations must employ the same tenacious resolve and embrace the business version of this mantra-"It's the people, stupid"-as the catalyst of measurable and sustainable growth. All organizations have goals, and most have strategies. Both, however, are irrelevant if the right people aren't in place to execute them. In fact, a great dream with the wrong team is a nightmare because bold goals pursued by mediocre people still result in mediocre results. Grand plans designed at off-site meetings and facilitated by costly experts are rendered impotent when employed by the marginal, mediocre, or moronic. Most organizations suffer from a reality gap. The chasm between the leader's forecast and the realities of his people's abilities renders their goals unrealistic from day one.

Business leaders have no control over weather, the economy, interest rates, or competitors' actions; yet pondering or worrying about these issues often consumes much of their day. What a leader can control is