In 2001, Jim Collins’ Good to Great examined 1,435 companies. It observed that the 11 corporate entities that had made the jump from “good to great” over a 40-year period were headed up by relatively unknown chief executives as opposed to “the one genius with 1,000 helpers.”
In addition, Collins argued, “We found that for leaders to make something great, their ambition has to be for the greatness of the work and the company, rather than for themselves … Celebrity CEOs, at those same decision points, are more likely to favor self and ego over company and work.”
Researchers from John Molson School of Business at Concordia University in Montreal are currently expanding on their 2009 study that reveals a disturbing conclusion: Management ego is a better indicator of the possibility of financial fraud than corporate governance practices. They connect “managerial hubris” to bad corporate decisions that destroy value.
Mission: Why we do what we do for us.
Purpose: A higher motivation