Entrepreneurial Insanity
Why good is the enemy of the great
The World
average
Below
Above
Poor
Great
Bad
Excellent
Contribution
average
1 Below 0
Poor
2 Above 3
Great
-1
Bad
4
Excellent
Average Contribution = 1.5
(9 units of work / six people)
average
1 Below 0
Poor
2 Above 3
Great
-1
Bad
4
Excellent
Removing bad & poor people and replacing with average people Average Contribution = 2.16 (up 67%)
(13 units of work / six people)
average
2 Below
2
2 Above
4
3
1 Great
4
1 Excellent
Removing Average people and replacing with great & excellent people Average Contribution = 3.5 (up 233% & 62%)
(21 units of work / six people)
9
3 Great
12
3 Excellent
The Bottom Line
Units produced Yearly raises Year end compensation (Starting at 100 units)
Average co.
9 13
(67% gain)
1 - 2.5% 2 - 5% 6 - 12%
102.5 105 112
Above Average co.
Excellent co.
21
(233% gain)