Introduction
In today's fast-paced business world, we often hear leaders claim that a company is only as good as its people. But do they truly mean it? Anthony Tjan's book "Good People" challenges the conventional wisdom that prioritizes competencies over values in the workplace. This thought-provoking work argues that while skills are important, they cannot compensate for a lack of character or strong values.
Tjan introduces a new framework for defining and practicing goodness in both personal and professional settings. He argues that adopting a people-first approach is not just a feel-good philosophy, but a smart business decision that can lead to improved productivity, a positive workplace culture, and long-term value creation.
This book summary will explore Tjan's key ideas, including the distinction between goodness in competency and goodness in values, the Good People Mantra, the Goodness Pyramid, and practical strategies for implementing these concepts in the real world.
Goodness in Competency vs. Goodness in Values
One of the central themes in "Good People" is the important distinction between goodness in competency and goodness in values. Tjan argues that in most workplaces, people have been conditioned to appreciate a person's competencies over their values. This tendency is understandable, as competencies are easier to measure and quantify.
When we think about a "good" employee, we often focus on their technical skills, industry knowledge, or academic achievements. Job interviews typically revolve around these measurable markers of competency rather than probing into a candidate's core values or moral code.
However, Tjan contends that goodness in values is even more crucial to corporate success than competencies alone. He argues that the principal tenets of goodness – truth, compassion, and wholeness – should not be dismissed as mere "soft skills." Instead, they are fundamental to creating a positive and productive workplace culture.
To illustrate this point, Tjan shares the example of the WD-40 Company, a manufacturer of household products. This company has embraced a people-first philosophy, prioritizing staff well-being and mentorship. As a result, WD-40 has achieved remarkable success, with a valuation of over $1.5 billion and staff turnover rates three times lower than the national average.
This example demonstrates that investing in goodness and values can have a tangible impact on a company's bottom line. By focusing on the human element and fostering a culture of goodness, businesses can create a more engaged workforce and achieve better long-term results.
The Good People Mantra
To help guide behavior and identify goodness in others, Tjan introduces the Good People Mantra. This practical framework consists of five basic principles:
Be people-first: This principle emphasizes the importance of prioritizing human beings above ideas, targets, and even profits. Tjan argues that while many people get excited about innovative ideas, it's actually great teams that drive success. A strong team can adapt, motivate its members, and transform average ideas into exceptional ones.
Help others become better versions of themselves: This principle requires patience, honesty, and recognition of our shared humanity. By acknowledging that we are all imperfect human beings, we can create a foundation for encouraging others to realize their unique potential.
Prioritize values over competencies: When evaluating others, Tjan suggests focusing on core values and belief systems rather than just industry experience or technical skills. This approach helps identify individuals with long-term potential and a strong moral compass.
Balance idealism and pragmatism: Recognizing that we live in an imperfect world with competing priorities, this principle encourages finding a middle ground between idealistic goals and practical realities. Tjan gives the example of his organization, Zappos, where he seeks a balance between idealistic and pragmatic employees to drive both innovation and implementation.
Practice goodness consistently: True goodness requires living up to our values consistently, not just when it's convenient or beneficial. By internalizing these principles and making them a core part of who we are, we can embody goodness in all aspects of our lives.
The Goodness Pyramid
To provide a shared vocabulary for understanding goodness, Tjan introduces the Goodness Pyramid. This three-tier framework serves as a vehicle for implementing the Good People Mantra in practice. The pyramid consists of three levels: truth, compassion, and wholeness.
Truth: The Foundation
At the base of the Goodness Pyramid is truth. Tjan argues that without truth, we cannot act and think authentically or congruently. Truth itself is comprised of three core components:
Humility: Being humble helps maintain lifelong intellectual curiosity and boosts our sense of humanity. It's also a key leadership trait that inspires others to be down-to-earth and devoid of arrogance.
Self-awareness: This allows us to reflect intelligently on our strengths and weaknesses, becoming truthful with ourselves. Tjan suggests various ways to strengthen self-awareness, such as writing, meditation, psychometric tests, and seeking feedback from peers.
Integrity: This ensures a truthful coherence between our professed values and actual behavior. Tjan shares Benjamin Franklin's method of tracking his adherence to values using a simple table, encouraging readers to adopt similar practices to ensure integrity.
Compassion: The Center
While truth forms the foundation, compassion is at the heart of the Goodness Pyramid. Tjan acknowledges that compassion can be difficult to reconcile with traditional business settings, where it's often equated with weakness. However, he argues that practicing compassion is crucial for building a unique, inspiring, and productive workplace.
Compassion has three anchoring values:
Openness: This state of mind counters negative biases and allows optimism to flourish. Tjan introduces the 24x3 rule, which imposes a waiting period before responding to colleagues' ideas, promoting a more open and considerate approach to decision-making.
Empathy: The ability to understand and share the feelings of others is key to effecting positive change in the workplace. Tjan encourages asking genuine questions to practice empathy, such as "How are you, really?" or "Are you happy working here?"
Generosity: This final anchor of compassion benefits both the giver and the receiver. Tjan cites research showing that collaborative and generous individuals often achieve greater success in their careers.
Wholeness: The Crown
At the top of the Goodness Pyramid is wholeness, which Tjan describes as both the highest point and the hardest to achieve. Wholeness comprises three elements:
Love: In a business context, this means caring deeply for others' well-being and happiness, as well as possessing a love for your company's brand and values. Tjan references Kevin Roberts' concept of "lovemarks," which emphasizes creating memorable moments that leave authentic imprints on consumers.
Respect: This applies to both self-respect and respect for others. Tjan shares the example of JetBlue's response to a crisis in 2007, where the CEO's respectful and empathetic approach helped rebuild trust with customers.
Wisdom: This final trait of wholeness involves putting intelligence and experience into practice. It helps distinguish important things from unimportant ones and enables better decision-making. True wisdom also allows us to recognize the complexity of situations and see life in shades of grey rather than black and white.
Navigating Tensions in Practicing Goodness
Tjan acknowledges that implementing goodness in the real world is not always straightforward. Tensions inevitably arise, forcing important trade-offs. One significant tension he explores is between short-term and long-term thinking.
Amara's law states that we tend to overestimate short-term effects and underestimate long-term effects. This bias towards short-term thinking is evident in many business practices, such as the pressure on public company CEOs to improve quarterly gains and investors' focus on quick profits.
To illustrate the importance of long-term thinking, Tjan shares the example of Warren Buffett. In 1999, Buffett faced criticism for not investing in the dot-com bubble. However, his patience and integrity in sticking to his long-term growth strategy were vindicated when the bubble burst in 2000.
Tjan also emphasizes the importance of long-term thinking in developing human capital. By mentoring colleagues and investing in their personal and professional growth, companies can cultivate strong individuals who add real value over time.
The R.I.S.E Decision-Making Framework
To help navigate the tensions that arise when practicing goodness, Tjan introduces the R.I.S.E decision-making framework. This four-step process is designed to untangle complex situations and guide us towards better choices:
Recognize: Evaluate the risks and potential outcomes of a situation, setting realistic expectations. Tjan uses the example of Singapore's first Prime Minister, Lee Kuan Yew, who recognized the tension between economic development and social change when improving the nation's port infrastructure.
Internalize: Deeply understand the issue at hand and mentally explore all potential outcomes. Tjan shares his experience with founding MiniLuxe, where thorough internalization of the concept led to long-term success.
Share: Discuss your reflections with a select group of trusted individuals to gain multiple perspectives on the issue.
Execute: Make a decision with conviction, and write down your reasoning to aid future reflection and learning.
Transforming Mentorship through Goodness
Tjan argues that striving for goodness is particularly crucial for those in leadership positions. By incorporating goodness into daily practices, leaders can enhance their ability to mentor and inspire others.
He emphasizes the distinction between mentoring for training and mentoring for goodness. While most mentoring relationships focus on measurable business skills, Tjan suggests that the primary focus should be on establishing a common set of values and creating an authentic connection between mentor and mentee.
To become better mentors, Tjan encourages leaders to exercise compassion and empathy by becoming better listeners. He warns against using "phatic communication" – meaningless, procedural phrases like "how are you?" – and instead advocates for genuine, meaningful interactions.
Tjan provides five critical questions that good mentors should ask their mentees:
- What are you truly trying to achieve?
- What are you doing well that is helping you get there?
- What is slowing you down?
- What will you change tomorrow to help you get there faster?
- How can I help?
These questions strike a balance between discovering the truth and offering compassion, fostering a more meaningful mentoring relationship.
Practical Applications of Goodness
Throughout the book, Tjan offers various practical strategies for implementing goodness in both personal and professional settings. Here are some key takeaways:
Practice self-awareness: Engage in activities like writing, meditation, or seeking feedback from peers to strengthen your ability to reflect on your strengths and weaknesses.
Use the 24x3 rule: When faced with a new idea or proposal, wait 24 seconds, 24 minutes, or 24 hours before responding. This promotes openness and more thoughtful decision-making.
Ask genuine questions: Foster empathy by asking meaningful questions and truly listening to the answers.
Implement Franklin's integrity table: Create a simple table to track your adherence to your values on a daily or weekly basis.
Balance short-term and long-term thinking: Be aware of the bias towards short-term results and consciously consider long-term impacts in your decision-making.
Apply the R.I.S.E framework: Use this four-step process to navigate complex situations and make better decisions.
Focus on values in mentoring: Prioritize establishing a common set of values and authentic connections in mentoring relationships.
Practice "phatic abstinence": Try to go a whole day without using meaningless, procedural phrases in your communication.
The Business Case for Goodness
While much of Tjan's book focuses on personal development and interpersonal relationships, he also makes a strong case for the business benefits of practicing goodness. He argues that companies that prioritize values and invest in their people often see tangible results in terms of employee engagement, productivity, and financial performance.
Some key business benefits of practicing goodness include:
Improved employee retention: Companies that prioritize their employees' well-being and growth tend to have lower turnover rates, as demonstrated by the WD-40 Company example.
Enhanced brand loyalty: By creating "lovemarks" and fostering genuine connections with customers, companies can build stronger, more resilient brands.
Better decision-making: The R.I.S.E framework and other goodness-based approaches can lead to more thoughtful, balanced decisions that consider both short-term and long-term impacts.
Increased innovation: By fostering a culture of openness and respect, companies can create an environment where new ideas are more likely to flourish.
Stronger leadership pipeline: Effective mentoring based on goodness can help develop future leaders who are not only competent but also aligned with the company's values.
Improved crisis management: As seen in the JetBlue example, a leadership approach grounded in respect and empathy can help navigate difficult situations more effectively.
Long-term value creation: By focusing on sustainable, values-based practices, companies can create lasting value for all stakeholders.
Challenges and Limitations
While Tjan makes a compelling case for the importance of goodness in business and personal life, he also acknowledges that implementing these principles is not without challenges. Some potential obstacles include:
Resistance to change: Shifting from a competency-focused to a values-focused approach may face resistance in organizations with deeply ingrained cultures.
Measuring impact: While Tjan provides some examples of the business benefits of goodness, quantifying the impact of these practices can be challenging.
Balancing competing priorities: As discussed in the book, tensions will inevitably arise between different aspects of goodness or between goodness and other business imperatives.
Time and resource constraints: Investing in mentorship, personal development, and long-term thinking may require significant time and resources, which can be challenging for some organizations.
Individual differences: Not everyone may be equally receptive to or capable of embodying the principles of goodness as outlined in the book.
Conclusion
"Good People" by Anthony Tjan offers a fresh perspective on the role of goodness in personal and professional success. By introducing frameworks like the Good People Mantra and the Goodness Pyramid, Tjan provides a structured approach to understanding and practicing goodness in various contexts.
The book challenges readers to look beyond mere competencies and consider the fundamental values that drive human behavior and decision-making. It argues that by prioritizing truth, compassion, and wholeness, individuals and organizations can create more meaningful, productive, and ultimately successful environments.
Tjan's work is particularly relevant in today's business landscape, where issues of corporate culture, employee engagement, and ethical leadership are increasingly coming to the forefront. By providing both philosophical insights and practical strategies, "Good People" offers a roadmap for those seeking to cultivate goodness in themselves and others.
While implementing these principles may present challenges, the potential benefits – both personal and professional – make a compelling case for embracing goodness as a core value. As Tjan demonstrates throughout the book, being a "good person" is not just a moral imperative but also a strategic advantage in building lasting success and fulfillment.
Ultimately, "Good People" invites readers to reflect on their own values and practices, encouraging a shift towards a more holistic, human-centered approach to business and life. By doing so, Tjan suggests we can not only achieve greater success but also contribute to creating a better, more compassionate world.