Why good is better than great

I read the book "Good to Great" a long time ago. At that time, my initial reaction was, "I could have written this!" So many of the principles aligned with my thoughts related to building and evolving a business. I have applied many of the same concepts as we have grown Integrated Project Management over the past 31 years. That said, I no longer believe it is in the best interest of an organization to focus on "great." I believe "good" is better than "great."

"Good" is virtuous and satisfies a moral obligation and/or societal responsibility. "Great" implies no such thing; rather it is all about size - growth, profitability, power, influence and other measures. Surely these are important metrics. However, history has proved these are insufficient to sustain viability and growth. In "Good to Great," Wells Fargo was cited as a one of those great companies, and some would still consider it great despite its ethical lapses.

I contend that good companies are those intent on having a positive impact on their employees and society. They create enabling and motivating environments, driven by values that are more than a list of words or phrases. They do not compromise these values for short-term benefits, especially when decisions and actions would negatively impact their employees, community, greater society, or the environment.

It is interesting that culture is not addressed until the last chapter of "Good to Great." I would have chosen to address it much earlier.

Culture is readily distinguishable by the behaviors of employees at every level within the organization. In good companies, leadership decisions are consistently made in compliance with clearly identified and communicated core values. The leaders within these good companies walk the talk and lead with authenticity and transparency. Their priority, indeed, their obligation, is to build and preserve a reputation of honesty and integrity. The focus of good companies is growing in a way that preserves the values and strengthens the culture. That approach, coupled with business savvy, will ensure sustainability.

A positive, values-based culture is a significant competitive advantage, and one that is difficult to replicate. A company may be able to purchase technology and assets, and even hire the most knowledgeable people, but it cannot purchase a culture. Like reputation, culture must be established over time and requires consistency in leadership conduct, promotion, and enforcement.

The reality is that many companies allow culture to develop by default. The latest fad is pursued, the path of least resistance is chosen, and each leader develops an individual mini-culture.

This approach makes for a shaky foundation. In tough times - just when a company needs all hands on deck - the rough seas cause abandonment. In these cases, the overall organization's potential is diminished and the opportunity cost, while at times difficult to measure, is real and manifested in diminished employee commitment and performance.

Good companies are all about establishing a culture that is both effective and affective, and aligned with core values. They strive to engage their employees intellectually and emotionally; to capture their minds and hearts. Accomplishing this results in an organizational capability and capacity well beyond the sum of the parts.

Good companies strive to grow, be profitable, and, while advancing goodwill and ethical and moral conduct, accomplish great things.

• C. Richard Panico is founder, president, and CEO of Integrated Project Management Company (IPM).