The 'First Who' Principle

Key Insight

The paramount principle for building an enduring great company is 'first who,' meaning that securing the right people for the team takes precedence over defining the specific business idea or strategy. This concept is foundational, as exemplified by Steve Jobs's return to Apple in 1997, when the company was near collapse. Instead of focusing solely on products, Jobs prioritized finding passionate individuals who still believed in the company's change-the-world vision and dedication to crafting exquisite products. He recognized that the only way to build a sustainably great company is through the right people cultivated within the right culture.

This emphasis on people is crucial because most business ideas are prone to failure. A team hired only for a specific strategy becomes obsolete if that idea falters, hindering adaptability for subsequent ventures. Conversely, if an initial idea succeeds but a larger opportunity arises, like Apple's transition from personal computers to iPods and iPhones, a team focused on a single strategy can limit growth. Ed Catmull, co-founder of Pixar Animation Studios, demonstrated this by stating that 'early on, all of our movies suck,' and even with a bad initial idea, the right people can iterate and transform it into a great result.

Catmull's 'first who' strategy at Pixar led to fourteen consecutive number one movies, illustrating that investing in great people empowers them to refine concepts and achieve excellence. In a world defined by chronic uncertainty, instability, and continuous unforeseen disruptions, the best hedge against unexpected obstacles is a team of adaptable and capable individuals. The ability to make superb people decisions is the single most important skill for building a great company, even for the most visionary leaders, as without the right talent, greatness cannot be achieved.