Personal Commitment and 'Rinsing Your Cottage Cheese'

Key Insight

Good-to-great companies are characterized by individuals who exhibit extreme diligence and dedication in fulfilling their responsibilities, often approaching fanaticism. This intense personal commitment is encapsulated by the phrase 'rinsing your cottage cheese.' The analogy stems from Dave Scott, a six-time Hawaii Ironman Triathlon champion, who, despite burning at least 5000 calories daily from rigorous training (including riding 75 miles, swimming 20000 meters, and running 17 miles), would meticulously rinse his cottage cheese to remove extra fat. This seemingly minor act symbolized his consistent program of superdiscipline, where numerous small, disciplined steps cumulatively contribute to superior performance.

Leadership must embody this self-discipline, as exemplified by Carl Reichardt at Wells Fargo. Facing deregulation, Reichardt focused on eliminating waste, starting with a powerful commitment in the executive suite. He froze executive salaries for two years despite company profitability, replaced the executive dining room with a college dorm caterer, closed the executive elevator, sold corporate jets, and banned expensive plants. He famously questioned spending with, 'Would you spend your own money this way?' and even used a worn-out chair in meetings, leading to the cancellation of many 'must-do' projects.

In stark contrast, Bank of America executives during the same period failed to 'rinse their own cottage cheese.' Despite a crisis that saw the company lose 1.8 billion dollars across three years in the mid-1980s, executives maintained opulent perks, including a lavish corner office with panoramic views and a private, unimpeded elevator. Even when sensible cost-saving suggestions, such as selling the corporate jet, were made at board meetings, they were dismissed. This lack of personal discipline and detachment from reality within the executive ranks hindered the company's ability to make necessary, difficult changes.