Hey GirdleyWorld!
These days, it’s not hard for a company to look great. A slick website and a snappy sales deck are practically table stakes and a few bucks from Fiverr for a design.
So when you’re looking to invest, or choosing a vendor, or even applying for a job, it pays to know…
- The signs of a top 1% company
Having sat on tons of boards and watched many companies, good, bad and terrific… I’ll give you my favorites.
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11 ways to spot a top 1% company
I’ve been thinking about my top-line mission lately. I’ve learned a ton about business in my life, and I’m always working towards what I call “healthy business ownership”.
Some of the things I believe:
- Entrepreneurship should leave the world a better place
- Scaling comes from good systems, not working harder
- The greatest wealth is freedom over your time
Between my podcast, meeting with my CEO peer group, and working with the companies in my holdco, I’m constantly analyzing businesses against these beliefs.
And no matter the industry, the best companies share some common traits.
1. Top 1% companies have leadership with a growth mindset.
They listen to feedback and ideas.
They welcome criticism and seek to understand it rather than argue.
It’s a red flag if they’re shutting down conversations.
2. Top 1% companies let simple stay simple.
Underperforming orgs love to make easy things hard.
3. Top 1% companies measure & use employee engagement regularly.
Note that’s measure AND use. It’s easy to explain away problems without addressing them.
Great leaders tackle problem areas head on.
4. Top 1% companies have a clear business plan.
I like 1-page plans like EOS’s V/TO. It should be simple, achievable yet ambitious, and visible to everyone in the org.
People want to buy into a big mission. Let them see and be inspired.
Here’s Girdley Media’s 1-page plan: (front and back, it still counts!)
5. Top 1% companies’ leaders answer questions well
They can explain their logic soundly.
And they aren’t afraid to say, “I don’t know, but I’ll find out.”
6. Top 1% companies make good decisions, fast
Part of this is by making a repeatable process to minimize fire drills.
Making high stakes decisions more quickly than an opponent gives you an advantage.
The OODA loop is a great example of this — developed by the military for fighter pilots:
7. Top 1% companies have a good office vibe
This manifests in two ways.
Physically, they are clean and tidy. Especially the little things like bathrooms and kitchen.
Mentally/emotionally, people get along. No drama, no politics. Look for good body language between co-workers.
8. Top 1% companies operate at “healthy” stress
They’re not burning out. But they’re working hard on an inspiring mission.
Good stress is how we grow, both as people and companies.
A great sign here: they’re meeting most of their deadlines.
(Meeting all their deadlines, I worry they’re sandbagging. Meeting none of them… something is wrong.)
9. Top 1% companies have strong employees stick around
Weak performers quit or leave. Employee churn is low.
If good workers are leaving, that’s a bad sign.
10. Top 1% companies run smooth board meetings
They make the most of their time with the board, and focus on solving hard problems.
They have clear, up-to-date KPIs.
And materials are distributed on time (before the meeting), well-prepared and typo-free.
If they’re messy at the highest level, it’s a bad sign.
11. Top 1% companies know why they’re winning
They have a clear picture of their differentiators.
And they know how to use them to win.
3 things that caught my eye
- Appetizer: People really dug my 120-day playbook on starting a business. I had lots of “aw, shucks” moments — I love seeing people get value out of this stuff. You can check out the Twitter thread here!
- Main: Do you use the “Window and the Mirror” technique?
“Imagine a business leader looking at their team through a window. When things are going well, they look through the window, point at their team, and credit them for success. When things are going wrong, the window fogs up and becomes a mirror and the leader points at themselves to take the blame.”
- from Clint Murphy’s excellent newsletter The Growth Guide (you can one-click subscribe here!)
- Dessert: Is there anything this sphere can’t do?!
My question for you this week: do you have a philosophy of business? If you do, how do you live it in your day-to-day?
Did mine up top resonate with you?
Hope you have a top 1% week.
Michael
