Entrepreneurial
Insanity
Why good is the enemy of the great
The World
Above
Below
Great
Poor
average
Excellent
Bad
Contribution
Above
Below
Great
Poor
average
Excellent
Bad
-1
0
1
2
3
4
Average Contribution = 1.5
(9 units of work / six people)
Above
Below
Great
Poor
average
Excellent
Bad
-1
0
1
2
3
4
Average Contribution = 2.16 (up 67%)
(13 units of work / six people)
2 Above
2 Below
1 Great
average
1 Excellent
2
4
3
4
Removing bad & poor people
and replacing with average people
Average Contribution = 3.5 (up 233% & 62%)
(21 units of work / six people)
3 Great
3 Excellent
9
12
Removing Average people
and replacing with great & excellent people
Average co.
Excellent co.
Above
Average co.
Units produced
Yearly raises
Year end compensation
9
13
21
(67% gain)
(233% gain)
1 - 2.5%
2 - 5%
6 - 12%
(Starting at 100 units)
102.5
105
112
The Bottom Line