From Good to Great: A Personal Reflection from KDU UC's Executive Chairman

Written by Dr. Rod Allan
Head, Postgraduate & Research Centre



The Executive Chairman of KDU University College, Dato’ Teo Chiang Quan (pic), spent an evening with the MBA class, sharing his personal experiences in business, as well as his reflections and thoughts on Jim Collins’ bestselling book ‘Good to Great’, a book admired for its well-placed, but sometimes rather surprising, insights.

To clarify his personal position on the companies under his care, Dato’ Teo offered some opening remarks:

1. Paramount Berhad, of which Dato’ Teo is the Executive Deputy Chairman, is not a great company as described by Jim Collins; and Paramount’s businesses are not exactly grounded on Collins’ principles.

2. In matters of Paramount, or any of its subsidiaries, there is no single act, event or decision that can be ascribed as a ‘breakthrough’ as described in the context of the book. Instead, he asserts that the growth of his firms is attributed to a long chain of improvements and accumulated gains from past business decisions.

3. People are not the most important asset in an organization; it’s the ‘Right People’ who are.
Then, he got the audience to reflect on the idea that “good is the enemy of great” and why some companies make the leap and others don’t. Next, he presented the schema of the ‘Black Box’; the secret of these high performing businesses.

During his investigative discourse to unravel the mystery of the ‘blackbox’, Dato’ Teo debunked some popular myths in management:

• The fallacy of good strategies. He says “where the bus is going is not as important as who is driving it... or who are inside it.” At this point, he concluded with “First Who, then What and Where.”

• ‘Greatness’ is a function of circumstances, or a result of chance or accident; rather it is a function of design. He explains that the key to building lasting companies capable of weathering storms is to identify not only what “needs to be done”, but also “what not to do”; and “what to stop doing.”

• Technology is a competitive advantage and distinguishing characteristic of great companies. He explains that technology, particularly information technology, is a business necessity but by itself, not a cause of radical organizational transformation or success for great companies.

• Motivating employees should be among the top priorities of managers. Dato’ Teo believed that if the right people are seated in the right seats, then there is hardly any need for anyone to motivate them. He offered his “ASK” formula; Attitude, Skills and Knowledge as a requirement for successful job performance.

• The exaggerated claims on the need to manage change in this fast changing times. Although, he agreed that companies should adapt to the changing social and economic environments, he also attests to the continued relevance of timeless principles and business fundamentals, “Getting the right people on the bus – Wrong people off the bus”.

Finally, he argued that great leaders are not necessarily high profile leaders. Some are found to be quiet, shy and even reserved. But they all seem to have a great deal of personal humility, professional will, passion for results, and a stoic determination to do whatever it takes to make the company great.

So, what was in the ‘Black Box’? It is at this point that Dato’ Teo concluded with “It’s the RIGHT PEOPLE, driven by the RIGHT LEADER.”

Rightly, this provocative session was followed through with a diverse range of questions; from “Where is money in the “great” equation?” and “How does one raise financing for the first enterprise”. Further discussion was pursued over coffee.