Our two latest books focus on how traditional views of management and leadership are often outdated or just plain wrong. Jay Conger argues how effective persuasion is actually beneficial to leaders and organizations, and Henry Mintzberg dispels a whole slew of common myths about management that still dictate organizational operations.
Here are the stories of five leaders who decided to go against the grain and “conventional business wisdom,” and the impact they had:
1. Taiichi Ohno at Toyota
The Myth: Efficient production requires large batches and plenty of inventory. You need to have backup.
How He Challenged the Myth: In the postwar decades, Ohno and his colleagues developed the Toyota Production System, including just-in-time production and jidoka, which stops production when a problem appears. Toyota adopted its kanban system across its plants in 1963, as described in the company’s history of TPS.
The Outcome: The system reduced excess inventory and waste while supporting shorter lead times, lower costs, and higher quality. A literal three-way win.
2. Herb Kelleher at Southwest Airlines
The Myth: A low-fare airline needs to route passengers through a few major airports, or “hubs,” to connect to other destinations. For example, someone flying from Boise to Kansas City might change planes in Denver, the hub.
How He Challenged the Myth: Southwest ignored this dictum and instead built its business around point-to-point flights and low fares, beginning service in 1971.
The Outcome: Southwest recorded its first profit in 1973 and then 35 consecutive years of profitability. Point-to-point worked.
3. Jim Sinegal at Costco
The Myth: Paying retail workers more makes it harder to compete on price. Profitability comes from low overheads.
How He Challenged the Myth: From Costco’s early years, Sinegal backed comparatively high wages and benefits while the company kept prices low.
The Outcome: Sinegal reported employee turnover of about 7%, compared with 60–70% at other retailers at the time. What may have been lost to higher pay for retail staff was more than compensated by more committed employees and greater productivity with significantly lower turnover.
4. Anne Mulcahy at Xerox
The Myth: A company near bankruptcy has to cut its way to recovery, even at the expense of investment in its core business—it’s the only way to stay alive.
How She Challenged the Myth: After becoming CEO in 2001 during a troubled time, Mulcahy focused on customers and partnerships while resisting cuts to research and development—often the department that is cut deepest
The Outcome: The focus on customers instead of cutting vital departments proved key, and the growth in customer focus was the icing on the cake. In October of 2000, Xerox’s stock price was $4.43. In 2006, it was $15.
5. Cheryl Bachelder at Popeyes
The Myth: Franchisees need to be directed from the top; their success is secondary to the parent company’s, and the parent company dictates all things.
How She Challenged the Myth: Starting in 2007, Bachelder emphasized rebuilding trust and working collaboratively with franchisees. She shifted the focus from HQ to individual stores and what they needed to really be profitable.
The Outcome: By 2017, Popeyes franchisee restaurant sales were up 45%, and operating profit had more than doubled.
By the way, Cheryl Batchelder is also one of our authors. Her book (no surprise) is Dare to Service: How to Drive Superior Results by Serving Others.
