Entrepreneurial Insanity

Why good is the enemy of the great

The World

AboveBelow

GreatPoor

average

ExcellentBad

Contribution

AboveBelow

GreatPoor

average

ExcellentBad

-1

0

1 2

3

4

Average Contribution = 1.5(9 units of work / six people)

AboveBelow

GreatPoor

average

ExcellentBad

-1

0

1 2

3

4

Average Contribution = 2.16 (up 67%)(13 units of work / six people)

2 Above2 Below

1 Great

average

1 Excellent

2 4

3

4

Removing bad & poor peopleand 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 peopleand 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