1. Entrepreneurial
Insanity
Why good is the enemy of the great

12. The World
average
Below Above
Poor Great
Bad Excellent

13. Contribution
average
1
Below
2
Above
0 3
Poor Great
-1 4
Bad Excellent

14. Average Contribution = 1.5
(9 units of work / six people)
average
1
Below
2
Above
0 3
Poor Great
-1 4
Bad Excellent

15. Removing bad & poor people
and replacing with average people
Average Contribution = 2.16 (up 67%)
(13 units of work / six people)
average
2 4
2 Below 2 Above
3
1 Great
4
1 Excellent

16. Removing Average people
and replacing with great & excellent people
Average Contribution = 3.5 (up 233% & 62%)
(21 units of work / six people)
9
3 Great
12
3 Excellent

17. The Bottom Line
Units produced Yearly raises Year end compensation
(Starting at 100 units)
Average co.
9 1 - 2.5% 102.5
Above
Average co.
13
(67% gain)
2 - 5% 105
Excellent co.
21 6 - 12% 112
(233% gain)