The CEOs in "The Outsiders" used several unconventional techniques that led them to outperform the S&P 500 by twenty times. One of the key techniques was extreme decentralization, which involved driving managerial accountability to the lowest levels. This approach allowed for more efficient decision-making and greater employee empowerment. Another technique was the avoidance of non-essential business practices such as investor relations, which was considered a waste of time. Instead, these CEOs focused on core business operations and long-term growth strategies.

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The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

A book that received high praise from Warren Buffett, The Outsiders chronicles the unconventional techniques that led eight CEOs to outperform the S&P...

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Singleton did not reserve any day-to-day responsibilities for himself. He emphasized extreme decentralization, driving managerial accountability to the lowest levels. For a company of 40,000 people, Teledyne's headquarters had less than 50 people with no human resources, business development, or investor relations departments. Singleton considered investor relations to be a waste of time, famously avoiding Wall Street and not declaring quarterly earnings guidance.

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Singleton's disregard for investor relations can be seen as a challenge to the contemporary emphasis on corporate transparency and accountability. His approach, which involved extreme decentralization and a lack of investor relations, contrasts with the current trend towards greater transparency and accountability in business. This could spark debates on the necessity and effectiveness of these practices. However, it's important to note that while Singleton's approach worked for his specific context, it may not be applicable or successful in all corporate environments.

A startup can use Singleton's approach of extreme decentralization to grow by driving managerial accountability to the lowest levels. This means that decision-making power is distributed among various levels of the organization, rather than being concentrated at the top. This can lead to increased efficiency, as decisions can be made more quickly and by those who are most familiar with the specific situation. Additionally, this approach can foster a sense of ownership and responsibility among employees, which can lead to increased motivation and productivity. However, it's important to note that this approach may not be suitable for all startups, as it requires a high level of trust and communication within the organization.

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