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The Law of the Lid
Lesson 1 from The 21 Irrefutable Laws of Leadership
John C. Maxwell
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eBook - ePub
The Law of the Lid
Lesson 1 from The 21 Irrefutable Laws of Leadership
John C. Maxwell
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Brothers Dick and Maurice MacDonald came as close as they could to living the American Dream, without making it. Instead a guy named Ray Kroc did it with the company they had founded. It happened because they didn't know the Law of the Lid.
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THE LAW OF THE LID
Leadership Ability Determines
a Person’s Level of Effectiveness
a Person’s Level of Effectiveness
I often open my leadership conferences by explaining the Law of the Lid because it helps people understand the value of leadership. If you can get a handle on this law, you will see the incredible impact of leadership on every aspect of life. So here it is: leadership ability is the lid that determines a person’s level of effectiveness. The lower an individual’s ability to lead, the lower the lid on his potential. The higher the individual’s ability to lead, the higher the lid on his potential. To give you an example, if your leadership rates an 8, then your effectiveness can never be greater than a 7. If your leadership is only a 4, then your effectiveness will be no higher than a 3. Your leadership ability—for better or for worse—always determines your effectiveness and the potential impact of your organization.
Let me tell you a story that illustrates the Law of the Lid. In 1930, two young brothers named Dick and Maurice moved from New Hampshire to California in search of the American Dream. They had just gotten out of high school, and they saw few opportunities back home. So they headed straight for Hollywood where they eventually found jobs on a movie studio set.
After a while, their entrepreneurial spirit and interest in the entertainment industry prompted them to open a theater in Glendale, a town about five miles northeast of Hollywood. But despite all their efforts, the brothers just couldn’t make the business profitable. In the four years they ran the theater, they weren’t able to consistently generate enough money to pay the one hundred dollars a month rent that their landlord required.
A NEW OPPORTUNITY
The brothers’ desire for success was strong, so they kept looking for better business opportunities. In 1937, they finally struck on something that worked. They opened a small drive-in restaurant in Pasadena, located just east of Glendale. People in Southern California had become very dependent on their cars, and the culture was changing to accommodate that, including its businesses.
The drive-in restaur...