The document discusses the "Law of the Lid", which states that a leader's abilities determine the effectiveness of both themselves and their organization. It notes that an organization will never exceed its leaders' capabilities, and that weaker leadership imposes a lower limit on potential. The document uses Ray Kroc and the McDonald brothers to illustrate this principle, explaining how Kroc was able to massively expand McDonald's through his leadership whereas the brothers struggled with only 15 investors. It emphasizes that seeking opportunities to improve leadership and organizational structures allows lifting the "lid" of what is possible.

1. 1. LAW OF THE LID
Leadership ability determines
personal and organizational level of
effectiveness

2. 1. Law of the Lid
Leadership ability determines personal and organizational
level of Effectiveness
Point of the Principle on the Lid
•An organization will never surpass the capabilities of its
leaders.
•If the leadership is strong, the lid is high
•The lower an individual's ability to lead, the lower the lid
on his potential.
– if your leadership were an 8, your effectiveness can
never be greater than a 7.
– Your organization will never grow more than the 7
– Because you are the lid.
•The Lid represents the limit of our leadership abilities.

3. Ray Kroc Vs Dick & Maurice McDonald
• 1952, McDonald failed to expand their product
with
Franchise Model.
• From 15 investors only 10 opened the restaurant.
• Their genius was in kitchen operational
excellence
1955, Kroc had global vision, decided to make an
agreement with them and setup
McDonald’s System Inc & Hamburger
University
• He brought the Master Franchise License at 1961
1. Law of the Lid
Leadership ability determines personal and organizational
level of Effectiveness

4. SUCCESS WITHOUT EFFECTIVE
LEADERSHIP
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2.
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10.
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10.
Effectivity
The Lid:
15 Investors 10 Outlets

5. SUCCESS WITH EFFECTIVE
LEADERSHIP
1.
2.
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7.
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10.
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10.
Effectivity
The Lid: 10 100 2100
Outlets

6. 1. Law of the Lid
Leadership ability determines personal and organizational
level of Effectiveness
Good leaders will look for Lid
Lifting experiences to grow in
their leadership capacity
Seek opportunities to grow your
leadership
Search for opportunities to improve
organizational structures and
procedures
Seize opportunities to create greater
efficiencies and to assist others in