The Ten Elements of Success

George first introduced the ten elements at a conference in Orlando, Florida, in November 1996. He was the featured speaker for an audience of financial advisors.

George began with a historical prologue, describing the critical role his famous cold calls had played in getting Frank Russell Company off the ground. Then he gave a quick profile of each of the ten elements. At the time, George treated “Do the right thing” as a separate topic. Upon reflection, he decided that “Do the right thing” was so similar to “Non-negotiable integrity” that the two should be treated in the same chapter. The “new” second element, “Persistence, Patience and Cold Calls,” derives from the prologue to the original speech.

1. Non-negotiable Integrity

George starts with non-negotiable integrity because it is the most important of the ten elements. Why does integrity matter? George believes that trust was the essential element in starting his business and in adapting to change at key inflection points. It also is the indispensable foundation for any organization that hopes to continue to thrive and grow for generations. Does integrity have to be non-negotiable? You bet! What other kind is there?

2. Persistence, Patience and Cold Calls

At the Schwab conference, George asked those who enjoyed making cold calls to raise their hand. No one did. George observed, “I would put it on your list of things to learn. It’s an easy skill if you can get rid of that chip in your brain that won’t accept rejection and I will confess that if it wasn’t for cold calling, Frank Russell Company as you know it wouldn’t exist today.” In this chapter, you’ll find out how George’s idea evolved over time, as he responded to a series of serendipitous encounters.

3. Hire People Smarter Than You Are

The money management industry has the good fortune to have a strong basis in academic disciplines ranging from mathematics and statistics to economics and finance. Throughout his career, when George needed help in meeting a client need, he often turned to academics. You’ll find out why “access to data…is like sex.” And you’ll also learn why it’s important to bring in “smarter people” in every area of the organization.

4. Be Creative

In addition to inventing the discipline of money manager research and evaluation, Frank Russell Company pioneered the industry’s move to diversify portfolios with international equities and real estate. Russell also was the first to categorize and define manager styles, and the firm invented the Russell Indexes, including the Russell 2000. George will tell you that creativity doesn’t necessarily involve a breakthrough innovation every time. Progress can be incremental, but the culture must acknowledge that time and a willingness to take risks are required.

5. Work Hard

George is infamous for his work ethic: Keeping a hectic schedule, tramping through snow to keep appointments, and doing push-ups to stave off boredom. Surprisingly, the Russell culture emphasizes not working to excess. George recommends working hard, in an extremely focused way, in the office…and especially on road trips. But under normal circumstances, he thinks employees should leave at five and stay away from the office on weekends to spend time with their families.

6. Share Credit

Sharing credit is one of the ways to encourage teamwork. The point may seem obvious, but as George observes, it’s no trivial task to build efficient teams across a global company. The Russell culture also encouraged associates to “celebrate mistakes.” Identifying errors makes them less likely to be repeated, the company can correct them right away, and the associates responsible can get back to work. Possibly the most potent form of sharing credit is sharing financial rewards. George describes how Duncan Smith prodded him to share ownership, eventually giving every associate a stake in the company.

7. Recognize Luck

Arguably, the biggest surprise in Success by Ten is the fact that George is an intuitive decision-maker. He believes that manager selection—one of Russell’s core capabilities—should be based approximately 60% on qualitative factors and 40% on quantitative inputs. In this chapter you’ll learn how George used intuitive decision-making to respond quickly to market opportunities. He also shares stories of “decision triggers,” devices he used to help associates learn to make decisions more efficiently. Finally, you’ll read about the lucky accidents connected with the creation of one of the company’s most important products, the Russell Indexes.

8. Plan Transitions

George understood that change is a fact of life, and he always encouraged people to change roles within the company—provided they first hired and trained their replacements. He applied the same principal to himself when he chose Mike Phillips as his successor. The chapter contains a frank description of the transition from both George’s and Mike’s perspectives. You’ll also get an insider’s look at the thought process that led George to sell the company to Northwestern Mutual, even though they weren’t the highest bidder.

9. Take Risks

Risk taking isn’t just for entrepreneurs. George knew that Russell needed to continue to evolve if it wanted to maintain industry leadership. He also recognized his need for new personal challenges following his decision to hand off his day-to-day responsibilities. This chapter describes the waking dream that inspired George to found a new organization, Russell 20-20, to research, alongside investors representing trillions in assets, the opportunities presented by formerly communist states opening themselves to the market economy.

10. Have Fun

In the concluding chapter, George comes full circle—describing a trek to the Himalayas in 1985 with his boyhood mentor, Bob Bates. George and his wife Jane found the trip so stimulating that they wanted Russell associates to experience something similar. Ten years later they introduced a sabbatical benefit for all Russell associates: two months for every 10 years on the job! George believes that living a balanced life makes people more stable and productive. The chapter concludes with a description of the different organizations George chairs and supports financially in his current role, which he thoroughly enjoys, as a philanthropist.

"George Russell’s ten rules for building a successful business is a must read. It's filled with wisdom. His life is a great story and here he tells you how he did it"

John C. Whitehead

Former Deputy Secretary of State and recipient of the Presidential Citizens Medal

"George Russell in Success by Ten provides an inspiring account of how one man carefully built one of the world's great financial institutions. His story serves as a welcome antidote to the financial chaos created by too many other financial institutions."

Carla A. Hills

Chair & CEO of Hills & Company, International consultants and former Secretary of Housing and Urban Development and former U.S. Trade Representative

"George has lived an incredible life and his success is a tribute to the virtues he promotes: hard work, determination, and integrity. This book tells the story of how George has used these fundamentals to reach the top – a worthwhile read for anyone curious about what it takes to do things on a big scale."

William H. Gates, Sr.

Attorney, philanthropist and author of the book, Showing Up for Life: Thoughts on the Gifts of a Lifetime