They are the unsung heroes of the U.S. economy. Annual revenue between $50 million and $2 billion. Lithe enough to maneuver, big enough to have a broad impact. They employ 35 million people-about one in four U.S. workers. They deliver nearly 40 percent of the country’s economic vitality.
They are America’s midsize companies, and it’s time they are recognized. And while their growth may not be as fiery as, say, the companies we praise in the Inc. 5000 each year, the best ones (some of which are actually graduates of the Inc. 5000) boast all the true hallmarks of business success. Clients? Customers? Check. Check. Solid brand and mission? Check and check. Real, verifiable traction? Absolute verifiable check.
None of that success has come by accident. While midmarket company leaders arguably have three primary jobs-setting the vision, shaping the culture, and hiring the best people-those directives belie the difficulty of the juggle. The bar for pleasing directors, shareholders, customers, and employees has always been high. The challenge of navigating all that during Covid-19 has raised that bar higher still.
Which is why, for this issue, we set out to celebrate the leaders who have stared down this most perilous of moments. To do that, we, along with our chief data scientist, Arnobio Morelix, built a data-science machine, and used it to analyze more than 10,000 midmarket firms to identify the 250 best-led companies-both public and private-on the basis of four key areas: performance and value creation; market penetration and customer engagement; talent; and leadership team.
Once we’d identified the top companies, we asked close to 100 execs from that august group: How do you do it? After all, companies both smaller and larger can learn a lot from those in this sweet spot. The results are the 52 kernels of hard-won wisdom and sage advice that grace the following pages-on everything from hiring and retaining top talent to putting out fires and managing amid a crisis. Because it’s one thing to sing the praises of these heroes of the U.S. economy. It’s a far better thing to learn from them.
1
How I Lead
“I have learned that my mental health is just as important as my team’s, and I must lead by example when it comes to taking care of my well-being,” says Michael Acton Smith, co-founder and co-CEO of Calm, the $2 billion maker of an app for sleep, meditation, and relaxation that has four million paying subscribers. Acton himself subscribes to the mindfulness adage “We are human beings, not human doings,” and says, “This perspective shift is valuable [to me] as a leader and entrepreneur.”
2. LEADERSHIP LIBRARY
HOW TO THINK LIKE A ROMAN EMPEROR: THE STOIC PHILOSOPHY OF MARCUS AURELIUS, by Donald Robertson
“As leaders leading in an increasingly complex and challenging world, mastery begins with self, and we can learn a surprising amount from the man who once ruled the largest empire in the world.”
–Bill Staples, CEO of New Relic
3. MY SECRET TO FINDING FOCUS: A POST-IT NOTE ON MY MONITOR
“When I was 13, I had this great soccer coach, Andy. He had this saying: ‘Focus, focus, focus.’ I still hear it ringing in my head: ‘Focus, focus, focus, Zach, focus, focus, focus.’ I write it on Post-it Notes and put
