Good To Great
Based on a five-year research job, Good to Great answers problem: “Can a good company become a great company and, if so, how? ” In this book, Jim Collins shows that companies can make the leap to outperform the market leaders. And although his Good To Great set of companies (Abbott Labs, Circuit Town, Fannie Mae, Gillette, Kimberly Clark, Kroger, Nucor Metal, Phillip Morris, Pitney Bowes, Walgreens, and Wells Fargo) have experienced a whole lot of changes and ranging results the last ten years (witness Outlet City’s collapse and Fannie Mae’s role in the mortgage debacle), the tips of what at first helped push them from average executing companies to market frontrunners remain valid.
Collins produces that “Good is the enemy of great. And that is one key reason why we have so hardly any that become great. inches Yet the transformation from good to great won’t just happen. We must think of transformation as a process of build-up, followed by breakthrough, damaged into 3 broad phases, with a few key components in each.
Stage I. Disciplined People
Level 5 Leadership – A amazing style, necessary for success. These professionals build “enduring greatness through a paradoxical mixture of personal humbleness and professional will. inch They can be moderate and freely give others credit, act with peaceful dedication, and channel goal into the company (of course not to themselves).
First Who also, After that What – The important thing distinguishing point here ensuing from Collins team’s research was not only about the cost of assembling the right team, but about, first, getting the right people on the coach, the wrong people from the bus, and the right kind of traffic in the right chair. And after that, deciding the right strategic direction that should be followed. Often we believe of obtaining these two stages in the other order.
Stage 2. Disciplined Thought
The Stockdale Paradox – The need to confront the powerful facts and continually perfect the path to success, yet never losing desire in the ability to prevail. Understanding your current reality, negative and positive, can only fully happen for the open culture is fostered where the truth can be analyzed and a climate is out there where strong dialogue is welcome and handled skillfully.
The Hedgehog Concept – To move from good to great, you need to gain a deep comprehension of 3 intersecting circles:
1) what you could be the best lawn mowers of the world at,
2) what economical denominator best hard drives your monetary engine, and
3) what you are deeply passionate about. Up coming, this understanding must be translated into an idea that can be carried out upon.
Stage 3. Encouraged Action
The Lifestyle of Discipline. The good-to-great companies built a steady system with clear constraints, nevertheless they also gave people overall flexibility and responsibility within the framework of this system.
Technology Accelerators – Good-to-great companies think differently about technology. They simply do not use technology to remodel from good to great, but for increase their progress, remaining targeted on their Hedgehog. Collins asserts that technology exclusively is never a main reason for either success or decline.
The Flywheel and the Doom Hook – Why those who do radical restructuring are not successful to make the commence to greatness, while those that constantly accumulate impetus (turn after turn, step by step) can convert themselves.
Patience, persistence and willpower are critical to obtaining desired results.
Finally, once you’ve gone from good to great, Collins advises that you make the leap from great to enduring great, by making use of the actual key ideas from his book Built To Last, principally the ideas that you should maintain your core ideology while stimulating change and improvement and setting BHAGs (Big, Hairy, Audacious Goals) that are aligned with the midst of your 3 circles (your Hedgehog).