The greatness guide
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The excerpt from 'Good to Great' by Jim Collins discusses the key principles that distinguish successful companies that transition from good to great, emphasizing conscious choice over circumstance. It highlights the importance of Level 5 leadership, confronting brutal facts, and creating a disciplined culture, while noting that technology should accelerate rather than initiate transformation. The document concludes by stating that great companies focus on preserving core values while stimulating progress rather than solely pursuing profits.
The greatness guide
- 1. The Greatness Guide (An Excerpt of the Best Seller, Good to Great - By Jim Collins) 1 Debidutta Pattnaik, CFA (ICFAI) MBA, MIFA
- 2. 2 Growing from Good to Great – Jim Collins
- 3. 3 Good-to-great institutions not only knows what to do, they also know what not to and what to stop doing? Technology and technology-driven change has virtually no role in leading transformation from good to great. Technology can accelerate a transformation, but may not cause one!!! Mergers and acquisitions play virtually no role in igniting a transformation The good-to-great companies pay scant attention to managing change, motivating people, or creating alignment. Cloud of thoughts... Good is the enemy of Great.
- 4. 4 The good-to-great companies had no name, tag line, launch event, or program to signify their transformations. Indeed, some reported being unaware of the magnitude of the transformation at the time; only later in retrospect, did it come clear. However, they produced a truly revolutionary leap in results, but not by a revolutionary process. The good-to-great companies were not, by and large, in great industries, and some were in terrible industries. In no case do we have a company that just happened to be sitting on the nose cone of a rocket when it took off. Greatness is not a function of circumstance. Greatness is largely a matter of conscious choice. Cloud of thoughts...
- 5. 5 From thoughts to concepts What do the Good-to-Great Institutions have in Common? 1. They have the Level 5 Leaders 2. They seek the right people before deciding on the products and processes - First who ... Then What 3. They readily Confront the Brutal Facts 4. Practice the Hedgehog Concept 5. Create a Culture of Discipline 6. Technology is used to Accelerate Transformation 7. They work on moving the Giant Flywheel
- 6. 6 Our Lessons to Carry Home
- 7. 1. Seek the Level 5 Leaders 7 Level 1– Highly Capable Individual Level 2 Contributing Team Member Level 3 Competent Manager Level 4 Effective Leader Level 5 Executive
- 9. 2. Decide on the Right People Before deciding on the Products and Processes.. 9
- 10. 10 Good-to-great leaders doesn’t begin by setting a new vision or strategy First gets the right people on board Wrong people are let out of the team
- 11. 3. Confront the Brutal Facts 11
- 12. 12 Find the Path to Greatness Success Hear the FACTS People get the opportunity to debate and discuss Build red flag mechanisms that turn information into information that cannot be ignored.
- 13. 4. Practice the Hedgehog Concept 13
- 14. Good-to-great Companies are like Hedgehogs 14 Simple dowdy creatures that know “One Big Thing” and stick to it. The foxes are crafty, cunning creatures that know many things but lack consistency No matter how hard the fox tries, it will never be able to beat a hedgehog.
- 15. 15 What you deeply Passionate about? What drives your Economic Engine? What you can be the best in the world at? Decide on the Businesses and Products based on The Three Golden Circles
- 16. 5. Create a Culture of Discipline 16 Create a Culture built on the idea of freedom and responsibility Create a team of highly self- disciplined people
- 17. 17 Disciplined People Disciplined Thought Disciplined Action Built Up Understand the Built Up – Breakthrough Curve
- 18. 18 Hierarchical Organization Great Organization Bureaucratic Organization Start-up Organization Ethic of Entrepreneurship Low High LowHigh Culture of Discipline Work on Creating a Great Organization
- 19. 6. Use Technology as Accelerators of Transformation 19 The Good-to-great institutions use technology as an accelerator of momentum, not a creator of it. Transformation should not begin with technology, it should rather be based on the application of technology. In response to technology change, great companies react with thoughtfulness and creativity, driven by compulsion to turn unrealized potential into results; mediocre companies react and lurch about, motivated by fear of being left behind.
- 20. 7. Understand the Flywheel and the Doom Loop 20
- 21. 21 The Doom Loop
- 22. Final Thoughts 22 Enduring great institutions don’t exist merely to deliver returns to shareholders. Indeed, in a truly great company, profits and cash flow become like blood and water to a healthy body: They are absolutely essential for life, but are not the very point of life. Enduring great institutions preserve the core and stimulate progress.
- 23. Let’s begin the change!!! 23
Editor's Notes
- #4: Good is the Enemy of Great 1. The good-to-great entities do not focus principally on what to do to become great; they focus equally on what not to do and what to stop doing. 2. Technology and technology-driven change has virtually nothing to do with igniting a transformation from good to great. 3. Technology can accelerate a transformation, but it cannot cause a transformation. 4. Mergers and acquisitions play virtually no role in igniting a transformation from good to great; two mediocrities joined together never make one great company. 5. The good-to-great companies paid scant attention to managing change, motivating people, or creating alignment. Under the right conditions, the problems of commitment, alignment, motivation, and change largely melt away.
- #5: The good-to-great companies had no name, tag line, launch event, or program to signify their transformations. Indeed, some reported being unaware of the magnitude of the transformation at the time; only later in retrospect, did it come clear. However, they produced a truly revolutionary leap in results, but not by a revolutionary process. The good-to-great companies were not, by and large, in great industries, and some were in terrible industries. In no case do we have a company that just happened to be sitting on the nose cone of a rocket when it took off. Greatness is not a function of circumstance. Greatness is largely a matter of conscious choice.
- #11: Good-to-great leaders doesn’t begin by setting a new vision or strategy They first get the right people on board Wrong People off the bus They place the right people in the right place Then they figure out where to drive the bus
- #21: 1. Sustainable transformation follow a predictable pattern of buildup and breakthrough. Like pushing on a giant, heavy wheel, it takes a lot of effort to get the thing moving at all, but with persistent pushing in a consistent direction over a long period of time, the flywheel builds momemtum, eventually hitting a point of breakthrough.