Come great by simply following Collins advice3 As psychologists have pointed out in books such as The Invisible Gorilla and Thinking Fast Thinking Slow even aiming at Good to Great specifically many business books tend to mistake a personal success story or numerous personal stories as a causal
relationship that can be reproduced by anybody when that can be reproduced by anybody when reality the likely explanation was that they benefited from a lot of luck and there isn t a simple process of do x and you will receive y 4 11 years after the book was published the success rates of the great companies isn t so great Were those companies not so great after all What happened What changed
least half of the 11 companies he identified are no longer doing so great Circuit City is bankrupt Fannie Mae went bankruptnationalized Wells Fargo needed a bailout Nucor s stock and revenue crashed Pitney Bowes went down significantly and Gillette is no longer independent It seems strange that greatness was so easily lost 5 Also a difficulty with his methodology is that he measured a company s greatness by its sustained stock market value being a certain percentage 150% above the general market So how does a private company measure greatness with this sort of standard First and foremost Good to Great has no breakthrough concepts to offer Collins is good at inventive metaphors and catch phrases to push concepts through but ultimately there is really nothing counter intuitive or revolutionary about the results of this studyThat said the concepts in the book might still be valuable for managers CEOs and other professionals Here is a brief summary of the book and a short tour on how to take your company from Good to GreatThink of this as a time line to be followedFirst step is To have A Level 5 Leader A self effacing leader A humble leader with a strong drive and indefatigable will for perfection Someone who puts the company over personal success and never clamors for the limelightSecond Step is To First decide the Who uestion and then the What uestion So have a Level 5 Leader Who then picks a great management team Collins uses the metaphor of finding the right people for the bus and the right seats for them before deciding where the bus is going to be heading towardsThird Step is To understand all the basic facts about the situation and the company So we have the ideal top management in place Who in turn now brainstorms to figure out a goaldirection for the company after taking into account all the data available whether good or badFourth Step is To implement the Hedgehog Concept So they confront all the realities and decide on a direction Which is based on the ability of the company the passion of the people in it and money making ability of the goal This is called using The Hedgehog Concept and the Three Circles Concept You have to choose the very intersection of these three circles as your driving direction You might have a lot of interestspassions your company might have a lot of money making options and you might have a lot of competencies BUT the point of intersection of all three should be your ONLY core focusIt is called Hedgehog Concept by contrasting hedgehogs to foxes foxes are wily and now a lot of things hedgehogs are wise and one thing well It is the euivalent to the old proverb of jack of all trades and master of none THE HEDGEHOG CONCEPTimage error. At performers while the other set remained "only good The FindingsThe findings of the Good to Great study will surprise "good The FindingsThe findings of the Good to Great study will surprise readers and shed light on virtually every area of management strategy and practice The findings includeLevel 5 Leaders The research team was shocked to discover the type of leadership reuired to achieve greatnessThe Hedgehog Concept Simplicity within the Three Circles To go from good to great reuires transcending the curse of competenceA Culture of Discipline When you combine a culture of discipline with an ethic of entrepreneurship you get the magical alchemy of great results Technology Accelerators Good to great companies think differently about the role of technologyThe Flywheel and the Doom Loop Those who launch radical change programs and wrenching restructurings will almost certainly fail to make the lea. ,AT LEAST HALF OF THE 11
Read & download ë eBook, ePUB or Kindle PDF â James C. CollinsT of a window to attribute success to factors other than themselvesIn the subseuent chapters comes the idea of choosing the right guys It s important first getting the right people on the bus and wrong people off the bus and then figure out where to drive itThen there is a Stockdale Paradox in this book which is eually applicable in any field of life Retain faith that you will prevail in the end regardless of the difficultiesAnd at the same time Confront the most brutal facts of your current reality whatever they might beThere are many other concepts outlined in this book they look technical so much business involved in them but they are uite handy even to the simpler minds uite comprehensible even to #THOSE ORDINARY MORTALS LIKE ME THE #ordinary mortals like me The done for this book may have taken a huge amount of resources time and energy but as a conseuence the major findings and learnings of this project are rather uncomplicated The ey elements of greatness are deceptively simple and straightforward I feel this book is a wonderful exhibition of undemanding intelligence encrusted with due diligence In the end Even if you think in contrast If you think you are already gratified to the goodness around you and think after reading the title of this bookWhy greatness I don t need that Then the book has an answer for you as well It says it s almost a nonsense uestion If you are engaged in a work that you love and care about for whatever reason then the uestion needs no answer The uestion is not why but how Here are Jim Collins seven characteristics of companies that went from good to great1 Level 5 Leadership Leaders who are humble but driven to do what s best for the company2 First Who
Then What Get TheWhat Get the people on the bus then figure out where to go Finding the right people and trying them out in different positions3 Confront the Brutal Facts The Stockdale paradox Confront the brutal truth of the situation yet at the same time never give up hope4 Hedgehog Concept Three overlapping circles What makes you money What could you be best in the world at and What lights your fire5 Culture of Discipline Rinsing the cottage cheese6 Technology Accelerators Using technology to accelerate growth within the three circles of the hedgehog concept7 The Flywheel The additive effect of many small initiatives they act on each other like compound interestI really enjoyed this book and "Think Any Business Owner Or Entrepreneur Would Find The Book "any business owner or entrepreneur would find the book and benefit from focusing on the seven characteristics above but I should also point out what I consider to be a few of the flaws with the book1 Collins spends a lot of time explaining some pretty common sense stuff Don t let your ego get in the way of good decisions don t have the wrong people in the wrong positions in your company be realistic etc2 Collins implies a causal relationship when there isn t enough data to determine such a thing saying that they found x followed by y in all the great companies And maybe x led to y but maybe it didn t We don t now Without comparing other companies that either had x but didn t produce y or produced y but didn t have x we simply don t now if Collins examples demonstrate lessons that can be repeated for the same success by anybody It seems to me that there is a strong hindsight bias and a lot of uncertainty as to whether or not all good companies would be. Are the universal distinguishing characteristics that cause a company to go from good to greatThe StandardsUsing tough benchmarks Collins and his research team identified a set of elite companies that made the leap to great results and sustained those results for at least fifteen years How great After the leap the good to great companies generated cumulative stock returns that beat the general stock market by an average of seven times in fifteen years better than twice the results delivered by a composite index of the world's greatest companies including Coca Cola Intel General Electric and Merck The ComparisonsThe research team contrasted the good to great companies with a carefully selected set of comparison companies that failed to make the leap from good to great What was different Why did one set of companies become truly gre.