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BOOK REVIEW ON

GOOD TO GREAT

Author:- Jim Collins

INTRODUCTION

Why some companies make the leap… and others don’t

Why good is the enemy of great To find the solution to above questions author

did research over 11 companies and divided his research in 4 phases.

Good To Great

ABOUT RESEARCH

A group of 20 people and research spanning 5 years filtered out 11 companies from 1435 public Fortune 500 companies that had been operating for 15 years with stock price performance on par with the benchmark but then beat the market exponentially for the following 15 years.

The selected 11 companies are Abbott Laboratories, Circuit City, Fannie Mae, Gillette, Kimberly-Clark, Kroger, Nucor, Philip Morris, Pitney Bowes, Walgreen, and Wells Fargo.

Good To Great

11 SELECTED COMPANIES

Good To Great

Good To Great

Different Phases

Phase 3:- Inside the black box

Phase 4:- Chaos to concept

Phase 1:- The search

Phase 2:- Compared to what

What’s Inside The

BLACK BOX?GOOD RESULT

GREAT RESULT

RESEARCH FINDINGS

10 out of 11 Good to Great companies leaders or CEOs came from inside.

Strategy did not separate the good to great companies

Good to great companies mainly focus on what not to do and what they should stop doing

Technology has nothing to do with the transformation from good to great, it may help it to accelerate but it is not the cause of it.

Good To Great

FLY WHEEL

Good To Great

Level 5Leadership

First Who…Then What

Technology Accelerator

Culture Of Discipline

HedgehogConcept

Confronts The Brutal Facts

Disciplined People Disciplined Thoughts Disciplined Action

Buildup… Breakthrough !

LEVEL 5 Leadership

Good To Great

Level 5 Executives

Effective Leader

Component Manager

Contribution Team Member

Highly Capable Individual

Humility + Will = Level5

Makes productive actions through talent

Contribution to objective

Organize people toward efficient and effective objectives

Set performance standards

“Leadership from good to great does not mean coming up with the answer and then

motivating everyone to follow your messianic vision.”

Good To Great

FIRST WHO… THEN WHAT

Level 5 leader

First Who(Get right people and build superior executive team)

Then What(Once you have right people in place, figure out the best path to greatness)

Level 4 Leader

First what(Figure out best path or set a

vision)

Then who(Place that highly capable

people to that path to achieve the goals)

Good To Great

Level 5 Leadership A “Genius With Thousand Helpers”

CONFRONT THE BRUTAL FACTS A primary task in taking a company from good to

great is to create a culture wherein people have tremendous opportunity to be heard and ultimately, for truth to be heard

Creating a climate where the truth is heard involves three basic practices:- Lead with questions, not answers Engage in dialogue and debate, not coercion Conduct autopsies, without blame

Good To Great

THE HEDGEHOG CONCEPT

Good To Great

“Just because something is your core business doesn’t mean you can be the best in the world at it. And if you cannot be the

best in the world at core business, then your core business cannot form the basis of your

hedgehog concept.”

Good To Great

A CULTURE OF DISCIPLINE

Avoid bureaucracy and hierarchy Freedom to every employee Skilled people Hierarchy of goals

Good To Great

Disciplined People Disciplined Thoughts Disciplined Action

TECHNOLOGY ACCELERATOR

Pause Think Crawl Walk Run

Reaction to new technology

Good to great organizations think differently about technology and if they use it then for accelerating its momentum not for creating it

Good To Great

THE DOOM LOOP

Good To Great

Conclusion

Discover your core values and purpose beyond just making money

To become a successful good to great leader you should have the following traits:- Self efficacy Self motivated Trustworthy

The good to great leaders are those who hire skilled people whom thoughts are such which leads to achievement of final objective

Good To Great

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