Good to Great Good to Great AND THEAND THE

Downtown Development Downtown Development Association of LincolntonAssociation of Lincolnton

Why Business Thinking is Not Why Business Thinking is Not the Answerthe Answer

The Good to Great Matched The Good to Great Matched Pair Research MethodPair Research Method

Good is the Enemy of Good is the Enemy of GreatGreat

How do you make the Leap from Good to How do you make the Leap from Good to Great?Great?

Collins’ Thesis: Collins’ Thesis:

To go from good to great you have to To go from good to great you have to overcome the curse of competenceovercome the curse of competence

STAGE 1: DISCIPLINED STAGE 1: DISCIPLINED PEOPLEPEOPLE

Level Five LeadershipLevel Five LeadershipGetting things Done within a Diffuse Power Getting things Done within a Diffuse Power

StructureStructure

• Level 5 leaders are ambitious first and foremost Level 5 leaders are ambitious first and foremost for the cause, the organization, the work—not for the cause, the organization, the work—not themselves—themselves—

• Have a fierce resolve to do whatever it takes to Have a fierce resolve to do whatever it takes to make good on that ambition. make good on that ambition.

• Display a paradoxical blend of personal Display a paradoxical blend of personal humility and professional will.humility and professional will.

Level 5 Leadership Level 5 Leadership HierarchyHierarchy

STAGE 1: DISCIPLINED STAGE 1: DISCIPLINED PEOPLEPEOPLE

First Who … Then WhatFirst Who … Then WhatGetting the Right People on the Bus within Social Sector Getting the Right People on the Bus within Social Sector

ConstraintsConstraints • Those who build great organizations make Those who build great organizations make

sure they have the right people on the bus sure they have the right people on the bus • the wrong people off the bus the wrong people off the bus • and the right people in the key seats and the right people in the key seats beforebefore

they figure out where to drive the bus. they figure out where to drive the bus. • Always think Always think firstfirst about “who” and about “who” and thenthen

about what.about what.

STAGE 2: DISCIPLINED STAGE 2: DISCIPLINED THOUGHTTHOUGHT

Confront the Brutal Facts—the Confront the Brutal Facts—the Stockdale ParadoxStockdale Paradox. .

• Retain unwavering faith that you can Retain unwavering faith that you can and will prevail in the end, and will prevail in the end, regardless of the difficulties, regardless of the difficulties,

• AND AT THE SAME TIME have the AND AT THE SAME TIME have the discipline to confront the most discipline to confront the most brutal facts of your current reality, brutal facts of your current reality, whatever they might be.whatever they might be.

STAGE 2: DISCIPLINED STAGE 2: DISCIPLINED THOUGHTTHOUGHT

The Hedgehog ConceptThe Hedgehog ConceptRethinking the Economic Engine Without a Profit Rethinking the Economic Engine Without a Profit

MotiveMotive

• Greatness comes about by a series of good Greatness comes about by a series of good decisions consistent with a simple, coherent decisions consistent with a simple, coherent concept—a “Hedgehog Concept.” concept—a “Hedgehog Concept.”

• The Hedgehog Concept is an operating model The Hedgehog Concept is an operating model that reflects understanding of three that reflects understanding of three intersecting circles: intersecting circles:

1. what you can be the best in the world at, 1. what you can be the best in the world at, 2. what you are deeply passionate about, 2. what you are deeply passionate about,

andand 3. what best drives your resource engine3. what best drives your resource engine

Hedgehog ConceptHedgehog Concept

Resource Engine in the Resource Engine in the Social Sectors Social Sectors

American Cancer American Cancer Society Society

Special Olympics Special Olympics

IIII Local ChurchLocal Church Nature ConservancyNature Conservancy

Teach for AmericaTeach for America

IIIIII Mega ChurchMega Church Girl Girl Scouts Scouts

NYC NYC OperaOpera

Share Our StrengthShare Our Strength

Harvard CollegeHarvard College Private SchoolsPrivate Schools

Boys and Girls Boys and Girls ClubsClubs

I I

Charter Charter SchoolsSchools

K-12 K-12 SchoolsSchools

NASANASA NYPDNYPD

EPAEPA

LOW

IVIV

Mayo ClinicMayo Clinic Red CrossRed Cross

GoodwillGoodwill Carolina Medical Carolina Medical CenterCenter

Depend on Business Revenue

Dep

en

d U

pon

Ch

ari

tab

le

Don

ati

on

s an

d P

riva

te G

ran

ts

HIGH

LOW

HIGH

STAGE 3: DISCIPLINED STAGE 3: DISCIPLINED ACTIONACTION

Culture of DisciplineCulture of Discipline. . • Disciplined people who engage in Disciplined people who engage in

disciplined thought and who take disciplined thought and who take disciplined actiondisciplined action

• ——operating with freedom within a operating with freedom within a framework of responsibilities—framework of responsibilities—

• are the cornerstone of a culture that are the cornerstone of a culture that creates greatness. creates greatness.

• In a culture of discipline, people do not In a culture of discipline, people do not have “jobs;” they have have “jobs;” they have responsibilitiesresponsibilities..

STAGE 3: DISCLIPINED STAGE 3: DISCLIPINED ACTIONACTION

The FlywheelThe Flywheel• In building greatness, there is no single In building greatness, there is no single

defining action, no grand program, no one defining action, no grand program, no one killer innovation, no solitary lucky break, killer innovation, no solitary lucky break, no miracle moment. no miracle moment.

• Rather, the process resembles relentlessly Rather, the process resembles relentlessly pushing a giant heavy flywheel in one pushing a giant heavy flywheel in one direction, turn upon turn, building direction, turn upon turn, building momentum until a point of breakthrough, momentum until a point of breakthrough, and beyond.and beyond.

The Flywheel In the Social The Flywheel In the Social SectorsSectors

Attract BelieversTime

Money

Build StrengthFirst Who

Clock Building

Build Brand-Emotion

-Reputation

Demonstrate Results-Mission Success

-Trend Lines

STAGE 4: BUILDING STAGE 4: BUILDING GREATNESS TO LASTGREATNESS TO LASTClock Building, Not Time TellingClock Building, Not Time Telling

• Build an organization that can adapt Build an organization that can adapt through multiple generations of leaders through multiple generations of leaders

• the exact opposite of being built around a the exact opposite of being built around a single great leader, great idea or specific single great leader, great idea or specific program.program.

• Leaders in great organizations build Leaders in great organizations build catalytic mechanisms to stimulate progress, catalytic mechanisms to stimulate progress,

• They do not depend on having a charismatic They do not depend on having a charismatic personality to get things done; indeed many personality to get things done; indeed many had a “charisma bypass”had a “charisma bypass”

STAGE 4: BUILDING STAGE 4: BUILDING GREATNESS TO LASTGREATNESS TO LAST

Preserve the Core and Stimulate ProgressPreserve the Core and Stimulate Progress. . • Enduring great organizations are Enduring great organizations are

characterized by a fundamental duality:characterized by a fundamental duality:– They have a set of core values and a core reason They have a set of core values and a core reason

for being that remains constantfor being that remains constant– They have a relentless drive for change and They have a relentless drive for change and

progressprogress

• Great organizations keep clear the difference Great organizations keep clear the difference between their core values (which never between their core values (which never change) and operating strategies and change) and operating strategies and cultural practices (which endlessly adapt to a cultural practices (which endlessly adapt to a changing world)changing world)

Final ThoughtFinal Thought• The single most important point in Good The single most important point in Good

to Great is that Greatness is not a function to Great is that Greatness is not a function of circumstance. Greatness, it turns out, of circumstance. Greatness, it turns out, is largely a matter of conscious choice, is largely a matter of conscious choice, and discipline.and discipline.

• Even when you face the brutal facts of Even when you face the brutal facts of your current reality. You can build a your current reality. You can build a pocket of greatness. pocket of greatness.

Collins QuotationCollins Quotation

““The confusion between inputs and outputs The confusion between inputs and outputs stems from one of the primary differences stems from one of the primary differences

between business and the social sectors. In between business and the social sectors. In business money is both an input (a resource for business money is both an input (a resource for achieving greatness) and an output (a measure achieving greatness) and an output (a measure

of greatness) In the social sectors money is of greatness) In the social sectors money is

onlyonly an input and not a measure of greatness an input and not a measure of greatness””

Collins QuotationCollins Quotation

““Social Sector leaders are not less Social Sector leaders are not less decisive than business leaders as a decisive than business leaders as a general rule; they only appear that general rule; they only appear that way to those who fail to grasp the way to those who fail to grasp the complex governance and diffuse complex governance and diffuse

power structures common to social power structures common to social

sectorssectors””