Good to GreatBuilt to LastBy Jim Collins

”That´s what makes death so hard – unsatisfied curiosity.”

Beryl Markham West with the

Night

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

”You can accomplish anything in life, provided that you do not mind who gets the credit.”

Harry S. Truman

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual

HUMILITY + WILL = LEVEL 5

Sets the standard of building an enduring great company; will settle for nothing less.Looks in the mirror, not out the window, to apportion responsibility for poor results, never blaming other people, external factors, or bad luck.Potential Level 5 leaders exist all around us, if we just know what to look for, and that many people have the potential to evolve into Level 5. Level 5 leaders are fanatically driven, infected with an incurable need to produce sustained results. They are resolved to do whatever it takes to make the company great, no matter how big or hard the decisions.

“There are going to be times when we can’t wait for somebody. Now, you’re either on the bus or off the bus.”

Ken Kesey The Electric Kool-Aid Acid Test by Tom

Wolfe

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

People are not your most important asset. The right people are.

“There is no worse mistake in public leadership than to hold out false hopes soon to be swept away.”

Winston S Churchill The Hinge of Fate

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Facts are better than dreams.A climate where the truth is heard.Unwavering faith amid the brutal facts.The Stockdale paradox

Embrace the Stockdale Paradox: You

must retain absolute faith that you can and will prevail in the end, regardless of the difficulties, AND at the same time confront the most brutal facts of your current reality, whatever they might be.

“Know thyself.”

Scribes of Delphi via Plato

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Are you a Hedgehog

or a

Fox?

WHAT YOU ARE DEEPLYPASSIONATE ABOUT

WHAT YOU CANBE THE BEST INTHE WORLD AT

WHAT DRIVESYOURECONOMICENGINE

BHAG

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Rinsing Your Cottage Cheese Rinsing Your Cottage Cheese The good-to-great companies at their best The good-to-great companies at their best followed a simple mantra: “Anything that followed a simple mantra: “Anything that does not fit with our Hedgehog Concept, does not fit with our Hedgehog Concept, we will not do. We will not launch we will not do. We will not launch unrelated businesses. We will not make unrelated businesses. We will not make unrelated acquisitions. We will not do unrelated acquisitions. We will not do unrelated joint ventures. If it doesn’t fit, unrelated joint ventures. If it doesn’t fit, we don’t do it. Period. we don’t do it. Period.

Do you have a “to do” list?Do you have a “to do” list?Do you also have a “stop doing” Do you also have a “stop doing” list? list?

““Most men would rather die, than Most men would rather die, than think. Many do.”think. Many do.”

Bertrand Russell Bertrand Russell

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Certainly, technology is important – Certainly, technology is important – you can’t remain a laggard and hope you can’t remain a laggard and hope to be great. But technology by itself to be great. But technology by itself is never a primary cause of either is never a primary cause of either greatness or decline. greatness or decline. When used right, technology When used right, technology becomes an accelerator of becomes an accelerator of momentum, not a creator of it. To momentum, not a creator of it. To help give you momentum PowerMax help give you momentum PowerMax is bringing to you a powerful new is bringing to you a powerful new website.website.

““Revolution means turning the Revolution means turning the wheel.”wheel.”

Igor StravinskyIgor Stravinsky

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough

Signs That You are on

the Flywheel

- Reach breakthrough by an accumulation of steps, one after the other, turn by turn of the flywheel; feels like an organic evolutionary process.

Signs That You are in the Doom Loop

- Implement big programs, radical change efforts, dramatic revolutions; chronic restructuring – always looking for a miracle moment or new saviour.

Signs That You are on

the Flywheel

- Confront the brutal facts to see clearly what steps must be taken to build momentum.

Signs That You are in the Doom Loop

- Embrace fads and engage in management hoopla, rather than confront the brutal facts.

Signs That You are on

the Flywheel

- Attain consistency with a clear Hedgehog Concept, resolutely staying within the three circles.

Signs That You are in the Doom Loop

- Demonstrate chronic inconsistency – lurching back and forth and straying far outside of the three circles.

Signs That You are on

the Flywheel

- Follow the pattern of disciplined people (”first who”), disciplined thought, disciplined action.

Signs That You are in the Doom Loop

- Jump right to action, without disciplined thought and without first getting the right people on the bus.

Signs That You are on

the Flywheel

- Spend little energy trying to motivate or align people; the momentum of the flywheel is infectious.

Signs That You are in the Doom Loop

- Spend a lot of energy trying to align and motivate people, rallying them around new visions.

Signs That You are on

the Flywheel

- Let results do most of the talking.

Signs That You are in the Doom Loop

- Sell the future, to compensate for lack of results.

Signs That You are on

the Flywheel

- Maintain consistency over time; each generation builds on the work of previous generations; the flywheel continues to build momentum.

Signs That You are in the Doom Loop

- Demonstrate inconsistency over time; each new leader brings a radical new path; the flywheel grinds to a halt, and the doom loop begins anew.

““It is your Work in life that is the It is your Work in life that is the ultimate seduction.”ultimate seduction.”

Pablo PicassoPablo Picasso

PreserveCore ValuesCore Purpose

CHANGECultural and Operating PracticesSpecific Goals and Strategies

Level 5Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People Disciplined Thought Disciplined Action

BuildupBreakthrough