good 2 great

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A presentation on Good is the enemy of great.Source- Good to Great by Jim Collins

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  • 1. GOOD IS THE ENEMY OFGREATPRESENTED BYJYOTI

2. James C. "Jim" Collins, An American Business Consultant,Author, and Lecturer on the subject of company sustainabilityand growth. Jim Collins frequently contributes to Harvard Business Review,Business Week, Fortune and other magazines, journals, etc.He is also the author of several books.Member of Good To Great research teamJyoti, IIBM PatnaMembers of the God To Great research team 3. Good is the Enemy of Great" is the first sentence of Jim Collinsbusiness best seller, Good to Great. Good is the enemy of great. And that is one of the reasons that wehave so little that becomes great. The vast majority of companies never become great, because theybecome quite good thats the problem.Great remained greatGood remained goodThe main question of this entire book is Can a good company become a great company & if so how?Jyoti, IIBM Patna 4. They identified companies that made the leap from good togreat & then compare these companies to a carefullyselected control group of comparison companies that fail tomake the leap or if they did , they failed to sustain it. 5. Then they compared the good to great companies to thecomparison companies to discover the essential &distinguishing factors at work. Example- Invested(1$) General market Good to Great 56 times 471 timesCriteria for selection of good to great companies- 15 years cumulative stock returns at or below the general stock market. Punctuated by a transition point. Then cumulative returns at least 3 times the market over the next 15 years. 6. For perspective , a mutual fund of the following marquis set ofcompanies beat the market by only 2.5 times over the years 1985-2000:3M , Boeing, Coca Cola , GE, Hewlett- Packard, Intel , Johnson &Johnson, Merck, Motorola, Pepsi, P & G, Wal-Mart & Walt Disney.Then 11 companies made it from all fortune 500 between 1965&1995. These good to great companies are- Abbott, Circuit city, Fannie Mae, Gillette, Kimberly Clark, Kroger,Nucor, Philip Morris, Piney Bower, Walgreens , Wells Fargo.Jyoti, IIBM Patna 7. CompanyResult fromT Years transition point to To T + 15 Years 15 years beyond transition pointAbbott 3.98 times the market 1974-1989Circuit City 18.50 1982-1997Fannie Mae 7.561984-1999Gillette 7.391980-1995Kimberly Clark 3.421972-1987Kroger 4.171973-1988Nucor5.161975-1990Philip Morris7.061964-1979Pitney Bower 7.161973-1988Walgreens7.341975-1990Wells Fargo3.991983-1998 8. Example Walgreens In Dec. 31 1975 Jan. 1,2000, 1% invested in Walgreensbeat $ 1 invested in Intel by2 times General Electric5 timesCoca Cola8 timesGeneral stock market 15 timesFannie Mae also beat companies like GE & Coca Cola.Jyoti, IIBM Patna 9. ThankYou 10. ThankYou