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Creating Creating Good-to-Good-to-GREAT GREAT

CompanyCompany

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You can download this brilliant presentation at:

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presentations on HR management and management skills

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Six Key Elements of Six Key Elements of Good to Great CompanyGood to Great Company

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Element 1 :Element 1 :Level 5 LeadershipLevel 5 Leadership

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Element 2 :Element 2 :First Who…..then WhatFirst Who…..then What

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Element 3 :Element 3 :Confront the Brutal Facts Confront the Brutal Facts (Yet Never Lose Faith)(Yet Never Lose Faith)

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Element 4 :Element 4 :The Hedgehog ConceptThe Hedgehog Concept

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Element 5 :Element 5 :A Culture of A Culture of DisciplineDiscipline

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Element 6:Element 6:Technology Technology AcceleratorsAccelerators

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Element 1:Element 1:Level 5 LeadershipLevel 5 Leadership

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Level 5: Good-to-Great LeaderLevel 5: Good-to-Great Leader

Level 4: Effective LeaderLevel 4: Effective Leader

Level 3: Competent ManagerLevel 3: Competent Manager

Level 2: Contributing Team MemberLevel 2: Contributing Team Member

Level 1: Highly Capable Individual Level 1: Highly Capable Individual

Level 5 LeadershipLevel 5 Leadership

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Level 5 leaders display a a compelling modesty, are self-compelling modesty, are self-effacing and understated.effacing and understated.

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In contrast, two thirds of the In contrast, two thirds of the comparison companies had comparison companies had

leaders with gargantuan leaders with gargantuan personal egos that contributed personal egos that contributed

to the demise or continued to the demise or continued mediocrity of the companymediocrity of the company

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Level 5 leaders are fanatically driven, fanatically driven, infected with an incurable need to infected with an incurable need to produce sustained results.produce sustained results.

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Element 2:Element 2:First Who…Then WhatFirst Who…Then What

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The good-to-great leaders began the

transformation by first getting the right the right people on the bus (and the wrongpeople on the bus (and the wrong people off the bus)people off the bus) and then figured out

where to drive it

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The key point of this element is not just the idea of getting the right people on the team.

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The key point is that "who" questions come before before "what" decisions—

before vision, before strategy, before organization structure, before tactics.

First First who, who, then then whatwhat — as a rigorous discipline, consistently

applied.

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Element 3:Element 3:Confront the Brutal FactConfront the Brutal Fact

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All good-to-great companies began

the process finding a path to

greatness by confronting the confronting the brutal facts of their current realitybrutal facts of their current reality

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A key psychology for leading from good to great is the the Stockdale ParadoxStockdale Paradox : Retain absolute faith that you

can and will prevail in the end, regardless of the

difficulties, and at the same timeat the same time confront the most

brutal facts of your current reality,

whatever they might be.

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A primary task in taking a company from

good to great is to create a culture wherein

people have a tremendous opportunity

to be heard and, ultimately,

for the truth to the truth to be heardbe heard

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Element 4:Element 4:Hedgehog ConceptHedgehog Concept

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The good-to-great companies are more like hedgehogs — simple, dowdy creatures that

know "one big thing" and stick to it. The comparison companies are more like foxes —

crafty, cunning creatures that know many things yet lack consistency.

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It took four years on average for the good-to-great companies to get a

Hedgehog Concept.

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You absolutely do not need to be in a great industry to produce sustained great results. No matter how bad the industry, every good-to-great company figured out how to produce truly superior economic returns.

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Element 5:Element 5:A Culture of DisciplineA Culture of Discipline

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The good-to-great companies appear boring and pedestrian

looking in from the outside, but upon closer inspection,

they're full of people who they're full of people who display display extreme diligence extreme diligence and a stunning intensityand a stunning intensity

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A culture of discipline is not just about action. It is about getting disciplined

people who engage in disciplined thought and

who then take disciplined action.

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A culture of discipline involves a duality. On the

one hand, it requires people who adhere to a adhere to a

consistent systemconsistent system;; yet, on the other hand, it gives

people freedom and freedom and responsibilityresponsibility within the

framework of that system.

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Element 6:Element 6:Technology AcceleratorsTechnology Accelerators

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The key question about any technology is: does the technology fit directlyfit directly with your Hedgehog Concept? If yes, then you need to become a pioneer in the application of pioneer in the application of that technologythat technology. If no, then you can settle for parity or ignore it entirely.

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The good-to-great companies used technology as an accelerator of an accelerator of momentummomentum, not a creator of it. None of the good-to-great companies began their transformations with pioneering technology, yet they all became pioneers in the application of technology once they grasped how it fit with their strategies.

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Source of Reference:Jim Collins, Good to Great : Why Some Companies Make the Leap…and Others Don’t, Harper Business