"good to great" author mr.jim collins

GOOD TO GREATGOOD TO GREATGood is the enemy of great

-Jim collins

Why some companies make the Leap….Why some companies make the Leap…. and others don’t and others don’t

AMANAMANPRADEEPPRADEEPRAJESHRAJESHRAMYARAMYASANDEEPSANDEEP

TEAMTEAM

How to turn a good organization into one that creates sustained results?

Good is the enemy of great..

Really?


CURIOSITY..!

Welcome to the journey of becoming good to great..Welcome to the journey of becoming good to great..

Great remained great..!Good remained good..!


What are good to great companies?

INVESTED

INVESTED

471 times

General market56 times


How it started?

Phase 1: The SearchPhase 1: The SearchPhase 2: Compared to what?Phase 2: Compared to what?Phase 3: Inside the black boxPhase 3: Inside the black boxPhase 4: Chaos to conceptPhase 4: Chaos to concept

Very specific to the question!Very specific to the question!


Phase 1:

1>Performance over 15 years

2>Leader in the industry


Good to great

Company Times the market Time frameAbbott 3.98 1974-1989

Circuit City 18.5 1982-1997Fannie Mae 7.56 1984-1999

Gillette 7.39 1980-1995Kimberly-Clark 3.42 1972-1987

Kroger 4.17 1973-1988Nucor 5.16 1975-1990

Philip Morris 7.06 1964-1979Pitney Bowes 7.16 1973-1988

Walgreens 7.34 1975-1990Wells Fargo 3.99 1983-1998

Back

Three times the marketThree times the market


Phase 2

Phase 2: Compared to what?Phase 2: Compared to what?

Comparison companiesComparison companies““Crucial question”Crucial question”

What did the good-to-great companies share in common that

distinguished them from the comparison companies?


Phase 2: Compared to what?

Good-to-Great Companies Direct Comparisons

• Abbot• Circuit City• Fannie Mae• Gillette• Kimberly-Clark• Kroger• Nucor• Philip Morris• Pitney Bowes• Walgreens• Wells Fargo

• Upjohn• Silo• Great Western• Warner-Lambert• Scott Paper• A&P• Bethlehem Steel• R.J. Reynolds• Addressograph• Eckerd• Bank of America

Unsustained Comparisons Burroughs Chrysler Harris Hasbro Rubbermaid Teledyne

Back


Phase 3

Phase 3: Inside the black boxPhase 3: Inside the black box

Dogs that did not barkDogs that did not barkThe best CEO’s come from withinThe best CEO’s come from within

Focused on what NOT to do andFocused on what NOT to do andWhat to stop doingWhat to stop doing


Phase 3 : Inside the black box

Collected articles on 28 companies

Coded material into categories (600 articles)

Conducted interviews with good-to-great executives

(2000 pages)

Weekly Debates over each of the 28 companies..

Drawing conclusions and ask questions to “what it all means”..


Phase 3


Phase 4

Phase 4: Chaos to conceptPhase 4: Chaos to concept

iterative process

100% change during transition


Good to GreatGood to Great


Level 5 leadership


2 sides of level 5 leadership

Professional Will• Creates superb results, a clear

catalyst in the transition from good to great

• Demonstrates an unwavering resolve to do whatever must be done to produce the best long-term results, no matter how difficult

• 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

Personal Humility• Demonstrates a compelling

modesty, shunning public adulation; never boastful

• Acts with quiet, calm determination; relies principally on inspired standards, not inspiring charisma to motivate

• Channels ambition into the company, not the self; sets up successors for even greater success in the next generation

• Looks out the window, not in the mirror, to apportion credit for the success of the company—to other people, external factors, and good luck


FIRST WHO...THEN WHAT ‘Who’ before ‘what’

General expectation in Good to Great conventional companies companies expectation sets as: follows:

New direction New direction New vision New vision New strategy New strategy Then get people Get people

Right people on the bus

Wrong people off the bus


FIRST WHO...THEN WHAT Reason behind this strategy

• Self motivation: Inner drive to product the best result• Building the future by hiring outstanding people• Wrong people wait for the direction• Right people – Right question – vigorous debate

Noticeable point about right people

• Never agreed without arguing• Constantly searching for the best answer• Strong leader on their own right• Maintain remarkable balance between life & work• Has more to do with character traits and innate capabilities than specific knowledge,

background and skills


FIRST WHO...THEN WHAT Follow Rigorous culture not ruthless culture Rigorous in people decisions first become rigorous about top

management people decisions. How to be Rigorous When in doubt, don’t hire, Keep Looking When you know you need to make a people change, ACT Put your best people on your biggest opportunities, not your

biggest problems

“I don’t know where we should take this company but I do know that if I start with right people, ask them to right question and engage them in vigorous debate we will find a way to make the company…GREAT”.


CONFRONT BRUTAL FACTS Change completely the entire system in response or remain stuck in the sand

Start with an honest and diligent effort

Infuse the entire process with an honest confrontation of the brutal facts

Create a culture wherein people have opportunity to be heard

Success depends upon a series of good decisions


CONFRONT BRUTAL FACTS

How to create a climate where truth can be heard

Lead with questions not answers

Engage in dialogue and debate, not coercion

Conduct autopsies, without blame

Build ‘Red Flag’ mechanism


The Hedgehog Concept

• Hedgehog Concept

• The three circles

• Understanding you can be the best


CULTURE OF DISCIPLINE

• Culture of discipline

• Freedom within a framework

• Start a “STOP DOING” list


Technology Accelerators

Good-to-greats avoid technology fads and bandwagons. Yet they often become pioneers in the application of carefully selected technologies.

Good-to-greats used technology

as an accelerator of momentum,

not a creator of it Technology by itself is never a root

cause of either greatness or decline


Cont… “Crawl, walk, run” can be a very

effective approach, even during times

of rapid and radical technological

change

• Crawl- Slow at first Run!- Fast at first• Walk- A little faster Walk- A little slow• Run! Crawl


The Flywheel and the Doom Loop

G2G comes about by a cumulative process

step by step action by action decision by decision turn by turn of the flywheelthat adds up to sustained andspectacular results

Media attention often comes to G2G organizations after years of slow build-up and then break-through


Media:

“The transformation of Egg to Chicken!” “The remarkable revolution of the Egg!” “Stunning turn around at Egg!”


THE FLYWHEEL EFFECT

Tremendous power exists in the fact of continued improvement and the delivery of results. Point to tangible accomplishments.

When you do this in such a way that people see and feel the buildup of momentum, they will line up with enthusiasm.-This is the flywheel effect and it applies not only to outside investors but also to internal constituent groups.


THE DOOM LOOP

The comparison companies frequently launched new programs, often with great fanfare aimed at “motivating the troops”.

the programs failed to produce sustained results.

The Miracle Moment


From good to great to built to last

Good to great in the early stages of built to last

Basic core ideology

The extra dimension of enduring greatness


Thank You.Thank You.

"good to great" author mr.jim collins

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