good to great takeaways…
Post on 25-Feb-2016
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DESCRIPTIONGOOD TO GREAT Takeaways…. TEAM 3 Riley Drummond Brittany Fowlkes Rick Henson Ann-Marie Nanny Andrew Rich Kara Vickers James Everett. Good is the Enemy of Great. Can’t be great if it’s good Satisficing = when companies only do what’s necessary to be good, and not what’s necessary to be GREAT - PowerPoint PPT Presentation
The Hedgehog Concept
GOOD TO GREAT
TEAM 3Riley DrummondBrittany FowlkesRick HensonAnn-Marie NannyAndrew RichKara VickersJames Everett
Good is the Enemy of GreatCant be great if its goodSatisficing = when companies only do whats necessary to be good, and not whats necessary to be GREATTAKEAWAY #1 If you practice satisficing, your company can be good but never be greatWere using this in our company analysis of Nike -looking through data to find areas where there is satisficingCharacteristics of a Level 5 LeaderEvery good to great company had level 5 leadership during pivotal transition years.Level 5 leaders embody personal humility and professional will.They set up successors for even greater success in the next generationThey are humble leaders. Big egos lead demise or mediocrity of company.They do whatever it takes to make the company great no matter how hard or big the decisions.
Characteristics of a Level 5 LeaderThey display a workman like diligence.Attribute success to other factors than themselves, and when things go poorly they blame themselves.Celebrity leaders usually damage companies.Attribute success to good luck instead of personal greatness.
Characteristics of a Level 5 LeaderPhilip Knight Nikes executive leader demonstrates the characteristics of a level 5 leader.Contributes his success to celebrities like Michael Jordan and Tiger Woods who are sponsored by Nike.Knight exercises a will to power that is prerequisite to what Nietzsche calls the Superman leader. He has the qualities of humility and will which have made him a great leader.
First Who, then What?Who questions come before what decisionsRight people on the busProblems of how to motivate and manage people largely go away
Confronting the Brutal Facts(Yet Never Lose Faith)All good-to-great companies began the process of finding a path to greatness by confronting the brutal facts of their current reality.
When you start with a diligent effort to determine the truth of your situation, the right decisions often become self-evident.
As a manager, you must create a culture where people have an opportunity to be heard, and for the truth to be heard.
Stockdale paradox: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.
The Hedgehog ConceptA simple, crystalline concept that flows from deep understanding about the 3 following circles:Simplicity w/in 3 circlesis key to this concept
The Hedgehog ConceptThe Hedgehog Concept is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at. The distinction is absolutely crucial.What you can potentially be the best at is just as important as what you cannot be the best at. The technology and production needs behind Nike running shoes is complex, but its Hedgehog concept is simple, be the best at making a superior gear for athletes and Just Doing It
Why are Great Companies More Disciplined?
Discipline created by CEO vs. discipline as a cultureWhereas the good-to-great companies had level 5 leaders who built an enduring culture of discipline, the un-sustained comparisons had Level 4 leaders who personally disciplined the organization through sheer force. CollinsA Culture, Not a Tyrant
Technology AcceleratorsWhat technology is relevant to the company?Fits with the Hedgehog Concept and the three circles.Nikes first breakthrough in running shoes, was the waffle sole made in 1974.Bowerman discovered it when he poured liquid urethane into his wifes waffle iron, and then the Waffle Trainer shoes were invented.Gripped the new urethane track at the University of Organ better than any other running shoe.
11Technology and the Fear of being left behindFear creates a mediocre company.Good to Great companies have a creative urge to be the best, not the first.No technology: can make you a level 5, can make the right people, can confront brutal facts, can give understanding of the three circles, nor can it create a culture of discipline. Nike didnt use technology when the company took action to ensure that the abuse of sweatshops wouldnt occur. Or when it created the Reuse-A-Shoe program.