“Good to Great”

Jim Collins

Chapter 7

“Technology”

How do Good-to-Great companies think differently

about technology?

Hedgehog Concept

Hedgehog Concept

Technology is an accelerator of momentum

Technology is an accelerator of momentum

Not a creatorNot a creator

http://www.pyxisodyssey.co.uk

Why is there so much hype and fear about new technologies?

Why is there so much hype and fear about new technologies?

What can managers do to view new

technologies in an objective way?

What can managers do to view new

technologies in an objective way?

“Good to Great”

Jim Collins

Chapter 8

“The Flywheel

And

The Doom Loop”

“Good to Great”

Jim Collins

Chapter 8

“The Flywheel

And

The Doom Loop”

No Single Defining ActionNo Single Defining Action

Build-Up & BreakthroughBuild-Up & Breakthrough

No Grand ProblemNo Grand ProblemNo One Good Killer InnovationNo One Good Killer Innovation

No Lucky BreakNo Lucky BreakNo Wrenching RevolutionNo Wrenching Revolution

Good --> Great

Cumulative Process

Good --> Great

Cumulative Process

==

Step By StepStep By StepAction By ActionAction By Action

Decision by DecisionDecision by DecisionTurn By TurnTurn By Turn

Build-Up & BreakthroughBuild-Up & Breakthrough

• 1973 - Alan Wurtzel inherited CEO Position • 1974 - Test 1st Warehouse Showroom Style• 1975 - Build First Prototype Warehouse Store• 1976 - Consumer Electronics Introduced• 1977 - First Full Concept Circuit City Store• 1978 - Start Conversion to Circuit City Stores• 1982 - Commits Fully to Circuit City Concept• 1984 - Circuit City Article in Forbes Magazine

• 1973 - Alan Wurtzel inherited CEO Position • 1974 - Test 1st Warehouse Showroom Style• 1975 - Build First Prototype Warehouse Store• 1976 - Consumer Electronics Introduced• 1977 - First Full Concept Circuit City Store• 1978 - Start Conversion to Circuit City Stores• 1982 - Commits Fully to Circuit City Concept• 1984 - Circuit City Article in Forbes Magazine

The Flywheel EffectThe Flywheel Effect

The Flywheel EffectThe Flywheel Effect

“When people begin the feel the magic of momentum, they begin to

see results, they can feel the flywheel beginning to build speed, that’s when the bulk of the people

line up to throw their shoulders against the wheel and

PUSH” (Pg: 178)

“When people begin the feel the magic of momentum, they begin to

see results, they can feel the flywheel beginning to build speed, that’s when the bulk of the people

line up to throw their shoulders against the wheel and

PUSH” (Pg: 178)

The Doom LoopThe Doom Loop

Problem: Frequently launching new programs or Concepts aimed at “rallying the troops”

Push the Wheel in one DirectionSTOPPush it in another directionSTOPPush it back in yet ANOTHER DIRECTION!!!!

The Doom LoopThe Doom LoopThe Misguided Use of AcquisitionsAcquisitions successful when used as an accelerator of flywheel momentum, NOT the creator of it.Acquisitions should come after implementation of hedgehog concept, NOT before it.

Leaders Who Stop the FlywheelNew leaders arrive to the companyInterrupt an already spinning flywheelSend it in yes ANOTHER Direction

How to Tell if Your on the FLYWHEEL!!!

How to Tell if Your on the FLYWHEEL!!!

Pattern of BuildupAccumulation of Steps

Confront Brutal FactsAttain Consistency

Pattern of Disciplined PeopleAcquisitions Post Breakthrough

Consistency Over Time

http://www.harpercollins.com

ConceptsConcepts

1. Clock building, not time telling

2. Genius of AND

3. Core Ideology

4. Preserve the core / Stimulate

Progress

BUILT TO

LAST

TO

GREATGOOD TO

“What work makes you feel compelled to try greatness?”

(p 209)

Six Principles of Six Principles of

Successful PersuasionSuccessful Persuasion

(Page 38-56 in Kit)(Page 38-56 in Kit)

Six Principles of Six Principles of

Successful PersuasionSuccessful Persuasion

(Page 38-56 in Kit)(Page 38-56 in Kit)

SummarySummary

• Rhetorical persuasion principles used by “change managers”

• Persuasion creates:• A rhetoric of cooperation and co-

optation (Pg: 38 kit)

• Six persuasion principles allow:• Change to occur at:

• The individual and organizational levels

Principle 1: Keep it Simple

(Pg: 39-40 Kit)

Principle 1: Keep it Simple

(Pg: 39-40 Kit)

• Emphasizes simple language to:• Communicate “complex ideas into

simple terms”

• People understand big picture through simple representations

The ‘catchphrase’: Represents the organizations central goals for change and future

Principle 2: Make the Message Real

(Pg: 40-41 Kit)Principle 2: Make the Message Real

(Pg: 40-41 Kit)

• Communicating the right info in the right way• Gives sense of kind of change and what it will look like• Implementation of:

-Stories-Myths-Symbols-Heroes -To give ‘big picture’

How The Steamwhistle Brewery Does It

How The Steamwhistle Brewery Does It

Steam Whistle BrewerySteam Whistle Brewery

• Makes use of stories and symbols

• Embodies the brewer’s goals and visions

As Mentioned on the Steam Whistle Website

As Mentioned on the Steam Whistle Website

Story:

“The Steam Whistle story begins in the spring of 1998 when three friends were on a canoe trip in the Ontario heartland. Greg Taylor, Cam Heaps and Greg Cromwell had all been colleagues at one of Canada's premier microbreweries producing quality beer in the late 1980's and 90's - before it was bought out by a national brewer and closed down. As they sat around the campfire, the self-named "Three Fired Guys" dreamed of running their own brewery one day.”

As Mentioned on the Steam Whistle Website

As Mentioned on the Steam Whistle Website

Values:

“Our Brewery is named Steam Whistle, drawing from the inspirational sounds of steam rushing from factory whistles, signalling the end of a fulfilling workday and a time for personal reward. Steam-powered whistles were icons of the 1950's, a golden era of progress and prosperity, when things were built to last and people enjoyed the simple things in life. It was a time when the marketing of goods relied on a relationship of trust between manufacturers who produced quality goods and consumers who eagerly rewarded genuine results. Steam Whistle was founded on these forgotten principles.”

As Mentioned on the Steam Whistle Website

As Mentioned on the Steam Whistle Website

Vision:

“Steam Whistle has brought together a caring group of individuals now affectionately known as The Good Beer Folks. The Good Beer Folks have become the guardians of your Steam Whistle experience. Whether you encounter us at the brewery, in your community or over the phone, you should expect the best kind of personalized service just like the 50’s Milk Man would have given.“It is important to us to be more than just a manufacturer but to also contribute to the social fabric of our community. Steam Whistle Brewing sponsors literally hundreds of charitable, cultural and community organizations and events each year and we hope to meet you at one of them and raise a glass together. Beer is one of those simple pleasures in life, meant to be shared with good friends. And we consider you that.”

Principle 3: Listen Before You Speak

(Pg: 41-42 Kit)

Principle 3: Listen Before You Speak

(Pg: 41-42 Kit)

• Skillful change managers and rhetoricians:

• Listen to staff and public• “Get a reality check on the

organization and tailor the change messages accordingly to different groups” (Pg: 41 kit)

Windows People Finally Listen

Windows People Finally Listen

http://www.youtube.com/watch?v=gnXVPwLLXHM

Principle 3: Listen Before You Speak ctd.

(Pg: 41-42 Kit)

Principle 3: Listen Before You Speak ctd.

(Pg: 41-42 Kit)

• Listening:- Brings people together- Builds trust- Aids in cooperation of change recipients

Principle 4: Channel Fear into Excitement

(Pg: 42 Kit)

Principle 4: Channel Fear into Excitement

(Pg: 42 Kit)

• Change management is fear management

• People:- Fear to lose something they value- Don’t understand the change- Find it difficult to cope with either the level or pace of change- Change managers:- Turn employee fear into excitement or positive direction

(Phil Baguely, 2)

Question:Question:

If you were a manager of an organization going through change, how might you turn your employee’s fears into excitement or enthusiasm?

Question:Question:

If you were a manager of an organization going through change, how might you turn your employee’s fears into excitement or enthusiasm?

Answer:Answer:

• Verbally recognizing and rewarding positive steps even if small

• Consolidating wins

• Empowering people to take further action when they do make gains

• And…

Principle 5: Repeating the Message Personally

(Pg: 42-43 Kit)

Principle 5: Repeating the Message Personally

(Pg: 42-43 Kit)

• Employees may think change rhetoric is a fad

• Personal messages from manager show that:

- Change is truly occurring and is urgent- Also provide a vision of goals

Principle 6: Choosing your Words Carefully

(Pg: 43-44 Kit)

Principle 6: Choosing your Words Carefully

(Pg: 43-44 Kit)

• Emphasizes knowing your audience

• How best to engage with audience

Principle 6: Choosing your Words Carefully

(Pg: 43-44 Kit)

Principle 6: Choosing your Words Carefully

(Pg: 43-44 Kit)

• Emphasizes knowing your audience

• How best to engage with audience

C.W. Morris

“Sharing a language with other persons provides the subtlest and most powerful of all tools for controlling the behavior of these persons to one’s advantage” (Morris, 214).

Visions, Missions Visions, Missions

&&

ValuesValues

(Page 96-110 in Kit)(Page 96-110 in Kit)

Visions, Missions Visions, Missions

&&

ValuesValues

(Page 96-110 in Kit)(Page 96-110 in Kit)

MissionMission

• Is what you want to achieve by starting the business.

• This must be reexamined and refreshed periodically if an organization is to remain dynamic.

Mission StatementsMission Statements

Describe the overall purpose of an organization: what you do, who you do it for, and how and why you do it. It sets boundaries on the organization's current activities.

Reviewing the mission gets an organization back to basics. The essential activity of determining whom you serve can be a wake-up call for organizations that have started to skew their activities to meet the needs other stakeholders (such as their funders or lobby targets) and not their actual clients.

ValuesValues

Are clear in everything you do, how you operate. Articulating values provides everyone with guiding lights, ways of choosing among competing priorities and guidelines about how people will work together.

Value StatementValue Statement

A values statement reflects the core ideology of an organization, the deeply held values that do not change over time. It answers the question, "how do we carry out our mission?" Values are what your organization lives, breathes and reflects in all its activities.

VisionVision

Is what keeps us moving forward, even against discouraging odds. For example, a business may envision a community where every person has access to their product. Vision is the most powerful motivator in an organization. If it's vivid and meaningful enough, people can do astounding things to bring it to realization.

Vision StatementVision Statement

A vision statement describes an ideal future. It answers the question, "what impact do we want to have on society?" The vision of a business conveys a larger sense of organizational purpose, so that employees see themselves as "building a cathedral" rather than "laying stones."

The following is a good example of well written mission, vision and values statements from the Canadian Cancer Society:

Example: Canadian Cancer Society

Example: Canadian Cancer Society

Mission:

The Canadian Cancer Society is a national, community-based organization of volunteers whose mission is the eradication of cancer and the enhancement of the quality of life of people living with cancer.

Example: Canadian Cancer Society

Example: Canadian Cancer Society

Values:

These serve as guidelines for our conduct and behavior as we work towards our vision.

Quality - our focus is on the people we serve (cancer patients, their families, donors, and the public) and we will strive for excellence through evaluation and continuous improvement.

Caring - we are committed to serving with empathy and compassion.

Example: Canadian Cancer Society

Example: Canadian Cancer Society

Vision:

Creating a world where no Canadian fears cancer.

Airborne Trampoline ClubAirborne Trampoline Club

Mission:

The Airborne Trampoline Club is a family owned business whose mission is to provide a safe place for individuals, whether at a recreational or a competitive level, to further develop their skills and good overall fitness.

Airborne Trampoline ClubAirborne Trampoline Club

Values:

To provide a brand name organization that will provide a fun environment to attain good overall fitness.

Activity: A Case Study Into Visions

Activity: A Case Study Into Visions

It is 2012, in British Columbia, and the provincial government has just passed a bill that legalizes the production, distribution, and consumption of marijuana for a trial period of 2 years, as long as the gross profits from distribution do not exceed $5 million/year, and as long as all product meets health and safety requirements.

Vince, Sorina, Rob and I are venture capitalists looking to start a company that produces and sells marijuana through retail shops located across the province.

Our goals: Within the short 2 years, are to secure a large share of the competitive market, as well as ensure that the provincial government perceives our company as a legitimate representation of the potential for corporate responsibility within the industry.

Activity: A Case Study Into Visions

Activity: A Case Study Into Visions

You are 2 consulting firms competing for our investment capital.

We will ‘hire’ the consulting firm that, based on our goals, presents us with the best:- Vision statement- Mission statement- Values statement- Logo and slogan that embody said visions and values- Any other additional plans/strategies that would benefit our upcoming enterprise

-an example of vision, mission, and value statements can be found on page 101 of the kit.