BOOK REVIEW

GOOD TO GREAT
by Jim Collins

THE 11 G2G
COMPANIES WERE:

Six Key Elements of a

Good to Great (G2G) Company

Element 1 :
Level 5 Leadership

Element 2 :
First Who..then
What

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

Element 4 :
The Hedgehog

Element 5 :
A Culture of
Discipline

GOOD IS THE ENEMY OF

GREAT

Research Findings
Larger-than-life, celebrity leaders who ride in from the

outside are negatively correlated with taking a company

from good to great
The structure of executive compensation is not a key
driver in corporate performance
Strategy per se did not separate the good-to-great
companies from the comparison companies
Good-to-great companies paid attention to what not to
do and what to stop doing
Technology can accelerate a transformation, but it
cannot cause a transformation
M&A plays virtually no role in igniting a transformation
from good to great
Good-to-great companies paid scant attend to managing
change, motivating people, or creating alignment
Good-to-great companies had no name, tag line, launch
event, or program to signify their transformations
Good-to-great companies were not, by and large, in
great industries, and some were in terrible industries

Level 5 Leadership

5 : Level 5 Executive
4 : Effective Leader
3 : Competent Manager
2: Contributing Team Member
1: Highly Capable Individual

Level-5 Executive
Very humble on a personal level
Possesses a great deal of drive and desire to

succeed, where success is not personal

AVOID : Ego and

Credit

Level 5 leaders look outside the window to

accredit
Thank others and luck
Level 5 leaders infected with an incurable need to
produce sustainable results
Rather talk about the company than

themselves
Level 5 leaders set up successors for
success

The window & the mirror

effect

Everyone outside the

window points inside
directly at Level 5
leader saying He was
the Key; without his
guidance and
leadership, we would
not have become a
great company

Level 5 leaders look out

the window to
apportion credit to
factors outside
themselves when
things go well
At the same time, they
look in the mirror to
apportion
responsibility, never
blaming bad luck
when things go poorly

Level 5 leader points

right back out the
window and says Look
at all the great people
and good fortune that
made this possible; I
am a lucky guy

FIRST WHOTHEN
WHAT
First who,
then people
what on the
Ensured
the right

bus
before
else, before
get
the
who anything
questions come
the
The
research
indicated
that
the
wrong
people
off
bus, vision,
what
questions
the
before
G2G
companies
depend
on
compensation
diddont
not
correlate
at the
all
brilliance
of anytoone
person
;a lone
with
the
good
great
process.
then
figurestrategy,
out where
to drive
It. beforeNo
before
before
tactics,
genius
particular
compensation
scheme
organizational
structure,
before
appeared
to be advantageous
technology

Why do it this
way?
If you have the right people
on the bus, problem of
motivation
and
people
managing are diminished

If you have the wrong

people, doesnt matter
whether you have the
right direction

Leaders were rigorous, not

ruthless in people decisions
There are three steps on how the companies can
be rigorous:

Dont hire someone unless youre 100% sure

that theyre the right person. Its better to
wait and get someone that you know is a good
fit
Once you realize you need to fire someone,
dont put it off. Do it quickly and fairly
Put the best people on the biggest opportunity
not the problems

Lesson Learnt

People are NOT your most important asset.

..The RIGHT people are

All good-to-great companies

began the process, finding a
path to greatness by
confronting the brutal facts
of their current reality

CONFRONT THE BRUTAL FACT

(YET NEVER LOSE FAITH)

Having
lofty goals
can be good,
Must create
a culture
but
you can
never have
lose sight
wherein
people
an of
what the reality is on the
opportunity to hear the
ground

truth

THE HEDGEHOG
CONCEPT

The Hedgehog concept is not a goal or strategy to

be the best at something, it is an understanding

of what you can be the best at
Hedgehogs

simplify

the

world

into

basic

principle, see whats essential, and ignore the rest

It took an average of four years for the G2G

companies to get a Hedgehog Concept

Hedgehog Concept

What you are deeply

passionate about

One
Big
Thing
What you can
be the best in
the world at

What drives
your
economic
engine

A CULTURE OF DISCIPLINE

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
In a culture of discipline, people do not
have jobs they have responsibilities

Technology Accelerators
The ideal approach to technology with

the following cycle:

"Pause -- Think -- Crawl -- Walk

Run
Do not rush into a new technology

revolution before
having an
understanding that it can be used to
support your business.

The Flywheel and the Doom Loop

The flywheel concept

The doom loop concept

LETS MAKE IT HAPPEN

THANK YOU
Prepared by :
Kunal Gupta