From good to great:Why Some Companies Make the Leap...And Others Don’t Andy Bunarto - book review From good to great - Jim Collins
Intro‘Good to Great’ contains the conclusionsof 5 years of research of Jim Collins and histeam on organisations. They did research onorganisations that performed extraordinarygood over an amount of time. Specialattention goes to those who consistentlyachieved to maintain a high level of success,and what they did different then companieswho ‘just’ did good. Andy Bunarto - book review From good to great - Jim Collins
Step 1: level 5 leadershipAll great companies have had so called level5 leaders, in the book claimed as the highestlevel a manager can be. Surprisingly, level 5executives do not showcase the features wenormally associate with successful charismaticleaders.Instead, Level 5 executives are modest,reserved and shy. They constantly try tofacilitate great conditions for the company,instead of putting their own career first. Alsowhen things go bad they look into the mirror, Level 5 Level 5 Executiveand when business is going well they applaudothers for their success. Level 4 Effective Leader Level 3 Competent ManagerFrom an Imagineering point of view, this level5 type of leadership for today’s corporate Level 2 Contributing Team Memberworld. The growing importance of human Level 1 Highly Capable Individualcapital needs a kind of management thatstimulates creativity. This has more chancewhen employees are being appreciated,rather then ‘controlled’ in their work. the five levels of executives, Collins 2001 Andy Bunarto - book review From good to great - Jim Collins
Step 2: First who . . . then whatThe first step level 5 executives undertake, is toassemble the right people around them, andlet go people who do not fit in the company.An important consequence of this is thatthey do not have to bother about managingtheir employees because they surroundedthemselves by motivated people who needlittle steering.After having the right people around, level5 leaders start to think about where thecompany’s future lies and how to go there. Itis far more interesting to build the company’sstrategy on the right people, then to looseenergy to get the right behaviour out of thewrong people. Andy Bunarto - book review From good to great - Jim Collins
Step 3: Confront the brutal facts (yet neverlose Faith)The big difference between good and greatcompanies is also the fact that the latter arewilling to face difficulties to bridge the gapwhat will make them great. This to reach theplace where the soul of the company has theability to totally flourish, before this one usuallyhas to face many obstacles to come at thisspot.This in contrast with ‘only’ good companieswho are not willing to do so, and insteadare complaining about the increase ofcompetitors, the expensive suppliers, thehard work and so on. These companies tendto follow promising opportunities to earnquick money, but are not per se good for thecompany in a long run. Andy Bunarto - book review From good to great - Jim Collins
Step 4: The hedgehog concept (simplicitywithin the three Circles)Collins uses the hedgehog concept to tellhow companies should focus their business.The story goes about the simple defencestrategy of the hedgehog: rolling up into aball the fox cannot attack. Despite the arrayof strategies it tries, the fox is never able toslay the hedgehog.Companies should also think from their simpleforce instead of loosing focus by trying to bethe best in many things. A simple techniqueCollins describes in his book is the three circles, What you are deeplybased on questions for self-observation. passionate about?When finding the spot in the middle of thesethree questions, one finds the answer as thehedgehog.The purpose of this concept is to clarify a verycomplex world by creating a relevant self- What you can What drives your be the best in economic engine?image for the company that should guide all the world at?actions the company undertakes.Imagineers have to know this model, since itis a great starting point to design an artefactor high experience concept that focuses andinspires the company towards activities thatfall in the centre point of these circles. Three circles of the hedgehog concept, Collins 2001 Andy Bunarto - book review From good to great - Jim Collins
Step 5: A Culture of DisciplineBecause level 5 leaders have assembleddisciplined people in their organisation, thecompany is able to establish a culture thatleads to self-organization with people takingresponsibility for their own actions.In contrast, a tyrant leader can achievediscipline his employees purely by beingpresent. But whenever he’s absent thediscipline amongst employees collapsesradically, which makes it way less sustainable.Self-discipline is particularly important when acompany enters activities that do NOT fit inthe three circles of the hedgehog concept.Especially when the direct outcomes of theseactivities would be very beneficial in the shortrun.Self-discipline is an important aspect in thescience of Imagineering as well. Transformingbusiness logic into a structure that makes self-organisation possible is - like level 5 leaders -one of the concerns Imagineering faces. Andy Bunarto - book review From good to great - Jim Collins
Step 6: technology acceleratorsTechnology has been fortune for a lot ofcompanies. But in his study, Collins has foundthat in good to great companies, technologywas not in particular the most importantreason of success. Great companies look totechnology totally different then companieswho innovate out of fear to be left behind.They carefully study technology as howit can be an important driver of existingeconomic activities of the company, in noneof the cases technology was the driver ofthe business model. Technology works asa catalyst and causes such synergies in thecentre of the hedgehog concept betweenexisting business activities. Andy Bunarto - book review From good to great - Jim Collins
ConclusionAfter reading the book I was aware ofthe danger a company meets after anImagineering intervention. The managementteam should be very aware of what theirbusiness drives at its core, to keep the businessfocused.This because appreciative inquiry is often astarting point of an Imagineering process,and this approach tends to reveal highmoments that make people enthusiast. Afterthe creation of a high experience conceptpeople are triggered to think of differentbusiness activities that could generate moneyon short time.It’s to the management team to keep aneye on the evolution the company goestrough, watching carefully the organisationdoes not move away from centre spot of thehedgehog concept.So Imagineering is a process companiesshould not undertake when they are notaware of their organisational core. The linesshould be set where between companiescan move, before one starts to energize acompany. Andy Bunarto - book review From good to great - Jim Collins
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