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Good to Great

Why Some Companies Make the Leap ... And
Others Don’t by Jim Collins
Testing the Assumptions
Assumptions
 That good is the enemy of great
LEVEL 5 LEADERSHIP:
Level 5 Leaders
LEVEL 5 LEADERSHIP
 “Greatness is not a function of
circumstance. Greatness, it turns out,
is largely a matter of conscio...
LEVEL 5 LEADERSHIP
 They never aspired to be put on a pedestal
or become unreachable icons. They were
seemingly ordinary ...
LEVEL 5 LEADERSHIP
 Can you evolve, or continue to
evolve, into a Level 5 leader? Under
the right circumstances – selfref...
First Who, Then What
First Who, Then What
 “…if you have the
wrong people, it
doesn‟t matter
whether you discover
the right direction; you
sti...
First Who, Then What
 The right people don‟t
need to be tightly
managed or fired up.
P.42
First Who, Then What
 “…the „who‟
questions come
before the „what‟
questions – before
vision, before
strategy, before
tac...
First Who, Then What
 In a good to great
transformation,
people are not your
most important
asset. The right
people are. ...
First Who, Then What
 The only way to
deliver to the
people who are
achieving is to not
burden them with
the people who a...
First Who, Then What
 Practical principles:
 1. When in doubt don’t
hire, keep looking.
 2. When you know you
need to m...
First Who, Then What
 What does this
principle say to us?
 How does this principle
relate to Extension?
 How might you ...
Confront the Brutal Facts
(Yet never lose faith)
Confront the Brutal Facts
(Yet never lose faith)

 “You absolutely
cannot make a
series of good
decisions without
first c...
Confront the Brutal Facts
(Yet never lose faith)

 “Yes, leadership is
about vision. But
leadership is equally
about crea...
Confront the Brutal Facts
(Yet never lose faith)

 Creating a climate
where truth is heard:
 1. Lead with
questions, not...
Remember The Stockdale
Paradox
 Retain faith
that you will
prevail in the
end,
regardless of
the
difficulties.

 AND at ...
Confront the Brutal Facts
(Yet never lose faith)

 “There is a sense of
exhilaration that
comes in facing headon the hard...
Confront the Brutal Facts
(Yet never lose faith)

 What are some of the brutal facts that we
must face?
 Using The Stock...
The Hedgehog Concept
The Hedgehog Concept
 It is simple
 Know the “one big
thing” and stick to it
 It is an understanding,
not a strategy
 ...
The Hedgehog Concept
 “Precisely, the
Hedgehog concept
is a simple,
crystalline concept
that flows from
deep
understandin...
What are your three circles?
 What are you the
best in the world
at?
 What drives your
economic engine?
 What are you
d...
The Hedgehog Concept
 A Hedge Hog concept is not a
goal to be the best, a strategy
to be the best, an intention to
be the...
The Hedgehog Concept

“The only way to remain
great is to keep applying
the fundamental principles
that made you great.”
...
The Hedgehog Concept

“We should only do those
things that we can get
passionate about.” P.109
The Hedgehog Concept

“Know „one big thing‟ and
stick to it.” P. 119
The Hedgehog Concept

Can each
sub-unit and
each person
have a
hedgehog
concept?
The Hedgehog Concept

How is the
Hedgehog
Concept
different for
Extension?
A Culture of Discipline
“The purpose of bureaucracy is to
compensate for incompetence and
lack of discipline.” P.121
A Culture of Discipline
 “Most companies build their bureaucratic
rules to manage the small percentage of
wrong people on...
A Culture of Discipline
“Set your objectives for the year, you
record them in concrete. You can
change your plans through ...
A Culture of Discipline
“You focus on what you‟ve
accomplished relative to exactly
what you said you were going to
accompl...
A Culture of Discipline
“The point is to first get self-disciplined
people who engage in very rigorous
thinking, who then ...
A Culture of Discipline
Should we have a “stop” doing list?
What should be on the list?
Technology Accelerators
 Is technology the answer?
THE FLYWHEEL AND THE
DOOM LOOP
The Doom Loop
The Flywheel Effect
“Revolution
means
turning the
wheel” –
Igor
Stravinsky
THE FLYWHEEL AND THE
DOOM LOOP
“Step by step, action by action, decision
by decision, turn by turn of the
flywheel – that ...
THE FLYWHEEL AND THE
DOOM LOOP
“There will be build up and break
through.” P.165
THE FLYWHEEL AND THE
DOOM LOOP
“Tremendous power exists in the fact
of continued improvement and the
delivery of results. ...
Building Vision
 Do we know what
is core and what is
not?
 What is our vision?
 Do we have a good
BHAG?
 What should b...
Going from Good to Great
 Get involved in something you care
so much about that you want to make
it the best that it can ...
References
 Collins, J. (2001). Good to great. HarperCollins
Publishing: New York
 Collins, J. (2005) Good to great and ...
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EXCELENTA OPERATIONALA- De la BINE la MARET

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Transcript of "EXCELENTA OPERATIONALA- De la BINE la MARET"

  1. 1. Good to Great Why Some Companies Make the Leap ... And Others Don’t by Jim Collins
  2. 2. Testing the Assumptions
  3. 3. Assumptions  That good is the enemy of great
  4. 4. LEVEL 5 LEADERSHIP:
  5. 5. Level 5 Leaders
  6. 6. LEVEL 5 LEADERSHIP  “Greatness is not a function of circumstance. Greatness, it turns out, is largely a matter of conscious choice.” p. 11  In your heart of hearts, are you satisfied with good – or for the sake of Extension, are you determined to become a Level 5 leader?
  7. 7. LEVEL 5 LEADERSHIP  They never aspired to be put on a pedestal or become unreachable icons. They were seemingly ordinary people quietly producing extra-ordinary results. p. 28  It is equally about ferocious resolve – infected with an incurable need to produce results. Humble and fearless…were incredibly ambitious. P.30
  8. 8. LEVEL 5 LEADERSHIP  Can you evolve, or continue to evolve, into a Level 5 leader? Under the right circumstances – selfreflection, conscious personal development, a mentor, a great teacher, a significant life experience, a Level 5 boss … p.37  What else would you add? What specifically needs to be on your list?
  9. 9. First Who, Then What
  10. 10. First Who, Then What  “…if you have the wrong people, it doesn‟t matter whether you discover the right direction; you still won‟t have a great company. Great vision without great people is irrelevant.” P. 42
  11. 11. First Who, Then What  The right people don‟t need to be tightly managed or fired up. P.42
  12. 12. First Who, Then What  “…the „who‟ questions come before the „what‟ questions – before vision, before strategy, before tactics, before organizational structure, before technology.” P. 45
  13. 13. First Who, Then What  In a good to great transformation, people are not your most important asset. The right people are. P.51
  14. 14. First Who, Then What  The only way to deliver to the people who are achieving is to not burden them with the people who are not achieving. P.53
  15. 15. First Who, Then What  Practical principles:  1. When in doubt don’t hire, keep looking.  2. When you know you need to make a people change, act.  3. Put your best people on your biggest opportunities, not on your biggest problems.
  16. 16. First Who, Then What  What does this principle say to us?  How does this principle relate to Extension?  How might you tell if someone is the right person on the bus?
  17. 17. Confront the Brutal Facts (Yet never lose faith)
  18. 18. Confront the Brutal Facts (Yet never lose faith)  “You absolutely cannot make a series of good decisions without first confronting the brutal facts.” P. 70
  19. 19. Confront the Brutal Facts (Yet never lose faith)  “Yes, leadership is about vision. But leadership is equally about creating a climate where the truth is heard and the brutal facts confronted. There‟s a huge difference between the opportunity to „have your say‟ and the opportunity to be heard.” P.74
  20. 20. Confront the Brutal Facts (Yet never lose faith)  Creating a climate where truth is heard:  1. Lead with questions, not answers.  2. Engage in dialogue and debate, not coercion.  3. Conduct autopsies, without blame.  4. Build “red flag” mechanisms.
  21. 21. Remember The Stockdale Paradox  Retain faith that you will prevail in the end, regardless of the difficulties.  AND at the same time confront the most brutal facts of your current reality, whatever they might be.
  22. 22. Confront the Brutal Facts (Yet never lose faith)  “There is a sense of exhilaration that comes in facing headon the hard truths and saying, „We will never give up. We will never capitulate. It might take a long time, but we will find a way to prevail.’” P.81
  23. 23. Confront the Brutal Facts (Yet never lose faith)  What are some of the brutal facts that we must face?  Using The Stockdale Paradox phrase a statement about one of these brutal facts?  How can we develop revenue streams?  How will positions be identified for reallocation?  Who are advocates and enemies for Extension? ?
  24. 24. The Hedgehog Concept
  25. 25. The Hedgehog Concept  It is simple  Know the “one big thing” and stick to it  It is an understanding, not a strategy  Getting a Hedgehog Concept is an iterative process  It took an average of four years for the G2G companies to get a Hedgehog Concept
  26. 26. The Hedgehog Concept  “Precisely, the Hedgehog concept is a simple, crystalline concept that flows from deep understanding about the intersection of the three circles.” P.95
  27. 27. What are your three circles?  What are you the best in the world at?  What drives your economic engine?  What are you deeply passionate about?
  28. 28. The Hedgehog Concept  A Hedge Hog 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. P. 98
  29. 29. The Hedgehog Concept “The only way to remain great is to keep applying the fundamental principles that made you great.” P.108
  30. 30. The Hedgehog Concept “We should only do those things that we can get passionate about.” P.109
  31. 31. The Hedgehog Concept “Know „one big thing‟ and stick to it.” P. 119
  32. 32. The Hedgehog Concept Can each sub-unit and each person have a hedgehog concept?
  33. 33. The Hedgehog Concept How is the Hedgehog Concept different for Extension?
  34. 34. A Culture of Discipline “The purpose of bureaucracy is to compensate for incompetence and lack of discipline.” P.121
  35. 35. A Culture of Discipline  “Most companies build their bureaucratic rules to manage the small percentage of wrong people on the bus, which in turn drives away the right people on the bus, which then increases the percentage of wrong people on the bus, which increases the need for more bureaucracy to compensate for incompetence and lack of discipline, which then further drives the right people away, and so forth.” P. 121  “Avoid bureaucracy and hierarchy and instead create a culture of discipline.” P. 121
  36. 36. A Culture of Discipline “Set your objectives for the year, you record them in concrete. You can change your plans through the year, but you never change what you measure yourself against.” P.122
  37. 37. A Culture of Discipline “You focus on what you‟ve accomplished relative to exactly what you said you were going to accomplish – no matter how tough the measure.” P.122
  38. 38. A Culture of Discipline “The point is to first get self-disciplined people who engage in very rigorous thinking, who then take disciplined action within the framework of a consistent system designed around the Hedgehog Concept.” P. 126
  39. 39. A Culture of Discipline Should we have a “stop” doing list? What should be on the list?
  40. 40. Technology Accelerators  Is technology the answer?
  41. 41. THE FLYWHEEL AND THE DOOM LOOP
  42. 42. The Doom Loop
  43. 43. The Flywheel Effect “Revolution means turning the wheel” – Igor Stravinsky
  44. 44. THE FLYWHEEL AND THE DOOM LOOP “Step by step, action by action, decision by decision, turn by turn of the flywheel – that adds up to sustained and spectacular results.” p.165
  45. 45. THE FLYWHEEL AND THE DOOM LOOP “There will be build up and break through.” P.165
  46. 46. THE FLYWHEEL AND THE DOOM LOOP “Tremendous power exists in the fact of continued improvement and the delivery of results. Point to tangible accomplishments … people see and feel the buildup of momentum, they will line up with enthusiasm.” P.174
  47. 47. Building Vision  Do we know what is core and what is not?  What is our vision?  Do we have a good BHAG?  What should be some of our base camps?
  48. 48. Going from Good to Great  Get involved in something you care so much about that you want to make it the best that it can be!  Great life = meaningful life = meaningful work
  49. 49. References  Collins, J. (2001). Good to great. HarperCollins Publishing: New York  Collins, J. (2005) Good to great and the social sectors. HarperCollins Publishing: New York  JimCollins.com (accessed April 17, 2006)
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