Good togreat

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Good togreat

  1. 1. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Good to Great
  2. 2. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Level 5 Leadership Good to Great
  3. 3. Level 5 Leadership 5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
  4. 4. Level 5 Leadership  Leaders who employ a paradoxical mix of personal humility and professional will  Set up successors for even greater success  Compelling modesty, self-effacing, understated 5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual  Fanatically driven to produce sustainable results  More plow horse than show horse
  5. 5. Level 5 Leadership 5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual  Look in mirror and take full responsibility for poor decisions  Many people have the potential to evolve into Level 5  Attribute success to other than themselves
  6. 6. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup First Who… Then What Good to Great
  7. 7. First Who . . . Then What  Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus). “Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.
  8. 8. First Who . . . Then What  Three practical disciplines for being rigorous:  When in doubt, don’t hire  When you know you need to make a people decision, act  Put your best people on your best opportunities, not biggest problems  Leaders were rigorous, not ruthless in people decisions.
  9. 9. First Who . . . Then What  Management teams debate vigorously to find best answers, yet unify behind decisions. “Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.
  10. 10. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Confront the Brutal Facts Good to Great
  11. 11. Confront the Brutal Facts  Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.  Setting off on the path to greatness requires confronting the brutal facts of current reality.
  12. 12. Confront the Brutal Facts  Lead with questions, not answers  Engage in dialogue and debate, not coercion  Conduct autopsies, without blame  Build red flag mechanisms where information cannot be ignored  Four basic practices:
  13. 13. Confront the Brutal Facts  Stockdale Paradox: Retain absolute faith that you can and will prevail in the end, AND at the same time confront the most brutal facts of your current reality, whatever they might be.
  14. 14. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Hedgehog Concept Good to Great
  15. 15. Hedgehog Concept  Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.  Hedgehogs see what is essential, and ignore the rest.
  16. 16. Hedgehog Concept  The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept:  What you are deeply passionate about  What you can be best in the world at  What drives your economic engine
  17. 17. Hedgehog Concept What you are deeply passionate about What you can be the best in the world at What drives your economic engine Simplicity within the three circles
  18. 18. Hedgehog Concept  Getting the Hedgehog Concept takes an average of four years.  The right people  Engaged in vigorous dialogue and debate  Infused with the brutal facts  Guided by questions formed by the three circles  It is an iterative process by The Council:
  19. 19. Hedgehog Concept The Council All Guided by the Three Circles Ask Questions Dialogue & Debate Autopsies & Analysis Executive Decisions An Iterative Process
  20. 20. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Culture of Discipline Good to Great
  21. 21. Culture of Discipline  People who “rinse their cottage cheese”  Not about a tyrant who disciplines  Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles
  22. 22. Culture of Discipline  Requires people who adhere to a consistent system.  Gives people freedom and responsibility within framework of that system.  Involves a duality.
  23. 23. Culture of Discipline  Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.  “Stop doing” lists are more important than “to do” lists.  “Anything that does not fit with our Hedgehog Concept, we will not do.”  Includes willingness to shun opportunities that fall outside the three circles.
  24. 24. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Technology Accelerators Good to Great
  25. 25. Technology Accelerators  Yet they often become pioneers in the application of carefully selected technologies.  Does it fit directly with your Hedgehog Concept?  Good-to-greats used technology as an accelerator of momentum, not a creator of it.  Good-to-greats avoid technology fads and bandwagons.
  26. 26. Technology Accelerators  Technology by itself is never a root cause of either greatness or decline.  “Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.
  27. 27. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerations Disciplined People Disciplined Thought Disciplined Action Buildup Flywheel Good to Great
  28. 28. The Flywheel  Good-to-great transformations never happened in one fell swoop.  There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.  Instead they followed a predictable pattern of buildup and breakthrough.  Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .
  29. 29. The Flywheel  With persistent pushing . . .  In a consistent direction . . .  Over a long period of time . . .  In good-to-great companies problems of commitment, alignment, motivation, and change largely take care of themselves.  Alignment follows from results and momentum, not the other way around.  The flywheel builds momentum . . .  Eventually hitting a point of breakthrough.
  30. 30. Level 5 Leadership First Who… Then What Confront the Brutal Facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined People Disciplined Thought Disciplined Action Buildup Good to Great

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