Jim Collins
          Creating
Good-to-
Good-to-GREAT Organizations
           by Ramki
“Greatness is not a function of circumstance

 Greatness it turns out, is largely a matter of
      conscious choice & dis...
Good is the enemy of the Great
 Good-to-great companies focused on what not to do and what to stop
  doing.
 Technology ...
Framework




 Collins “framework of id
 C lli “f          k f ideas” f steering a company f
                             ...
Six Elements of Good to Great Companies
Element -1
           1

Level 5 Leadership
Leadership-Getting things done


 Relies more on persuasion, political currency
  and shared interests.
 Makes sure that...
Level 5- Humility+ Will


 The highest level in a hierarchy of leadership capabilities
 Leaders at the other four levels...
The Level 5 Hierarchy




 Right on the top of a hierarchy of capabilities- four other layers lie
  beneath it
 Each one...
The Level 5 Hierarchy
                        Level 5
                       Executive


                        Level 4
 ...
The Level 5 Hierarchy


Level 5   Executive      Builds enduring greatness through a paradoxical
                         ...
The Level 5 Leaders



  A study in duality
         y          y
  Modest & willful
  Shy & fearless
A Compelling Modesty

 Level 5 leaders are extremely
  modest
 They     don’t    talk  about
  themselves
 They would t...
The Yin & Yang of Level 5
The Yin & Yang of Level 5
          Personal Humility                           Professional Will
Demonstrates a compellin...
An Unwavering resolve


 Besides extreme humility, Level 5
  leaders also display tremendous
  professional will
 They p...
Element -2
             2
First who…. Then
       what
        h t
First who ….then what
 Good-to-great leaders start with
  people first & then deal with Vision
  , Strategy, Organization...
Element -3
Confront the brutal
      facts
(yet never loose faith)
All good to great
       good-to-great
companies began the
process finding a path
   to greatness by
   confronting the
  ...
Stockdale Paradox


  A key psychology for leading from good to great is
    the Stockdale Paradox : Retain absolute fait...
Truth to be heard

A primary task in taking a company from good to great is to
create a culture wherein people have a trem...
Element -4
The hedgehog
   concept
Hedgehog concept

                        A hedgehog knows
                         only one big thing
                   ...
Hedgehog concept


                     What you are
                         deeply
                    Passionate about
...
Turning the flywheel
                       In his book, Jim describes the
                       flywheel as a “massive m...
Buildup –Breakthrough Flywheel


 Good-to-great transformations do not happen overnight or in
 one big leap

 Rather, it s...
Element -5
 El       t 5
The Culture of
  discipline
All companies have a culture

Some companies have discipline ,

    But few companies have

      Culture of Discipline
Culture of discipline



                        The good-to-great companies
                        appear boring and ped...
Culture of discipline


                    A culture of discipline is not just
                    about action. It is ab...
Culture of discipline




                        A culture of discipline involves a
                        duality. On t...
Element -6
Technology
Accelerators
Technology Accelerators
 Good-to-great organizations have a paradoxical relationship
  with technology
 On the one hand ...
Technology Accelerators




                      The good-to-great companies used
                        technology as a...
Elevate the Average

Mediocre people+ Great Strateg =Mediocre Res lts
                          Strategy Mediocre Results
...
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Good To Great

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Good To Great

  1. 1. Jim Collins Creating Good-to- Good-to-GREAT Organizations by Ramki
  2. 2. “Greatness is not a function of circumstance Greatness it turns out, is largely a matter of conscious choice & discipline.” p Jim Collins
  3. 3. Good is the enemy of the Great  Good-to-great companies focused on what not to do and what to stop doing.  Technology had nothing to do with transformation from good to great.  Mergers and acquisitions played virtually no role in a transformation from good to great great.  Good-to-great companies  Did not manage change  Motivate people or people,  Create alignment.  Good-to-great companies had no name or program to signify their transformations.  Good-to-great companies were not in great industries. Greatness is not a function of circumstance but a matter of conscious choice
  4. 4. Framework Collins “framework of id C lli “f k f ideas” f steering a company f ” for t i from G d t G t i Good to Great involved l d Six key learning's wrapped in continual process he calls the “flywheel”
  5. 5. Six Elements of Good to Great Companies
  6. 6. Element -1 1 Level 5 Leadership
  7. 7. Leadership-Getting things done  Relies more on persuasion, political currency and shared interests.  Makes sure that the right things happen—no matter how difficult or painful, for the long-term greatness of the institution and the achievement of its mission, independent of consensus or popularity l it 7
  8. 8. Level 5- Humility+ Will  The highest level in a hierarchy of leadership capabilities  Leaders at the other four levels in the hierarchy can produce high levels of success, but not enough to elevate organizations from mediocrity to sustained excellence  Good –to Great transformations don’t happen without Level 5 leadership  Level 5 is not the only requirement for transforming a good e e s o e o y equ e e o a so g organization into a great one  Other factors include getting the right people on the bus ( & the wrong people off the bus) & creating a culture of discipline
  9. 9. The Level 5 Hierarchy  Right on the top of a hierarchy of capabilities- four other layers lie beneath it  Each one is appropriate in its own right but none with the power right, of Level 5  No need to move sequentially through each level of the hierarchy to reach the top  But to be a fully-fledged Level 5, we need the capabilities of all the lower levels, plus the special characteristics of Level 5
  10. 10. The Level 5 Hierarchy Level 5 Executive Level 4 Effective Leader Level 3 Competent M C Manager Level 2 Contributing Team leader Level 1 Highly capable people
  11. 11. The Level 5 Hierarchy Level 5 Executive Builds enduring greatness through a paradoxical combination of personal humility plus professional will Level 4 Effective Catalyzes commitment to & vigorous pursuit of a clear & Leader L d compelling vision; stimulates the group of high performance lli i i ti l t th f hi h f standards Level 3 Competent Organizes people & resources toward the effective & efficient Manager g p pursuit of predetermined objectives p j Level 2 Contributing Contributes to the achievement of group objectives ; works team leader effectively with others in a group setting Level 1 Highly Makes productive contributions through talent, knowledge, capable skills & good work habits individual
  12. 12. The Level 5 Leaders  A study in duality y y  Modest & willful  Shy & fearless
  13. 13. A Compelling Modesty  Level 5 leaders are extremely modest  They don’t talk about themselves  They would talk about  The Organization  About the contribution of others  Instinctively deflect discussion about their own role  Unlike big personalities like Lee Iacocca, Jack Welch
  14. 14. The Yin & Yang of Level 5
  15. 15. The Yin & Yang of Level 5 Personal Humility Professional Will Demonstrates a compelling modesty Creates superb results a clear catalyst modesty, results, shunning public adulation; never in the transition from good to great boastful Acts with quiet, calm determination; Demonstrates an unwavering resolve to q , ; g relies principally on inspired standards, do whatever must be done to produce not inspiring charisma, to motivate the best long-term results, no matter how difficult Channels ambition into the organization, Sets the standard of building an not the self, sets-up successors for enduring great organization; will settle even more greatness in the next for nothing else generation Looks in the mirror, not out the window, Looks out the window, not in the mirror, to apportion responsibility for poor to apportion credit for the success of the results, never blaming other people, , g p p , organization- other people, external g p p , external factors, or bad luck factors & good luck
  16. 16. An Unwavering resolve  Besides extreme humility, Level 5 leaders also display tremendous professional will  They possess inspired standards, cannot stand mediocrity in any form, y y and utterly intolerance of anyone who accept the idea that good is good enough
  17. 17. Element -2 2 First who…. Then what h t
  18. 18. First who ….then what  Good-to-great leaders start with people first & then deal with Vision , Strategy, Organization structure, tactics etc second  They get the right people on the bus & Move the wrong people off  Usher the right people to the right seats  Determine where to drive it  Answer the who questions, before the h t decision th what d i i  Good-to-great leaders should be rigorous, but not ruthless with people
  19. 19. Element -3 Confront the brutal facts (yet never loose faith)
  20. 20. All good to great good-to-great companies began the process finding a path to greatness by confronting the f ti th brutal facts of their current reality
  21. 21. Stockdale Paradox  A key psychology for leading from good to great is the Stockdale Paradox : Retain absolute faith that you can and 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. Truth to be heard A primary task in taking a company from good to great is to create a culture wherein people have a tremendous opportunity to be heard and ultimately for the truth to be heard and, ultimately, Lead with questions & not answers  Engage in dialogue & debate, not coercion  Conduct autopsies without blame  Build red flag mechanism that turns information to information that cannot be ignored
  23. 23. Element -4 The hedgehog concept
  24. 24. Hedgehog concept A hedgehog knows only one big thing Very well A fox knows little It is simple about everything A fox is complex
  25. 25. Hedgehog concept What you are deeply Passionate about What drives What you can your be the best in the World at economic engine Three Circles of the Hedgehog Concept
  26. 26. Turning the flywheel In his book, Jim describes the flywheel as a “massive metal y disk mounted horizontally on an axle, about 30 feet in diameter, diameter 2 feet thick and thick, weighing about 5,000 pounds.” He says that it’s your j b t t job to turn thi wheel and this h l d get it going as fast and long as possible. Turning this p g flywheel is like moving a company in a way that it will begin to produce results
  27. 27. Buildup –Breakthrough Flywheel Good-to-great transformations do not happen overnight or in one big leap Rather, it starts one movement at a time, gradually building up momentum, till there is a breakthrough mediocre organizations never sustained the breakthrough momentum but instead lurch back and forth with radical change programs, programs reactionary moves and restructuring
  28. 28. Element -5 El t 5 The Culture of discipline
  29. 29. All companies have a culture Some companies have discipline , But few companies have Culture of Discipline
  30. 30. Culture of discipline The good-to-great companies appear boring and pedestrian looking in from the outside, g but upon closer inspection, they re they're full of people who display extreme diligence and a stunning intensity d t i i t it
  31. 31. Culture of discipline A culture of discipline is not just about action. It is about getting disciplined people ( you don’t need hierarchy) who engage in disciplined thought ( you don’t need bureaucracy) and who then take disciplined action ( you don’t need excessive control)
  32. 32. Culture of discipline A culture of discipline involves a duality. On the one hand, it requires people who adhere to a consistent system; yet, on the system; other hand, it gives people freedom and responsibility within the framework of that system.
  33. 33. Element -6 Technology Accelerators
  34. 34. Technology Accelerators  Good-to-great organizations have a paradoxical relationship with technology  On the one hand they avoid jumping on new technology bandwagons  On the other they pioneer the application of carefully selected technologies, making bold farsighted investments directly linked to their hedgehog concept g g p  Like turbochargers, these technology accelerators create an explosion in flywheel
  35. 35. Technology Accelerators The good-to-great companies used technology as an accelerator of momentum, momentum not a creator of it. None of the good-to-great companies began their transformations with pioneering p g technology, yet they all became pioneers in the application of technology once they grasped how it fit with their strategies strategies.
  36. 36. Elevate the Average Mediocre people+ Great Strateg =Mediocre Res lts Strategy Mediocre Results In reality, our world consists mostly of average performers , therefore the realistic formulae Average pe fo me s A e age performers + consistent execution e ec tion = Excellent results E ll t lt

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