This document discusses key principles for transforming a good organization into a great one. It outlines Level 5 leadership, developing a Hedgehog concept to understand what a company excels at, confronting brutal facts, and establishing a culture of discipline. Level 5 leaders are ambitious yet humble, credit others for successes and take responsibility for failures. They establish a culture where disciplined thought and action can thrive through mechanisms for open dialogue and improvement.

1. GOOD TO GREAT
JIM COLLINS

2. Disciplined people- no hierarchy
Disciplined thought- no bureaucracy
Discipline action- no controls

3. 1. Level 5
2. First who…then what
3. Confront the brutal facts
4. Hedgehog (simplicity)
5. Culture of discipline (P-T-A)
6. Technology Accelerators

4. LEVEL 5
SELF EFFICACY
QUIET
RESERVED
PERSONAL HUMILITY
PROFESSIONAL WILL

5. Culture of Discipline + ethic of
entrepreneurship = alchemy of
great performance
Good to great = sustained great
results= built to last = enduring
great company

6. LEVEL 5 executive
Effective leader
Competent manager
Contributing team leader
Highly capable individual

7. HIGHLY CAPABLE INDIVIDUAL
PRODUCTIVE CONTRIBUTION
with talent, knowledge, skills and
good work habits

8. Contributing team leader
Contributing individual
capabilities to group objectives
and works effectively

9. Competent manager
Organizing , people, resources
effectively and efficiently for the
pursuit of pre determined
objectives

10. Effective leader
Catalyzes commitment to and
vigorous pursuit of vision
stimulating higher performance
standards

11. Level 5 executive
Incredible ambition
Enduring personal humility and
professional will

12. Modest & willful + humble &
fearless
“have unwavering RESOLVE to
‘what must be done’”

13. Professional will Personal humility
• creating results • compelling modesty
• unwavering resolve • calm determination,
•“will settle for relies on inspiring
nothing less” standards
•Looks in mirror for • channels ambition
poor results •Looks out window
for good results

14. • lead with questions, but not answers
•Engage in dialogue and debate not
coercion
• conduct autopsies, without blame
• build red flag mechanisms that “the
information can’t be IGNORED”

15. STOCKDALE PARADOX
RETAIN FATIH
&
CONFRONT FACT

16. THE HEDGE HOG CONCEPT
•WHAT YOU ARE DEEPLY
PASSIONATE ABOUT
•WHAT YOU CAN BE THE
BEST IN THE WORLD AT
•WHAT DRIVES YOUR
ECONOMIC ENGINE

17. ACTION ON THE HEAR SAY WITH
HEDGE HOG CONCEPT- AN
ITERATIVE PROCESS

18. •X AXIS- ETHIC OF
ENTREPRENEURSHIP
•Y AXIS- CULTURE OF
DICIPLINE
•BUREAUCRATIC- START UP-
HIERARCHIAL- GREAT ORG'N

19. A CULTURE OF DISCIPLINE
It is about getting disciplined
people with disciplined thought
for disciplined action
It takes discipline to say “No,
thank you” to big once in a life
time opportunity
Have a “stop doing list” which is
more important than “to do” lists

20. Nucor’s three circles
•Passion- for eliminating class distinctions
and creating an egalitarian meritocracy that
aligns management, labor, and financial
interests
•Could become the best in the world- at
harnessing culture and technology to
produce low cost steel
•Economic ENGINE- of profit per ton of
finished steel

21. Technology accelerators
“crawl, walk, run” is the very
effective approach in rapid and
radical technological change

22. The fly wheel effect
Consistency & coherence
Let results do most of the talking and
accelerate momentum
“it is your work in life that is the
ultimate seduction”- Pablo Picasso

23. Built to last
“preserve the core (values and
purpose), and stimulate progress
(cultural and operating practices,
specific goals and strategies)”
•Clock building, not time telling
•Genius of AND
•Core ideology
•Preserve the core/ stimulate progress
Big Hairy Audacious Goal- BHAG