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Good to Great
- 1. Good to Great Why Some Companies Make the Leap…and Others Don’t A report by JCB
- 3. Level 5 Leadership HUMILITY + WILL = LEVEL 5
- 4. First Who then What Get the right people on the bus
- 5. Confront the Brutal Facts
- 7. Culture of Discipline Rinse the cottage cheese
- 9. DISCIPLINE
- 10. Sources • Good to Great by Jim Collins • http://proinspire.blogspot.com/2011/08/book-review-good-to-great-by- jim.html • http://jarricks.wordpress.com/2009/08/22/getting-the-right-people-on- the-bus/ • http://nonstopbiztalk.blogspot.com/ • http://bgallen.com/2011/02/ • http://blog.sokanu.com/finding-your-personal-hedgehog-concept-with-s • http://www.thecoachtoolkit.com/2009/10/the-entrepreneurs-hedgehog/ • http://www.igennus-an.com/expert-panel/dave-scott/
Editor's Notes
- An example of a person who practiced this was Darwin E. Smith, CEO of Kimberly-Clark. He was meek and quite, but had a stern resolve. So, from inheriting a company whose stock fell by 36 points, he managed it to become the leading paper-based consumer products company in the world. He was CEO for 20 years
- Dan Cooely, CEO of Wells Fargo practiced this. In the 1970’s, the company appointed Cooley as CEO and he then felt that the banking industry would undergo changes. So, instead of mapping out a strategy for change, he focused on getting talent wherever he could find it. “If I’m not smart enough to see the changes that are coming, they will. And they’ll be flexible enough to deal with them,” said Cooley.
- Facts are better than dreams (by Winston Churchil)Example: A&P and Kroeger. Due to two world wars and the depression, Americans were frugal. So, the small grocery flourish because it provided cheap and plentiful groceries sold in small stores. But, in second half of the twentieth century, Americans became richer; thus, their tastes and wants became more sophisticated. A&P didn’t recognize this, but Kroeger did. So, Kroeger changed its business model and build superstores, while A&P stuck to its old ways. At the end, A&P’s market share dwindled while Kroeger’s skyrocketed.
- As an example, Walgreens only knew one thing: that it could become the best at convenient drugstores. Cork Walgreen even said: “Look it just wasn’t’ that complicated! Once we understood the concept we just moved straight ahead.” Walgreens then linked its convenience concept to a simple economic idea, profit per customer visit. On the other hand, it’s direct competitor Eckerd continued with focused on getting more stores, rather than giving importance to the customer. Also, Eckerd entered into a lot of industries not connected to its core competency, like the home video market. And the result is that Eckerd faltered.
- Few successful start-ups become great companies, in large part because they respond to growth and success in the wrong way. Entrepreneurial success is fueled by creativity, imagination, bold moves into uncharted waters, and visionary zeal. As a company grows and becomes more complex, it begins to trip over its own success --- too many people, too many new customers, too many new orders, too many products. The solution is not to over manage, but to avoid bureaucracy and hierarchy. Build or create a culture of discipline. A good to great company appears boring and pedestrian looking in from the outside, but upon closer inspection, they’re full of people who display extreme diligence and a stunning intensity (they “rinse their cottage cheese”)An example of a company that practices this is Abbot. Abbot in this case has a system called Responsible Accounting wherein every item of cost, income, and investment would be clearly identified with a single individual responsible for that item. Thus, every person was responsible for his or her own investment. Abbot executives were free to do what they want, but subject to rigorous accountability.
- Drugstore.com was the first pharmaceutical company that sold its stocks to the public. Its business was founded on the Interent. Walgreens, on the other hand, was a crawl, walk, and run company. It first had to study the Internet and determine if using it was in line with its business philosophy. And then it decided to walk by testing its website, tying the use of the Internet to its convenience concept. So prescriptions were filled up on-line and then go to the store to pick up the order. The finally, Walgreens ran by launching its Internet site as one of the best websites available then. Drugstore.com however faltered because it founded it relied on the Internet so much. In fact, its stock lost value.