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Good 2 great


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A presentation on Good is the enemy of great.Source- Good to Great by Jim Collins

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Good 2 great

  2. 2.  James C. "Jim" Collins, An American Business Consultant, Author, and Lecturer on the subject of company sustainability and growth. Jim Collins frequently contributes to Harvard Business Review, Business Week, Fortune and other magazines, journals, etc. He is also the author of several books. Member of Good To Great research teamJyoti, IIBM Patna Members of the God To Great research team
  3. 3.  Good is the Enemy of Great" is the first sentence of Jim Collins business best seller, Good to Great. Good is the enemy of great. And that is one of the reasons that we have so little that becomes great. The vast majority of companies never become great, because they become quite good – that’s the problem. “Great remained great” “Good remained good”The main question of this entire book is – “Can a good company become a great company & if so how?”Jyoti, IIBM Patna
  4. 4.  They identified companies that made the leap from good to great & then compare these companies to a carefully selected control group of comparison companies that fail to make the leap or if they did , they failed to sustain it.
  5. 5.  Then they compared the good to great companies to the comparison companies to discover the essential & distinguishing factors at work. Example- Invested(1$) General market Good to Great 56 times 471 timesCriteria for selection of good to great companies- 15 years cumulative stock returns at or below the general stock market. Punctuated by a transition point. Then cumulative returns at least 3 times the market over the next 15 years.
  6. 6. For perspective , a mutual fund of the following “marquis set” ofcompanies beat the market by only 2.5 times over the years 1985-2000:3M , Boeing, Coca Cola , GE, Hewlett- Packard, Intel , Johnson &Johnson, Merck, Motorola, Pepsi, P & G, Wal-Mart & Walt Disney.Then 11 companies made it from all fortune 500 between 1965&1995. These good to great companies are- Abbott, Circuit city, Fannie Mae, Gillette, Kimberly Clark, Kroger,Nucor, Philip Morris, Piney Bower, Walgreens , Wells Fargo.Jyoti, IIBM Patna
  7. 7. Company Result from T Years transition point to To T + 15 Years 15 years beyond transition pointAbbott 3.98 times the market 1974-1989Circuit City 18.50 1982-1997Fannie Mae 7.56 1984-1999Gillette 7.39 1980-1995Kimberly Clark 3.42 1972-1987Kroger 4.17 1973-1988Nucor 5.16 1975-1990Philip Morris 7.06 1964-1979Pitney Bower 7.16 1973-1988Walgreens 7.34 1975-1990Wells Fargo 3.99 1983-1998
  8. 8. Example –Walgreens In Dec. 31 1975 – Jan. 1,2000, 1% invested in Walgreensbeat $ 1 invested in Intel by 2 times General Electric 5 times Coca Cola 8 times General stock market 15 timesFannie Mae also beat companies like GE & Coca Cola.Jyoti, IIBM Patna
  9. 9. ThankYou
  10. 10. ThankYou