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h ro ug kth B rea Buildup Level 5 First Who… Confront the Hedgehog Culture of TechnologyLeadership Then What Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action
You can accomplish anything in life, provided that you do not mindwho gets the credit. -Harry S. Truman h ro ug kth B rea Buildup Level 5 First Who… Level 5 Confront the Hedgehog Culture of Technology LeadershipThen What Leadership Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action
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 Fanatically driven to produce sustainable results More plow horse than show horse
The Yin and Yang of Level5 Personal Humility Professional Will
The Yin and Yang of Level 5 •Personal Humility •Professional Will Creates superb results, a clear catalystDemonstrates a compelling modesty, in the transition from good to great.shunning public adulation; never boastful Demonstrates an unwavering resolve Acts with quiet, calm determination; to do whatever must be done to produceRelies principally on inspired standards, not the best long-term results, no matterinspiring charisma, to motivate. how difficult. Sets the standard of building anChannels ambition into the organization, enduring great organization; will settlenot the self; sets up successors for even for nothing else.more greatness in the next generation Looks out the window, not in theLooks in the mirror, not out the window, mirror, to apportion credit for theto apportion responsibility for poor results, success of the organization - to othernever blaming other people, external people, external factors, and good luck.factors, or bad luck
Level 5 Leadership Attribute success to other than themselves Look in mirror and take full responsibility for poor decisions Many people have the potential to evolve into Level 5
There are going to be times when we can`t wait for somebody. Now, you areeither on the bus or off the bus. -Ken Kesey h ro ug kth B rea Buildup Level 5 First Who… First Who… Confront the Hedgehog Culture of Technology Then What Leadership Then What Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action
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.
First Who . . . Then What Leaders were rigorous, not ruthless in people decisions. 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
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.
There is no worse mistake in public leadership than to hold out falsehopes soon to be swept away… -Winston S. Churchill h ro ug kth B rea Buildup Confront the Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What BrutalFacts Concept Discipline Accelerators Brutal Facts Disciplined People Disciplined Thought Disciplined Action
Confront the Brutal Facts Setting off on the path to greatness requires confronting the brutal facts of current reality. Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.
Confront the Brutal Facts Four basic practices: 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
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.
Know Thyself . -Scribes Of Delphi h ro ug kth B rea Buildup Hedgehog Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal FactsConcept Discipline Accelerators Concept Disciplined People Disciplined Thought Disciplined Action
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.
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
Hedgehog Concept Simplicity What you are deeply within passionate about the three circlesWhat you can What drivesbe the best in your the world at economic engine
Hedgehog Concept Getting the Hedgehog Concept takes an average of four years. It is an iterative process by The Council: The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles
Hedgehog Concept All Guided by An Iterative Ask Questionsthe Three Circles Process Autopsies The Dialogue & & Analysis Council Debate Executive Decisions
Freedom is only part of the story and half the truth…That is why Irecommend that the Statue of Liberty on the East Coast be supplantby a Statue of Responsibility on the west coast. -Victor E. Frankel h ro ug kth B rea Buildup Culture of Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action
Culture of Discipline Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles People who “rinse their cottage cheese” Not about a tyrant who disciplines
Culture of Discipline Involves a duality. Requires people who adhere to a consistent system. Gives people freedom and responsibility within framework of that system.
Culture of Discipline Includes willingness to shun opportunities that fall outside the three circles. 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.”
Most men would rather die, than think many Do. -Bertrand Russel h ro ug kth B rea Buildup Technology Level 5 First Who… Confront the Hedgehog Culture of Technology Accelerators Leadership Then What Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action
Technology Accelerators Good-to-greats avoid technology fads and bandwagons. 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.
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.
Revolution means turning the wheel. -Igor Stravinsky h ro ug kth B rea Buildup Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerations Disciplined People Disciplined Thought Disciplined Action Flywheel
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 . . .
The Flywheel With persistent pushing . . . In a consistent direction . . . Over a long period of time . . . The flywheel builds momentum eventually hitting a point of breakthrough. 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.
Good to Great h ro ug kth B rea Buildup Level 5 First Who… Confront the Hedgehog Culture of TechnologyLeadership Then What Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action