Presentation good to great by leke oshiyemi_for slideshare

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  • Great presentation Leke! Could you please send me a coppy? Thank you very much in advance.

    g.suarezlaguna@gmail.com
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  • Thursday, June 7, 2012
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  • Thursday, June 7, 2012 The capability resides within them and under the right circumstances they begin to develop e.g. conscious personal development, mentor or significant life experience Most Level 5 leaders had significant life experience that furthered their maturation e.g. Darwin Smith after his experience with cancer Joe Cullman profoundly affected by his 2 nd world war experience A strong religious believe might also nurture development of level 5 traits e.g. Colman Mockler converted to evangelical christianity and became a prime mover in a group of biz execs who met frequently over breakfast to discuss the carry over of religious values to corporate life
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  • Presentation good to great by leke oshiyemi_for slideshare

    1. 1. “Framework for Building an Enduring Organization”PRESENTED BY:Leke OshiyemiHR-Business Partner (Services)Honeywell Flour Mills Plc.Friday, April 08, 2011
    2. 2. Jim Collins Is the author of “good to great”, “built to last” and “how the mighty fall”. 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.
    3. 3. THE CHIMPMEMBERS OF THE GOOD -TO - GREAT RESEARCH TEAM
    4. 4. Outline• Background• The Flywheel• Level 5 Leadership• First Who... Then What• Confront the Brutal Facts (Yet Never Lose Faith)• The Hedgehog Concept• A Culture of Discipline• Technology Accelerators• The Flywheel and the Doom Loop• From ‘Good to Great’ to ‘Built to Last’• END
    5. 5. • Good to Great is possible• Major research to uncover the underlying variables that make it happen• Identified companies that made the leap from good results to great results and sustained those results for at least 15 years• Compared them to a carefully selected control group of comparison companies that failed to make the leap, or if they did, failed to sustain it• Compared the two sets of companies to discover the essential and distinguishing factors at work
    6. 6. Background• Good to Great Pattern (Criteria for selection) – 15 years cumulative 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• Widely acknowledged great companies did not make it: 3M, Boeing, Coca-Cola, GE, HP, Intel, Johnson & Johnson, Merck, Motorola, Pepsi, Procter & Gamble, Wal-Mart and Walt Disney• Only eleven companies made it from all Fortune 500 between 1965 and 1995
    7. 7. GOOD-TO-GREAT COMPANIESCompany Result from Transition Point to 15 yrs T Year to beyond Transition Point T Year + 151. Abbott 3.98 times the market 1974 -19892. Circuit City 18.50 times the market 1982-19973. Fannie Mae 7.56 times the market 1984-19994. Gillette 7.39 times the market 1980-19955. Kimberly-Clark 3.42 times the market 1972-19876. Kroger 4.17 times the market 1973-19887. Nucor 5.16 times the market 1975-19908. Philip Morris 7.06 times the market 1964-19799. Pitney Bowes 7.16 times the market 1973-198810. Walgreens 7.34 times the market 1975-199011. Wells Fargo 3.99 times the market 1983-1998
    8. 8. Background• Contrasted them with a carefully selected list of comparison companies – Direct Comparisons (Same industry) – Unsustained Comparison• The crucial question is, what did the good-to-great companies share in common that distinguished them from the comparison companies?• Understanding what the good-to-great companies did and consistently, rigorously applying them will put us on the path to greatness
    9. 9. “GOOD IS THE ENEMY OF GREAT”Jim Collins goes on to state that ... "We dont have great schools, principally because we have good schools. We dont have great government, principally because we have good government.Few people attain great lives, precisely because it is easy to settle for a good life. The vast majority of companies never become great precisely because they become quite good. - and that is their main problem."
    10. 10. “GOOD IS THE ENEMY OF GREAT”Greatness is a choice! And choice is the democraticequalizer of all people. Everyone, regardless of theirrank, social status or income level has the power tochoose great over good.Practice a policy of planned neglect. In other words,once you have established your theme or singularpurpose (the one thing you can be the best in theworld at) get into the habit of practicing your mainhabit FIRST before anything else.
    11. 11. THE FLYWHEEL
    12. 12. Level 5 Leadership LEVEL 5 LEADERSHIP
    13. 13. • Level 5 HierarchyLevel 5 • Traits of Level 5 LeadersLeadership • Cultivating Level 5 Leadership
    14. 14. Level 5 HierarchyLEVEL 5 LEVEL 5 EXECUTIVE Build enduring greatness through a blend of personal humility and professional willLEVEL 4 Effective Leader Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standardsLEVEL 3 Competent Manager Organizes people and resources towards the efficient and effective pursuit of predetermined objectivesLEVEL 2 Contributing Team Member Contributes individual capabilities to the achievement of group objectives and works effectively with others in a group settingLEVEL 1 Highly Capable Individual Makes productive contributions through talent, knowledge, skills and good work habits.
    15. 15. Traits of Level 5 Leaders Level 5 = Humility + Professional Will Ambition for the company  Not that they don’t have ego or self interest  Their ambition is first and foremost for the company and concern for its success rather than for their own riches and personal greatness  They set up successors for success. Want to see the company even more successful in the next generation A compelling modesty  Quiet, humble, modest, reserved, shy, self effacing  Made remarkable results, yet almost no one ever remarked about them  Never wanted to become larger than life heroes (Never talk about their accomplishments)  The comparison leaders were the exact opposite ( They use ‘I’ instead of ‘We’ Unwavering resolve to do what must be done  Not just about humility and modesty  Incredible need to produce results  Sell the Mill or fire their brother if that’s what it takes to make the company great The window and the mirror  When things go well, Level 5 leaders look out of the window to apportion credit to factors outside themselves (and if they cannot find a specific person or event, they credit good luck)  When things go wrong, they look in the mirror to apportion responsibility (never blaming bad luck)
    16. 16. Cultivating Level 5 LeadershipThere are two categories of people:• Those who do not have the seed of level 5 – Could never bring themselves to subjugate their egoistic needs to the greater ambition of building something larger and more lasting than themselves• Those who have the seed of level 5 – Have the potential to evolve to level 5. – The capability resides within them and under the right circumstances they begin to develop – Most Level 5 leaders had significant life experience that furthered their maturation• Level 5 leaders exists all around us – Look for situations where extra ordinary result exists, but where no individual steps forth to claim excess credit• “You can accomplish anything in life provided you do not mind who gets the credit” - Harry Truman
    17. 17. First Who... Then What“In tumultuous environments it is even more importantwhat people do.”- Jim Collins
    18. 18. First Who... Then What• First step is to get the right people on the bus (and the wrong people off the bus) and then figure out where to drive it – If you begin with “who” rather than “what”, you can more easily adapt to a changing world – If you get the right people on the bus, the problem of how to motivate and manage people largely disappear – If you have the wrong people, it doesn’t matter whether you discover the right direction, you still won’t have a great company• “First who” is a very simple idea to grasp and a very difficult idea to do• Build a strong executive team, not a “genius with a thousand helpers”• It’s who you pay, not how you pay them• If you have the right people, they will do anything within their power to make the company great, not because of what they will get, but because they simply cannot imagine settling for anything less• The purpose of a compensation system should not be to get the right behaviors from the wrong people, but to get the right people on the bus in the first place and to keep them there
    19. 19. First Who... Then What  The right people don’t need to be tightly managed or fired up. P.42
    20. 20. First Who... Then What• In determining the right people, the good-to-great companies placed greater weight on character attributes than on specific educational background, practical skills, specialized knowledge or work experience• Good to Great companies have rigorous, not ruthless cultures.• 3 ways to be rigorous – When in doubt, don’t hire – keep looking – When you know you need to make a people change – act • The moment you feel the need to tightly manage someone, you‘ve made a hiring mistake • Letting the wrong people hang around for too long is unfair to all the right people • Waiting for too long before acting is equally unfair to the people who need to get off the bus • Good-to-great leaders will not rush to judgment. They will first determine whether they have the right person in the wrong seat – Put your best people on the biggest opportunities, not your biggest problems
    21. 21. Confront The Brutal Facts CONFRONT THE BRUTAL FACTS
    22. 22. Confront the Brutal Facts (Yet Never Lose Faith)• All good-to-great companies began the process of finding a path to greatness by confronting the brutal facts of their current reality• When you start with an honest and diligent effort to determine the truth of your situation, the right decision often become self evident• 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
    23. 23. Confront the Brutal Facts (Yet Never Lose Faith)• Creating a climate where the truth is heard involves four basic practices: i. Lead with questions, not answers ii. Engage in dialogue and debate, not coercion iii. Conduct autopsies, without blame iv. Build red flag mechanisms that turn information into information that cannot be ignored• The good-to-great companies faced just as much adversity as the comparison companies but responded to that adversity differently. They faced the realities of their situation head on. As a result they emerged from adversity even stronger.
    24. 24. Confront the Brutal Facts (Yet never lose faith) “You absolutely cannot make a series of good decisions without first confronting the brutal facts.” P. 70
    25. 25. Confront the Brutal Facts (Yet Never Lose Faith) “You absolutely cannot make a series of good decisions without first confronting the brutal facts.” P. 70
    26. 26. Confront the Brutal Facts (Yet never lose faith) • Fred Purdue of Pitney Bowes said, “When you turn over rocks and look at all the squiggly things underneath, you can either put the rock down, or you can say, ‘My job is to turn over rocks and look at the squiggly things,’ even if what you see can scare the (stuffens’) out of you.” P. 72
    27. 27. Confront the Brutal Facts (Yet never lose faith) • “Yes, leadership is about vision. But leadership is equally about creating a climate where the truth is heard and the brutal facts confronted. There’s a huge difference between the opportunity to ‘have your say’ and the opportunity to be heard.” P.74
    28. 28. Confront the Brutal Facts (Yet never lose faith) • Creating a climate where truth is heard: – 1. Lead with questions, not answers. – 2. Engage in dialogue and debate, not coercion. – 3. Conduct autopsies, without blame. – 4. Build “red flag” mechanisms.
    29. 29. HEDGEHOG CONCEPT HEDGEHOG CONCEPT
    30. 30. The Hedgehog Concept•A simple concept that flows from a deepunderstanding of three intersecting circles.•It is not a goal, strategy or plan to be the best. It isan understanding of what you can be the best at.
    31. 31. Hedgehog Concept - ExamplesGood-To-Great Best in the Key Economic Key InsightCompanies World At Insight Denominator1.Walgreens Could become Walgreens saw that it Profit per Shift from profit per the best at was not just a drug customer visit store to profit per convenient store but also a customer visit drugstores convenience store. reflected a Sought the best sites relationship for convenience, between convenient clustered stores and (and expensive) pioneered drive- store sites and through pharmacies sustainable economics2. Kroger Could become Kroger always had a Profit per local Shift from profit per the best at strength in grocery population store to profit per innovative store innovation. local population super-combo Applied this skill to the reflected the insight stores question of how to that local market create a combination share drove grocery store with many economics. If you innovative, high cannot be no. 1 or 2 margin ‘mini stores’ in local share, you under one roof should not play
    32. 32. A CULTURE OF DISCIPLINE CULTURE OF DISCIPLINE
    33. 33. A Culture of Discipline• Sustained great results depend upon building a culture full of self disciplined people who take disciplined action, fanatically consistent with the three circles• Fill that culture with self disciplined people who are willing to go to extreme lengths to fulfill their responsibility• Don’t confuse a culture of discipline with a tyrannical disciplinarian• The single most important form of discipline for sustained result is fanatical adherence to the Hedgehog concept and the willingness to shun opportunities that fall outside the three circles
    34. 34. A Culture of Discipline• Bureaucratic cultures arise to compensate for incompetence and lack of discipline which arise from having the wrong people on the bus in the first place• If you get the right people on the bus and the wrong people off, you don’t need bureaucracy• a culture of discipline with an ethic of entrepreneurship, you get superior performance and sustained result
    35. 35. Technology Accelerators TECHNOLOGY ACCELERATORS
    36. 36. Technology Accelerators• Good-to-great organizations think differently about technology and technology change• They avoid technology fads and bandwagons, yet they become pioneers in the application of carefully selected technologies• The key question about any technology is, Does the technology fit directly with your Hedgehog Concept?• The good-to-great companies used technology as an accelerator of momentum, not a creator of it.• Two companies can use the same technology but may not necessarily achieve the same result• Mediocrity results first and foremost from management failure, not technological failure• Technology is important. But technology by itself is never a primary cause of either greatness or decline
    37. 37. The Flywheel
    38. 38. The Flywheel & The Doom Loop• The good-to- great transformations never happen in one fell swoop. It comes about by a cumulative process• No grand program, no one killer innovation, no lucky break, no miracle moment and no name for their transformation• Sustainable transformation follow a pattern of buildup and breakthrough – like pushing on a giant heavy flywheel• The comparison companies followed a different pattern – the doom loop• Rather than accumulating momentum – they try to skip buildup and jump immediately to breakthrough• They frequently launch new programs only to find that the program fail to produce sustained result.
    39. 39. The Doom Loop
    40. 40. +
    41. 41. “GOOD-TO-GREAT”…Building an Enduring Organization Sustained Enduring + Good to Great concepts Great Results Great Company
    42. 42. IMPLICATIONS FOR We must use Good to Great to understand how we can keep doing the right things. We must imbibe the framework/values from “Good to Great” and must be committed to applying what we learn to whatever we do for our company and your own lives. The Good to Great performance pattern must be a company shift, not an industry event. In other words, HFMPLC must demonstrate the pattern not only relative to the market, but also relative to its industry.
    43. 43. HONEYWELLBuilding Vision Flour Mills Plc. (RC: 55495) • WHO ARE WE? WHO AM I? • DO WE HAVE DISCIPLINED PEOPLE, THOUGHT & ACTIONS? • WHAT IS OUR VISION? • DO WE KNOW WHAT IS CORE AND WHAT IS NOT? • DO WE HAVE A GOOD BHAG? (BIG-HAIRY-AUDACIOUS GOAL) D
    44. 44. IN conclusion Sustainable transformations follow 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 with persistent pushing in a consistent direction over a long period of time, the flywheel builds momentum, eventually hitting a point of breakthrough. The comparison companies followed a different pattern, the doom loop. Rather than accumulating momentum-turn by turn of the flywheel-they tried to skip buildup and jump immediately to breakthrough. Then, with disappointing result, they’d lurch back and forth, failing to maintain a consistent direction. The comparison companies frequently tried to create a breakthrough with large, misguided actuations. The good-to-great companies, in contrast, principally used large acquisitions after breakthrough, to accelerate momentum in an already fast-spinning flywheel.
    45. 45. IN conclusion Ultimately, the consistent APPLICATION of the concepts from“Good to Great” will give us the best chance for creating GREATNESS! GREATNESS &
    46. 46. “Keep your dreams alive. Understand to achieve anything requiresfaith and belief in yourself, vision, hard work, determination, and dedication. Remember all things are possible for those who believe.” believe - John. C. Maxwell“Give us clear vision that we may know where to stand andwhat to stand for- because unless we stand for something we shall fall for anything”- Peter Marshall “Vision without action is a dream. Action without vision is simply passing the time. Action with Vision is making a positive difference.” - JOEL BARKER
    47. 47. END
    48. 48. About me Let’s Connect: leke_oshiyemi@yahoo.com www.linkedin.com/in/lekeoshiyemi www.twitter.com/lekeoshiyemi +2348033071649

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