Good to greatPresented by thirumeninathan Disciplined people Level 5 Leadership First Who, Then What Disciplined thought Confront the Brutal Facts The Hedgehog Concept Disciplined Action A Culture of Discipline Technology Accelerators The Flywheel and the Doom Loop
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 5–Level 5 Executive produce sustainable results 4–Effective Leader More plow horse than show3–Competent Manager horse 2–Contributing Team Member 1–Highly Capable Individual
Attribute success to other than themselves Take full responsibility for poor decisions Many people have the potential to evolve into Level 5 Extra-ordinary resultswith no attribution orClaimant – a hidden Level 5 5–Level 5 Executiveleader at work 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
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.
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
Management teams debate vigorously to find best answers, yet unify behind decisions.“Right” person has more to do with charactertraits and innate capabilities than with knowledge,background, or skills.
“Breakthrough results come about by a series of good decisions, diligently executed and accumulated one on top of another”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.
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
Stockdale Paradox: Retain absolute faith that you can and will prevail in the endAND at the same time confront the most brutal facts of your current reality, whatever they might be.
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.
Simplicity What you are deeply within passionate about the three circlesWhat you can What drivesbe the best in your the world at economic engine
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
All Guided by An Iterative Ask Questionsthe Three Circles Process Autopsies The Dialogue & & Analysis Council Debate Executive Decisions
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 disciplinesCulture of Discipline
Involves a duality – Freedom and discipline. Requires people who adhere to a consistent system. Gives people freedom and responsibility within framework of that system.
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.”
Technology can be an accelerator of momentum, but not acreator of it“Good to Great companies are pioneers in the application ofcarefully selected technologies”Technology
Good-to-greats avoid technology fads and bandwagons. Yet they often become pioneers in the application of carefully selected technologies. They keep asking - Does it fit directly with your Hedgehog Concept? Good-to-greats used technology as an accelerator of momentum, not a creator of it.
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.
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 . . .
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.
The doom loopDisappointing resultsReaction without understandingThe tyranny of the newNo build up ... no momentum ... no breakthrough