2. THE CHALLENGE
• By defining the management study
of nineties, it has showed that
great companies triumph over time
and how long term sustained
performance can be engineered into
the DNA of an enterprise from the
beginning.
3. NOT BORN WITH GREAT DNA???
How can good companies or enterprise
or mediocre companies and even bad
companies achieve enduring
greatness?????
How do companies defy gravity and
convert long term mediocrity or worse
into long term superiority?
What are universal distinguishing
characteristics that cause a company
to Cross the THRESHOLD and take a
leap while others can’t.
4. GOOD IS THE ENEMY OF GREAT
That's the key reason why so less become
great.
It is remarkable to note so many
companies who have been utterly
unremarkable, seemingly out of no where-
----- BANG.
they CLIMB ..CLIMB..CLIMB and
Then
CLIMB and just keep CLIMBING.
5. THRESHOLD
160
140
120
TRANSITION TIME
100
80
60
40
GREAT
20
General market
Direct comparsion
0
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th
6. WALGREENS
$1 invested in Walgreens beat
tech superstar intel by nearly two
times.
It beat General Electric five
times, Coca Cola by eight
times, and General stock market
by fifteen times.
7. COMPARED TO WHAT??
They were compared to ‘direct
comparisons’ and ‘unsustained
comparisons’.
Question is not what is common between
them, but what is that made this
difference.
Gold medal winners and loosers both
have a coach, but what is that difference
that makes one a winner?
8. INSIDE THE BLACK BOX
WHAT’S
INSIDE THE
BLACK
BOX?
160
140
120
100
80
60
40
GREAT
20
General market
Direct comparsion
0
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th
9. BASIS OF RESEARCH
Strategy.
Technology.
Leadership.
Interview of executives of transition period.
Qualitative to quantitative anlyses looking at
acquisition to executive
compensation, financial ratios to
management turnover.
10. DOGS THAT DID NOT BARK
Special note of the unsustained
comparison who started climbing but
could not sustain the climb. Dogs that did
not bark.
‘The adventure of Silver Blaze’
Sherlock Holmes.
Dogs that did not bark turned out to be the
best clues.
11. WHAT WAS NOT FOUND
INSIDE THE BLACK BOX
Larger than life celebrity leaders who
came from outside. All the leaders were
from within the co.
No systematic pattern linking specific
forms of executive packages.
Stategery per se.
12. WHAT WAS NOT FOUND
INSIDE THE BLACK BOX
THEY DID NOT FOCUS ON WHAT TO DO INSTEAD
FOCUSED ON WHAT NOT TO DO AND WHAT TO
‘STOP DOING’.
TECH DID NOT IGNITE THE TRANSFORMATION, IT
ACCELERATED IT.
THEY PAID SCANT ATTENTION TO MANAGING
CHANGE, MOTIVATING PEOPLE AND CREATING
ALINGMENT.
NO NAME, TAG LINE, LAUNCH EVENT OR
PROGRAM SIGNIFIED THEIR TRANSFORMATION.
13. WHAT WAS NOT FOUND
INSIDE THE BLACK BOX
MERGERS AND ACQUISITIONS
PLAYED VIRTUALLY NO ROLE IN
IGNITING TRANSFORMATION.
THEY WERE NEVER BY AND
LARGE IN GREAT INDUSTRIES.
SOME WERE IN TERRIBLE
INDUSTRIES.
14. CHAOS TO CONCEPT:
‘FLYWHEEL CONCEPT’
1 ST WHO.. CONFRONT CULTURE
LEVEL 5 THE BRUTAL HEDGEHOG OF TECH
LEADERSHIP THEN WHAT FACTS CONCEPT DISCIPLINE ACCELATOR
DISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION
FLYWHEEL
15. LEVEL 5 LEADERSHIP
Self effacing, quiet, reserved, shy---
Paradoxicalblend of personal
humility and professional will.
Morelike Lincon and Socrates than
Patton or Ceasor.
16. FIRST WHO….. THEN WHAT
They do not begin by setting a new vision or
strategy.
They begin with right people on the bus, wrong
people off the bus, right people in right seat.
And then they decide where to drive.
People are your most imp asset? Wrong….
Right people are your most imp asset.
17. CONFRONT THE BRUTAL FACTS
(Yet never loose faith)
Lesson from prisnor of war, what no corporate
strategy defined.
Stockdale concept.
Maintain unwavering faith that you can and will
prevail in the end, regardless of difficulties,
AND at the same time Have the discipline to
confront the most brutal facts of your current
realities, whatever they might be.
18. HEDGEHOG CONCEPT
(Simplicity within three circles)
Greatness requires transcending the curse of
competence.
Just because something is your core business-
-Just because you are doing it for years----or
even decades—does not necessarily mean you
can be best in world at it.
And if you cannot be the best in the world at
your business, then your core business
absolutely cannot form basis of a great
company.
It must be replaced with a simple concept that
reflects deep understanding of three
intersecting circles.
19. CULTURE OF DISCIPLINE
All companies have a culture, some companies
have discipline, but few companies have a
CULTURE OF DISCIPLINE.
When you have disciplined people you don’t
need HIERARCHY.
When you have disciplined thought you
don’t need BUREAUCRACY.
When you have disciplined action you don’t
need EXCESSIVE CONTROL.
20. CULTURE OF DISCIPLINE
When we combine
A CULTURE OF DISCIPLINE
with
AN ETHIC OF
ENTREPRENEURSHIP,
we get the
MAGICAL ALCHEMY OF GREAT
PERFORMANCE.
21. TECHNOLOGY ACCELERATORS
Tech never the primary means
of igniting a transformation.
Yet they are pioneers in
application of carefully selected
technology.
Technology is never the root
cause of greatness or decline.
22. THE FLY WHEEL AND
DOOM LOOP
Revolution,dramatic changes,restructuring
fails to take a leap.
There is no single defining action,grand
program, no one killer innovation, no
solitary lucky break, no miracle moment.
Rather the process resembled relentlessly
pushing a giant heavy flywheel in one
direction, turn upon turn,building
momentum until a point of
breakthrough, and beyond.
23. LEVEL 5 LEADERSHIP
FIRST WHO….. THEN WHAT
CONFRONT THE BRUTAL FACTS (Yet
never loose faith)
HEDGEHOG CONCEPT
(Simplicity within three circles)
CULTURE OF DISCIPLINE
TECHNOLOGY ACCELERATORS
THE FLY WHEEL AND DOOM LOOP
