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Good to great presentation
The document summarizes key points from Jim Collins' book "Good to Great" about how companies make the transition from being good companies to great companies. It discusses that change happens gradually through disciplined effort, not suddenly. It also emphasizes the importance of having the right people, clear strategic focus, and removing activities that don't fit the core strategy. The flywheel effect analogy is used to illustrate that transforming an organization is like pushing a heavy wheel gradually to get it spinning faster through accumulated good decisions over time.
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Good to great presentation
- 1. Good to GreatGoodto Great Article by Jim CollinsArticle by Jim Collins October 2001October 2001 Presenters:Presenters: Samantha Bell, Brodie Pattenden,Samantha Bell, Brodie Pattenden, JJ Machalski, Tea Taing,JJ Machalski, Tea Taing, Kristine WiddifieldKristine Widdifield
- 2. AgendaAgenda How changedoesn’t happenHow change doesn’t happen How change does happenHow change does happen Disciplined peopleDisciplined people Disciplined thoughtDisciplined thought Disciplined actionDisciplined action
- 3. How change doesn'thappenHow change doesn't happen The Chicken and the EggThe Chicken and the Egg
- 4. No ‘miraclemoment’No ‘miracle moment’ Chicken in the egg was:Chicken in the egg was: EvolvingEvolving GrowingGrowing DevelopingDeveloping ChangingChanging How change doesn't happenHow change doesn't happen
- 5. WalgreensWalgreens Average companyfor over 40 yearsAverage company for over 40 years 1975 it began to climb, and climb and1975 it began to climb, and climb and climbclimb Beat the general stock market by 15Beat the general stock market by 15 timestimes How do we pinpoint Walgreens’ ‘good-How do we pinpoint Walgreens’ ‘good- to-great’ transformation?to-great’ transformation?
- 6. How does changehappen?How does change happen? The Flywheel EffectThe Flywheel Effect
- 7. How does changehappen?How does change happen? Right now, your flywheel is at aRight now, your flywheel is at a standstillstandstill Put your shoulder into it…. And push!Put your shoulder into it…. And push! Eventually get some forwardEventually get some forward movement….movement….
- 8. How does changehappen?How does change happen? No longer pushing aloneNo longer pushing alone The faster you go, the more peopleThe faster you go, the more people you have joining youyou have joining you
- 9. How does changehappen?How does change happen? Momentum starts working in your favorMomentum starts working in your favor Aren’t pushing any harder, but wheelAren’t pushing any harder, but wheel keeps acceleratingkeeps accelerating That’s how companies make theThat’s how companies make the transition from good to greattransition from good to great
- 10. How does changehappen?How does change happen? What happens when companies don’tWhat happens when companies don’t commit to the quiet discipline of slow,commit to the quiet discipline of slow, progressive change?progressive change? They fall into…..They fall into….. The DOOM LOOP!The DOOM LOOP!
- 11. How does changehappen?How does change happen? Companies that fall into the DoomCompanies that fall into the Doom Loop want change over nightLoop want change over night They bring in a new leader, who takesThey bring in a new leader, who takes them in a new directionthem in a new direction See the pattern?See the pattern?
- 12. 1979 –Started as consumer products1979 – Started as consumer products 1980 – Healthcare1980 – Healthcare 1981 – Return to consumer products1981 – Return to consumer products 1987 – Global pharmaceuticals1987 – Global pharmaceuticals 1990’s – Return to consumer products1990’s – Return to consumer products 2000 – Swallowed by Pfizer2000 – Swallowed by Pfizer Walter-Lambert Co.Walter-Lambert Co.
- 13. How does changehappen?How does change happen? Real people want to contribute toReal people want to contribute to produce real resultsproduce real results Feel the magic of momentumFeel the magic of momentum That’s how change really happens….That’s how change really happens….
- 14. Filling the BusFillingthe Bus Disciplined PeopleDisciplined People
- 15. Mediocre peopleequal mediocre resultsMediocre people equal mediocre results If you have the wrong people, nothing elseIf you have the wrong people, nothing else mattersmatters Disciplined PeopleDisciplined People
- 16. Fannie MaeFannie Mae 14 of 26 executives “got off the bus”14 of 26 executives “got off the bus” before good to great changesbefore good to great changes occurred, no questions askedoccurred, no questions asked
- 17. Disciplined ThoughtDisciplined Thought Foxand the HedgehogFox and the Hedgehog
- 18. Disciplined ThoughtDisciplined Thought A Greek Parable explains thatA Greek Parable explains that Foxes know many small thingsFoxes know many small things Hedgehogs know one big thingHedgehogs know one big thing
- 19. Disciplined ThoughtDisciplined Thought All good to great leaders areAll good to great leaders are hedgehogshedgehogs But why?But why? They ask three piercing questionsThey ask three piercing questions
- 20. Disciplined ThoughtDisciplined Thought What can we be the best in the worldWhat can we be the best in the world at?at? What is the economic denominatorWhat is the economic denominator that drives cashflow?that drives cashflow? What are our core people passionateWhat are our core people passionate about?about?
- 21. Wells FargoWells Fargo Initially in global bank, was mediocreInitially in global bank, was mediocre Switched company philosophy andSwitched company philosophy and industryindustry New mantra and drive for employeesNew mantra and drive for employees Led to successLed to success
- 22. Disciplined ActionDisciplined Action TheStop Doing ListThe Stop Doing List
- 23. Good toGreat leaders distinguishGood to Great leaders distinguish themselvesthemselves Decide what not to doDecide what not to do If it doesn’t fit tightly within yourIf it doesn’t fit tightly within your Hedgehog Concept, don’t do itHedgehog Concept, don’t do it Disciplined ActionDisciplined Action
- 24. Started inthe paper mill industryStarted in the paper mill industry Decided to change focusDecided to change focus The consumer business was best forThe consumer business was best for the companythe company Kimberly-ClarkKimberly-Clark
- 25. One magazinewroteOne magazine wrote ““Kimberly-Clark making the switch was aKimberly-Clark making the switch was a dumb idea”dumb idea” 21 years later that same magazine wrote21 years later that same magazine wrote “as it turns out it was a smart one”“as it turns out it was a smart one” Disciplined ActionDisciplined Action
- 26. ConclusionConclusion The Chickenand the EggThe Chicken and the Egg The Flywheel EffectThe Flywheel Effect Disciplined PeopleDisciplined People Filling the BusFilling the Bus Disciplined ThoughtDisciplined Thought Fox and the HedgehogFox and the Hedgehog Disciplined ActionDisciplined Action The “Stop Doing” listThe “Stop Doing” list
- 27. Thanks for listening!Thanksfor listening! QUESTIONS???QUESTIONS???
Editor's Notes
- #2 I’m sure that if everyone here was given a choice they’d much rather be considered a GREAT manager or be part of a GREAT company that just a good one. Jim Collins article, Good to Great, is filled with important lessons on eggs, flywheels, hedgehogs, buses and other essential tips to help you and your company go from Good to Great. He started off with 1435 ‘good’ companies, and examined their performance over 40 years. He found that only 11 of them went to Great! Introduce members And we’ll be going over some key tools and understandings and the secrets of those 11 GREAT companies to help you make the transition from Good to Great!
- #3 There are many different myths out there about how change happens in the corporate world, but we’re going to clear that up and give you the truth! We’ll start off by explaining how change doesn’t happen and then how it does happen. After that we’ll go through the 3 key elements of a ‘GREAT’ business consisting of Disciplined people (filling the bus), Disciplined Thought (fox and hedgehog) and Disciplined Action (stop doing list). All this will be further demonstrated with easy to remember analogies and real life business examples. We really want to emphasize the importance of the who the what and the when, when we analyze change and move to Great.
- #4 To explain how change doesn’t happen, lets take a look at a chicken and an egg. Lets assume the egg came first… picture it, just sitting there, no one really cares about it, no one pays attention to it. Then one day the egg cracks and a chicken jumps out! If this were a company, the newspapers and magazines would be all over the story, making it sound like a one night wonder. As though, by some magic, the egg turned into a chicken!
- #5 But when we take a closer look, we see that the ‘magic moment’ was actually just another step in a long chain of steps and changes. The egg wasn’t just sitting there, the chicken inside the egg was evolving, growing, developing and changing to become the chicken it is today.
- #6 To exemplify this, lets take a look at Walgreens, which was an average or ‘GOOD’ company for over 40 years. In 1975, completely out of the blue out would seem, Walgreens began to climb and climb and climb, and eventually beat out the general stock market by 15 times!! Think about it, over 40 years of being mediocre, and then they beat the stock market by 15 times! That’s a big change. When asked to pin-point the good-to-great transformation, Walgreen executives answered: Somewhere between 1971 and 1980. Well that doesn’t exactly narrow it down, and it just goes to show that things don’t happen over night, they need a chance to grow, and Walgreens understood that. So we’ve looked at the Chicken and the Egg, and learned that change doesn’t happen in one moment, which is how people often look at it. We need to take into account the growth and evolution that contributed to it as well. Since we’re always looking for change in the wrong places and making the wrong assumptions, Brodie’s going to clear it up and talk about how change actually DOES happen.