Good to

Great
 Group 10

Deepanshu Mohammed Vyoma Aditi Mohit Shilpa Shaurya

Tahalramani Sherif Kandlikar verma Joseph Jha
Total Good - To - Great companies .
Reason for that number.

Eleven good-to-great companies were the

only examples that met all the criteria for
entrance into the study.

Not a Sample

We do not need to worry that a second set

not by our criteria.
Why did only eleven companies make the cut?

A. B. C. D.
Very tough Fifteen-year Looking for a very Great companies
standard sustainability specific pattern are easy to find
requirement , but good-to-great
is difficult to meet companies are
much rarer
Statistical Significance
in Selection
“Good To Great”
What is statistical significance?
Screening Process
Sampling of data
Analysing a subset Jeffrey T Luftwig
Identify trends on a larger set
“Look, you didn’t sample companies.
You did a very purposeful selection that
met your criteria”

William Briggs

1 in 17 million companies possess

those primary traits
Recent Difficulties at some of the Good to Great companies

All companies go through 1. "The Best Men Can Be”

difficult times
The ones that endure make 2. America’s Largest Supermarket Chain
transition from good to great
3. Huggies is one of my brands

4. USA’s Largest Recycler

5. Parent company of Marlboro

 What’s inside the black box??

what does it mean

to get inside the
black box?

"What’s different?"
Attention to a deep analysis systematic coding of all materials
collection of published articles Interview of the good-to-great executives

This process in the research is getting inside a black box.

 Why did you limit your research to publicly
traded corporations?
Public corporations have two advantages for research

1. A widely agreed- 2. A plethora of

upon definition of easily
results accessible data.

Privately held Publicly traded

corporations companies

Limited information vast amounts of information

 Why don't any high-technology
companies appear in the study set?

Phase 1: The Search

Find companies
Look for a good-to-great pattern
15 years - Good followed by great

Good Result: Cumulative stock returns at or below the general stock market
Great Result: Cumulative returns at least 3 times the market over the next 15 years.
 Why don't any high-technology
companies appear in the study set?

Technology companies were eliminated because

Not old enough to show the good-to-great pattern.

Required at least 30 years of history.

1. 15 years of good results

Never showed a
2. 15 years of great results. 15-year good
period
Technology companies of 30+ years of history, Intel has always
none showed the specific good-to-great pattern, eg, been great.
A company with a Highly diverse A company following the Hedgehog
portfolio + Concept
 Having the best
set of general
managers in the
world.

Develop Profit per

first-rate top-quartile
general management
managers. talent.
The role of the board of directors

First. Second.
Picking Level 5 leaders and Distinguish between share
installing them on positions of value and share price
responsibility
 When there is a shortage of people to hire.
Do not hire until you find the right people, even if there is a scarcity.

1) Focus more on character traits and less on specialized skills

VS
Learning Ability Team Player Python Excel
2) Take advantage of difficult economic times

Cyclic Nature of Recessions.

When it is very hard to get the wrong people off the bus
Only hire right people even if it's time-consuming.

Fill top positions, especially “The Council” with right people.

Wrong people will start feeling uncomfortable about their position.

Academic Institutions Government Institutions Government Policies

 Is it right to make
revenue from tobacco?
 I am great, now what?
" The single biggest dancer in business and life,
other than outright failure, is to be successful
without being resolutely clear about why you are
successful in the first place "
Q. Why did you limit your research to U.S.
Corporations?

I S E S
NO

Benefits

Hardships

CONFIDENCE

International Study Set

 eful
Us
Findin gs

The l
hee
lyw
F

EL 5
LEV ship
ader
Le
Conclusion
Thank you!!