Jim Collins’

Good to Great

12/21/2021 prepared by CTH From Good to GREAT 1

 Our Reference

Build Up

Confront
Level 5 First Who, Hedgehog Culture of Technology
The Brutal
GOOD Leadership Then What
Facts
Concept Discipline Accelerator GREAT
Company Company
Disciplined PEOPLE Disciplined THOUGHT Disciplined ACTION

The Flywheel
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 7 Characteristics of Good to Great Company

First Who, Then What: Confront the Brutal

Level 5
Get the right people on the bus, Facts:
Leadership: then figure out where to go. Find The Stockdale paradox—
Leaders who are
the right people and try them Confront the brutal truth
humble, but driven
out in different seats on the bus of the situation, yet at the
to do what's best for
(different positions in the same time, never give up
the company.
company). hope.

Hedgehog Concept: Technology The Flywheel:

Three overlapping circles: Culture of Accelerators: The additive effect
What lights your fire
Discipline: Using technology to of many small
("passion")? What could you
Rinsing the accelerate growth, within initiatives; they act
be best in the world at ("best
cottage cheese. the three circles of the on each other like
at")? What makes you money
hedgehog concept. compound interest.
("driving resource") ?

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 Level 5 Leadership

Level 5 Level 5 Executive

Builds enduring GREAT-ness through a paradoxical blend of personal
Leadership: humility and professional will.
Leaders who are
humble, but driven Effective Leader
to do what's best for Catalyzes commitment to and vigorous pursuit of a clear and compelling
vision, stimulating higher performance standards.
the company.

Competent Manager
Organizes people and resources toward the effective and efficient pursuit
of predetermined objectives.
High-profile
Big personality Contributing Team Member
Celebrities thirst Contributes individual capabilities to the achievement of group objectives
and works effectively with others in a group setting.

Self-effacing Highly Capable Individual

Quiet, reserved, shy Makes productive contributions through talent, knowledge, skills, and good
Humble work habits.

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Level 5 Hierarchy 4
 First WHO, Then WHAT

First Who, Then What:

Get the right people on the bus, First get the RIGHT people ON the bus,
then figure out where to go. Find the WRONG people OFF the bus,
the right people and try them and the RIGHT people in the right SEATS.
out in different seats on the bus
(different positions in the
company).

VISION

“People are NOT the

most important asset.
The RIGHT People ARE.”
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 Confront The Brutal Facts !

Confront the Brutal

Facts:
The Stockdale paradox—
Confront the brutal truth
of the situation, yet at the
same time, never give up
hope.

• Maintain unwavering faith

• Regardless the difficulties
• Have discipline to confront the most brutal facts
• Face the current realities
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 Hedgehog Concept

Hedgehog Concept:
Three overlapping circles: A simple concept
What lights your fire
What you are
that reflects
("passion")? What could you deep understanding
deeply
be best in the world at ("best of the three circles. passionate
at")? What makes you money about
("driving resource") ?

“Simplicity within the

three circles of the What you What drives
can be the your
Hedgehog Concept.” best in the economic
world at engine
Need to know the
“One Big Thing” and
stick to it.

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 Culture of Discipline

Culture The alchemy

Culture of
Discipline: Discipline of GREAT
Rinsing the Performance
cottage cheese.

A Culture of Ethic of
Discipline Entrepreneurship

 Disciplined PEOPLE …hierarchy

 Disciplined THOUGHT …beaurocracy

 Disciplined ACTION …excessive controls

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 Technology Accelerators

Technology
Accelerators:
Using technology to
accelerate growth, within “GREAT Companies are pioneers in the application of
the three circles of the carefully selected technologies.”
hedgehog concept.

o The primary means of igniting

a transformation.
o The primary root cause of
greatness.

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 The Flywheel
A relentless process of pushing a giant
heavy flywheel in ONE direction, turn upon
The Flywheel: turn, building a MOMENTUM until a point
The additive effect of breakthrough and beyond.
of many small
initiatives; they act
on each other like No No single
compound interest. miracle defining
moment action

The Doom Loop : No solitary No grand

lucky break program
 Revolution in coy
 Dramatic change
 Wrenching restructuring
No one killer
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 The Process & The Tips

Have the right people on the bus first. With the right people the A “Level 5 Leader” is someone that is humble, has a great
direction of the bus can change and you still have a good time. desire to succeed, and want success not for him/herself but
for what he/she is striving for.

Passionate The drive to try new things, and some degree of

about
independence. Have a “stop doing” list. Things that do
not fit into your 3 Circles.
Be the best Makes
in the money
world
Good decisions are made from the facts. When things
go wrong, investigate to avoid repeating it.

Think of a company success as pushing a flywheel. You push

The fox may know many things, but the hedgehog knows one hard in the beginning to get it going and it barely moves. Over
BIG thing. Have a deep understanding of your one BIG thing. time as you keep pushing with constant steady work over and
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Know it and understand it well. over, the flywheel spins faster and faster. 11
 Is That All ?

Preserve The Preserve

• Core Values
Core • Core Purpose

Change
• Cultural & Operating
Stimulate
Practices
Progress • Sspecific Goals &
Strategies

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 Thank You !

Have a Day!

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