4 Jim Collins Cumulative Stock Returns of $1 Invested, - Good-to- Great Companies: $ Dtrect Compar~son $ Compan~es$93 0 . Chapter 1: Good Is the Enemy of Great. Jim Collins and other members of his research crew had worked on a project that showed why some companies were. Where are you on your journey from Good to Great? Good to Great™ Diagnostic Tool. Developed by Jim Collins. Individual Worksheet Packet. Release Version.
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JIM echecs16.info Discussion Guide. Gain a deeper understanding of the ideas presented in the books “Built to Last" and "Good to Great" by using. PDF | The book consists of nine chapters explaining the concept of Good to Great . Starting from emphasizing that “good is the enemy of great”. In his book Good to Great, Jim Collins indicates that in order to become great you need great ideas, have the correct people on the bus, great management and Leadership. First you need the correct people and then you can develop the echecs16.info is bad today may be great today or.
They display a workman like diligence, more plow horse than show horse. They look out of window to attribute success to factors other than themselves. Chapter 1: Good Is the Enemy of Great The concepts developed in this book were derived from empirical deductions directly from the data. They did not come to the table with some theory to vet. Think of the transformation as a process of buildup followed by breakthrough, broken into three broad stages: disciplined people, disciplined thought, and disciplined action.
Confront The Truth About Your Company Every successful company that has reached success got there by evaluating and accepting their current situation, even if it was a bad one. Collins found that these companies did not necessarily have very good or bad conditions. Some were worse, some better, but the successful ones were those who valued and accepted their circumstances. These supermarket chains faced a change in the market, where consumers wanted bigger and larger stores with a wider variety of products.
Both invested in smaller, more traditional stores that were not compatible with the cravings of new consumers. Kroger changed and replaced each of its stores. The result was a success for Kroger.
For the best strategy to be applied, it is very important to confront the truth. And confronting the truth means encouraging honest and open discussions. Facing the facts can be a very difficult and disheartening process, but if your company creates the right environment to discuss problems and solutions, you can motivate employees to succeed.
Leaders need to be willing to ask questions and promote conversations without monopolizing or refusing to accept contributions.
Also, leaders can not point the finger and blame others for problems. When a problem comes up, make it a priority.
If someone has a good suggestion, use it and credit that person for the idea. Find out where the mistake lies, without blaming anyone for it. But, above all, hold onto the belief that no matter how bad things are, in the end, the company will come to success. But do not stop there, because optimism without the knowledge of truth only leads to failure.
Keep faith in success, but simultaneously confront the reality of your situation and act accordingly. You need to have faith that you will achieve success, but also be honest with yourself about the current situation and be willing to take action. Follow The Hedgehog Concept The simplest solution to a problem is always the best output. But after all, what is the Hedgehog Concept? It is based on a story of a duel between a fox and a hedgehog. In this story, the Fox wants to catch the hedgehog.
The fox is an intelligent, agile animal that is capable of attacking in several different ways. On the other hand, the Hedgehog is not recognized for its cleverness. It only knows how to do one thing, very well.
Your only strategy is to become a ball of thorns and roll as fast as possible. More than a strategy, it is an understanding of the situation. The hedgehog companies know how to do something deeply and focus on it.
Companies that are not made to win tend to act more like the fox. They do many things but lack consistency. The Collins Hedgehog concept is based on three fundamental ideas that big companies combine to find their way to excellence. Jim and his researchers found that every company that achieved success followed that concept. The theory is that any action taken by your company or employees needs to meet all three ideas at once or it will not be successful.
The first idea is that you need to identify your passion. Companies that achieve excellence have a deep knowledge of their passions. Without passion, companies can not get very far. The second idea is to identify what you can do better than anyone else in the world. Whatever it is, it needs to be the focus of your business. That is the only way to succeed.
Finally, companies must identify how they can profit in the most effective way possible and how to capture more value from their market. One of the key functions of a business is to generate revenue, and all companies that have achieved excellence were able to identify the best way to capture value in their market. These companies have discovered how to be economically successful through a superior business model.
To do this, changes need to happen. For example, the Walgreens drugstore chain also owned restaurants. Instead of continuing with both deals, the owners chose to focus on the best investment and left the food service. Cork Walgreen III achieved success. To work effectively within these three ideas, you must have disciplined employees, and the reward for that is to achieve excellence.
Discipline does not mean that leaders will lead as dictators. It means that employees at all levels have self-discipline and know what needs to be done and how to do it. People with self-discipline are more competent and capable, as well as knowing how to keep things going.
A great company is full of people who know how to lead themselves. Each employee is responsible for themselves and their attitudes, and there are no incompetent people who need a nanny.
Disciplined people operate without deviating from the plan and know that following a strategy is the key to success. Building a sketch based on the three basic principles of the hedgehog concept and giving your employees the freedom and responsibility to work within their boundaries is essential. Disciplined people will follow the plan and fulfill all of their responsibilities, no matter the circumstances.
Also, leaders will not need to boss their subordinates or discuss their failures.
That is one of the common aspects that success stories have. Disciplined professionals in a company that moves to excellence will be disciplined both about their thoughts and attitudes. Every thought they have and every decision they make for the company will be exclusive to fulfill the three principles, even if it means failing to seize great opportunities.
Following the plan is the goal. When leaders understand this, they can begin to study which behaviors are successful and which ones need to be eliminated immediately. If you find behavior that does not work, it needs to be stopped.
Hire The Right People And Fire The Inefficient Ones For a company to change from good to excellent, it should not only hire the best and most disciplined but also dismiss those who do not agree with the new direction. Many companies that failed to achieve excellence had inefficient employees in key positions and did not bring the right people to work for their team.
If a company wants to achieve success, it should start by hiring the best and the brightest. Sometimes there may not be a clear position for them within the company, but it is important to keep them ready for when the goals are well defined.
He was worried about finding the best. He later found positions in the company for them. That is the priority: first to find the best people; What you do with them comes later.
The less successful companies often decide first what to do and then find people — but this fragile system will eventually collapse. These companies have a single quality leader leading a large number of subordinates who can only receive orders.
If this person leaves the company for some reason, they leave a problem to be solved. You must remember that the company needs the right people before you start planning and that the wrong people need to be let go. Do not hire anyone who does not have a place in the company in the future. Make sure every employee is exactly where he should be and that you put the best where they should be.
The right team will work together to find the best path and continue on it. Use Technology In Your Favor If your company is going to implement new technology, it must be carefully selected and have a well-defined purpose. New technologies without a purpose are a waste of time, effort, and money. As we will see below, Walgreens understood this when online pharmacies began to emerge.
So instead of hurrying, they carefully considered a plan of action. Technology is a tool used by large companies to get organizations to achieve their goals. If technology does not fit the three basic principles of the Hedgehog Concept, then it should not be used, no matter how popular it may be in the industry. As mentioned before, Walgreens was not sure how the internet would fit into their business , so they did not rush to use it.
Instead, they conducted experiments first to understand how it worked and only then began to use it, promoting convenience, as with filling in online revenue. Meanwhile, other online pharmacies failed quickly and paved the way for Walgreens.
A company that achieves excellence will not be pressured into using any technology.
And understand how to get there. Follow your passion and you'll never have to work a day in your life. The end goal is the hedgehog concept; a single unifying strategy or concept.
If you have the right people on board, then creating this culture should be easy, embrace freedom and provide responsibility. Focus in on the hedgehog concept, the intersection of the 3 meeting points is key. They hired self-disciplined people who didn't need to be managed, and then managed the system, not the people. That is, if the new technology is unrelated or will provide no new opportunities then they will not spend time on it.
They avoid jumping on technology bandwagons and only pursue technology consistent with their hedgehog concept. Jim describes the process as something that progresses over time; the momentum is gradual, similar to a spinning flywheel.
Instead, momentum and growth is built up slowly overtime, like a spinning flywheel. Well as Jim points out, at the beginning when you begin pushing a flywheel, the momentum is slow and hard. Although no extra strength is actually required, the effect is larger with each spin. And this is how Jim describes what the transformation of companies from good to great is like. There was no launch event, no tag line, no programmatic feel whatsoever.
Some executives said that they weren't even aware that a major transformation was under way until they were well into it. It was often more obvious to them after the fact than at the time. And changing the direction of the flywheel is just as dangerous, new leaders are particularly bad at doing this, wanting to make their mark they change direction before enough momentum has had time to build up. This can have disastrous effects. They need to be humble and modest and care more about the companies growth than their personal growth.
As a leader, engage your workers with questions instead of answers. You need to have the right people in the right positions. This is key. Look for a good character over good skills and education. Be brutally honest in tough situations. The hedgehog paradox essentially means simplifying the business into one unifying concept. Find the intercepting link between what you can be the best at, what drives your economic engine and where are your passions? Create a workplace culture that avoids bureaucracy and hierarchy Allow freedom and responsibility, this will inspire a culture that is creative and hardworking Ensure that your people are self-disciplined, they also need to be passionate and willing to work extra hard when required.
This book is ideal for anyone who leads, whether it be a small team, an entire organisation, a community or a family. Simon emphasises that when an environment is built on trust, teams will work together, have each other's backs, survive and thrive.
Check out Jim Collins other best-seller; Built to Last. A great guide to building a successful business or organisation that will prosper over a long period of time. A 3-part examination of what it takes for companies to succeed through strategy, process, leadership and ultimately; execution. What sets the successful companies apart from those that fail.
Guidelines is my eBook that summarises the main lessons from 33 of the best-selling self-help books in one place. It is the ultimate book summary; Available as a page ebook and minute audio book. Guidelines lists 31 rules or guidelines that you should follow to improve your productivity, become a better leader, do better in business, improve your health, succeed in life and become a happier person. Check out Jim Collins website for some handy hints and great resources Download the full book from site.
This summary is not intended as a replacement for the original book and all quotes are credited to the above mentioned author and publisher. Sign up and you'll also receive weekly productivity and business tips via email.