Good to Great - A book review !!

Why some companies make the leap …..while others do not

A fantastic book which is an outcome of the research by Jim Collins,co-author of the book “ Built To Last”. Good to Great brings the answer for “why some companies make the leap to become great while other companies fail”.The essence of the book is to find what lies behind the black box transforming a good company into a great company.

Key findings discussed in GOOD TO GREAT

• Ten of eleven good to great CEO’s came from inside the company
• Based on his study, the idea that executive compensation is a key driver in corporate performance is simply not supported
• Both Set of companies had well defined strategies . Good to Great Companies did not spent more time on long range strategic planning
• Good to Great principally did not focus on “ WHAT TO DO” but they equally focused on “ WHAT NOT TO DO “
• Technology can accelerate the transformation but technology cannot cause a transformation
• M&A’s play virtually no role in igniting the transformation. Two big mediocre companies joined together never make a great company

He discusses the following traits found in a great company

Level 5 Leadership

• Professional will + Personal Humility = Level 5
• Level 5 Leader look out the window to apportion the credit to factors outside themselves
• At the same time , they look in the mirror to apportion responsibility , never blaming bad luck when things go poorly

First Who... Then What

• In a good to great transformation people are not your most important asset, but it’s the right people who are the asset
• When in Doubt Do not Hire – Keep Looking for the right people
• When you know,you need to make people change, act
• Put your best people on your biggest opportunities, not your biggest problems

Confront the Brutal Facts

• Rely only on fact

The Hedgehog Concept

• Reduce all challenges and dilemmas to simple indeed simplistic hedgehog ideas
• Hold both disciplines of faith and facts at the same time, all the time

A Culture of Discipline

• Good to great companies hired self disciplined people who did not need to be managed, and then managed the system and not the people

Technology Accelerators

• Great companies used technology as an enabler to accelerate the momentum