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THRESHOLDTHRESHOLDThe limitlessness of The limitlessness of
LIMIT.LIMIT.BYBY
MAJOR (RETD.) PRAVIN SINGHMAJOR (RETD.) PRAVIN SINGH
CONFLUENCECONFLUENCE
THE CHALLENGE
•By defining the management study of nineties, it has showed that great companies triumph over time and how long term sustained performance can be engineered into the DNA of an enterprise from the beginning.
NOT BORN WITH GREAT DNA??? How can good companies or enterprise
or mediocre companies and even bad companies achieve enduring greatness?????
How do companies defy gravity and convert long term mediocrity or worse into long term superiority?
What are universal distinguishing characteristics that cause a company to Cross the THRESHOLD and take a leap while others can’t.
GOOD IS THE ENEMY OF GREAT
That's the key reason why so less become great.
It is remarkable to note so many companies who have been utterly unremarkable, seemingly out of no
where------ BANG. Then they CLIMB ..CLIMB..CLIMB and
CLIMB and just keep CLIMBING.
THRESHOLD
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GREATGeneral marketDirect comparsion
TRANSITION TIME
WALGREENS$1 INVESTED IN WALGREENS
BEAT TECH SUPERSTAR INTEL BY NEARLY TWO TIMES.
IT BEAT GENERAL ELECTRIC FIVE TIMES, COCA COLA BY EIGHT TIMES, AND GENERAL STOCK MARKET BY FIFTEEN TIMES.
COMPARED TO WHAT?? THEY WERE COMPARED TO ‘DIRECT
COMPARISONS’ AND ‘UNSUSTAINED COMPARISONS’.
QUESTION IS NOT WHAT IS COMMON BETWEEN THEM, BUT WHAT IS THAT MADE THIS DIFFERENCE.
GOLD MEDAL WINNERS AND LOOSERS BOTH HAVE A COACH, BUT WHAT IS THAT DIFFERENCE THAT MAKES ONE A WINNER?
INSIDE THE BLACK BOXWHAT’S
INSIDE THE BLACK BOX?
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BASIS OF RESEARCH STRATEGY. TECHNOLOGY. LEADERSHIP. INTERVIEW OF EXECUTIVES OF
TRANSITION PERIOD. QUALITATIVE TO QUANTITATIVE ANLYSES
LOOKING AT ACQUISITION TO EXECUTIVE COMPENSATION, FINANCIAL RATIOS TO MANAGEMENT TURNOVER.
DOGS THAT DID NOT BARK
SPECIAL NOTE OF THE UNSUSTAINED COMPARISON WHO STARTED CLIMBING BUT COULD NOT SUSTAIN THE CLIMB.DOGS THAT DID NOT BARK.
‘THE ADVENTURE OF SILVER BLAZE’ SHERLOCK HOLMES.
DOGS THAT DID NOT BARK TURNED OUT TO BE THE BEST CLUES.
WHAT WAS NOT FOUND INSIDE THE BLACK BOX LARGER THAN LIFE CELEBRITY
LEADERS WHO CAME FROM OUTSIDE. ALL THE LEADERS WERE FROM WITHIN THE CO.
NO SYSTEMATIC PATTERN LINKING SPECIFIC FORMS OF EXECUTIVE PACKAGES.
STATEGERY PER SE.
WHAT WAS NOT FOUND INSIDE THE BLACK BOX THEY DID NOT FOCUS ON WHAT TO DO INSTEAD
FOCUSED ON WHAT NOT TO DO AND WHAT TO ‘STOP DOING’.
TECH DID NOT IGNITE THE TRANSFORMATION, IT ACCELERATED IT.
THEY PAID SCANT ATTENTION TO MANAGING CHANGE, MOTIVATING PEOPLE AND CREATING ALINGMENT.
NO NAME, TAG LINE, LAUNCH EVENT OR PROGRAM SIGNIFIED THEIR TRANSFORMATION.
WHAT WAS NOT FOUND INSIDE THE BLACK BOXMERGERS AND ACQUISITIONS
PLAYED VIRTUALLY NO ROLE IN IGNITING TRANSFORMATION.
THEY WERE NEVER BY AND LARGE IN GREAT INDUSTRIES. SOME WERE IN TERRIBLE INDUSTRIES.
CHAOS TO CONCEPT:‘FLYWHEEL CONCEPT’
DISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION
CULTURE OF
DISCIPLINE
HEDGEHOG CONCEPT
LEVEL 5 LEADERSHIP
1 ST WHO..
THEN WHAT
CONFRONT THE BRUTAL
FACTSTECH
ACCELATOR
FLYWHEEL
LEVEL 5 LEADERSHIPSELF EFFACING, QUIET,
RESERVED, SHY---PARADOXIAL BLEND OF
PERSONAL HUMILITY AND PROFESSIONAL WILL.
MORE LIKE LINCON AND SOCRATES THAN PATTON OR CEASOR.
FIRST WHO….. THEN WHAT THEY DO NOT BEGIN BY SETTING A NEW
VISION OR STRATEGY. THEY BEGIN WITH RIGHT PEOPLE ON THE
BUS, WRONG PEOPLE OFF THE BUS, RIGHT PEOPLE IN RIGHT SEAT …...
AND THEN THEY DECIDE WHERE TO DRIVE.
PEOPLE ARE YOUR MOST IMP ASSET. WRONG….
RIGHT PEOPLE ARE YOUR MOST IMP ASSET.
CONFRONT THE BRUTAL FACTS (Yet never loose faith) LESSON FROM PRISNOR OF WAR, WHAT
NO CORPORATE STRATEGY DEFINED. STOCKDALE CONCEPT. MAINTAIN UNWAVERING FAITH THAT YOU
CAN AND WILL PREVAIL IN THE END, REGARDLESS OF DIFFICULTIES,
AND at the same time HAVE THE DISCIPLINE TO CONFRONT THE MOST BRUTAL FACTS OF YOUR CURRENT REALITIES, WHATEVER THEY MIGHT BE.
HEDGEHOG CONCEPT(Simplicity within three circles) Greatness requires transcending the curse of
competence. Just because something is your core
business--Just because you are doing it for years----or even decades—does not necessarily mean you can be best in world at it.
And if you cannot be the best in the world at your business, then your core business absolutely cannot form basis of a great company.
It must be replaced with a simple concept that reflects deep understanding of three intersecting circles.
CULTURE OF DISCIPLINE ALL COMPANIES HAVE A CULTURE, SOME
COMPANIES HAVE DISCIPLINE, BUT FEW COMPANIES HAVE A CULTURE OF DISCIPLINE.
WHEN YOU HAVE DISCIPLINED PEOPLE YOU DON’T NEED HIERARCHY.
WHEN YOU HAVE DISCIPLINED THOUGHT YOU DON’T NEED BUREAUCRACY.
WHEN YOU HAVE DISCIPLINED ACTION YOU DON’T NEED EXCESSIVE CONTROL.
CULTURE OF DISCIPLINEWhen we combine
A CULTURE OF DISCIPLINEwith
AN ETHIC OF ENTREPRENEURSHIP,
we get the
MAGICAL ALCHEMY OF GREAT PERFORMANCE.
TECHNOLOGY ACCELERATORS
Tech never the primary means of igniting a transformation.
Yet they are pioneers in application of carefully selected technology.
Technology is never the root cause of greatness or decline.
THE FLY WHEEL AND DOOM LOOP Revolution,dramatic changes,restructuring
fails to take a leap. There is no single defining action,grand
program, no one killer innovation, no solitary lucky break, no miracle moment.
Rather the process resembled relentlessly pushing a giant heavy flywheel in one direction, turn upon turn,building momentum until a point of breakthrough, and beyond.
LEVEL 5 LEADERSHIPFIRST WHO….. THEN WHAT
CONFRONT THE BRUTAL FACTS (Yet never loose faith)
HEDGEHOG CONCEPT(Simplicity within three circles)
CULTURE OF DISCIPLINE
TECHNOLOGY ACCELERATORS
THE FLY WHEEL AND DOOM LOOP
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