Good 2 Great Jim Collins

GOOD TO GREAT

JIM COLLINS

Disciplined people- no hierarchy

Disciplined thought- no bureaucracy

Discipline action- no controls

1. Level 52. First who…then what3. Confront the brutal facts4. Hedgehog (simplicity)5. Culture of discipline (P-T-A)6. Technology Accelerators

LEVEL 5

SELF EFFICACYQUIET

RESERVEDPERSONAL HUMILITYPROFESSIONAL WILL

Culture of Discipline + ethic of entrepreneurship = alchemy of great performance

Good to great = sustained great results= built to last = enduring great company

LEVEL 5 executive

Effective leader

Competent manager

Contributing team leader

Highly capable individual

HIGHLY CAPABLE INDIVIDUAL

PRODUCTIVE CONTRIBUTION with talent, knowledge, skills and good work habits

Contributing team leader

Contributing individual capabilities to group objectives and works effectively

Competent manager

Organizing , people, resources effectively and efficiently for the pursuit of pre determined objectives

Effective leader

Catalyzes commitment to and vigorous pursuit of vision stimulating higher performance standards

Level 5 executive

Incredible ambition

Enduring personal humility and professional will

Modest & willful + humble & fearless

“have unwavering RESOLVE to ‘what must be done’”

Professional will Personal humility

• creating results• unwavering resolve•“will settle for nothing less”•Looks in mirror for poor results

• compelling modesty• calm determination, relies on inspiring standards• channels ambition•Looks out window for good results

• lead with questions, but not answers

•Engage in dialogue and debate not coercion

• conduct autopsies, without blame

• build red flag mechanisms that “the information can’t be IGNORED”

STOCKDALE PARADOX

RETAIN FATIH &

CONFRONT FACT

THE HEDGE HOG CONCEPT

•WHAT YOU ARE DEEPLY PASSIONATE ABOUT•WHAT YOU CAN BE THE BEST IN THE WORLD AT•WHAT DRIVES YOUR ECONOMIC ENGINE

ACTION ON THE HEAR SAY WITH HEDGE HOG CONCEPT- AN ITERATIVE PROCESS

•X AXIS- ETHIC OF ENTREPRENEURSHIP•Y AXIS- CULTURE OF DICIPLINE•BUREAUCRATIC- START UP- HIERARCHIAL- GREAT ORG'N

A CULTURE OF DISCIPLINE

It is about getting disciplined people with disciplined thought for disciplined actionIt takes discipline to say “No, thank you” to big once in a life time opportunityHave a “stop doing list” which is more important than “to do” lists

Nucor’s three circles•Passion- for eliminating class distinctions and creating an egalitarian meritocracy that aligns management, labor, and financial interests•Could become the best in the world- at harnessing culture and technology to produce low cost steel•Economic ENGINE- of profit per ton of finished steel

Technology accelerators“crawl, walk, run” is the very effective approach in rapid and radical technological change

The fly wheel effect

Consistency & coherence

Let results do most of the talking and accelerate momentum

“it is your work in life that is the ultimate seduction”- Pablo Picasso

Built to last“preserve the core (values and purpose), and stimulate progress (cultural and operating practices, specific goals and strategies)”•Clock building, not time telling•Genius of AND•Core ideology•Preserve the core/ stimulate progress

Big Hairy Audacious Goal- BHAG