Good to great (ty version 2008)

Good to Great (Book by Jim Collins)

“ Good is Enemy of Great”

@www.teguhinside.blogspot.com

Prepared by Teguh Yoga Raksa

A culture of discipline is not a principle of business; it is a

principle of greatness….

Greatness is not a function of circumstance. Greatness, it turns

out, is largely a matter of conscious choice, and discipline.

….Jim Collins

The kind of commitment I find among the best performers across virtually every field is a single-minded passion for what they do, an unwavering desire for excellence in the

way they think and the way they work. Genuine confidence is what launches you out of bed in the morning,

and through your day with a spring in your step.

….Jim Collins

Key Elements to Become Great Company …..

Level 5 Leadership

First Who….then What

Confront the Brutal Facts (Yet Never Lose Faith)

The Hedgehog Concept

A Culture of Discipline

Technology Accelerators

1

2

3

4

5

Level 5 - Leadership

Humility + Will = Level 5 leadership Modest, willful, humble, fearless Ego-driven, genius-types, may produce

short-term positive results, but cannot sustain results


Professional Will Creates superb results, a clear

catalyst in the transition from good to great

Demonstrates an unwavering resolve to do whatever must be done to produce the best long-term results, no matter how difficult

Sets the standard of building an enduring great company; will settle for nothing less

Looks in the mirror, not out the window, to apportion responsibility for poor results, never blaming other people, external factors, or bad luck

Personal Humility Demonstrates a compelling

modesty, shunning public adulation; never boastful

Acts with quiet, calm determination; relies principally on inspired standards, not inspiring charisma to motivate

Channels ambition into the company, not the self; sets up successors for even greater success in the next generation

Looks out the window, not in the mirror, to apportion credit for the success of the company—to other people, external factors, and good luck


Ciri-ciri Level 5 Leadership adalah : fokus yang amat tinggi pada results, memiliki kapasitas eksekusi yang baik (good executor), dan cenderung bersikap low profile.


Level 5 Leadership







Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).

“Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.

Leaders were rigorous, not ruthless in people decisions. Three practical disciplines for being rigorous:

When in doubt, don’t hire When you know you need to make a people decision, Act Put your best people on your best opportunities, not biggest

problems “Right” person has more to do with character traits and innate

capabilities than with knowledge, background, or skills.


There are going to be times when we can’t wait for somebody. Now, you’re either on the bus or off the bus. (Ken Kesey, The Electric Kool-Aid Acid Test)

You don’t first figure out where to drive the bus and then get people to take it there.

No, first get the right people on the bus (and the wrong people off) and then figure out where to take the bus.


1. If you begin with “who” rather than “what” you can more easily adapt to a changing world.

2. If you have the right folks on the bus, the problem on how to motivate & manage people largely goes away.

3. If you have the wrong people, it doesn’t matter whether you discover the right direction, you still won’t have a great organization. Great vision without great people is irrelevant.

Why you get the right people on the bus first…

Poin yang lebih penting adalah “pertanyaan

tentang siapa” selalu lebih dahulu dibanding

“pertanyaan tentang apa”.

Good-to-great companies selalu bergerak pertama-

tama dengan berpikir tentang MANUSIA, baru

kemudian berbicara mengenai strategi, anggaran,

struktur organisasi, dan lain-lain.



Level 5 Leadership






Setting off on the path to greatness requires confronting the brutal facts of current reality

Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.


“Tugas utama untuk mengubah suatu perusahaan

menjadi great company, adalah membangun iklim

kerja dimana setiap anggota memiliki kesempatan

untuk di-dengar pendapatnya, and ultimately,

for the truth to be heard “

1. Lead with questions, not answers– Put more questions to board members than they put to you– Raise questions for one reason only: to gain understanding (not

manipulation)2. Engage in dialogue and debate, not coercion.

– Good-to-great companies have a penchant for intense dialogue3. Conduct autopsies, without blame.

– No finger-pointing.4. Build red-flag mechanisms.

– Good-to-great companies don’t have better information, necessarily. The key is turning information into info that can’t be ignored.

– Red cards in meetings: folks hold it up to deal with real issues– Short-pay: allow customers to circle items on invoice they don’t want to

pay due to bad service


How to confront the Brutal FactsYet never lose faith

Attitude: We will never give up. We will never capitulate. It might take a long time, but we will find a way to prevail.

Research by the Int’l Committee for the Study of Victimization found that those facing serious adversity generally fall into one of three categories:1. Those who were permanently dispirited by the event2. Those who got their life back to normal3. Those who used the experience as a defining event that

made them stronger.

The Stockdale Paradox



Jim Stockdale stoically accepted the brutal facts of reality while maintaining an unwavering faith in the endgame—that he would prevail despite the brutal facts.

Who didn’t make it out? The optimists.

Those who think it will all be a quick fix and everyone will be out by Christmas are the ones that lose heart and fail.


Good-to-Great Companies selalu menerapkan prinsip

the Stockdale Paradox: atau sebuah keyakinan yang

kuat bahwa kami pada akhirnya akan berhasil, meski

dihadapkan pada rintangan yang amat sulit. Dan pada

saat yang bersamaan, kami akan terus berani

menghadapi realitas persaingan bisnis, betapapun

kerasnya derap persaingan itu.




Level 5 Leadership







Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.

Hedgehogs see what is essential, and ignore the rest. “The fox knows many things, but the hedgehog knows one

big thing.” Foxes pursue many ends at the same time and see the world

in all its complexity. They are scattered or diffused, moving on many levels.

Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.

For a hedgehog, anything that does not somehow relate to the hedgehog idea holds no relevance.

The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept: What you are deeply passionate about What you can be best in the world at What drives your economic engine


Getting the Hedgehog Concept takes an average of four years. It is an iterative process by The Council:

The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles

Getting the Hedgehog Concept takes an average of four years. It is an iterative process by The Council:

The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles


TheCouncil

All Guided by the Three Circles

Ask Questions

Dialogue &Debate

Autopsies& Analysis

ExecutiveDecisions

An IterativeProcess

You can be passionate about all you want, but if you can’t be the best at it or if it doesn’t make economic sense, then you might have a lot of fun, but you won’t get great results.

If we can’t be the best at it, then why are we doing it at all?

A Hedgehog Concept is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at.



Good-to-great companies cenderung mirip seperti hedgehogs — sejenis entitas yang sederhana, simpel, memahami "one big

thing" and stick to it. Perusahaan pembanding cenderung seperti foxes —

mencoba mengetahui banyak hal, namun lack consistency


Level 5 Leadership






Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles

People who “rinse their cottage cheese”

Not about a tyrant who disciplines

Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles

People who “rinse their cottage cheese”

Not about a tyrant who disciplines


Involves a duality Requires people who adhere to a consistent system. Gives people freedom and responsibility within framework

of that system.

Involves a duality Requires people who adhere to a consistent system. Gives people freedom and responsibility within framework

of that system.


Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.

Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.

“Stop doing” lists are more important than “to do” lists.

“Anything that does not fit with our Hedgehog Concept, we will not do.”

“Stop doing” lists are more important than “to do” lists.

“Anything that does not fit with our Hedgehog Concept, we will not do.”

Includes willingness to shun opportunities that fall outside the three circles.

Includes willingness to shun opportunities that fall outside the three circles.



A culture of discipline is not just about action.

It is about getting disciplined people who

engage in disciplined thought and who then

take disciplined action.Good-to-great companies dari luar terlihat

sebagai entitas yang membosankan,

“garing”, biasa-biasa saja, namun jika

ditelisik lebih dalam ternyata….. they're full

of people who display extreme diligence

and a stunning intensityA culture of discipline melibatkan dua dimensi. Pada satu sisi, kultur itu menuntut para anggotanya untuk selalu mengacu pada proses dan sistem kerja yang konsisten. Pada sisi lain, ia juga memberikan kebebasan dan tanggungjawab dalam kerangka sistem itu


Level 5 Leadership






Good-to-greats avoid technology fads and bandwagons. Yet they often become pioneers in the application of

carefully selected technologies. Does it fit directly with your Hedgehog Concept? Good-to-greats used technology as an accelerator of

momentum, not a creator of it.

Good-to-greats avoid technology fads and bandwagons. Yet they often become pioneers in the application of

carefully selected technologies. Does it fit directly with your Hedgehog Concept? Good-to-greats used technology as an accelerator of

momentum, not a creator of it.


Technology by itself is never a root cause of either greatness or decline.

“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.

Technology by itself is never a root cause of either greatness or decline.

“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.


Dalam isu IT, good-to-great companies selalu mengajukan pertanyaan : apakah aplikasi teknologi ini fit directly dengan konsep Hedgehog kami? Jika ya, maka kami akan menjadi a pioneer in the application of that technology. Jika tidak, kami akan melupakannya


Good-to-great companies menggunakan teknologi lebih

sebagai an accelerator of momentum, not a creator of it.

Tidak ada satupun good-to-great companies yang memulai

transformasinya dengan pioneering technology, yet they all

became pioneers in the application of technology once

they grasped how it fit with their strategies.

The Flywheel…

Good-to-great transformations never happened in one fell swoop.

There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.

Instead they followed a predictable pattern of buildup and breakthrough.

Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .

Good-to-great transformations never happened in one fell swoop.

There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.

Instead they followed a predictable pattern of buildup and breakthrough.

Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .

The Flywheel

With persistent pushing . . . In a consistent direction . . . Over a long period of time . . The flywheel builds momentum . . . Eventually hitting a point of breakthrough … In good-to-great companies problems of commitment,

alignment, motivation, and change largely take care of themselves.

Alignment follows from results and momentum, not the other way around.

With persistent pushing . . . In a consistent direction . . . Over a long period of time . . The flywheel builds momentum . . . Eventually hitting a point of breakthrough … In good-to-great companies problems of commitment,

alignment, motivation, and change largely take care of themselves.

Alignment follows from results and momentum, not the other way around.

The Flywheel

Reference :

-Good to Great ( summarized by Yodhia)-Good to Great (summarized by Kirk Wakefield)-Good to Great ( summarized by Gary Rueter)

End of Document …….

Business

Good to great (ty version 2008)