Good to Great Summary
Good to Great by Jim Collins takes a look at how great companies were able to sustain their greatness for years. Collins and his team look at eleven companies and focus on specific benchmarks that identify successful practices. The eleven companies include, Abbott, Fannie Mae, Kimberly-Clark, Nucor, Pitney Bowes, Wells Fargo, Circuit City, Gillette, Kroger, Philip Morris, and Walgreens. Although a couple of these companies may not be on the list if the book was written today, but these companies kept consistent with Collins’ benchmarks. The following benchmarks are what Collins and his team used to measure out these giant companies: 1. The companies had to have stock over stock market price for fifteen years. 2. Each company had to demonstrate good-to-great behavior. 3. Each company had to demonstrate a pattern of results. And 4. Each company was compared to similar companies in order to distinguish itself from all others. When Collins and his team analyzed each company, they found that besides fulfilling these set benchmarks, they also had one thing in common; their leaders.
Collins takes a look at Level 5 Leadership. Level 5 Leadership refers to the highest form of leadership a person can take. As stated in Good to Great, “Level 5 Executive, builds enduring greatness through a paradoxical blend of personal humility and professional will.” The characteristics of a Level 5 Leader are they set up their successors for success, they are compellingly modest, and they have unwavering resolve.
Another great point in the book is the idea of “First Who…Then What”. An analogy used in the is the idea of getting the right people on the bus rather than figuring out first where to drive the bus. To take this concept further, to me this is getting buy-in or inspiring a vision with people that have the same passion as you. We can tie in the hedgehog concept to this idea, with knowing why you do what you do and getting those around you to buy the idea of “why”. This concept was also taught in HTM 342, with a TED Talk from Sinek. Sinek explained the Hedgehog concept as being able to get your consumers to believe in the “why” you do what you do.
A great talking point made in Good to Great about the use and innovation of technology, and more specifically how Walgreens was able to capitalize on technology. Collins states, “ When used correctly, technology becomes an accelerator of momentum, not a creator. What this means is that technology should be used smartly to help push innovation. Companies shouldn’t get strung up on new technological fads but use technology in a way that will take them to the next level.
My biggest takeaway from Good to Great is that companies did not become great overnight, and all by themselves. It took amazing leaders to take hold of the reigns, and inspire their people. Not one of the leaders knew exactly where they were going, but understood that they couldn’t get to where they want without the right people at the right place.