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INTROUCTION
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PREFACE
Jim Collins is a student and teacher of leadership and what makes great companies tick.
Having invested a quarter century of research into the topic, he has authored or co-authored six
books that have sold in total more than ten million copies worldwide. They include: GOOD TO
GREAT, the #1 bestseller, which examines why some companies and leaders make the leap to
superior results, along with its companion work GOOD TO GREAT AND THE SOCIAL
SECTORS; the enduring classic BUILT TO LAST, which explores how some leaders build
companies that remain visionary for generations; HOW THE MIGHTY FALL, which delves into
how once-great companies can self-destruct; and most recently, GREAT BY CHOICE, which is
about thriving in chaos – why some do, and others don't – and the leadership behaviors needed
Driven by a relentless curiosity, Jim began his research and teaching career on the faculty at
Stanford Graduate School of Business, where he received the Distinguished Teaching Award in
research and engages in Socratic dialogue with CEOs and senior leadership teams. In addition
to his work in the business sector, Jim has passion for learning and teaching in the social
ventures, and cause-driven non-profits. In 2012 and 2013, he had the honor to serve a two-year
appointment as the Class of 1951 Chair for the Study of Leadership at the United States Military
Jim holds a bachelor's degree in mathematical sciences and an MBA from Stanford University,
and honorary doctoral degrees from the University of Colorado and the Peter F. Drucker
He is an avid rock climber, with one-day ascents of the north face of Half Dome and the 3,000
The resulting data are presented in Good to Great in compelling detail. Over
the course of 9 chapters, Collins addresses a number of management,
personnel, and operational practices, behaviors, and attitudes that are both
conducive and antithetical to the good-to-great transition. One overarching
theme that links together virtually all of Collins’ arguments is the need to
define a narrowly focused objective and field of competency and then focus all
of the company’s resources toward that area of strength. Repeatedly, Collins
warns that straying too far from a company’s established strengths is inimical
to the attainment of greatness. Finally, Collins links the findings of Good to
Great to the conclusions he reached in his previous book, Built to Last, which
focused on the factors that define companies that survive in the long-term,
meshing both sets of results into an overarching framework for enduring
success.
Chapter Summaries
Chapter 1: Good is the Enemy of Great
The first chapter of the book lays out the criteria that Collins and his research
team used in selecting the companies that served as the basis of the meta-
analysis that provided the findings set forth in the book. The most important
factor in the selection process was a period of growth and sustained success
that far outpaced the market or industry average. Based on the stated criteria,
the companies that were selected for inclusion were Abbott, Fannie Mae,
Circuit City, Gillette, Kimberly-Clark, Kroger, Nucor, Philip Morris, Pitney
Bowes,Walgreens, and Wells Fargo.
Collins also offers a few of the most significant findings gleaned from the
study. Of particular note are the many indications that factors such as CEO
compensation, technology, mergers and acquisitions, and change
management initiatives played relatively minor roles in fostering the Good to
Great process. Instead, Collins found that successes in three main areas,
which he terms disciplined people, disciplined thought, and disciplined action,
were likely the most significant factors in determining a company’s ability to
achieve greatness.
Similarly, Collins asserts, the way to make the transformation from Good to
Great is often not doing many things well, but instead, doing one thing better
than anyone else in the world. It may take time to identify the single function
that will be a particular firm’s "hedgehog concept," but those who do
successfully identify it are often rewarded with singular success. In order to
help expedite this process, Collins suggests using the following three criteria:
1) Determine what you can be best in the world at and what you cannot be
best in the world at; 2) Determine what drives your economic engine; and 3)
Determine what you are deeply passionate about.
Although this discipline will manifest itself in a high standard of quality in the
work that is produced by managers and employees alike, its most significant
outcome will be an almost fanatical devotion to the objectives outlined in the
"hedgehog concept" exercises. Disciplined workers will be better equipped to
hew to these goals with a single-minded intensity that, according to Collins,
will foster the transformation from merely Good to Great. In addition, the
author asserts, it is important that within this overarching culture of discipline,
every team member is afforded the degree of personal empowerment and
latitude that is necessary to ensure that they will be able to go to unheard-of
extremes to bring the firm’s envisioned objectives into existence.
Chapter 7: Technology Accelerators
Today, many businesses have come to depend upon technology to increase
efficiency, reduce overhead, and maximize competitive advantage. However,
Collins cautions that technology should not be regarded as a potential
panacea for all that ails a company. The folly of this kind of thinking was
revealed in the aftermath of the crash of the tech bubble in the early 2000s.
The market correction threw into sharp relief the differences between
sustainable uses of the Internet to extend established businesses and ill-
planned, unviable online start-ups.
Collins describes the advantageous business cycle that, in some cases, can
foster the transition from Good to Great as "the flywheel effect." By making
decisions and taking actions that reinforce and affirm the company’s
"hedgehog" competencies, executives initiate positive momentum. This, in
turn, results in the accumulation of tangible positive outcomes, which serve to
energize and earn the investment and loyalty of the staff. This revitalization of
the team serves to further build momentum. If the cycle continues to repeat in
this manner, the transition from Good to Great is likely to transpire. In
contrast, the doom loop is characterized by reactive decision-making, an
overextension into too many diverse areas of concentration, following short-
lived trends, frequent changes in leadership and personnel, loss of morale,
and disappointing results.
Although many of the conclusions of both of the books overlap, Collins notes
that Good to Great should not be seen as the follow-up to Built to Last, which
focuses on sustaining success in the long-term. Instead, Good to
Great actually functions as the prequel to Built to Last. First, a company
should focus on developing the foundation that is necessary to work toward
greatness. Then, they can begin to apply the principles of longevity that are
set forth in Built to Last.
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Why have you choosen this book?
I have choosen this book because “A Hedgehog Concept is not a goal to be the best, as
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.”
The most fascinating concept, however, is a concept, which is cornerstone of any greatness and
is depicted as ‘the right people on the bus, the wrong people off the bus.’ If we can explain and
understand ‘what’ before ‘why’, it puts the company and leaders on the right track to greatness:
“Stop and think about it for a minute. What do the right people want more than almost anything
else? They want to be part of a winning team. They want to contribute to producing visible,
tangible results.”
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Message learned from the book.
Level 5 Leadership: Leaders who are humble, but driven to do what's best for the
company.
First Who, Then What: Get the right people on the bus, then figure out where to go.
Finding the right people and trying them out in different positions.
Confront the Brutal Facts: The Stockdale paradox—Confront the brutal truth of the
situation, yet at the same time, never give up hope.
Hedgehog Concept: Three overlapping circles: What lights your fire ("passion")? What
could you be best in the world at ("best at")? What makes you money ("driving
resource")?
Culture of Discipline: Rinsing the cottage cheese.
Technology Accelerators: Using technology to accelerate growth, within the three circles
of the hedgehog concept.
The Flywheel: The additive effect of many small initiatives; they act on each other like
compound interest.
Thank you !!!!!