Comm 628 Outline for Book Review Project – Liz Horgan

Presenter-centered

Verbal summary of book – Power Point (10 minutes)

• Good to Great by Jim Collins (2001)

o Focus - How to turn a good company into a great company

o Timeless principles

o Research:

 Arrived at through methodical quantitative research using stock prices

over 30 years

 Qualitative interviews with key people during transitional phases

 Iterative process, screening process went from the universe of

companies to 1400 down to 126, 19 and finally 11 which were
deemed ‘good to great’.

o Findings It’s a choice to be the best

 It’s about leadership (Level 5 leaders)

 Putting the right people in place first, then focusing on strategy and
future

 Confronting brutal facts yet never losing faith – prevailing and staying
a course

 Be the best in your core business. Not competent, not good. The
Best

 Have a culture of discipline. Combine it with an ethic of

entrepreneurship and you get magical alchemy of great performance

 Use technology to accelerate, enhance. Not as a primary means of

igniting transformation

 Keep plugging away. It takes continual little steps to build

momentum to breakthrough
  Have core values beyond making money. Leave the company better
than you found it. Enduring greatness is goal.

Clip on Leadership

o Scrubs JD’s 3 leadership points http://www.youtube.com/watch?

v=IVTUOUn0y0o

o Contrast

 JD’s: preparation, inspiration, dose of fear

 Good to Great: Who. Meaningful. Facts and Faith.

Case Study - Use the Good to Great findings as a framework for analyzing the
following case:

o YouTube video: http://www.youtube.com/watch?v=AzwDaHxI1Ho

o Do you see some of the Good to Great characteristics in Lou Gerstner’s IBM

Group Work (7 minutes): Break into two groups. Each group discuss and share with
each other the best and worst leader you’ve ever worked for or under.

 What defined them as leaders? As people? Were they rock stars?

Charismatic? Quiet? Zealous? Self-promotional?

 Why would you say they were the best?

 How did they lead? (what did they do differently)

 How did/would the organization do after that leader left?

Each group present a best and worst leader, tying in findings from Good to Great (2
groups at 5 min. each)

Critique (5 minutes)

Update on Selected Companies:

• 2 of 11 co.s used in research bankrupt/conservatorship

• Fannie Mae-fell in mtg. crisis in ’07. Their business was to focus on

interest rates/spread risk, yet it was the credit risk that sunk them.

• 1 acquired
 • 1 name change/spin off (up 30% over 5 years…because down so low?)

• 2 down 25-30% over past 5 years

• 4 even stock price over past 5 years

NOTE: General stock market … over 5 years

Questions for the group:

• Objective appraisal of epoch – do numbers tell you the whole story?

• What else influences success? Situational, environmental factors

Key recommendations and learnings (3-5 minutes)

Wrap up with any questions or comments from the group. What did they take away?

Quick summary –

• It’s never one thing, or a list of things.

• Outliers.

• Incorporate ideas/thoughts from the group.