Team 6 Andrew Etlinger Ashley Harris Blake Green David Styers Carolynn Schnaubelt

Chapter Overview Good to Great to Early stages of Built to Last Core Ideology: The Extra Dimension of Enduring Greatness From Good to Great to Built to Last BHAGs & the 3 Circles Examples Takeaway Concepts

Good to Great to Built to Last Companies that have proven to “stand the test of time” have adapted Good to Great qualities also incorporated a built to last state of mind. Jim Collins and co author Jerry I. Porras examined a number of companies that have verified the art of being Good to Great over the years We have found that Coca-Cola established in 1886 has withstood being a Great company for over a century by expanding, diversifying, and satisfying people from all over the world

Good to Great to Built to Last Some key conclusions that were discovered when developing this book are Some of the companies founders and leaders pursued good to great concepts as small unheard of entrepreneurs Establish a good to great state of mind during the early stages of the company then incorporate built to last to take a good company to a great lasting company Established Company + Good to great concepts = Sustained great results + Built to last concepts = Enduring great company Define the core ideology or values further than making your company money and combine it with the idea of preserving a core/stimulate progression What makes a company go from a “bad” BHAG (Big Hairy Audacious Goal) to a “good” BHAG

Good to Great to Built to Last San Walton of Wal-Mart started out as a small entrepreneur and used the Hedgehog Concept to build his company Took him a little over 20 years to get the company going Bill Hewlett and David Packard in 1937 had strong visions to build a company to sell electrical engineered products But what to sell was the question They hired many great governmental lab workers after WWII and started to gain revenue The first step of gaining revenue is to have a good base of the right people working for you and your company Hewlett and Packard demonstrated their Level 5 leadership by successfully analyzing the keys to success, focusing on simple fundamentals then using that to go from a Good company to a Great company.

Core Ideology: The Extra Dimension of Enduring Greatness Bill Hewlett said the “HP Way” was a deeply held set of core values that defined the company more than its products. Profit is not the fundamental goal of a company. In a truly great company, profits and cash flow become like blood and water to a healthy body: they are absolutely essential for life but they are not the very point of life.

Core Ideology: The Extra Dimension of Enduring Greatness Enduring great companies preserve their core values and purpose while their business strategies and operating practices endlessly adapt to a changing world. This is the magical combination of “preserve the core and stimulate progress.” Walt Disney

From Good to Great to Built to Last Good-to-Great ideas appear to lay the groundwork for the ultimate success of Jim Collins’ previous book Built to Last. Each of the Good-to-Great findings enable all 4 of the key ideas from Built to Last 1. Clock Building, Not Time Telling 2. Genius of AND. 3. Core Ideology 4. Preserve the Core/Stimulate Progress Table on pg. 198 shows more details

Connection between BHAGs & the 3 Circles BHAG (“Big Hairy Audacious Goal”)- is a huge and daunting goal 3 Circles of the Hedgehog Concept What you are deeply passionate about What you can be the best in the world at What drives your economic engine When these are combined together it is very powerful

Boeing In the 1950s, Boeing focused on planes for the military, but was interested in taking on the commercial aircraft market, however no airlines showed interest in buying their aircraft. They did not give up and used the BHAG/3 Circle concept and wound up being the greatest in their industry. 1. Boeing’s executives believed they could become the best in the world at commercial manufacturing. 2. The shift would improve Boeing’s economics by increasing profit per aircraft model. 3. The Boeing people were very passionate about the idea.

Why Greatness One of Jim Collins best students asked him if it was wrong to not want to build a huge business. He replied that “Greatness does not depend on size.” Then, the student asked “what if I don’t want to build a great company and just want to be successful.” Basically, he was asking why even try hard to build something that is great and lasts?

Why Greatness These questions got Collins thinking about what you needed to do in order to be great. First, he said it was not any harder to be great than it was to be good. It was all about increasing your effectiveness, the more effective you work the more simple and easy your work becomes. Secondly he said that it was easier be great when you do something that is meaningful to you. In order to be great at something you must want to be great at it.

Examples of Being Great There was a cross-country team that won back-to-back state championships, that had previously performed poorly Someone asked the coach why they thought they had become so great and the coach thought about it and finally answered it was because we finish best. The way the cross-country team finished their races the best. Finishing string was their Hedgehog Strategy.

Examples of Being Great Now to tie into the cross-country story again, the coach of that team actually had an MBA in Economics. So she tied into one of Collins answers of what makes people and organizations great because she was doing something that had a lot of meaning to her.

Takeaway Concepts Good to Great to Built to Last Established Company + Good to great concepts = Sustained great results + Built to last concepts = Enduring great company Level 5 Leadership Core Ideology Preserve the core and stimulate progress Connection between BHAGs & the 3 Circles Combined these two concepts are extremely useful to a company