Good To Great: Book Review By Elias, Jason, Ryan, Stephanie, Scott.

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Presentation transcript:

Good To Great: Book Review By Elias, Jason, Ryan, Stephanie, Scott

Ch1(Intro): Good is The Enemy of Great  Level 5 Leadership  First Who…Then What?  Confront The Brutal Facts (Yet Never Lose Faith)  The Hedgehog Concept (Simplicity Within The Three Circles)  A Culture of Discipline  Technology Accelerators   The Fly Wheel And The Doom Loop  From Good To Great To Built To Last

Ch 2: Level 5 Leadership  Darwin Smith, CEO of Kimberly-Clark  Level 5 Characteristics  Fully Developed Level 5 Leaders possess all of these qualities  Level 5 Hierarchy:  1.) Highly Capable Individual  2.) contributing Team Member  3.) Competent Manager  4.) Effective Leader  5.) Level 5 Executive

Level 5 Leaders Also  Prepare their successors for even greater success  Are fanatically driven for results  Diligent

Ch 3: First Who… Then What?  Get the right people on the bus and the wrong people off and then figure out where to drive it.  Good to great leaders are rigorous, not ruthless in people decisions. They don’t rely on layoffs and restructuring as a primary strategy for improving performance.  1. When in doubt, don’t hire-keep looking.  2. When you know you need to make a people change, act.  3. Put your best people on the biggest opportunities, not your biggest problems

First Who…Then What Cont…  Great teams debate vigorously, but unify behind a single decision.  There is NO link between compensation in the shift from good to great companies. Compensation is meant to keep the right people on the bus.  People aren’t your most important assets, the right people are. This has more to do with character traits rather than specific knowledge or skills.

Ch 4: Confront the Brutal Facts (Yet Never Lose Faith)  Good to great companies found success by facing the brutal facts of reality. Ex: Kroger grocery stores  Create a climate where the truth is heard:  1. Lead with questions not answers.  2. Engage in dialogue and debate, not coercion.  3. Conduct autopsies, without blame.  4. Build red flag mechanisms.  Stockdale Paradox: Confront the brutal facts of your current reality, while retaining the absolute faith that you will prevail. Ex: Jim Stockdale, P.O.W.

Chapter 5: The Hedgehog Concept Those who built the good-to-great companies were, to one degree or another, hedgehogs.

Chapter 6: A Culture of Discipline  Requires people to commit to a consistent system, but yet gives people freedom and responsibility  Build a culture full of people who take discipline action within the three circles, fanatically consistent with the Hedgehog Concept  Discipline is essential for results, but disciplined action without understanding of the 3 circles cannot produce great results..

Ch 7: Technology Accelerators  Technology Is An Accelerator Not a Creator Of Momentum  Application Of Technology (Vietnam)  Technology Is Only A Tool!

Ch 8: The Fly Wheel And The Doom Loop

Good to Great Chapter 9 From good to Great to Built to Last  Chapter overview  Jim Collins examined many companies and found the ones that went from good companies to great companies.  Collins got with co author Jerry I. Porras and studied 18 enduring companies. Companies that were Built to Last. These were institutions that stood the test of time in the late twentieth century. Examples of companies. Johnson & Johnson GE Wal-Mart

Core Ideology: The Extra Dimension of Enduring Greatness  The Extra dimension is guiding philosophy or a “Core Ideology,” which consist of Core Values and a core purpose.  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.”  Profits and Cash flow are like blood and water to a healthy body: They are absolutely essential for life, but they are not the very point of life.  So Profit is not the fundamental goal of the company.

Preserve the Core/Stimulate Progress

Encore Wire  Est  Grown Steadily with a firm focus on customer service.  Encores warehouse has become employee friendly Bright colors, lights and transparent packaging makes products easier and less stressful to find and organize.  Employees have the ability to implement their own changes to their sections.