The Good To Great Concept Based on the book Good to Great by Jim Collins

The Questions What is the definition of greatness? How does one discover the common and unique characteristics of such companies? What is the transformation process? How does this work in public and other non-profit centers?

The Concept of Greatness Private, for-profit, businesses: –Must be measured in economic terms –Must allow for comparison of companies –Most common, simple, generally agreed upon metric is the ratio of cumulative stock returns to the general market and to relevant comparison companies. –Standard: set high to establish high barrier Must be 3 times the general market Must be sustained over a 15 year period Must be preceded by 15 years of sub-greatness performance (i.e. < 3 times the general market)

Grounded Theory Existing Theory Hypothesis Model Development Hypothesis Collect data Analyze Interpret Modify theory Traditional approach

Grounded Theory Existing Theory Hypothesis Model Development Hypothesis Collect data Analyze Interpret Modify theory Traditional approach Design study Collect data Analyze Interpret Grounded Theory Approach Model Development

Study Design Establish Selection Criteria (3X mkt; 15 yrs) Identify Comparison Companies Collect, Analyze, Interpret data Articulate model based on findings Interviews with executives Direct observation Analysis of published articles and/or books

The Model Level 5 Leadership First Who, then What Confront the brutal facts Hedgehog Concept Culture of Discipline Technology Accelerators Disciplined PeopleDisciplined ThoughtDisciplined Action Buildup Breakthrough F l y w h e e l

Level 5 Leadership Humility + will –Channel egos away from self and toward larger goal –Ambition for the institution, not themselves Compelling modesty Unwavering resolve Tend to be inside (10 of 11) Focus on the mirror