Katy Lovett, Matt Snowden, and CJ Baker

 How do companies go from go to great?  What methods were used in research?  What concepts exemplified good-to-great companies?

 Find companies that showed the good-to- great pattern  Companies that had cumulative returns over 15 years  Companies whose growth was independent of the industry

CompanyResults from Transition Point to 15 Years later Transitional Period Abbot3.98 times the market Circuit City18.5 times the market Fannie Mae7.56 times the market Gillette7.39 times the market Kimberly-Clark3.42 times the market Kroger4.17 times the market Nucor5.16 times the market Philip Morris7.06 times the market Pitney Bowes7.16 times the market Walgreens7.34 times the market Wells Fargo3.99 times the market

 Contrasted the good-to-great companies to a selected set of “comparison companies”  Distinguishing factor  “Direct comparisons” and “unsustained comparisons”

Good-to-Great Companies Direct CompaniesUnsustained Comparisons AbbotUpjohnBurroughs Circuit CitySiloChrysler Fannie MaeGreat WesternHarris GilletteWarner-LambertHasbro Kimberly-ClarkScott PaperRubbermaid KrogerA&PTeledyne NucorBethlehem Steel Philip MorrisR.J. Reynolds Pitney BowesAddressograph WalgreensEckerd Wells FargoBank of America

 Researchers stepped into a “black-box” to shed light on inner workings  Debated results to come to conclusions

Surprising results:  CEO Ego-maniacs  Executive compensation  Strategy  Focusing on what to do  Technology  Mergers/Starting Events  Managing people  Industry

 “Iterative process of looping back and forth…”  Concepts are based on fact, not opinion

 Level 5 Leadership  First Who…. Then What  Confront the Brutal Facts, Yet Never Lose Faith  The Hedgehog Concept  A Culture of Discipline  Technology Accelerators  The Flywheel and the Doom Loop.

 Level 5 Leaders are not we expect to see!  Level 5 Leaders are often shy and reserved, unlike their charismatic counterparts.  Level 5 Leaders almost always are promoted from within the company.  Level 5 Leaders care more about building something great, than being someone great.

 Your team is more important than your plan.  The right people must be selected before a great strategy can be devised.  This may seem obvious but note the nuance.

 Pretending that obstacles are not there WILL NOT make them go away.  Believing that you can overcome obstacles WILL help you to succeed.

 Simplicity within the three circles. ◦ What are you passionate about? ◦ What can you be the BEST at? ◦ What drives your economic engine? “It’s not about being great at everything, it’s about being the best in the world at something.”

 A culture of discipline is highly elusive.  Having discipline eliminates the need to spend energy on micromanagement.  For a culture of discipline, you need: ◦ Disciplined People ◦ Disciplined Thought ◦ Disciplined Action

 Technology can never be the driver of change.  Powerful technologies must be used as powerful tools.

 Greatness is achieved through persistence, not sweeping change.  Persistent effort has a cumulative effect on the companies’ “momentum.”

 Concepts apply not to new economy, or old economy, but both  What makes enduring organizations of any type?  Take the data as evidence and make your own conclusions