1. Good to Great Article by Jim Collins October 2001
Presenters:
Samantha Bell, Brodie Pattenden,
JJ Machalski, Tea Taing,
Kristine Widdifield
I’m sure that if everyone here was given a choice they’d much rather be considered a GREAT manager or be part of a GREAT company that just a good one. Jim Collins article, Good to Great, is filled with important lessons on eggs, flywheels, hedgehogs, buses and other essential tips to help you and your company go from Good to Great.
He started off with 1435 ‘good’ companies, and examined their performance over 40 years. He found that only 11 of them went to Great!
Introduce members
And we’ll be going over some key tools and understandings and the secrets of those 11 GREAT companies to help you make the transition from Good to Great!

2. Agenda How change doesn’t happen How change does happen
Disciplined people
Disciplined thought
Disciplined action
There are many different myths out there about how change happens in the corporate world, but we’re going to clear that up and give you the truth! We’ll start off by explaining how change doesn’t happen and then how it does happen.
After that we’ll go through the 3 key elements of a ‘GREAT’ business consisting of Disciplined people (filling the bus), Disciplined Thought (fox and hedgehog) and Disciplined Action (stop doing list).
All this will be further demonstrated with easy to remember analogies and real life business examples. We really want to emphasize the importance of the who the what and the when, when we analyze change and move to Great.

3. How change doesn't happen
The Chicken and the Egg
To explain how change doesn’t happen, lets take a look at a chicken and an egg. Lets assume the egg came first… picture it, just sitting there, no one really cares about it, no one pays attention to it. Then one day the egg cracks and a chicken jumps out!
If this were a company, the newspapers and magazines would be all over the story, making it sound like a one night wonder. As though, by some magic, the egg turned into a chicken!

4. How change doesn't happen
No ‘miracle moment’
Chicken in the egg was:
Evolving
Growing
Developing
Changing
But when we take a closer look, we see that the ‘magic moment’ was actually just another step in a long chain of steps and changes.
The egg wasn’t just sitting there, the chicken inside the egg was evolving, growing, developing and changing to become the chicken it is today.

5. Walgreens Average company for over 40 years
1975 it began to climb, and climb and climb
Beat the general stock market by 15 times
How do we pinpoint Walgreens’ ‘good-to-great’ transformation?
To exemplify this, lets take a look at Walgreens, which was an average or ‘GOOD’ company for over 40 years.
In 1975, completely out of the blue out would seem, Walgreens began to climb and climb and climb, and eventually beat out the general stock market by 15 times!! Think about it, over 40 years of being mediocre, and then they beat the stock market by 15 times! That’s a big change.
When asked to pin-point the good-to-great transformation, Walgreen executives answered: Somewhere between 1971 and 1980.
Well that doesn’t exactly narrow it down, and it just goes to show that things don’t happen over night, they need a chance to grow, and Walgreens understood that.
So we’ve looked at the Chicken and the Egg, and learned that change doesn’t happen in one moment, which is how people often look at it. We need to take into account the growth and evolution that contributed to it as well.
Since we’re always looking for change in the wrong places and making the wrong assumptions, Brodie’s going to clear it up and talk about how change actually DOES happen.

6. How does change happen?
The Flywheel Effect

7. How does change happen? Right now, your flywheel is at a standstill
Put your shoulder into it…. And push!
Eventually get some forward movement….

8. How does change happen? No longer pushing alone
The faster you go, the more people you have joining you

9. How does change happen? Momentum starts working in your favor
Aren’t pushing any harder, but wheel keeps accelerating
That’s how companies make the transition from good to great

10. The DOOM LOOP! How does change happen?
What happens when companies don’t commit to the quiet discipline of slow, progressive change?
They fall into…..
The DOOM LOOP!

11. How does change happen?
Companies that fall into the Doom Loop want change over night
They bring in a new leader, who takes them in a new direction
See the pattern?

12. Walter-Lambert Co. 1979 – Started as consumer products
1980 – Healthcare
1981 – Return to consumer products
1987 – Global pharmaceuticals
1990’s – Return to consumer products
2000 – Swallowed by Pfizer

13. How does change happen?
Real people want to contribute to produce real results
Feel the magic of momentum
That’s how change really happens….

14. Disciplined People
Filling the Bus

15. Disciplined People Mediocre people equal mediocre results
If you have the wrong people, nothing else matters

16. Fannie Mae
14 of 26 executives “got off the bus” before good to great changes occurred, no questions asked

17. Disciplined Thought
Fox and the Hedgehog

18. Disciplined Thought A Greek Parable explains that
Foxes know many small things
Hedgehogs know one big thing

19. Disciplined Thought All good to great leaders are hedgehogs But why?
They ask three piercing questions

20. Disciplined Thought What can we be the best in the world at?
What is the economic denominator that drives cashflow?
What are our core people passionate about?

21. Wells Fargo Initially in global bank, was mediocre
Switched company philosophy and industry
New mantra and drive for employees
Led to success

22. Disciplined Action
The Stop Doing List

23. Disciplined Action Good to Great leaders distinguish themselves
Decide what not to do
If it doesn’t fit tightly within your Hedgehog Concept, don’t do it

24. Kimberly-Clark Started in the paper mill industry
Decided to change focus
The consumer business was best for the company

25. Disciplined Action One magazine wrote
“Kimberly-Clark making the switch was a dumb idea”
21 years later that same magazine wrote “as it turns out it was a smart one”

26. Conclusion The Chicken and the Egg The Flywheel Effect
Disciplined People
Filling the Bus
Disciplined Thought
Fox and the Hedgehog
Disciplined Action
The “Stop Doing” list

27. Thanks for listening!
QUESTIONS???