Good to Great Takeaways

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Good to Great Takeaways. Group 3 . Cory Logan David Hayward Nick Watkins Gary Taylor Lindsey Pacatte Mayra Garcia Garrett Matthews. Good to Great. The commonalities between all the good to great companies: Level 5 leadership First who Then what - PowerPoint PPT Presentation

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Chapter 4-Confront the Brutal Facts

Good to Great TakeawaysGroup 3 Cory LoganDavid HaywardNick WatkinsGary TaylorLindsey PacatteMayra Garcia Garrett Matthews1Good to GreatThe commonalities between all the good to great companies:Level 5 leadership First who Then whatConfront the Brutal facts (yet never lose faith)The Hedgehog Concept (simplicity within the three circles)A culture of Discipline Technology Accelerators The Flywheel and the Doom loopFrom Good to Great to Built to Last2Level 5 leadershipLevel 5 leaders:Were at the head of all the good to great companies during their transition from good to greatAre characterized by personal humility while still remaining professionally ambitious with their ambition being for the organizations success before their own successThey are exceedingly modest while the leaders of the comparison companies were egocentric and self-centeredAre fanatically driven for to see sustained success while level 4 leaders are only focused on their personal achievements3Level 5 leadershipLevel 5 leaders:Do whatever it takes to make the company greatAre more plow horse than show horseAttribute success to others rather than themselvesSet up the leaders that came after them for success while level 4 leaders set the leader that took their place up for failureMost companies in trouble look for the celebrity CEO to swoop in and save the day instead of hiring a level 5 leader

4When in doubt, dont hire-keep lookingNo company can grow revenues faster than its ability to get enough of the right people To Build great companies its not about MARKETS, TECHNOLOGY, COMPETITIONABITLITY TO GET AND KEEP PEOPLE!!Invest in the right people from the beginning.Confront the Brutal FactsGood-to-Great Companies confront the brutal facts of their current realitiesWith honest and diligent efforts; right decisions are self-evidentPeople should be allowed to be heard; truth should be heard Confront the Brutal FactsHit realities head-on; emerge from adversity strongerRetain faith that you can and at the same time confront the most brutal factsBe careful with charisma; liability or assetIf you have the right people, they will be self-motivated The Hedgehog ConceptThe key is to understand what your organization can be the best in the world at, and equally important what is cannot be the best at-not what it wants to be the best at.Not a goal, strategy, or intention; it is an understandingTo get insight into the drivers of your economic engine, search for the one denominator that has the single greatest impact.Each good-to-great company built a great economic engine, regardless of the industryGood-to-great companies set their goals and strategies based on understanding

It took four years on average for companies to get a Hedgehog Concept

Denominator QuestionIf you could pick one and only one rationprofit per x to systematically increase over time, what x would have the greatest and most sustainable impact on your economic engine?Serves as a mechanism to force deeper understanding of the key drivers in your economic engineThe point of having the denominator is to gain insight which will ultimately lead to more robust and sustainable economicsCompanies do not need to be in a great industry to become a great companyA Culture of DisciplineA culture of discipline involves a duality

It requires people to stick to a consistent system with clear constraints

It also has to give people freedom and responsibility within the framework of that systemA Culture of DisciplineA culture of discipline is not just about action.It has to deal with building a culture full of disciplined people that engage in disciplined thought and then take a disciplined actionIf you get the right people on the bus, and the wrong people off, you dont need stultifying bureaucracyA Culture of DisciplineThe most essential form of discipline for sustained results is dedicated faithfulness to the Hedgehog Concept and the eagerness to reject opportunities that fall out side the three circlesTECHNOLOGICAL ACCELERATIONS

Good to great organizations think differently about technology.

Good to great organizations avoid technology fads and bandwagons, yet they become pioneers in the application of carefully selected technologies.14Technological AccelerationTechnology as an Accelerator, Not a Creator, of Momentum

The Technological Trap

Technology and The Fear of Being Left Behind15Built to Last Good to Great is a cumulative process that takes time to developAnalogy of Profits and Cash as the blood and water to a healthy bodyEnduring Great companies adapt with change while keeping core values and purpose intact