Good to Great – Why Some Companies Make the Leap and Others Don’t.
Author: Jim Collins
A Book Report Written for At-Work Entrepreneurs.
Preface: Good to Great is a book of intellectual adventure to discover what it takes to turn a good business into a great business. It is said the best students are those are never quite sure if they should believe their professors. The book provides an explicit narrative on data of great companies. You’re the judge and the jury. Let the data speak for itself.
Good to Great – Why Some Companies Make the Leap and Others Don’t. A Book Report Written for at-work Entrepreneurs
Great is Great; Great is not Good. Good is the enemy of Great. Jim succinctly communicates why satisfaction with good business is the reason there is an absence of great business. Many companies are very good, and they are happy with that. That is the main reason they never become great? How do jump from good, and get to great? The project of studying good to great companies in the book spans more than 10.5 years of effort, and the reading of 6000 articles and 384 million bytes of data.
The first data point of relevancy is that great CEO’s of companies came from inside the company 90% of the time. They were home grown; not a paid celebrity. In addition, compensation to corporate performance was not a lead factor of the great CEOs.
Great companies invest more time in long-range strategic planning than good companies. They think in-depth through what tasks do not create value and subsequently stop doing those tasks. They work on not only what actions propel the business towards greatness, but what equally what actions detract from greatness as a company.
The data indicates that technology alone does not create a great company; technology can assist a great company, but technology improvements should not be relied upon for transformation from status-quo business performance to greatness as a business, according to the studies data. New software systems, and technology investments, i.e. customized smartphone apps for all employees, will assist the company as it works towards greatness, but should not be expected to be a lead driver in a great business.
Companies working from good to great, who accomplished the goal – and attain greatness, did not spend time accolading the process from the start. They simply revolutionize their organization under a veiling of strategic improvements day-to-day that were in retrospect only recognized after the fact as a truly revolutionary leaps towards greatness.
The data thesis is that greatness in business is a matter of conscious choice.
Good to great leaders seem to have come from Mars. Modest, reserved, even shy, good to great leaders blend humility with professional acumen. Good to great leaders have learned that the right people in the right seats, make for a more successful drive. Don’t plan the destination and then find the people. Find the people and then plan the destination. Great businesses are about guilding teams.
Great CEO’s must have faith that your no matter the business environment and current reality, the business can and will prevail to achieve greatness. Just like the government has faith that good students in good schools can pass eighth grade, even though the students may doubt at times, you must believe that your business can be a great business, and then work towards that goal with unwavering commitment.
A culture of discipline is important to businesses working towards greatness. Disciplined thought does not require bureaucracy; disciplined action doesn’t require excessive management. Adhering to a code of rules and behavior with ethics, results in great performance. (DJS note: If you have ever taken a tour of an Amish business, they typically have a small business culture of great performance because they have instinctive rules of conduct, e.g. a culture of discipline.)
Good to great transformations are like turning a flywheel, no single defining action makes a company great, no miracle moment, or lucky break. Lasting greatness is a result of turn after turn — building momentum towards the point of breaking through good and getting to great. Then greatness results in lucky breaks, miracle moments, and Midas innovation.