Good to Great: Why Some Companies Make the Leap…And Others Don’t delves into several fascinating facets of business that all-too-often go neglected. While Collins’ former book focused on establishing greatness in a company at its conception, Good to Great emphasizes the transformation. Can a company turn over a new leaf? Can a company transform a legacy of mediocrity into a legend of greatness?
Collins chose to answer this timeless question through a meticulous structure that is inherent in his novel. Using rigid benchmarks, Collins and his team organized companies by good and great, and then looked at their inner workings, examining what exactly separated the average from the spectacular.
Collins split his findings into several sections including but not limited to:
–Level Five Leaders: The leadership required to achieve a level of greatness was stunning. Meticulous, inspirational, and empathetic, these leaders provide a stellar example in all that they do.
–The Hedgehog Concept: Companies must exceed expectations and mere competence. They must strive for perfection. As they say, “Shoot for the moon and you may land among the stars.” One must raise the bar in order to transcend average limitations. What was average before is less than average now. As human beings, we continually improve upon ourselves in an effort to not just better ourselves, but to better the world around as well. Yet, it all starts with expectation and the mental limits we set for ourselves. We should set high expectations and not just set those expectations, but strive to exceed them. It is only by force of will that a company can become better than good, and that company must believe it will be better than good in order for that dream to come to fruition.
-A Culture of Discipline: Discipline is absolutely required for any company to transcend the mere boundaries of competence. Yet, capitalistic ventures must be sure to not fall victim to the boredom inherent in routine also. While discipline is certainly a pillar of success, so is innovation and entrepreneurship. A schedule should be maintained, but said schedule should also allot time for creativity and encourage innovation. By balancing these two integral facets of business, leaders will foster a culture of capitalistic excellence that never becomes entrenched in stagnation.
–The Flywheel and the Doom Loop: If something is at fault with the system, CEO’s must be careful to not impulsively enact a massive restructuring program within the company. In fact, those enterprises that do so are almost guaranteed to never make the leap from good to great. Rather, company leaders should identify the issue and instead formulate a more appropriate, less extreme solution. Through compromise, a company can rectify issues and proceed to greatness despite any initial setbacks.
All in all, I’d recommend thumbing through Good to Great. Although not entirely comprehensive, it is certainly worth the read.