Why some companies make leap and others dont

2.  James C. "Jim" Collins, III (born
1958, Boulder, Colorado) is an
American business consultant,
author, and lecturer on the subject of
company sustainability and growth.

3. THE 11 G2G COMPANIES WERE:

4. GOOD IS THE ENEMY OF GREAT
It is easier to do the basics for
something good than to really
work for something great.
This concept of being content
with par keeps so much in our
world from being great.
Most companies focus too
much on what to do and ignore
what not to do or what they
should stop doing.

5. LEVEL 5 LEADERSHIP
•Very humble on a personal level
•Possesses a great deal of drive
and desire to succeed, where
“success” is not personal
•AVOID : Ego and Credit
•Thank others and luck
•Level 5 leaders infected with an
incurable need to produce
sustainable results
•Rather talk about the company
than themselves

6. Began achieving sustained success by first
getting the right people on the bus
Get the wrong people off the bus
Then, figured out where to drive it
Begin with “who” instead of “what, can more
easily adapt to a changing world
If you have the right people on the bus, problem
of motivation and people managing are
diminished
FIRST WHO . . . THEN WHAT

7. If you have the wrong people, doesn’t matter whether you have
the right direction, you still
not have great company.
Well Fargo Case Study
Dick Cooley began his talented management team
prepare the wrenching change.
efficient when the business is outperform 3 times
against general stock market while others bank fell
behind.

8. Leaders were rigorous, not ruthless in
people decisions
There are three steps on how the companies can be rigorous:
• Don’t hire someone unless you’re 100% sure that they’re
the right person. It’s better to wait and get someone that
you know is a good fit
• Once you realize you need to fire someone, don’t put it off.
Do it quickly and fairly
• Put the best people on the biggest opportunity not the
problems

9.  Lead with questions, not
answers
 Engage in dialogue and
debate, not coercion
 Conduct autopsies, without
blame
 Build red flag mechanisms
where information cannot
be ignored
Facts are better than dreams
• Having lofty goals can be
good, but you can never
lose sight of what the reality
is on the ground.
• Case Study- Kroger’s
decision to thrown all its
resources into the task of
converting its entire system
to the superstore concept,
they were remarkably on
target.
Let the Truth be Heard
CONFRONT THE BRUTAL FACT
(YET NEVER LOSE FAITH)

10. HEDGEHOG CONCEPT
(Simplicity within the Three Circles)
Ancient Greek parable:
The fox knows many
things
The hedgehog knows one
big thing
Foxes pursue many ends and
see the world in all of its
complexity.
Hedgehogs simplify the world
into a basic principle, see
what’s essential, and ignore the
rest.

11. THREE CIRCLES OF HEDGEHOG CONCEPT
Walgreen case study: the best, most
convenient drugstores, with high profit
per customer visit.

12.  Build a culture around the idea of freedom and
responsibility, within a framework.
 Fill that culture with self-disciplined people who
are willing to go to extreme lengths to fulfill
their responsibilities. They will “rinse their
cottage cheese”
 Adhere with great consistency to the Hedgehog
Concept, exercising an almost religious focus on
the intersection if the three circles.
 Stop doing” lists are more important than “to
do” lists
To create a culture of discipline, you must:
A CULTURE OF DISCIPLINE
Case Study: Abbott Laboratories

13. The good-to-great companies used
technology as an accelerator of momentum,
not a creator of it. None of the good-to-great
companies began their transformations with
pioneering technology, yet they all became
pioneers in the application of technology
once they grasped how it fit with their
strategies.
Case study:- Wells Fargo
TECHNOLOGY ACCELERATORS

14. The FLYWHEEL and the DOOM LOOP
A flywheel is a heavy wheel that takes a lot of energy to set
in motion - to do so usually requires constant, steady work,
rather than a quick acceleration. Great companies’
transformations were like this as well
The Doom loop is the vicious circle that unsuccessful
companies fall into, First rushing in one direction, then
another, in the hope of creating a sudden, sharp break with
the past that will propel them to success.
Case study
Nucor
Warner-lambert