1. Presentation by: The Pirate Pros
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“Good to Great”
by: Jim Collins

2. “Good is the Enemy of Great”

3. Good Team vs. Great Team
 Teams are expected to perform at a level and not
just be good enough
 High Productivity means high success
 Performing stage means synergy should be
optimized

4. Level 5 Hierarchy
 Level 5 Executive
 Level 4 Effective Leader
 Level 3 Competent Manager
 Level 2 Contributing Team Member
 Level 1 Highly Capable Individual
 Level 5 leader = top level of performance

5. Humility + Will
 Team and leader must adapt modest behavior
 Egos and emotions distract attention from primary
goal
 “I never stopped trying to become qualified for the
job” – Darwin Smith

6. Success
 Part of being successful is setting up those that
follow after you are set up for perform great
things
 Do what is necessary

7. Non-Level 5 Leader
 Dwight from The Office
 http://www.youtube.com/watch?v=J0HhJtAyTXA

8. First Who… Then What?

9. First Who… Then What
1. Get the RIGHT people on the team (the wrong
people off the team) then figure out where to go.
2. With the RIGHT people on the team the problem of
how to motivate and manage people go away
3. Great vision without great people is irrelevant

10. Genius With A Thousand Helpers vs..
Level 5+ Management Team
GWTH L5MT
1. Set a vision for
where the team
should start and
which direction they
should go
2. Enlist a crew of
highly capable
“helpers” to make the
vision happen
1. Get the RIGHT
people with the
same goals to build a
great team
2. Once they have the
RIGHT people in
place, then figure out
the best path to go
down

11. It‟s Who You Pay, Not How You Pay
Them
 The RIGHT people don‟t work for incentives they work
to better the company
 Pay incentives and compensation to the RIGHT
people to keep them on the team
 People are not your most important asset, the RIGHT
people are

12. Rigorous, Not Ruthless
 Deal with things upfront, don‟t wait until it is
convenient
 The best people shouldn‟t have to worry about
their positions and can fully focus on their work

13. How to be Rigorous
 When in doubt, don‟t hire – keep looking
 When you know you need to make a people change,
ACT
 Put your best people on your biggest opportunities,
not your biggest problems

14. Great Team= Great life
 With a great team you are able to balance other
aspects of your life
 Being in a great team in the end creates long-
term friendships with the people you work with

15. Confront The Brutal Facts

18. Don‟t de-motivate
 If you have the right people, they will be self
motivated.
 How to avoid de-motivation:
 Don‟t hold out false hopes
 Create a climate where the truth is heard
 Lead with questions, not answers

19. The Stockdale Paradox
 Confront the brutal facts, and never lose faith.
 “I never doubted not only that I would get out, but
also that I would prevail and turn this experience
into a defining event of my life.”

20.  Good to great companies face just as much
adversity as the comparison companies, they just
respond differently.
 Face realities head on, remain faith, and you will
emerge from adversity even stronger

21. ECU Basketball
 CIT Buzzer Beater

22. The Hedgehog Concept

23. The Hedgehog Concept
 Hedgehog
 Simple Defense
Mechanism
 The fox
 Clever
 Complex
 Are you a Hedgehog or a Fox?

24. Three Circles of the Hedgehog
Concept
1. What it can be best at in the world(and what you
cannot be the best at)
 Walgreens vs. Eckerd
2. What drives the economic engine
3. What the business can be deeply passionate
about.

25. The Council
 The Hedgehog concept is a process and takes
many years to clarify your own hedgehog.
 There are twelve parts to building your council.

26. Culture of Discipline

27. A Culture of Discipline
 Few start-ups become great companies partly
because they respond to growth and success in
the wrong way
 They become to trip over their own success
 Entrepreneurial success is fueled by:
 Creativity
 Imagination
 Bold moves into uncharted waters
 Visionary zeal

28. A Culture of Discipline
Successful Companies:
 Build a culture around the idea of freedom and
responsibility.
 Avoid bureaucracy and hierarchy.
 Create a culture with self-disciplined people willing to
go the extra mile to fulfill their responsibilities
 Create a “To-do” and “To-don‟t” list.
 The single most important for of discipline for
sustained results is the fanatical adherence to the
Hedgehog Concept and the willingness to shun
opportunities that fall outside the three circles.

29. Nucor‟s Three Circles
 Nucor‟s Three Circles(1975-1990)
 Passion: eliminating class distinctions and creating an
egalitarian meritocracy that aligns management, labor, and
financial interests.
 Economic Denominator: profit per ton of finished steel
 Could become the best in the world at: harnessing
technology and culture to produce low-cost steel

30. Technology Accelerators

31. Technology and the Hedgehog
Concept
 Technologies come and go just like innovative
concepts throughout history
 Example: Railroads and electricity
 Good to Great companies have adapted around
these new technologies
 The companies that are known to be
technologically sophisticated are better known by
how they carefully selected the technology to
use.

32. Technology as an Accelerator, Not a
Creator of Momentum
 2 Critical Questions:
1. Does the technology fit directly with your Hedgehog Concept?
2. Do you need that technology at all?
 The relationship with technology decisions is no different than any other
decisions withon a company
 Without a clear Hedgehog Concept nor the discipline to stay within
those three circles, there is no way to make your company “great”.

33. The Technology Trap
 Interviews at the Masters Forum Seminars
 The CEO of Nucor which is the most aggressive company in mini-mill steel
manufacturing and also know for applying advanced new technology.
 Companies that were once great fell behind, partially from technology, but it was
most certainly not the principal cause.
 In conclusion, when you carelessly rely primarily on technology it turns into a
liability, not an asset.

34. Technology and the Fear of Being
Left Behind
 Something to remember: No technology that has
ever been created has single handedly turned a
company from good to great.
 Companies that build on mediocrity, are
motivated by the fear of being left behind as
they look other companies changes.
 Great companies thrive off of creativity and are
driven by excellence for the their own sake.

35. The Flywheel and the Doom Loop

36. Buildup and Breakthrough
 Good to great companies have never transformed
from just one single defining action
 It is a cumulative process taking everything step
by step over time.
 Companies most of the time are blinded by their
huge breakthrough.

37. Not Just a Luxury of Circumstances
 All companies have had short term pressures.
 But great companies have patience and self-
discipline.
 How? They followed the flywheel model.

38. The Flywheel Effect
 The simple truth: “ Tremendous power exists in
the fact of continued improvement and the
delivery of results.”
 Even if you gain a small accomplishment from
your overall concept, they will eventually build.
 When they build, people can see and feel
momentum and gain enthusiasm to accomplish
more.

39. The Doom Loop
 Trying to obtain quick breakthrough results
 2 distinctive patterns that most companies go
down when falling into the doom loop:
 1. The misguided use of acquisitions
 2. Selection of leaders who undid the work of
previous generations

40. The Misguided Use of Acquisitions
 Companies that have failed tried to use
acquisitions to significantly grow, diversify their
way through troubles, or make their CEO look
good.
 “You can buy your way to growth, but you can
NEVER buy your way to greatness.”

41. Leaders Who Undid Work of
Previous Generations
 Horrible Bosses:
http://www.youtube.com/watch?v=CcJu53g2lFU

42. The Flywheel as a Wraparound Idea
 One word: consistency
 Through numerous generations and building each
piece of a system upon one another, obtains
maximum results.
 You need leaders who want results, not leaders
who just want to look like they‟re leading.

43. From Good to Great to Built to Last
 Early leaders follow strong framework
 Keep things simple
 Start from the ground up
 Discover your core values and purpose and combine with the
dynamic of the preservation over time

44. Success Takes Time
 Process of buildup and breakthrough
 Don‟t rush the process or work
 Success does not happen over night
 “Somehow over the years people have gotten the
impression that Walmart was just this great idea that
turned into an overnight success but it was an outgrowth of
everything we‟d been doing since 1945 and like most
overnight successes, it was about twenty years in the
making.” Sam Walton

45. Core Values
 The virtue of values, practices, and success has a tremendous
impact on the way an organization or team is managed
 There is no specific „right‟ core values to become a great teamIt‟s
not what core values have but that your team is aware of what
they are and build upon them to become successful
 Preserving your core values over time is just as important as
developing them
 Must be able to adapt to changing world, situations, and
problems you face

46. Preserve & Change

47. Leadership is Key
http://www.youtube.com/watch?v=i5cPT2xoPnw

48. Level 5 Leader
 Endure and adapt over time
 Be able to adjust to different leaders
 Embrace both extremes of a situation trying to
take the benefits of each option
 Instill core values and purpose
 Change practices and strategies while holding
core values and purposes fixed

49. Passion for Excellence
 Turning good into great takes energy, but the building of momentum
adds more energy back into the pool that it takes from
 The process is just as important as the outcome and result
 Be passionate about what you present even if its passion for excellence
itself
 These concepts can be applied to anything in life not just the Business
world
 “It is very difficult to have a meaningful life without meaningful work”

50. QUESTIONS?