Good to great (ty version 2008)

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Good to Great
(Book by Jim Collins)

“ Good is Enemy of Great”

Prepared by Teguh Yoga Raksa

A culture of discipline is not a
principle of business; it is a
principle of greatness….

Greatness is not a function of
circumstance. Greatness, it turns
out, is largely a matter of
conscious choice, and discipline.

….Jim Collins

The kind of commitment I find among the best performers
across virtually every field is a single-minded passion for
what they do, an unwavering desire for excellence in the
way they think and the way they work. Genuine
confidence is what launches you out of bed in the morning,
and through your day with a spring in your step.

….Jim Collins

Key Elements to Become Great Company …..

 Level 5 Leadership

 First Who….then What

 Confront the Brutal Facts (Yet Never Lose Faith)

 The Hedgehog Concept

 A Culture of Discipline

 Technology Accelerators

Level 5 - Leadership

5

4

3

2

1
 Humility + Will = Level 5 leadership
 Modest, willful, humble, fearless
 Ego-driven, genius-types, may produce
short-term positive results, but cannot
sustain results


Professional Will Personal Humility
 Creates superb results, a clear  Demonstrates a compelling
catalyst in the transition from modesty, shunning public
good to great adulation; never boastful
 Demonstrates an unwavering  Acts with quiet, calm
resolve to do whatever must be determination; relies principally
done to produce the best long- on inspired standards, not
term results, no matter how inspiring charisma to motivate
difficult  Channels ambition into the
 Sets the standard of building an company, not the self; sets up
enduring great company; will successors for even greater
settle for nothing less success in the next generation
 Looks in the mirror, not out the  Looks out the window, not in the
window, to apportion mirror, to apportion credit for the
responsibility for poor results, success of the company—to
never blaming other people, other people, external factors,
external factors, or bad luck and good luck


Ciri-ciri Level 5 Leadership adalah :
fokus yang amat tinggi pada results,
memiliki kapasitas eksekusi yang
baik (good executor), dan
cenderung bersikap low profile.

First Who….then What

 Leaders began the transformation by first getting the right people
on the bus (and the wrong people off the bus).
 “Who” questions came before “what” decisions - before vision,
strategy, organization structure, and tactics.
 Leaders were rigorous, not ruthless in people decisions.
 Three practical disciplines for being rigorous:
 When in doubt, don’t hire
 When you know you need to make a people decision, Act
 Put your best people on your best opportunities, not biggest
problems
 “Right” person has more to do with character traits and innate
capabilities than with knowledge, background, or skills.


There are going to be times when we can’t wait for
somebody. Now, you’re either on the bus or off the bus.
(Ken Kesey, The Electric Kool-Aid Acid Test)

You don’t first figure out where to drive the bus and
then get people to take it there.
No, first get the right people on the bus (and the wrong
people off) and then figure out where to take the bus.


Why you get the right people on the bus first…

1. If you begin with “who” rather than “what” you can more
easily adapt to a changing world.
2. If you have the right folks on the bus, the problem on how to
motivate & manage people largely goes away.
3. If you have the wrong people, it doesn’t matter whether you
discover the right direction, you still won’t have a great
organization. Great vision without great people is irrelevant.


Poin yang lebih penting adalah “pertanyaan
tentang siapa” selalu lebih dahulu dibanding
“pertanyaan tentang apa”.
Good-to-great companies selalu bergerak pertama-
tama dengan berpikir tentang MANUSIA, baru
kemudian berbicara mengenai strategi, anggaran,
struktur organisasi, dan lain-lain.

Confront the Brutal Facts (Yet Never Lose Faith)

 Setting off on the path to greatness requires confronting the
brutal facts of current reality
Must create a culture wherein people have a tremendous
opportunity to be heard and, ultimately, for the truth to be
heard.

“Tugas utama untuk mengubah suatu perusahaan
menjadi great company, adalah membangun iklim
kerja dimana setiap anggota memiliki kesempatan
untuk di-dengar pendapatnya, and ultimately,
for the truth to be heard “


How to confront the Brutal Facts
Yet never lose faith

1. Lead with questions, not answers
– Put more questions to board members than they put to you
– Raise questions for one reason only: to gain understanding (not
manipulation)
2. Engage in dialogue and debate, not coercion.
– Good-to-great companies have a penchant for intense dialogue
3. Conduct autopsies, without blame.
– No finger-pointing.
4. Build red-flag mechanisms.
– Good-to-great companies don’t have better information, necessarily. The
key is turning information into info that can’t be ignored.
– Red cards in meetings: folks hold it up to deal with real issues
– Short-pay: allow customers to circle items on invoice they don’t want to
pay due to bad service

Attitude: We will never give up. We will never capitulate. It might take a long time,
but we will find a way to prevail.

The Stockdale Paradox

Research by the Int’l Committee for the Study of Victimization
found that those facing serious adversity generally fall into one
of three categories:
1. Those who were permanently dispirited by the event
2. Those who got their life back to normal
3. Those who used the experience as a defining event that
made them stronger.


 Jim Stockdale stoically accepted
the brutal facts of reality while
maintaining an unwavering faith in
the endgame—that he would
prevail despite the brutal facts.
 Who didn’t make it out? The
optimists.
 Those who think it will all be a
quick fix and everyone will be out
by Christmas are the ones that
lose heart and fail.


Good-to-Great Companies selalu menerapkan prinsip
the Stockdale Paradox: atau sebuah keyakinan yang
kuat bahwa kami pada akhirnya akan berhasil, meski
dihadapkan pada rintangan yang amat sulit. Dan pada
saat yang bersamaan, kami akan terus berani
menghadapi realitas persaingan bisnis, betapapun
kerasnya derap persaingan itu.

The Hedgehog Concept

 Hedgehogs simplify a complex world into a single organizing
idea, a basic principle or concept that unifies and guides
everything.
 Hedgehogs see what is essential, and ignore the rest.
 “The fox knows many things, but the hedgehog knows one
big thing.”
 Foxes pursue many ends at the same time and see the world
in all its complexity. They are scattered or diffused, moving on
many levels.
 Hedgehogs simplify a complex world into a single organizing
idea, a basic principle or concept that unifies and guides
everything.
 For a hedgehog, anything that does not somehow relate to
the hedgehog idea holds no relevance.


 The Hedgehog Concept is a deep understanding of three
intersecting circles translated into a simple, crystalline
concept:
 What you are deeply passionate about
 What you can be best in the world at
 What drives your economic engine


 Getting the Hedgehog Concept takes an average of four years.
 It is an iterative process by The Council:
 The right people
 Engaged in vigorous dialogue and debate
 Infused with the brutal facts
 Guided by questions formed by the three circles

All Guided by An Iterative
Ask Questions
the Three Circles Process

Autopsies The Dialogue &
& Analysis Council Debate

Executive
Decisions


You can be passionate about all you want, but if you
can’t be the best at it or if it doesn’t make economic
sense, then you might have a lot of fun, but you
won’t get great results.
If we can’t be the best at it, then why are we doing it
at all?
A Hedgehog Concept is not a goal to be the best, a
strategy to be the best, an intention to be the best,
a plan to be the best. It is an understanding of what
you can be the best at.


Good-to-great companies cenderung mirip
seperti hedgehogs — sejenis entitas yang
sederhana, simpel, memahami "one big
thing" and stick to it. Perusahaan
pembanding cenderung seperti foxes —
mencoba mengetahui banyak hal, namun lack
consistency

A Culture of Discipline

 Getting disciplined people who
engage in disciplined thought and
who then take disciplined action,
fanatically consistent with three
circles
 People who “rinse their cottage
cheese”
 Not about a tyrant who disciplines


 Involves a duality
 Requires people who adhere to a consistent system.
 Gives people freedom and responsibility within framework
of that system.


 Includes willingness to shun opportunities that fall outside the
three circles.
 Budgeting is to decide which arenas fit Hedgehog Concept and
should be fully funded and which should not be funded at all.

 “Stop doing” lists are more
important than “to do” lists.
 “Anything that does not fit with
our Hedgehog Concept, we will
not do.”


A culture of discipline is not just about action.
It is about getting disciplined people who
engage in disciplined thought and who then
take disciplined action.
Good-to-great companies dari luar terlihat
sebagai entitas yang membosankan,
“garing”, biasa-biasa saja, namun jika
ditelisik lebih dalam ternyata….. they're full
of people who display extreme diligence
A culture of discipline melibatkan dua dimensi.
Pada satu sisi, kultur itu menuntut para and a stunning intensity
anggotanya untuk selalu mengacu pada proses
dan sistem kerja yang konsisten. Pada sisi lain,
ia juga memberikan kebebasan dan
tanggungjawab dalam kerangka sistem itu

Technology Accelerators

 Good-to-greats avoid technology fads and bandwagons.
 Yet they often become pioneers in the application of
carefully selected technologies.
 Does it fit directly with your Hedgehog Concept?
 Good-to-greats used technology as an accelerator of
momentum, not a creator of it.


 Technology by itself is never a root cause of either greatness
or decline.
 “Crawl, walk, run” can be a very effective approach, even
during times of rapid and radical technological change.


Dalam isu IT, good-to-great companies selalu
mengajukan pertanyaan : apakah aplikasi
teknologi ini fit directly dengan konsep Hedgehog
kami? Jika ya, maka kami akan menjadi a pioneer
in the application of that technology. Jika tidak,
kami akan melupakannya

Good-to-great companies menggunakan teknologi lebih
sebagai an accelerator of momentum, not a creator of it.
Tidak ada satupun good-to-great companies yang memulai
transformasinya dengan pioneering technology, yet they all
became pioneers in the application of technology once
they grasped how it fit with their strategies.

The Flywheel

 Good-to-great transformations never happened in one fell
swoop.
 There was no single defining action, no grand program, no one
killer innovation, no solitary lucky break, no miracle moment.
 Instead they followed a predictable pattern of buildup and
breakthrough.
 Like pushing on a giant, heavy flywheel, it takes a lot of effort to
get the thing moving at all, but . . .

The Flywheel

 With persistent pushing . . .
 In a consistent direction . . .
 Over a long period of time . .
 The flywheel builds momentum . . .
 Eventually hitting a point of breakthrough …
 In good-to-great companies problems of commitment,
alignment, motivation, and change largely take care of
themselves.
 Alignment follows from results and momentum, not the
other way around.

Reference :

-Good to Great ( summarized by Yodhia)
-Good to Great (summarized by Kirk Wakefield)
-Good to Great ( summarized by Gary Rueter)

Good to great (ty version 2008)

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