Essay "Good To Great" Jims Collins

INTRODUCTION

Collins and his team identified 11 companies that followed a pattern of fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point.

The companies were selected because of the availability of comparable data, having identified the companies that made the leap from good to great, Collins and his crew examine what characteristics did the good to great companies and the industry counterparts did not.

The author put three stages, each with two key concepts; these 6 concepts are the heart of good to great.

- Level 5 leadership

- First who, then what

- Confront the brutal facts

- The hedgehog concept

- A culture of discipline

- Technology accelerators

Collins explains the level 5 leadership as a mix of personal humility and professional will. Most of the CEOs of the good to great companies were more concerned about what they could “built, create and contribute” than what they could get “fame, fortune, adulation, power, etc”

Jim also challenge the notion that people are your most important asset” and then that “the right people are”

I think that this book is a challenge to all business leaders to exhibit the discipline required to move their companies from good to great.

BEST CHAPTER: LEVEL 5 LEADERSHIP

Every good to great company had, level 1 is a highly capable individual (makes productive contributions through talent, knowledge skills and good work habits)

The level 2 is a contributing team member (contributes individual capabilities to the achievement of group objectives and worked effectively with other in a group setting.)

Level 3 is the competent manager (organizes people and resources towards the effective and efficient pursuit or predetermined objectives.)

Level 4 is an effective leader (Catalyzes commitment to and vigorous pursuit of a clear and compelling vision stimulating higher performance standards.)

Level 5 is the executive (who builds enduring greatness through a mix between personal humility and professional will, the discovery of level 5 is an empirical, not ideological finding.)

The paragraph above is a brief explanation of what is a level 5 leadership, I choose this chapter because if you don’t have a good leader all the other areas in an organization could be stock or decrease your performance, but if you have a good leader you can do everything you want, he let you think about what the company needs to be successful and also all the ideas will be heard because he demonstrate a compelling modesty. Because channels ambition into the company and not into the self.

The other think that like to me is that when the organization have a problem the leader looks into the mirror, not out the window, to apportion responsibility for poor results, never blaming other people, external factors or bad luck. Looks out the window, not in the mirror, to apportion credit for the success of the company to another people, external factors or good luck.

These level 5 leaders eliminated wasteful luxuries, like executive dining rooms, corporate jets and lavish vacation spots, for the good of the company.

These leaders maintain the energy in balance they are moving at a speed that allows them to feel themselves, as well as those around them.

They realize more than anyone else, that “the less you control, the more you can do”. Leadership greatness is about being a conduit of energy, not a single generator of it.

CONCEPTS APPLY IN FUTURE JOBS.

One of the concepts that I think is important to know is the hedgehog concept that is about 3 intersecting circles, these circles are 3 questions that all businesses should ask.

- What are you deeply passionate about?

- What you can be best in the world at?

- What drives your economic engine?

The first question is about what is your passion? Good to great companies did not pick a course of action, and then encourage their people to become passionate about their direction. The passion can’t it be the end result of a motivation effort. You can only discover what ignites your passion.

This standard goes far beyond core competence, just because you posses a core competence doesn’t mean you are the best in the world at that competence.

The hedgehog concept is not a goal or strategy to be the best at something; it is an understanding of what you can be best at and, almost equally important what you cannot be the best at.

The other concept is the cultural discipline, it’s about building a consistent system with clear constraints, but give people freedom and responsibility within the framework of that system. It advises to hire self-disciplined people who don’t need to be managed, and to manage the system, not the people.

And other concept is the technology accelerators; Collins tells that technology is not the critical factor that many people think. I mean the technology when is properly applied is an accelerator of impulse, but is not the creator of impulse. In other words every company with technological resources can achieve their objectives easier.

GOOD (BAD) MANAGEMENT DECISIONS.

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