The Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sustained performance can be engineered into the DNA of an enterprise from the verybeginning.
But what about the company that is not born with great DNA? How can good companies, mediocre companies, even bad companies achieve enduring greatness?
The Study
For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority? And if so, what are the universal distinguishing characteristics that cause a company to go from good to great?
The Standards
Using tough benchmarks, Collins and his research team identified a set of elite companies that made the leap to great results and sustained those results for at least fifteen years. How great? After the leap, the good-to-great companies generated cumulative stock returns that beat the general stock market by an average of seven times in fifteen years, better than twice the results delivered by a composite index of the world's greatest companies, including Coca-Cola, Intel, General Electric, and Merck.
The Comparisons
The research team contrasted the good-to-great companies with a carefully selected set of comparison companies that failed to make the leap from good to great. What was different? Why did one set of companies become truly great performers while the other set remained only good?
Over five years, the team analyzed the histories of all twenty-eight companies in the study. After sifting through mountains of data and thousands of pages of interviews, Collins and his crew discovered the key determinants of greatness -- why some companies make the leap and others don't.
The Findings
The findings of the Good to Great study will surprise many readers and shed light on virtually every area of management strategy and practice. The findings include:
- Level 5 Leaders: The research team was shocked to discover the type of leadership required to achieve greatness.
- The Hedgehog Concept (Simplicity within the Three Circles): To go from good to great requires transcending the curse of competence.
- A Culture of Discipline: When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great results. Technology Accelerators: Good-to-great companies think differently about the role of technology.
- The Flywheel and the Doom Loop: Those who launch radical change programs and wrenching restructurings will almost certainly fail to make the leap.
“Some of the key concepts discerned in the study,” comments Jim Collins, "fly in the face of our modern business culture and will, quite frankly, upset some people.”
Perhaps, but who can afford to ignore these findings?
Jim Collins is a student of companies—great ones, good ones, weak ones, failed ones—from young start-ups to venerable sesquicentenarians. The author of the national bestseller Good to Great and coauthor of Built to Last, he serves as a teacher to leaders throughout the corporate and social sectors. His work has been featured in Fortune, BusinessWeek, The Economist, USA Today, and Harvard Business Review.
Average Rating: 5 out of 5 stars(5 out of 5 stars)
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5 out of 5 stars
Reviewed by Michele Collins (Huntsville, On,), June 04, 2009
If you enjoy & are serious about business or the way you handle even your extra curricular activities & need rock solid, humble guidance & practical ways of carrying these out, READ THIS BOOK! There is much wisdom to be gleaned here. Don't be fooled into thinking it is just another book of research with a bunch of facts, figures & a little chat. No matter what you are doing in your life, you can gain from taking in & applying the knowledge offered here. Top marks to Jim & his crew.
4.5 out of 5 stars
Reviewed by Parker Greene (Lawton, OK), June 19, 2008
Friends were surprised I ordered this from CBD. I was delighted that a book for work was not only sold by CBD, but priced better than other outlets. This book is not about humanistic egoism, but rather a very good study on the importance of developing your God given talents. It has already helped me become a better worker and a more effective person as a whole.
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