GOOD TO GREAT BY

JIM COLLINS

Website: www.virajcse.com

(Condensed by)

Rajeeva Ranjan, MD.

Good is the enemy of Great

Startling facts observed in good to great companies:1. Internal people make good CEOs2. Pay and allowances are not sure way to be great3. Strategy does not matter4. They focused also, on what not to do and what to stop doing.5. Technology alone can not make you great.6. Paid scant attention to managing change, motivating people

or creating alignmnet.7. Greatness is not due to circumstances. It is largely a matter

of conscious choice

Level 5 leaders channel their ego need away from themselves and into the larger goal of building a great company.

It is not that level 5 leaders have no ego or self interest. Indeed, they are incredibly ambitious – but their ambition is for first and foremost for the institution, not themselves.

Level 5 leaders are a study in duality: modest and wilful, humble and fearless.

Points to ponder about a level 5 leader

Ambition for the company: Setting up successors for success.

Unwavering resolve…to Do what must be done.

The window to attribute success and the mirror for accepting responsibility.

Unique points and actions First who……then what……If people are self

motivated, you do not need to think anything. – hiring right people.

If we get the right people on the bus, the right people in the right seat, and the wrong people off the bus, then we will figure out how to take it to someplace great…

Myths of compensation No systematic pattern linking executive compensation to the

process of going from good to great was found – The right people will do the right things and deliver the best results they are capable of, regardless of incentive system.

The purpose of a compensation system should not be to get the right behaviours from the wrong people, but to get the right people on the bus in first place, and to keep them there.

People are not your most important assets. The RIGHT people are. Right people are chosen by placing greater weight on character

attributes than on specific educational background, practical skills, specialised knowledge, or work experience.

How to be rigorous than ruthless? When in doubt, don’t hire…keep looking When, you know you need to make people

change, act Put your best people on your biggest

opportunities, not on biggest problems. Great management team consists of people,

who debate vigorously in search of the best answers, yet who unify behind decisions, regardless of parochial interests.

Points to note Confront the brutal facts or reality. Build climate where the truth is heard,

examples1. Lead with questions, not answers2. Engage in dialogue and debate, not coercion3. Conduct autopsies, without blame, and4. Build the RED FLAG mechanisms (if someone has a doubt, they raise a red flag)

The Stockdale Paradox Retain faith

that you will prevail in the end, regardless of the difficulties

Confront the most brutal facts of your current reality, whatever they might be

And at the same time

The Hedgehog Concept(Simplicity within the three circles)

Fox- Pursues many ends at the same time and see the world in all its complexity. They are scattered or diffused, moving on many levels

Hedgehog- Simplifies a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything. Anything that does not somehow relate to the hedgehog idea holds no relevance.

The Three Circles

What you are deeply passionate

about

What drives your

economic engine

What you can be the best in the

world

Understand what you can (and can not) be the best at.

Insight into your economic engine – what is your denominator?

Understanding your passion.

The triumph of understanding over bravado

Guided by Three Circles

The Coun

cil

Ask Questio

ns,

Dialogue and

debate

Executive

decisions

Autopsies and analyse

s

Council exists to understand about issues facing the organisation.

Can be between 5 to 12 people Each member has the ability to argue

and debate for the common interest of the organisation and not self.

Each member is respected by the other and have deep knowledge of one issue of the organisation

The council is a standing committee and not a club of senior executives

Council should meet as often as possible

No consensus needed. Final responsibility is with CEO.

It can have any name

A Culture of DisciplineHierarchical Organisation

Great Organisat

ion

Bureaucratic organisation

Start up Organisatio

n

Freedom within a framework

Disciplined People – Disciplined Thought – Disciplined Action

A Culture , not a tyrant

Fanatical adherence to hedgehog concept

Low Ethic of Entrepreneurship High

High

CultureofDiscipline

Low

Unexpected findings All great companies

were not bothered about Competitive strategy.

All great companies were not motivated by fear

All great companies spent NO energy in motivating people and correcting alignment. Under the right conditions, the problems of commitment, alignment, motivation and change automatically takes care of themselves.

Alignment follows from results and momentum, not the other way around.

Website: www.virajcse.com

THANKS