Good to GREAT

By Jim Collins

The author begins the idea that good is the enemy of great…

We don't have great schools, principally because we have good schools. We don't have great government, principally because we have good government. Few people attain great lives, in large part because it is just so easy to settle for a good life. The vast majority of companies never become great, precisely because the vast majority become quite good-and that's their major problem.

This book looks at factors, which separate great companies from good ones. Companies were selected as GREAT using the following criteria: fifteen-year cumulative stock returns at or below the general stock market, punctuated by a transition point, then cumulative returns at least three times the market over the next fifteen years. These criteria yielded eleven companies as great. Eleven GOOD companies were studied as basis for comparison with six more "unsustained" companies added to the comparison mix.

SELF-ASSESSMENT

The study of all twenty-eight companies identified six areas critical for transforming a good company into a great company. Here's some self-assessment questions we developed from the categories.

1. Leadership

What level are you performing at (page 20)?

Who is on your "executive" team?

2. First Who…Then What

Do you have the "right" people in place? [Honestly & Realistically]

3. Confront Brutal Facts

Can you hear the TRUTH? (From Whom?)

Do your people believe that you can hear the truth without blaming?

4. Hedgehog

What are you passionate about?

What is your economic engine?

What can you be the BEST in the world at?

5. Culture of Discipline

What kind of culture are you both creating?

Are you building a culture based on a balance between Freedom and Responsibility?

What needs to go onto your "Stop Doing" list?

6. Technology Accelerators

How can technology accelerate your growth?