Every once in a while, I run out of new books to listen to, or I get bored with what I have in my library. So, I go back through my Audible account and see what catches my attention.
Combine that with the fact that Jim Collins spoke at a business conference recently which I saw featured on LinkedIn. Voila – I thought it’s time to re-read Good to Great.
Hard to believe the book was originally published in 2001. Jim Collins, after his time at McKinsey & Co. returned to study at Stanford to get his MBA and then went on to be a Stanford professor and researcher. Later he published his first best seller, Built to Last.
But to me, his next book, Good to Great has the most practical modern-day insights and morsels of wisdom. And by listening to the book (instead of just reading it), I got to hear in Jim’s own voice his personal commentary and pointers.
In the book, Collins examines what it takes for ordinary companies to become great and outperform their competitors by analyzing 28 companies over 30 years. He studied only public companies (as all data was available and verifiable) and compared each company’s performance to their most direct competitors in size and industry. The insights and results were all data driven and were done by a panel of researchers in collaboration with Jim.
Here is a short synopsis of his 7 key qualities for Good to Great Companies:
- Level 5 Leadership:
Leaders who are both professionally ambitious and personally humble. They prioritize the company’s success above their own ego.
- The Hedgehog Concept:
Focusing on what a company can be the best in the world at, what it is deeply passionate about, and what drives its economic engine.
- First Who, Then What:
Getting the right people on the bus (and the wrong people off) before deciding where the bus is going.
- Confronting the Brutal Facts:
Facing difficult realities head-on, even when it’s uncomfortable, to make informed decisions.
- Culture of Discipline:
Creating a culture where disciplined people, thought, and action are the norm.
- Technology Accelerators:
Using technology to enhance existing strengths, not as a primary driver of change.
- The Flywheel Effect:
Building momentum through consistent, incremental progress, rather than dramatic shifts.
While reading the book and listening to Collins describe each of the key concepts of GREAT companies, I couldn’t help but think about the companies and company leaders I know. And I was reminded of some of the challenges I had as a company leader.
How many times did I know I had the wrong people on my team, but didn’t want to move them “off the bus”, because it was such a hassle. If we parted ways, all their work would fall on me until I found a replacement. And of all the key concepts in Good to Great, this is the most obvious challenge that I observe most often with my clients: First Who, Then What.
As company leaders, it can be exhausting to have to terminate key players in your company because they are not a culture fit or a performance fit. I see it as the biggest challenge to real success. We delay, put off, and procrastinate in dealing with people issues, hoping that these issues will resolve themselves. My own business coach told me on more than one occasion that when he ran companies, a year did not go by when he didn’t have to replace one of his senior team.
So, you’re not alone with this experience, and once you part ways with the “wrong players”, you will breathe a sigh of relief. It’s amazing how much more clearly you can see once that tough decision is made. For almost all of my clients, working together, we have identified those wrong players and made a plan to move them off the bus. Maybe it’s time for you to re-read Good to Great. As the saying goes, everything old is new again.
Onward and upward,
Executive Coaching and Consulting for CEOs, Presidents and Owners in all industries
If you’re enjoying what you’re reading, please consider recommending it to others. They can sign up here
