Business article: The Route of Companies From Being Good to Great

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Nine chapters summarize the book of Jim Collins, Good to Great Companies: Why Some Companies Make the Leap… And Others Don’t.

CHAPTER ONE: Good is the enemy of great

In this chapter, Collins and his team found out that disciplined people, disciplined thought, and disciplined action weighs far significant in the good-to-great company’s ability to achieve greatness compared to CEO compensation, technology, mergers and acquisitions, and change in management initiatives.

CHAPTER TWO: Level 5 leadership

The chapter tackles the so-called Level 5 leadership. According to the author, the Level 5 Leaders display intense determination and profound humility. They are those who put their personal egos and individual financial gains behind to achieve and reap the long-term benefit of the team’s success.

CHAPTER THREE: First Who, Then What

Collins claims that good-to-great companies put the right individuals in the right positions, removing those personnel who are not actively contributing thus saving the company precious time, effort and resources in the long run. In this chapter, Collins recommends that hiring be postponed until the right candidate for the position comes along.

CHAPTER FOUR: Confront the Brutal Facts (Yet Never Lose Faith)

It is said that the consumer preferences are constantly changing. According to Collins, it is the sooner the better for the company to face this fact and answer this need by adjusting its business model – regardless if it means complete transformation of the company. An example of a good-to-great company that followed this idea was Kroger who recognizes the trend towards modernization in the grocery industry.

CHAPTER FIVE: The hedgehog Concept (Simplicity within the Three Circles)

The communicated idea is simple – simplicity may also lead to greatness. To achieve this, Collins advised to identify where the company’s best lies. It may take time but it can be shortened using his suggested criteria: 1) Determine what you can be best at and what you cannot be best at in the world; 2) Determine what drives your economic engine; and 3) Determine what you are deeply passionate about.

CHAPTER SIX: The Culture of Discipline

Good-to-great companies, according to Collins, are equipped with individuals who produces high quality standard of work. Every team member possesses intensified will that they are willing to go unheard-of extremes to bring their company to greatness.

CHAPTER SEVEN: Technology Accelerators

Good-to-great companies are said to believe that technologies alone do not bring success to the company. Collins asserts that technology is not at all to be regarded as a panacea for all ailing companies.

CHAPTER EIGHT: The Flywheel and the Doom Loop

The chapter compares the flywheel manner in which the good-to-great companies were run to that of the doom loop where the progresses of other companies are usually non-existent. According to the author, the Flywheel is leading the company consistently one step at a time, in the same direction, with the same energy, without losing the leader’s focus. On the other hand, the Doom Loop is leading the company to different directions every so often that gaining momentum is impossible.

CHAPTER NINE: From Good-to-Great to Built-to-Last

The concluding chapter makes a connection to the author’s Built to Last book, the prequel of the latter. In this book, the focus is on developing the foundation towards greatness. The other book focuses on the sustaining success in the long term.

The process to shift from being a good to being a great company is possible as long as the people are willing to pay some price for the transformation.

About the author of The Route of Companies From Being Good to Great

Garrett Smith graduated from Brigham Young University with a bachelor's degree in mechanical engineering in April of 2005. Since then he has been pursuing his life's dream of starting and owning his own business. Currently, Garrett resides in Salt Lake City Utah and works primarily as a web designer/entrepreneur. Garrett, an ardent booklover, created BookJive.com as a free book summaries wiki
to help other booklovers communicate, discuss, and share invaluable information contained in the world's books.