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Good to Great Chapter 9. From. To. Christopher Cook Chelle Hillis Lindsey Young Phillip Flick. The Role of Built to Last. Collins’ research team did not want to reference Built to Last. Some were afraid of fundamental discrepancies.
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Good to Great Chapter 9 From To Christopher Cook Chelle Hillis Lindsey Young Phillip Flick
The Role of Built to Last Collins’ research team did not want to reference Built to Last. Some were afraid of fundamental discrepancies. “I’m afraid that if we start with BTL as the frame of reference, we’ll just go around in circles proving our own biases.” Jim Collins “start from scratch.”
Four Conclusions Built to Last companies followed good to great framework. Good to Great is a prequel to Built to Last. Discover your core values and purpose beyond just making money. A tremendous resonance exists between the two studies.
Sam Walton began with a single store in 1945 , didn’t open his second store until 7 years later. • Built incrementally, turn by turn of the flywheel. • Hedgehog concept of discount marts popped out as a natural evolutionary step in the mid 60’s. • Breakthrough came in the 70’s.
First who, then what. • Bill Hewlett, David Packard met in grad school, founded HP in 1937. • Mission, “design, manufacture, and sell products in the electrical engineering field.” • “The question of what to manufacture was postponed.” • Hired lots of fabulous people after WWII from government labs, with nothing specific in mind for them to do. • Level 5 leadership: • Modesty • Humility • Vision • Passion
Hedgehog Concept • Flywheel • Level 5 leadership
Core Values Key to enduring greatness. Distinguishes the company more than any of its products. Profit is not the fundamental goal! Not about what core values but that you have core values at all.
Hewlett & Packard • The “HP Way.” • Impacted the way companies are managed around the world. • Extra dimension of the “core ideology.”
Core Purpose • Core Values + Core Purpose = “core ideology.” • Why is it important we exist? • Ex: Merck
Merck – Core Values • Our business is preserving and improving human life. We also work to improve animal health. • We are committed to the highest standards of ethics and integrity. • We are dedicated to the highest level of scientific excellence and commit our research to improving human and animal health and the quality of life. • We expect profits, but only from work that satisfies customer needs and benefits humanity. • Our ability to excel depends on the integrity, knowledge, imagination, skill, diversity and teamwork of our employees.
Preserving Your Core Ideology • Preserve core values and purpose while continuously keeping pace with the changing world. • Preserve the core and stimulate progress.
Core Value: People, Service, Profits. • Core Purpose: Get the Packages!
Good BHAGS, Bad BHAGS, and other conceptual links • “Good to Great provides the core ideas for getting a flywheel turning from buildup to breakthrough, while Built to Last outlines core ideas for keeping the flywheel acceleration long into the future and elevating a company to iconic stature.”
Four Key Ideas from Built to Last 1).Clock Building, Not Time Telling 2). Genius of AND 3). Core Ideology 4). Preserve the Core/Stimulate Progress
From Good to Great to Built to Last: Conceptual Links Level 5 Leadership 1). Clock Building, Not Time Telling: Build company that can tick along without them. 2). Genius of AND: Personal humility and professional will. 3).Core Ideology: ambitious for the company, purpose beyond their own success. 4).Preserve the Core/ Stimulate Progress: relentless in stimulating results and achievement.
Conceptual Links Continued:First Who…Then What 1). First who=clock building First what=time telling 2). Get the right people on the bus AND the wrong people off the bus. 3). Practicing “first who” means selecting people more on their fit with the core values and purpose than on skills and knowledge. 4). First who means promoting from within, which reinforces core values. (FedEx)
Conceptual Links Continued: Confront the Brutal Facts 1).Climate where truth is heard is clock building. 2).Confront brutal facts of your current reality AND retain unwavering faith you will prevail in the end. (Stockdale Paradox) 3).Clarifies values an organization truly holds as core vs. those it would like to hold as core. 4).Brutal facts clarify what must be done to stimulate progress.
Conceptual Links Continued:Hedgehog Concept 1). Council mechanism is clock building. 2). Deep understanding AND incredible simplicity. 3).What you are passionate about circle: overlaps with core values and purpose. 4).Good BHAGs flow from understanding; bad BHAGs flow from bravado. Great BHAGs sit right in the middle of the three circles.
Conceptual Links Continued:Culture of discipline 1). Operating through sheer force and personality as disciplinarian: time telling Building an enduring culture of discipline: clock building. 2).Freedom AND responsibility. 3). Ejects those who do not share the values and standards of the organization. 4). Give people more freedom to experiment and find their own best path to results.
Conceptual Links Continued:Technology Accelerators 1). Technology accelerators are a key part of the clock. 2). Shun technology fads AND pioneer the application of technology. 3). In a great company, technology is subservient to core values, not the other way around. 4). Right technology accelerates momentum in the flywheel, toward achievement of BHAGs.
Conceptual Links Continued:Flywheel, Not Doom Loop 1).Flywheel creates sustained building of momentum, does not depend on presence of charismatic visionary to motivate people. 2).Evolutionary, incremental process AND revolutionary, dramatic results. 3).Doom loop makes it impossible to instill core values and purpose. 4).Smooth consistency of the flywheel and building of momentum to point of breakthrough create the perfect conditions for instilling core values while stimulating change and process.
Should We Seek Greatness? • Working harder when it counts. • Finishing strong • Mass Comm 2300 • Returning to the Hedgehog concept. • Cutting the fat and getting lean. • Removing the activities that do not add value.
Should We Seek Greatness? Being passionate. Turning whatever you are doing into greatness. Learning to fuel motivation, not create motivation.
Takeaways Good to great concepts were precursor to built to last companies. Good to great framework facilitates longevity. Using “Core Ideology” to go from greatness into enduring greatness. Good to Great ideas lay the groundwork for the ultimate success of the Built To Last ideas. Finish Strong and being passionate in your work while fueling motivation of those around you.