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<\/a>\nThe Good To Great Life Cycle\u00a0<\/i><\/p>\n
Good to Great Model
\nDISCIPLINED PEOPLE<\/h3>\nLevel 5 Leadership<\/h4>\n
You might assume that the leaders behind these companies are high-profile, well known individuals. However, the study found the good to great leaders shared a common set of characteristics: They set up successors for success, they are extremely modest, they have unwavering resolve. Ultimately they cared and focused a lot more on their companies, than their own personal profile or success.
\n\u201cLevel 5 leader\u2014an individual who blends extreme personal humility with intense professional will\u201d
\nThese leaders are ambitious about the company, not themselves.
\nHumility + Will = Level 5.
\n\u201cIt is very important to grasp that Level 5 leadership is not just about humility and modesty. It is equally about ferocious resolve, an almost stoic determination to do whatever needs to be done to make the company great.\u201d
\n\u201cLevel 5 leaders look out the window to apportion credit to factors outside themselves when things go well (and if they cannot find a specific person or event to give credit to, they credit good luck). At the same time, they look in the mirror to apportion responsibility, never blaming bad luck when things go poorly.\u201d
\n <\/p>\n
<\/p>\n Instead of starting by defining your vision and then driving your team of people towards it, the good to great companies focused on getting the right people on the bus first, before even considering when to drive it. By being honest about tough situations and coming to terms with the reality of a situation, the most obvious and logical solution will often present itself. \u201cOn the one hand, they stoically accepted the brutal facts of reality. On the other hand, they maintained an unwavering faith in the endgame, and a commitment to prevail as a great company despite the brutal facts. We came to call this duality the Stockdale Paradox.\u201d<\/i> A culture of discipline is where disciplined people take disciplined action that is consistent towards the hedgehog concept. A culture is built around the idea of freedom and responsibility. This depends on first having the right (disciplined) people on the bus.<\/p>\n<\/a>
\nLevel 5 Leadership<\/p>\nFirst Who, Then What<\/h4>\n
\n\u201cLook, I don\u2019t really know where we should take this bus. But I know this much: If we get the right people on the bus, the right people in the right seats, and the wrong people off the bus, then we\u2019ll figure out how to take it someplace great.\u201d
\nIt’s easier to motivate the right people and they require less management.
\nIf you focus on the who first, it’s easier to change direction later because these people are on the bus because of who else is on the bus. If you focus on the what, then people focus on the direction the bus is going and it becomes harder to change direction later.
\nHire based on character rather than skills or educations. Not that these things aren’t important, but it becomes harder to teach if the character won’t support it.
\n\u201cHe was so good at assembling the right people around him, and putting the right people in the right slots, that he just didn\u2019t need to be there all hours of the day and night.\u201d
\nIf you hire the right people and they enjoy working together, they enjoy being on the\u00a0bus and enjoy life more. It feels less like work.
\n\u201cWe uncovered three practical disciplines for being rigorous in people decisions:
\nWhen in doubt, don\u2019t hire\u2014keep looking. (Corollary: A company should limit its growth based on its ability to attract enough of the right people.)
\nWhen you know you need to make a people change, act. (Corollary: First be sure you don\u2019t simply have someone in the wrong seat.)
\nPut your best people on your biggest opportunities, not your biggest problems. (Corollary: If you sell off your problems, don\u2019t sell off your best people.)
\nGood-to-great management teams consist of people who debate vigorously in search of the best answers, yet who unify behind decisions, regardless of parochial interests.<\/p>\nDISCIPLINED THOUGHT<\/h3>\n
Confront the Brutal Facts (Yet Never Lose Faith)<\/h4>\n
\nWhen the brutal facts of a situation are accepted, the solutions often becomes obvious.
\nThere’s a difference between having your say, and being heard:<\/p>\n\n
\nWhen the brutal facts of a situation are accepted, the solutions often becomes obvious.
\nThe Hedgehog Paradox (Simplicity Within the Three Circles)
\nThe hedgehog concept is a model for defining your companies strategy in the simplest of terms.
\n\u201cFoxes pursue many ends at the same time and see the world in all its complexity. They are \u201cscattered or diffused, moving on many levels,\u201d says Berlin, never integrating their thinking into one overall concept or unifying vision. Hedgehogs, on the other hand, simplify a complex world into a single organising idea, a basic principle or concept that unifies and guides everything.\u201d
\nHedgehogs see what is essential and ignore the rest.
\ne.g. Walgreens \u2013 \u201cWhat’s the simple concept? Simply this: Be the best, most convenient drugstores, with high profit per customer visit. That\u2019s it. That\u2019s the breakthrough strategy that Walgreens used to beat Intel, GE, Coca-Cola, and Merck.\u201d
\n\u201cThe essential strategic difference between the good-to-great and comparison companies lay in two fundamental distinctions. First, the good-to-great companies founded their strategies on deep understanding along three key dimensions\u2014what we came to call the three circles. Second, the good-to-great companies translated that understanding into a simple, crystalline concept that guided all their efforts\u2014hence the term Hedgehog Concept.\u201d
\nThe Three Circles
\n3-circles-hedgehog-concept
\n<\/a>
\nWhat you can be the best in the world at:
\n\u201cIt\u2019s not just about building on strength and competence, but about understanding what your organisation truly has the potential to be the very best at and sticking to it\u201d.
\n\u201cA hedgehog Concept is not a goal to be the best, a strategy to be the best, an intention to be the best, a plan to be the best. It is an understanding of what you can be the best at. The distinction is absolutely crucial.\u201d
\nYou don’t have to start by being the best at it. You just need to understand what you could be the best at.
\nWhat drives your economic engine (profit per x):
\n\u201cIf you could pick one and only one ratio\u2014profit per x\u2014to systematically increase over time, what x would have the greatest and most sustainable impact on your economic engine?\u201d
\ne.g. Switching from profit per store to profit per customer. You could increase profit per store by reducing stores and buying cheap locations. This would not be sustainable.
\nWhat you’re passionate about:
\nThis is pretty self explanatory.
\nFollow your passion and you\u2019ll never have to work a day in your life.
\nThe intersection of this is the hedgehog concept clearly and simply defined.<\/p>\nDISCIPLINED ACTION<\/h3>\n
A Culture of Discipline<\/h4>\n
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\nFill that culture with self-disciplined people who are willing to go to extreme lengths to fulfill their responsibilities. They will \u201crinse their cottage cheese.\u201d<\/li>\n