Jim Collins book abstract “From Good to Great”
I made this summary for myself, but then decided to post it in the hope that it would be of interest to anyone else. It is convenient and useful to read such a summary, because it is possible to understand the main thoughts contained in the book without wasting time on its complete reading.
The book answers the question: "How can an average company become great?" For this, a study of American companies was conducted. Companies were selected and deeply analyzed, which initially showed fairly average results, but subsequently showed significant and stable growth.
The following are the main factors of this transformation:
Led by the head of the fifth level
Distinctive signs of such a leader:
* The success of the company above personal egoistic success
* Prepare intelligent successors
* Modest, invisible
* Fanatically devoted to their work. They have exceptional dedication, are ready to do everything necessary for the success of the company.
* Zeal. Workhorse, not a purebred horse.
* Successes are attributed to luck and other people, and responsibility for failures assume.
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The principle of "who first, then what"
* First recruit the right people, and only then decide in which direction to swim
* People are more important than vision, strategy, organizational structure, tactics.
* Three principles:
1) If in doubt, do not hire. Keep looking.
2) If you need to make a tough decision with respect to the employee - act. But first make sure that the person is in his place - the most suitable position for him.
3) Send the best people to the most promising areas, and not to the most problematic.
* The team must argue fiercely about an important decision, but when the decision has already been made, the whole team must act as a united front for its implementation.
* Pay people so much that they don't leave.
* Focus primarily on the nature and abilities of a person, and not on his knowledge, experience or education.
See the hard facts in person
* To be honest and struggling to understand the situation in which you are, the right decisions become obvious.
* Climate in which employees can express their opinions openly. How to do it:
1) Lead by questions, not answers
2) Engage in dialogue and debate, but not conflict
3) Discuss mistakes, but do not blame
4) Use the red flag method to make important information difficult to ignore. (for example, to allow customers to pay only if they are satisfied with the product, thus it will not be possible to ignore customer dissatisfaction)
* Stockdale paradox: Do not lose faith in victory, but at the same time openly face the harsh truth in the face.
* If people are selected correctly, then they do not need motivation. Therefore, all that is needed is to exclude dematization factors.
Three intersecting circle hedgehog concepts
* Do only that:
1) Interesting emotions
2) In which you can potentially become the best in the world
3) Brings money
* Understand what is driving the business. Find such an indicator of business, the change of which increases profits.
* It may take several years to develop the concept of a hedgehog
* Great companies are like hedgehogs. They know something very important and always adhere to it. Medium-sized companies are like foxes. They know little by little, are cunning, active, but inconsistent.
Discipline culture
* If a team of disciplined and competent people is chosen correctly, then bureaucracy is not needed.
* Dual culture of discipline: People act within the system and according to the rules of the system, but at the same time they are free to make decisions and take responsibility within the system.
* Disciplined people -> disc. thinking -> dis. actions
* People are full of energy and dedication, but this is not noticeable from the outside.
* Achieving discipline by force - no long-term results
* Fanatically follow the concept of a hedgehog, to refuse opportunities that do not fit into it
* A list of what you need to stop doing more important than a list of what you need to do.
Technologies like accelerators
* Do not chase fashion on technology.
* Carefully choose technologies that match your hedgehog concept.
* Technology - growth accelerators, not its cause.
* Technology itself is not the cause of the growth or decline of the company.
Flywheel and vicious circle
* The formation of a company as great is a long, ongoing process, and not the result of a dramatic revolutionary transformation.
* The development of the company is similar to the promotion of a huge flywheel: First, capacity building, then rapid growth.
* It is necessary to follow one direction, and not rush from side to side in search of outstanding results (vicious circle). Stage of capacity building is not bypassed.
* The transformation programs in great companies did not have a schedule, a name, a solemn presentation.
The book answers the question: "How can an average company become great?" For this, a study of American companies was conducted. Companies were selected and deeply analyzed, which initially showed fairly average results, but subsequently showed significant and stable growth.
The following are the main factors of this transformation:
Led by the head of the fifth level
Distinctive signs of such a leader:
* The success of the company above personal egoistic success
* Prepare intelligent successors
* Modest, invisible
* Fanatically devoted to their work. They have exceptional dedication, are ready to do everything necessary for the success of the company.
* Zeal. Workhorse, not a purebred horse.
* Successes are attributed to luck and other people, and responsibility for failures assume.
')
The principle of "who first, then what"
* First recruit the right people, and only then decide in which direction to swim
* People are more important than vision, strategy, organizational structure, tactics.
* Three principles:
1) If in doubt, do not hire. Keep looking.
2) If you need to make a tough decision with respect to the employee - act. But first make sure that the person is in his place - the most suitable position for him.
3) Send the best people to the most promising areas, and not to the most problematic.
* The team must argue fiercely about an important decision, but when the decision has already been made, the whole team must act as a united front for its implementation.
* Pay people so much that they don't leave.
* Focus primarily on the nature and abilities of a person, and not on his knowledge, experience or education.
See the hard facts in person
* To be honest and struggling to understand the situation in which you are, the right decisions become obvious.
* Climate in which employees can express their opinions openly. How to do it:
1) Lead by questions, not answers
2) Engage in dialogue and debate, but not conflict
3) Discuss mistakes, but do not blame
4) Use the red flag method to make important information difficult to ignore. (for example, to allow customers to pay only if they are satisfied with the product, thus it will not be possible to ignore customer dissatisfaction)
* Stockdale paradox: Do not lose faith in victory, but at the same time openly face the harsh truth in the face.
* If people are selected correctly, then they do not need motivation. Therefore, all that is needed is to exclude dematization factors.
Three intersecting circle hedgehog concepts
* Do only that:
1) Interesting emotions
2) In which you can potentially become the best in the world
3) Brings money
* Understand what is driving the business. Find such an indicator of business, the change of which increases profits.
* It may take several years to develop the concept of a hedgehog
* Great companies are like hedgehogs. They know something very important and always adhere to it. Medium-sized companies are like foxes. They know little by little, are cunning, active, but inconsistent.
Discipline culture
* If a team of disciplined and competent people is chosen correctly, then bureaucracy is not needed.
* Dual culture of discipline: People act within the system and according to the rules of the system, but at the same time they are free to make decisions and take responsibility within the system.
* Disciplined people -> disc. thinking -> dis. actions
* People are full of energy and dedication, but this is not noticeable from the outside.
* Achieving discipline by force - no long-term results
* Fanatically follow the concept of a hedgehog, to refuse opportunities that do not fit into it
* A list of what you need to stop doing more important than a list of what you need to do.
Technologies like accelerators
* Do not chase fashion on technology.
* Carefully choose technologies that match your hedgehog concept.
* Technology - growth accelerators, not its cause.
* Technology itself is not the cause of the growth or decline of the company.
Flywheel and vicious circle
* The formation of a company as great is a long, ongoing process, and not the result of a dramatic revolutionary transformation.
* The development of the company is similar to the promotion of a huge flywheel: First, capacity building, then rapid growth.
* It is necessary to follow one direction, and not rush from side to side in search of outstanding results (vicious circle). Stage of capacity building is not bypassed.
* The transformation programs in great companies did not have a schedule, a name, a solemn presentation.
Source: https://habr.com/ru/post/112004/
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