How to make a great company
Recently I read another bestseller in business: “From good to great: why some companies make a breakthrough, while others do not ...” Jim Collins. The authors of the book conducted a large study and tried to deduce the common features of successful (great) companies that have achieved a lot.
This is what I want to tell in the article, I think many people are interested in how to build a great company (for the bad soldier who does not want to become a general). The article is mainly for those who have not read the book.
By the way, many principles can be applied in personal career growth.
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The authors analyzed the Fortune 500 companies (the largest companies in the world by value and turnover) from 1965 to 1999 and selected 11 companies that made the transition from good to great. The "greats" included: Gillette, Philip Morris, Fannie Mae, and others.
Then the companies were selected for direct comparison to determine what distinguishes the companies that have made the transition from good to great, from companies that could not do it.
And as a result of the analysis of these companies, the general principles of building great companies were revealed.
So, to make a great company, you need to adhere to several key principles (but the authors themselves say that they should not be taken on faith, you need to argue on each item and question it, only this way you can find the truth):
1. The head of level 5.
Naturally, the success or failure of a company always depends on its leaders. To begin with, a manager must be selected from among the company's employees (this was the case in 10 of the 11 great companies).
Such a leader combines human qualities and professional will, he thinks not about his success, but about the success of his company, he is modest and inconspicuous, such a person is dedicated to his work, he loves him and wants to lead the company to success in the long term, he is purposeful and ready to do anything for your company.
The head of level 5 is ready to give glory to his team for success or to take responsibility for failure, he ensures the quality of work, clearly sees the future of the company, he is an excellent organizer who uses resources rationally, such a leader makes a personal contribution to achieving the goal, he is a true professional and a fan of his business.
2. First “who”, then “what”.
A simple principle: first, the manager needs to decide who the company needs and who is not needed, and then think about what to do. The principle of “first who” is more important than strategy and tactics. And the team should be strong as a whole, and not just its leader.
The head can make strict and tough decisions in working with employees, but he is not cruel. If he doubts that the person is suitable for the company - he continues to search for the right employee. The leaders of great companies are trying to ensure that the best people work in promising areas, rather than solve old problems.
Decision-making teams in great companies very often argue strongly and in the process of a dispute find the most correct solution, which they then all embody. Such a team does not need motivation - the right people are already motivated.
An interesting fact: the relationship between the remuneration of the manager and the results of the company’s work was not found.
3. Look harsh facts in the face.
Something can not be changed, until you look at the facts in the face, you do not understand the real situation. Almost every company has difficulties and problems, especially now, in a crisis, but few can see the most important problems, but only a few can muster courage and begin to solve these problems.
It is important not to lose faith in achieving outstanding results; any company can do it, but at the same time face the facts.
It is also important that every employee, without fear of a manager, can speak freely. And sometimes it happens that the employee is so confident in the manager that he deliberately does not make suggestions or even suppresses the thought that the manager may be wrong (and the reality is that the manager is also a person and can be wrong).
4. "The concept of a hedgehog."
It is an understanding in which area your company can be the best in the world and in which you would like to be the best.
In essence, it is important to understand where the company can be the best, focus on that and purposefully go towards the target. And not always you can be the best in the area where the company is now working, and if you can not - then the scope of activities should be changed. Honestly, I do not share this principle: I think this is a goal for the sake of a goal. At least when viewed from the perspective of a working business. Many have already built a business and like to work in it, why change the type of activity? If you clarify that you need to choose a separate business line and concentrate on it, then this principle will be valid. Concentration has always benefited.
On average, great companies took 4 years to develop a “hedgehog concept”: at that time, they knew where they wanted to go.
5. Culture discipline.
The name of the principle speaks for itself: yes, discipline in great companies was and is.
To make a great company is a long-term task and it can be fulfilled only with disciplined people. Bureaucracy is a measure of organizing undisciplined people, and if your company is all disciplined, you do not need bureaucracy. All outstanding companies have a lot of energetic, dedicated and disciplined people.
It is important to understand that the correct discipline cannot be achieved by force and punishment (although this method has developed greatly in our country, mainly because of cultural characteristics).
The most important thing in a discipline is to tirelessly and unswervingly follow a goal, even if “unique opportunities” appear in another field. A list of what should stop doing is more important than a list of what needs to be done.
6. Technology as an accelerator.
Technology is not a goal, technology is a means to an end. It is necessary to use only carefully selected technologies that will bring real benefits, and not just fashionable now.
Technologies must meet the goal and positively influence its achievement. Therefore, do not be afraid to use new technologies, all great companies have become the pioneers of the introduction of new technologies, but have introduced only the necessary ones.
However, the technologies in this book at 6th place were not accidental, they are really not so important for the success of many outstanding companies (except for specific industries where technologies play one of the most important roles, such as IT).
In conclusion, it can be said that the creation of a great company is a very long and multistage process. You can not develop a unified strategy that will make the company great. This process resembles a snowball, which gradually gains mass and turns into an avalanche. Moreover, this process can be divided into 2 parts: preparation and rapid growth. You can work hard for many years, and rapid growth will start suddenly.
Personally, I really liked the book, I advise everyone to read it, especially managers or people who are going to become leaders. We have already managed to implement many ideas in our corporate culture: http://secl.com.ua/kultura.html - and they work great!
With you there was Nikita Semenov from the company “ SECL GROUP ”.
This is what I want to tell in the article, I think many people are interested in how to build a great company (for the bad soldier who does not want to become a general). The article is mainly for those who have not read the book.
By the way, many principles can be applied in personal career growth.
')
About the study
The authors analyzed the Fortune 500 companies (the largest companies in the world by value and turnover) from 1965 to 1999 and selected 11 companies that made the transition from good to great. The "greats" included: Gillette, Philip Morris, Fannie Mae, and others.
Then the companies were selected for direct comparison to determine what distinguishes the companies that have made the transition from good to great, from companies that could not do it.
And as a result of the analysis of these companies, the general principles of building great companies were revealed.
Key factors
So, to make a great company, you need to adhere to several key principles (but the authors themselves say that they should not be taken on faith, you need to argue on each item and question it, only this way you can find the truth):
1. The head of level 5.
Naturally, the success or failure of a company always depends on its leaders. To begin with, a manager must be selected from among the company's employees (this was the case in 10 of the 11 great companies).
Such a leader combines human qualities and professional will, he thinks not about his success, but about the success of his company, he is modest and inconspicuous, such a person is dedicated to his work, he loves him and wants to lead the company to success in the long term, he is purposeful and ready to do anything for your company.
The head of level 5 is ready to give glory to his team for success or to take responsibility for failure, he ensures the quality of work, clearly sees the future of the company, he is an excellent organizer who uses resources rationally, such a leader makes a personal contribution to achieving the goal, he is a true professional and a fan of his business.
2. First “who”, then “what”.
A simple principle: first, the manager needs to decide who the company needs and who is not needed, and then think about what to do. The principle of “first who” is more important than strategy and tactics. And the team should be strong as a whole, and not just its leader.
The head can make strict and tough decisions in working with employees, but he is not cruel. If he doubts that the person is suitable for the company - he continues to search for the right employee. The leaders of great companies are trying to ensure that the best people work in promising areas, rather than solve old problems.
Decision-making teams in great companies very often argue strongly and in the process of a dispute find the most correct solution, which they then all embody. Such a team does not need motivation - the right people are already motivated.
An interesting fact: the relationship between the remuneration of the manager and the results of the company’s work was not found.
3. Look harsh facts in the face.
Something can not be changed, until you look at the facts in the face, you do not understand the real situation. Almost every company has difficulties and problems, especially now, in a crisis, but few can see the most important problems, but only a few can muster courage and begin to solve these problems.
It is important not to lose faith in achieving outstanding results; any company can do it, but at the same time face the facts.
It is also important that every employee, without fear of a manager, can speak freely. And sometimes it happens that the employee is so confident in the manager that he deliberately does not make suggestions or even suppresses the thought that the manager may be wrong (and the reality is that the manager is also a person and can be wrong).
4. "The concept of a hedgehog."
It is an understanding in which area your company can be the best in the world and in which you would like to be the best.
In essence, it is important to understand where the company can be the best, focus on that and purposefully go towards the target. And not always you can be the best in the area where the company is now working, and if you can not - then the scope of activities should be changed. Honestly, I do not share this principle: I think this is a goal for the sake of a goal. At least when viewed from the perspective of a working business. Many have already built a business and like to work in it, why change the type of activity? If you clarify that you need to choose a separate business line and concentrate on it, then this principle will be valid. Concentration has always benefited.
On average, great companies took 4 years to develop a “hedgehog concept”: at that time, they knew where they wanted to go.
5. Culture discipline.
The name of the principle speaks for itself: yes, discipline in great companies was and is.
To make a great company is a long-term task and it can be fulfilled only with disciplined people. Bureaucracy is a measure of organizing undisciplined people, and if your company is all disciplined, you do not need bureaucracy. All outstanding companies have a lot of energetic, dedicated and disciplined people.
It is important to understand that the correct discipline cannot be achieved by force and punishment (although this method has developed greatly in our country, mainly because of cultural characteristics).
The most important thing in a discipline is to tirelessly and unswervingly follow a goal, even if “unique opportunities” appear in another field. A list of what should stop doing is more important than a list of what needs to be done.
6. Technology as an accelerator.
Technology is not a goal, technology is a means to an end. It is necessary to use only carefully selected technologies that will bring real benefits, and not just fashionable now.
Technologies must meet the goal and positively influence its achievement. Therefore, do not be afraid to use new technologies, all great companies have become the pioneers of the introduction of new technologies, but have introduced only the necessary ones.
However, the technologies in this book at 6th place were not accidental, they are really not so important for the success of many outstanding companies (except for specific industries where technologies play one of the most important roles, such as IT).
Conclusion
In conclusion, it can be said that the creation of a great company is a very long and multistage process. You can not develop a unified strategy that will make the company great. This process resembles a snowball, which gradually gains mass and turns into an avalanche. Moreover, this process can be divided into 2 parts: preparation and rapid growth. You can work hard for many years, and rapid growth will start suddenly.
Personally, I really liked the book, I advise everyone to read it, especially managers or people who are going to become leaders. We have already managed to implement many ideas in our corporate culture: http://secl.com.ua/kultura.html - and they work great!
With you there was Nikita Semenov from the company “ SECL GROUP ”.
Source: https://habr.com/ru/post/76596/
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