04-10-2012, 03:53 PM
BOOK REVIEW GOOD-TO-GREAT
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HISTORY OF AUTHOR
James C. "Jim" Collins, III (born 1958, Boulder, Colorado) is an American business consultant, author, and lecturer on the subject of company sustainability and growth.
Jim Collins frequently contributes to Harvard Business Review, Business Week, Fortune and other magazines, journals, etc.
He is also the author of several books: How the Mighty Fall: And Why Some Companies Never Give In, Built to Last: Successful Habits of Visionary Companies, and Good to Great.
CHAPTER 1: GOOD IS THE ENEMY OF GREAT
Emphasis on how the good company can be transform to the great company
This research is a journey on getting the inner working of good to great
Concept research
identifying the company that has make leap from goods to great
Comparison GTG companies with the comparison companies.
performance of the companies were measured based on their cumulative return stocks
There is no warranty that the huge company could leap to great company. The Walgreens has beat $1 invest in Intel by 2 Times, General Electric by 5 and Coca Cola by 8 times.
The successful of Walgreens bring the curiosity on why Eckerd with the similar resources and opportunity were not being able to make a leap.
Findings
Based on the study, the research team found that
Larger than life: Most of the inner celebrity shows the positive correlation with taking good to good. Its proved whereby 10 out of 11 good to great ‘s leader are from inside
There is no linking between executive compensation and the process of going good to great
Both good to great and comparison companies has their range of strategic planning
Most of the good to great company focus on what they should stop instead of what they should do
Technology were not cause the transformation in the good to great company
LESSON LEARNT
The author has taken the good move on this research, it tremendously give us the information and facts that we never expect:
The company that success on the transformation has the level 5 leadership. The transition process may create the leaders level 5. Nowadays, the organization should take serious action on the talent management practices since it were proven the leadership is came from the inner organization. The huge investment to launch the transformation never worth for the value, this is because it has never happened in one slope. Small company in terrible industry also has a chances to success in their transformation.
Facts are better than dreams
Good to great companies did not have a perfect track record.
But on the whole, they made many more good decisions than the comparison companies.
Even more important on the really big choices such as Kroger’s decision to thrown all its resources into the task of converting its entire system to the superstore concept, they were remarkably on target.
At what you can be best in the world
This standard goes far beyond core competence.
It is because you possess a core competence doesn’t necessarily mean you are the best in the world at that competence.
Conversely, what you can be best in the world at might not even be something in which you are currently engaged.
The Hedgehog concept is not a goal or strategy to be the bet at something, it is an understanding of what you can be the best at and almost equally important on what you cannot be the best at.