I have had the book “Good To Great” by Jim Collins sitting on my bookshelf for quite some time, and I finally had the opportunity to read it. In this detailed review, I would like to share some of the lessons I learned from it.
This book is a result of extensive research and analysis carried out by a team of over 25 individuals, led by Jim Collins, over a span of five years. Their objective was to distill the key factors necessary for a company to transition consistently from being average with average results to being outstanding with exceptional results over a long period. The research involved examining revenues, stock value and conducting in-depth interviews with employees and executives of various companies.
Despite the simplicity of the concepts presented in the book, their power and effectiveness are truly remarkable. I discovered both what to do and what not to do in order to attain greatness. The path to greatness, as outlined by Jim Collins, revolves around three crucial areas:
- Disciplined People
- Disciplined Thought
- Disciplined Action
When initially encountering the term “discipline,” many people, including myself, tend to react with a negative autopilot response. However, as I delved deeper into the book, I began to associate a new and profound meaning with the word.
Disciplined People
Disciplined People pertains to both the leadership and individuals at all levels of an organization. Contrary to popular belief, the leaders of great companies are not necessarily highly extroverted and charismatic CEOs with immense egos. In fact, all the companies that successfully made the leap to greatness were led by individuals who displayed a compelling modesty combined with an unwavering drive to do whatever it takes to make their companies great. Additionally, these leaders were less concerned with developing an immediate grand vision and strategy; instead, they prioritized finding the right people.
The idea of “getting the right people on the bus (and the wrong people off the bus)” before determining where to drive it is emphasized. The right people exhibit qualities such as self-discipline and flexibility. With the right individuals on board, the direction becomes clear. However, the continuous challenge lies in consistently finding and retaining the right people as the company grows. An important lesson from this section is that maintaining greatness in a company cannot be achieved through babysitting or outdated ruthless disciplinary measures.
Disciplined Thought
Disciplined Thought involves two essential steps. The first step is confronting the harsh reality while never losing faith. This approach differs from simply hoping for positive outcomes while ignoring the current reality. Instead, it requires an unwavering belief that you will not only survive but triumph as a great entity. The second step entails simplicity within the three circles: What can we be the best at in the world? What drives our economic engine? What are we deeply passionate about?
Great companies spend years answering these questions, developing concise and comprehensible answers that resonate with everyone in the organization. On the other hand, companies that fail to progress often provide complex and confusing answers or answer from a place of bravado rather than genuine understanding. To achieve greatness, a company needs to understand its unique position in the world, set aside ego, and avoid making plans based on bravado.
Disciplined Action
Disciplined Action naturally follows the previous two areas of focus. With disciplined thought and disciplined people, a culture of discipline emerges where individuals experience both freedom and responsibility. They do not require constant micromanagement because (i) they are willing to do whatever it takes, (ii) they possess a high degree of self-discipline, (iii) they have an unwavering belief in their work, (iv) they understand the company’s purpose and where it is headed. Their alignment with the company’s objectives eliminates the need for external motivation.
The companies that Collins refers to as “Good To Great” were often unnoticed for a significant period before their breakthrough. The time frames for their transformations varied from two to twenty-five years. From an outsider’s perspective, it may seem like their success was an overnight transformation, but this is far from the truth. Achieving greatness is more akin to spinning a flywheel, with the cycle of disciplined people, disciplined thought, and disciplined action repeating until momentum builds and accelerates the wheel.
The executives of the Good To Great companies found it impossible to point to a single defining event that made the difference. They did not publicly announce grand goals or hold launch parties to initiate their transition. Instead, they passionately committed themselves to their work, allowing the transition to happen organically.
Why go from Good to Great?
Finally, Collins addresses the question of why one should strive for greatness instead of settling for success. According to him, if someone asks that question, they are in the wrong line of work. People who contribute to making companies great pursue greatness not solely for personal gain but because they believe it can be accomplished. They attach immense meaning and passion to the pursuit, leaving no room for alternative options. This powerful premise lays the foundation of “Good To Great.”
Overall, “Good to Great” by Jim Collins is an extremely enjoyable book. It combines insightful information with facts and anecdotes about companies that successfully made the leap to greatness, as well as those that did not. The lessons imparted are not limited to the business realm but can be readily applied to personal journeys toward greatness. If you would like to purchase this book then click this link.