Book Review – "Good to Great" by Jim Collins

Atlas has found another MUST Read in "Good to Great" by Jim Collins. Although not written for the RVI community directly, EVERY business – no, make that EVERY ONE, can benefit from this book. It’s an easy read and very engaging. No doubt after you finish each chapter you’ll want to discuss the implications for your company.

Jim Collins and his research team began by looking at 29 Fortune 500 companies, and filtered them down to an elite group of 11 companies whose cumulative stock market returns beat the general market by an average of 7 times, and maintained that average for 15 years or more. Jim’s team then systematically scoured every detail about these companies to find out what enabled them to move from beyond being good companies, to off the chart "Great". In each case, the companies’ successes could not be explained away by timing, or product, or technology. Instead, each company had the following qualities:

The Right People: You’ve heard it said that people are your most import important asset. Jim Collins replaces that adage with a more complete one; the RIGHT people are your most important asset. His analogy: Get the right people on the bus, and the wrong ones off. Get them in the right seat before you take off. Don’t consider strategy until have the right people.

Motivation: The Right People are self motivated. You don’t have to motivate them. Find out what motivates them and then get out of their way.

Leadership: Most of the leaders in Good to Great companies are home grown; they come from inside the company. Charismatic leaders, as well as those with big egos are usually not assets. Most often it is the humble diligent leaders, team oriented, focused on the company and not on themselves that are part of the necessary equation for a "Great" company. Why? Charismatic and egotistical leaders usually don’t nurture and grow a "Great" team. They are often feeding a need for personal success instead of the success of the company. When they do leave these bigger than life leaders often leave a big hole. Those left behind often have difficulty sensing on their own what and when new strategies need to be developed to continue to stellar performance.

Strategy: Focus your company on the one thing it does best. Ask yourself three questions: What is your company most passionate about? What drives your company economically? What one thing can your company be the best at?

Assessment: Honestly assess your companies’ successes and failures. "Great" companies do not sugar coat their failures, they face them head on. Get to the crux of what caused the failure, don’t waste time trying to direct blame; move forward with the absolute determination that you will succeed in the end.

Discipline: People in "Great" companies are self disciplined; they have the ability to focus and to stick with it over the long term.

Though Jim’s book is not hot off the press – copyright 2001 – It has been a number one best seller for a reason. He has the ability to quantify in easy to understand terms what turns a business from being a good company to a "Great" company. If you want to improve your company’s performance read this book.