A presentation on Good is the enemy of great.Source- Good to Great by Jim Collins

1. GOOD IS THE ENEMY OF
GREAT
PRESENTED BY
JYOTI

2.  James C. "Jim" Collins, 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.
Member of Good To Great research team
Jyoti, IIBM Patna Members of the God To Great research team

3.  Good is the Enemy of Great" is the first sentence of Jim Collins'
business best seller, Good to Great.
 Good is the enemy of great. And that is one of the reasons that we
have so little that becomes great.
 The vast majority of companies never become great, because they
become quite good – that’s the problem.
“Great remained great”
“Good remained good”
The main question of this entire book is –
“Can a good company become a great company & if so how?”
Jyoti, IIBM Patna

4.  They identified companies that made the leap from good to
great & then compare these companies to a carefully
selected control group of comparison companies that fail to
make the leap or if they did , they failed to sustain it.

5.  Then they compared the good to great companies to the
comparison companies to discover the essential &
distinguishing factors at work.
 Example-
Invested(1$)
General market Good to Great
56 times 471 times
Criteria for selection of good to great companies-
 15 years cumulative stock returns at or below the general
stock market.
 Punctuated by a transition point.
 Then cumulative returns at least 3 times the market over the
next 15 years.

6. For perspective , a mutual fund of the following “marquis set” of
companies beat the market by only 2.5 times over the years 1985-
2000:
3M , Boeing, Coca Cola , GE, Hewlett- Packard, Intel , Johnson &
Johnson, Merck, Motorola, Pepsi, P & G, Wal-Mart & Walt Disney.
Then 11 companies made it from all fortune 500 between 1965
&1995.
 These good to great companies are-
Abbott, Circuit city, Fannie Mae, Gillette, Kimberly Clark, Kroger,
Nucor, Philip Morris, Piney Bower, Walgreens , Wells Fargo.
Jyoti, IIBM Patna

7. Company Result from T Years
transition point to To T + 15 Years
15 years beyond
transition point
Abbott 3.98 times the market 1974-1989
Circuit City 18.50 1982-1997
Fannie Mae 7.56 1984-1999
Gillette 7.39 1980-1995
Kimberly Clark 3.42 1972-1987
Kroger 4.17 1973-1988
Nucor 5.16 1975-1990
Philip Morris 7.06 1964-1979
Pitney Bower 7.16 1973-1988
Walgreens 7.34 1975-1990
Wells Fargo 3.99 1983-1998

8. Example –
Walgreens
In Dec. 31 1975 – Jan. 1,2000, 1% invested in Walgreens
beat $ 1 invested in Intel by 2 times
General Electric 5 times
Coca Cola 8 times
General stock market 15 times
Fannie Mae also beat companies like GE & Coca Cola.
Jyoti, IIBM Patna

9. Thank
You

10. Thank
You