Empowering Local Government Frontline Services - Mo Baines.pdf
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Good to great
1. Good to Great
-Jim Collins
âGood is the Enemy of the Greatâ
Summary: Golden Kumar
2. Level 5 leadership
LV5-
Executive
LV4-Effective
Leader
LV-3Competent
Manager
LV2-Contributing Team
Manager
LV 1 -Highly capable Individual
Builds enduring greatness through a paradoxical
blend of personal humility and professional will
Catalyses commitment to and vigorous pursuit of
clear compelling vision stimulating higher
performance standards
Organizes people and resources toward
the effective and efficient purist of
predetermined objectives
Contributes individuals capabilities
to the achievement of group
objectives and works
Makes productive contributes
through talent, knowledge,
skills,& good work habits.
âLv5 leaders are incredibly ambitious âbut their ambition is first
for the institution ,not themselvesâ
3. Humility + Will = Level 5
âGood to great leaders seemingly ordinary people but quietly they producing extraordinary resultsâ
Professional will
âą Creates superb results, a clear catalyst in the
Transition from good to great
âą Demonstrates an unwavering resolve to do
whatever must be done to produce the best
long term results , no matter how difficult.
âą Set the standard of building an enduring great
company: will settle for nothing less
âą Looks in the mirror , not out the window ,to apportion
Responsibility for poor results, never blaming other people
External factors ,or bad luck.
Personal humility
âą Demonstrates a compelling modesty's shunning public
adulation: never boastful.
âą Acts with quiet, calm determination: relies principally on
inspired standards, not inspiring charisma ,to motivate
âą Channels ambition into the company , not the self :sets
Up successors for even greater success in the generation.
âą Looks out the window , not in the mirror , to apportion
credit for the success of the company-to other people ,
external factors , and good luck.
4. FIRST WHOâŠ.THEN WHAT
The first job of the leaders to:
Get first right people on the busâŠ
and wrong people off the busâŠ.
Lv5 management team
(good to great companies)
LV 5 Leader
First Who
Get right people on the bus .
Build a superior executive Team
Then What
Once you have the right people in place,
figure out the best path to greatness
A genius with a
thousand helpers
(Comparison Companies)
LV 4 Leader
First What
Set a vision for where to
drive the bus ,Develop a road
map for driving the bus
Then What
Enlist a crew of highly
capable
helpers to make the vision
5. Three key practical disciplines from the research for being rigorous rather than ruthless:
âą When in doubt ,donât hire âkeep looking
Those who build great companies understand that the ultimate throttle on growth for great company is not mistakes,
or technology, or competition ,or products .it is one Thing all above all others :the ability to get and keep
enough of the right people
âą When you know you need to make people change act
The good to great companies showed the following bipolar pattern at the top management level: people
Either stayed on the bus for a long time or get off the bus in a hurry , In other words , the good to great
companies did not churn more, they churned better. And it might take time to know for certain if someone
simply Sit in the wrong seat or whether he needs to get off the bus altogether .Nonetheless, when the good to
great Leaders knew they had to make a people change, they would act.
âą Put your best people on your biggest opportunities ,not your biggest problems.
There is an important corollary to the discipline: when you decide to settle off your problems ,donât
sell off your best people. This is one of those little secrets of change. If you create a place where the best
people always have a seat on bus , they're more likely to support change in direction.
6. CONFRONT THE BRUTAL FACTS (YET NEVER LOSE FAITH)
âThere Is No Worse Mistake In Public Leadership than to hold out false hopes to be swept awayâ -Winston S, Churchill
A CLIMATE WHERE THE TRUTH IS HEARD
leadership about vision . But leadership is equally about creating a climate where the truth is heard and brutal facts
confronted, There's a huge difference between the opportunity to âhave you sayâ and the opportunity to be heard,
The good to great leaders understood this distinction, creating a culture wherein people had a tremendous opportunity
to be heard and ultimately for the truth to be heard.
1.Lead with questions , not answers
Leading from good to great does not mean coming up with the answers then motivating everyone to follow messianic
Vision.it means having the humility to grasp the fact that you do not yet understand enough to have the answers and to ask
the questions that will lead to best possible insights.
2.Engage in dialogue and debate , not coercion.
All the good to great companies had a penchant for intense dialogue .phrases like âloud debateâ âheat discussionsâ
âhealthy conflictâ peppered the articles and interview transcripts from all the companies .they didnât use discussion as a
Sham process to let people âhave their sayâ so they could â buy inâ to a predetermined decision. The process was more like a
Heated scientific debate, with people engaged in a search for the best answers.
7. CONFRONT THE BRUTAL FACTS (YET NEVER LOSE FAITH)
3.Conduct auto spies, without blame.
âI will take responsibility for this bad decision. But we will all take responsibility for extracting the maximum
learning from the tuition we've paidâ-Joe Cullman
when you conduct autopsies without blame, you go a long way toward creating a climate where the truth is heard.
If you have the right people on the bus , you should almost never need to assign blame but need only for
understanding and learning.
4.Build âred flagâ mechanism.
Indeed . We found no evidence that the good to great companies had more or better information than the
comparison companies. None both sets of companies had virtually identical access to good information . Into
information that cannot be ignored.
Collinâs coined the phrase âred flag mechanismâ. The red flag is a structure that helps leaders avoid serious
missteps by empowering people on their teams to raise issues, problems, challenges, etc. immediately.
8. Every good-to-great company embraced what we came to call the "Stockdale Paradox":
you must maintain unwavering faith that you can and will prevail in the end, regardless of the difficulties,
and
at the same time, have the discipline to confront the most brutal facts of your current reality, whatever
they might be.
The good to great leaders were able to strip away so much noise and clutter and just focus on the few things
that would have the greatest impact, they were able to so in large part because they operated from both
sides of Stockdale paradox, never letting one side overshadow the other.
The Stockdale Paradox
9. Hedgehog concept
âThe fox knows many things , but the hedgehog knows one big thing.â
KNOW YOURSELF- Plato
Hedgehogs are not stupid, quite the contrary. They understand that the essence of
profound insight is simplicity. What could be more then â = đđ2
?what could be
simpler then the idea of the unconscious , organized into an ego or superego?
What could be the hedge hogs are simpletons: they have a piercing insight that
allows them to see through complexity and discern underlying patterns. Hedgehogs
see what is essential ,and ignore the rest.
Those who built the good to great companies were, to one degree or another , hedgehogs. They used their hedge hog
nature to drive toward what we came to call a hedgehog concept for their companies, Those who led comparison
companies tended to be foxes , never gaining the clarifying advantage of a hedgehog concept, being scattered , diffused ,
And inconsistent
10. What you deeply
PASSIONATE
ABOUT
What drives
your
ECONOMIC
ENGINE
What you
CAN THE
BEST IN THE
WORLD at
What you CAN THE BEST IN THE WORLD at This discerning
standard goes far beyond core competence. Just because you
possess a core competence doesn't necessarily mean you can
Be the best in the world at it. conversely ,What you can be the
best at might not even be something in which you are currently
engaged.
What drives your ECONOMIC ENGINE
All the god to great companies attained piercing insight into
how to most effectively generate sustained and robust cash flow
and profitability.
What you deeply PASSIONATE ABOUT
The good to great companies focused on those activities that
Ignited their passion. The idea here is not to stimulate passion
but to discover what makes you passionate.
Three circles of Hedgehog concept
11. To go from good to great transcending the curse of competence.it requires the discipline to say , âjust because
We are good at it- just because were making money and generating growth â doesn't necessarily mean we can
become the Best at it "the good to great companies understand that doing what you are good at will only make
you good: focussing Solely on what you can potentially do better than any other organization is the only path
to greatness.
Each good to great company built a fabulous economic engine, regardless of the industry .they were able to
do this because they attained profound insights into the economics.
The good to great companies did not say, âokay , folks ,lets passionate about what we do.â sensibly they went the
other way entirely: we should only do those things that we can get passionate about, Kimberly- Clark executives
made the shift to paper based consumer products in large part they could get more passionate about them. As
one executive put it, the traditional paper products are okay, âBut they just donât have the charisma of a diaperâ
âGrowthâ is not a hedgehog concept. Rather ,if you have the right hedgehog concept and make decisions relentlessly
Consistent with it, you will create such momentum that your main problem will not be how to grow, but how not
To grow too fast.
12. The
council
Ask questions by
the three circles
Dialogue and debate
guided by the three
circles
Executive decisions,
guided by the three
circles
Autopsies and analysis
guided by the three
circles
Getting Hedge Hog Concept An Iterative Process
13. CULTURE OF DISCIPLINE
âFreedom is only part of the story and half the truthâŠ. That is why I recommend that the statue of liberty on
the east cost be supplanted by a statue of responsibility on the west coastâ â VIKTOR E.FRANKL
Hierarchical
Organization
Great
Organization
Bureaucratic
Organization
Start -Up
Organization
High
Low
Culture of discipline
Low High
Ethic of enterprises
Good To Great Matrix Of Creative Discipline
Build a culture around the idea of freedom
and responsibility with in a framework
Fill that culture with disciplined people who
are willing to go to extreme length's to fulfil
Their responsibilities.
Donât confuse a culture of discipline with a
tyrannical discipline
Adhere with great consistency to the hedgehog
concept, excising an almost religious focus on
The intersection of the three circles.
14. Freedom (And Responsibility)within A Framework
The good to great companies build a consistent with clear constraints, but they also gave people freedom and
responsibility within the frame work of that system. they hired self disciplined people who didnât need to be
managed, and then managed the system , not the people.
BUILD UP
Disciplined
People
Disciplined
Thought
Disciplined
Action
RINSING YOUR COTTAGE CHESSE
15. Everyone would like to be the best, but most organizations lack the discipline to figure out with egoless clarity
what they can be the at and the will to do whatever it takes to turn that potential into reality. They lack the discipline
to rinse their cottage cheese.
A CULTURE , NOT A TYRANT
A Spectacular rise under tyrannical disciplinarian, followed by an equally spectacular decline when the
disciplinarian stepped away, leaving behind no enduring culture of discipline, or when the disciplinarian
himself became undisciplined and stayed wantonly outside the three circles (silde:10). Yes, discipline is
essential for great results, but disciplines action without a disciplined understanding of the circles
cannot produce sustained great results.
Whereas the good to great companies had level 5 leaders who build an enduring culture of discipline. The
Un-sustained comparisons had level 4 leaders who personally disciplined the organization through sheer force.
16. Fanatical adherence to The HEDGEHOG CONCEPT
The good to great companies at their best followed a simple mantra: âAnything that does not fit with our
hedgehog concept ,We will not do. We will not launch unrelated businesses. We will not make unrelated
acquisitions. We will not do unrelated joint ventures. If it doesn't fit. We don't do it. Periodâ
It take discipline to say âNo, thank youâ to big opportunities. The fact that something is a
âOnce in a lifetime, opportunityâ is irrelevant if it doesn't fit within the three circles.
Passion for eliminating class distinctions.
And creating an egalitarian meritocracy,
that alliance management ,labor and
financial interests.
Economic denominator of profit
per ton of finished steel.
Could become the best in the world at
harnessing culture and technology to
produce low cost steel.
Nucor's three circle
1970 - 1995
17. ï¶ Culture of discipline is not just about action. It is about getting disciplined
people who engage In discipline taught and who then take disciplined action.
ï¶ Do not confuse a culture of discipline with the tyrant who disciplines they are
very different concepts ,one highly functional ,the other highly dysfunctional.
Saviour CEOs who personally disciplined through sheer force of personality,
usually failed to produce sustained results.
ï¶ The single most important form of discipline for sustained result is fanatical
adherence to the hedgehog concept and willingness to shun opportunities
that fall outside the three circles.
ï¶ The more an organization has the discipline to stay within its three circles, It
almost religious consistency ,The more it will have opportunities for growth.
ï¶ âStop doingâ list or more important than âTo Doâ List.
KEYPOINTS- Culture of Discipline
18. How do good to great organizations think differently about technology?
Hedgehog Concept Example: Walgreens
From 1975 to 2000, Walgreens delivered stock returns 15x the general market return, dwarfing the performance of
Eckerd, its comparison company.
Walgreensâs resurgence was fuelled by an utterly simple concept: to build the most convenient drugstores with
the highest profit per customer visit in the industry.
Once the concept had been determined, it was just a matter of doing whatever it took to serve the concept: building
stores on corners rather than midblock, clustering stores in high-traffic areas, providing drive-through pharmacy
services, and adding highly profitable services like one-hour photo development.
Eckerd, meanwhile, had no unifying concept for growth. It made sporadic deals to acquire stores in discrete areas,
and even tried getting into the home-video industry by purchasing American Home Video Corporation (a move that
resulted in a $31 million loss). Twenty years after that ill-starred purchase, Walgreens was sustaining its stellar
performanceâand Eckerd no longer existed as an independent company.
19. Technology as an accelerator ,Not a creator of momentum
To make technology productive in a transformation from good to great means asking the following questions.
âą Des the technology fit directly with your hedgehog concept?
If yes, then you need to become a pioneer in the application of that technology. If no then ask do you need
this technology at all? If yes then you need is parity(You donât necessarily need the world's most advanced
phone system to be a great company) if no then the technology is irreverent and you can ignore it.
The idea that technological change is the principal cause of the decline of
once-great companies is not supported by the evidence. certainly, a company
cant remain a laggard and hope to be great but technology itself is never a
primary root cause of either greatness or decline
Boeing did not pioneer the commercial jet. De Havilland did with the comet,
but lost ground when one of its early jets exploded in mid air ,not exactly a
brand building moment. Boing slower to market invested in the making safest
most reliable jets and dominated the airways more than three decades
20. The good to great transformations never happened in one fell swoop
There is no single defining action ,no grand program ,no more killer
Innovation, no solitary lucky break ,no wrenching revolution.
good to great comes about by cumulative process step by step ,
action by action ,decision by decision ,turn by turn of the flywheel
Thatâs add up to sustained and spectacular results.
Some companies would get more coverage after they become
widely successful what's so important about that?
they allowed the way transitions from the outside to drive
our perception of what they must feel look like to those going through
them on the inside. From the outside, they look
like dramatic Almost revolutionary breakthroughs. but from inside they
feel different more like an organic development process.
22. Disappointing
Results
No build up No
accumulated
Momentum
New Direction Program
,Leader, Event, Fad And
Acquisition
Reaction Without
Understanding
The comparison companies followed a different
pattern, the Doom Loop. Rather than accumulating
momentum turn by turn off the flywheel. They
tried to skip build up and jump immediately to the
breakthrough, then with the disappointing results,
they'd lurch back and forth, failing to maintain a
consistent direction.
Why did the good to great companies have a
sustainability higher success rate with
acquisitions Especially major acquisitions? The
key to their success was there because of
conditions. Generally took place after the
development of the hedgehog concept and after
the flywheel had built significant momentum.
They used positions as an accelerator of flywheel
momentum, not the creator of it.
23. Conclusions:
1.When I consider the entering. Great companies from built to last. I now see substantial evidence that their
yearly leaders followed the good to the great framework. The only real difference is that they did so as
entrepreneurs in small early-stage enterprises trying to get off the ground rather than as she was trying to
transform established companies from good to great.
2. In an ironic twist, I now see good to great not as a sequel to build last, but this prequel applies the finding in
the books to create sustained great results as a start-up or an established organization and then apply the
findings in built to last to go from the great results to an enduring Great company.
3. To make the shift from a company with sustained great results to an enduring great company of iconic
stature. apply the central concept from built last. Discover your core values and purpose beyond just making
money. Campaign this with the dynamic of pressure. The core/ stimulate process.
4. A tremendous resonance exists between the two studies. The ideas from each, enrich and inform the ideas in
each other, in particular, good to great answers A fundamental question raised but not answered is Built To Last:
What is the difference between a good BHAG (Big Hairy, Audacious Goal) and a bad BHAG
24. Enduring great companies preserve their core values and purpose while their business strategies and operating
practices endlessly adapt to a changing world. This is the magical combination of " Preserve the core and stimulate
progress".
Dirty Phony Places Run By Tough-looking People
PRESERVE
Core values
Core purposes
CHANGE
Cultural& Operating Practices
Specific Goals &Strategies
PRESERVE
Passion for creative imagination
Fanatic attention to detail
Abhorrence of cynicism
The âDisney Magicâ
CHANGE
1920s: cartoons
1930s:full length feature animation
1950s: television mickey mouse club
1960s: theme parks
1980s:international
1990s: cruise line
Walt Disney 1920-1990