Good to Great: Why Some Companies Make the Leap... and Others Don't

Rating: 4.5/5 Stars
Rank: 16

The Challenge
Built to Last, the defining management study of the nineties, showed how great companies triumph over time and how long-term sustained performance can be engineered into the DNA of an enterprise from the verybeginning.

But what about the company that is not born with great DNA?

How can good companies, mediocre companies, even bad companies achieve enduring greatness?

The Study
For years, this question preyed on the mind of Jim Collins.

Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority?

And if so, what are the universal distinguishing characteristics that cause a company to go from good to great?

The Standards
Using tough benchmarks, Collins and his research team identified a set of elite companies that made the leap to great results and sustained those results for at least fifteen years.

How great? After the leap, the good-to-great companies generated cumulative stock returns that beat the general stock market by an average of seven times in fifteen years, better than twice the results delivered by a composite index of the world's greatest companies, including Coca-Cola, Intel, General Electric, and Merck.

The Comparisons
The research team contrasted the good-to-great companies with a carefully selected set of comparison companies that failed to make the leap from good to great.

What was different? Why did one set of companies become truly great performers while the other set remained only good?

Over five years, the team analyzed the histories of all twenty-eight companies in the study.

After sifting through mountains of data and thousands of pages of interviews, Collins and his crew discovered the key determinants of greatness -- why some companies make the leap and others don't.

The Findings
The findings of the Good to Great study will surprise many readers and shed light on virtually every area of management strategy and practice.

The findings include:

• Level 5 Leaders: The research team was shocked to discover the type of leadership required to achieve greatness.
• The Hedgehog Concept (Simplicity within the Three Circles): To go from good to great requires transcending the curse of competence.
• A Culture of Discipline: When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great results.
  
  Technology Accelerators: Good-to-great companies think differently about the role of technology.
• The Flywheel and the Doom Loop: Those who launch radical change programs and wrenching restructurings will almost certainly fail to make the leap.

“Some of the key concepts discerned in the study,” comments Jim Collins, "fly in the face of our modern business culture and will, quite frankly, upset some people.”

Perhaps, but who can afford to ignore these findings?

About the Author

Driven by a relentless curiosity, Jim began his research and teaching career on the faculty at Stanford Graduate School of Business, where he received the Distinguished Teaching Award in 1992.In 1995, he founded a management laboratory in Boulder, Colorado, where he now conducts multi-year research projects and works with executives from the private, public, and social sectors.

Jim has served as a teacher to senior executives and CEOs at corporations that include: Starbucks Coffee, Merck, Patagonia, American General, W.L.

Gore, and hundreds more.He has also worked with the non-corporate sector such as the Leadership Network of Churches, Johns Hopkins Medical School, the Boys & Girls Clubs of America and The Peter F. Drucker Foundation for Non-Profit Management.

Jim invests a significant portion of his energy in large-scale research projects -- often five or more years in duration -- to develop fundamental insights and then translate those findings into books, articles and lectures.He uses his management laboratory to work directly with executives and to develop practical tools for applying the concepts that flow from his research.

In addition, Jim is an avid rock climber and has made free ascents of the West Face of El Capitan and the East Face of Washington Column in Yosemite Valley.

Editorials

	From Publishers Weekly
	In what Collins terms a prequel to the bestseller Built to Last he wrote with Jerry Porras, this worthwhile effort explores the way good organizations can be turned into ones that produce great, sustained results. To find... read full editorial
	From Booklist
	Collins is coauthor of Built to Last: Successful Habits of Visionary Companies (1994), the widely heralded book that was the result of a six-year research project conducted by Collins and Jerry Porras. They identified... read full editorial
	Business Week
	One of the top ten business books of 2001

Customer Reviews

	Research-Based Principles for Success
	(San Diego, CA United States) January 24, 2003 - 5.0/5 stars
	I don't work in a big corporation... I run my own business. Yet, I am a student and raving fan of Jim Collins' corporate studies. I'll tell you why.The previous book, "Built to Last," was good, but... read full review
	The best companie book already wrote
	(Sao Paulo, Brazil) March 27, 2002 - 5.0/5 stars
	Here in Brazil I bought one exemplar, read and bought another 4 to my partners. All of the bookstories has the book on front of the storie to seel. There were the most deep and real research already made about companies... read full review
	From normal to lucky
	(Silver Spring, MD United States) April 23, 2004 - 2.0/5 stars
	Jim Collins is trying to find the characteristics of what makes a good company a great company. His findings are supported by an extensive analysis of 1,435 companies for a period of 30 years. He uses a scientific approach... read full review

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