Good to Great

Buildup
Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action

Good to Great

Buildup

Level 5 First Who Level 5 Leadership LeadershipThen What

Disciplined People

Confront the Hedgehog Culture of Technology Brutal Facts Concept Discipline Accelerators Disciplined Thought Disciplined Action

Level 5 Leadership

5Level 5 Executive 4Effective Leader 3Competent Manager 2Contributing Team Member

1Highly Capable Individual

Level 5 Leadership
Leaders who employ a paradoxical mix of personal humility and professional will Set up successors for even greater success Compelling modesty, self-effacing, understated 5Level 5 Executive Fanatically driven to 4Effective Leader produce sustainable results 3Competent Manager More plow horse than2Contributing Team Member show horse
1Highly Capable Individual

Level 5 Leadership
Attribute success to other than themselves 5Level 5 Executive Look in mirror and take full responsibility 4Effective Leader for poor decisions 3Competent Manager Many people have the 2Contributing Team Member potential to evolve 1Highly Capable Individual into Level 5

Good to Great

Buildup
Level 5 First Who First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerators Then What Disciplined People Disciplined Thought Disciplined Action

First Who . . . Then What

Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).

Who questions came before what decisions - before vision, strategy, organization structure, and tactics.

First Who . . . Then What

Leaders were rigorous, not ruthless in people decisions. Three practical disciplines for being rigorous: When in doubt, dont hire When you know you need to make a people decision, act Put your best people on your best opportunities, not biggest problems

First Who . . . Then What

Management teams debate vigorously to find best answers, yet unify behind decisions. Right person has more to do with character traits and innate capabilities than with knowledge, background, or skills.

Good to Great

Buildup

Confront the Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What BrutalFacts Concept Discipline Accelerators Brutal Facts Disciplined People Disciplined Thought Disciplined Action

Confront the Brutal Facts

Setting off on the path to greatness requires confronting the brutal facts of current reality. Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.

Confront the Brutal Facts

Four basic practices: Lead with questions, not answers Engage in dialogue and debate, not coercion Conduct autopsies, without blame Build red flag mechanisms where information cannot be ignored

Confront the Brutal Facts

Stockdale Paradox: Retain absolute faith that you can and will prevail in the end, AND at the same time confront the most brutal facts of your current reality, whatever they might be.

Good to Great

Buildup

Hedgehog Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal FactsConcept Discipline Accelerators Concept Disciplined People Disciplined Thought Disciplined Action

Hedgehog Concept
Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything. Hedgehogs see what is essential, and ignore the rest.

Hedgehog Concept
The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept: What you are deeply passionate about What you can be best in the world at What drives your economic engine

Hedgehog Concept
Simplicity within the three circles

What you are deeply passionate about

What you can be the best in the world at

What drives your economic engine

Hedgehog Concept
Getting the Hedgehog Concept takes an average of four years.

It is an iterative process by The Council:

The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles

Hedgehog Concept
All Guided by the Three Circles Ask Questions An Iterative Process

Autopsies & Analysis

The Council

Dialogue & Debate

Executive Decisions

Good to Great

Buildup

Culture of Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action

Culture of Discipline
Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles People who rinse their cottage cheese Not about a tyrant who disciplines

Culture of Discipline
Involves a duality. Requires people who adhere to a consistent system. Gives people freedom and responsibility within framework of that system.

Culture of Discipline
Includes willingness to shun opportunities that fall outside the three circles. Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all. Stop doing lists are more important than to do lists. Anything that does not fit with our Hedgehog Concept, we will not do.

Good to Great

Buildup

Technology Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerators Accelerators Disciplined People Disciplined Thought Disciplined Action

Technology Accelerators
Good-to-greats avoid technology fads and bandwagons. Yet they often become pioneers in the application of carefully selected technologies. Does it fit directly with your Hedgehog Concept? Good-to-greats used technology as an accelerator of momentum, not a creator of it.

Technology Accelerators
Technology by itself is never a root cause of either greatness or decline. Crawl, walk, run can be a very effective approach, even during times of rapid and radical technological change.

Good to Great

Buildup
Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerations Disciplined People Disciplined Thought Disciplined Action

Flywheel

The Flywheel
Good-to-great transformations never happened in one fell swoop. There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Instead they followed a predictable pattern of buildup and breakthrough. Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .

The Flywheel
With persistent pushing . . . In a consistent direction . . . Over a long period of time . . . The flywheel builds momentum . . . Eventually hitting a point of breakthrough. In good-to-great companies problems of commitment, alignment, motivation, and change largely take care of themselves. Alignment follows from results and momentum, not the other way around.

Good to Great

Buildup
Level 5 First Who Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts Concept Discipline Accelerators Disciplined People Disciplined Thought Disciplined Action