ENTREPRENEURSHIP V

GOOD TO GREAT

F.P. PANCASILA
9 June 2022
Andreas Halim Djamwari
 COLLINS.J.;(2001)
“Good to Great”
Why some companies make the Leap
and Others don’t.
 
Good is the enemy of Great.

Good to Great does happen, there are

much about the underlying variables
that make it happen.
 Level 5 Hierarchy
Level 1. Highly Capable Individual.
Level 2. Contributing Team
Member.
Level 3. Competent Manager.
Level 4. Effective Leader.
Level 5. Executive.
 Level 5
Their ego needs away from them selves.
Their ambition is first and foremost for
the institution, not themselves.
All the good to great companies had
level 5 leadership at the time of
transition.
They are quite, humble, modest,
reserved, shy, gracious, mild-mannered,
self-effacing, understated, did not believe
First Who….and then What
There are going to be times when we
can’t wait for some body. Now,
you’re either on the bus or off the
bus.
To first to get the right people on the
bus before you figure out where to
drive it.
Once you have the right people,
First Who….and then What
No systematic pattern linking
executive compensation to the
process of going from good to great.
It is not the compensation.
People are not the most important
asset. The right people are.
How to be Rigorous
When in doubt, don’t hire , keep
looking.
When we know we need to make a
people change, act.
Put the best people on the biggest
opportunities, not the biggest
problems.
How to be Rigorous
The best people always have a seat
on the bus, they’re more likely to
support changes in direction.

Great company is linked to great

life.
Climate where the truth is
heard
Lead with questions not answers.

Engage in dialogue and debate, not

coercion.

Conduct autopsies, without blame.

Build “ red flag” mechanism.

Confront the brutal facts
1. Started by confronting the brutal
facts.
2. Create a culture people have a
tremendous opportunity to be
heard.
3. Hit the reality of their situation
head on.
Confront the brutal facts
4. Retain absolutely regardless of the
difficulties, and confront the most
brutal facts of the current reality.
5. Leadership begins with getting
people to confront the brutal facts
and to act on the implication.
6. If we have the right people they
will be self motivated.
Climate where the truth is
heard
Life is unfair, sometimes to our
advantage, sometimes to our
disadvantage.
We will all experiences
disappointments and crushing
events some where along the way.
No reason no one to blame.
The Hedgehog Concept
The Hedgehog and the Fox.
The Fox knows many things but the
Hedgehog knows one big thing.
The Fox see the world in all in
complexity.
The Hedgehog simplify a complex
world into a single organizing idea.
The Hedgehog Concept
The Hedgehog took a simple
concept and implemented it with
fanatical consistency.
Examples:
WALGREENS.
GILETTE.
ABBOTT.
PHILIP MORRIS.
 The Three Circles
1. What you can be the best in the
world at?

2. What drives your economic

engine?

3. What you are deeply passionate

about?
 A CULTURE OF
DISCIPLINE
1. Sustained great results depend
upon building a culture full of
discipline people.
2. Bureaucratic arise to compensate
incompetence. We should have the
right people.
3. It is not just about action.
4. Full of people who display
extreme diligence.
 A CULTURE OF
DISCIPLINE
5. It is not a tyrant.
6. It is adherence to Hedgehog
concept and the willingness to see
opportunities.
7. Stay within Three Cycles.
8. Stop doing list is important.
 B.H.A.G.
Big Hairy Audacious Goal.
1. What you are deeply passionate
about.
2. What you can be the best in the
world at.
3. What drive your economic
engine.
Include your core values and purpose.
Charisma Not Required
High Profile Charismatic Leader is
fine, but if not, that’s fine too.
It should be an organizational
visionary.
Profitability is a necessary
conditions. It is like oxygen,
without it there is no live.
COLLINS,J. PORRAS,
J. I.;(2001) “Built to
  Last”
Successful habits of Visionary
Companies.
 Visionary Company
Employees are indoctrinated into a
core ideology, and creating culture
so strong.
Senior management are selected
based on fit to core ideology.
Attain more consistent alignment
with core ideology in such aspects
as goals, strategy, tactics, etc.
 Visionary Company
The core value need no rational or
external justification.
Nor even do they shift in response
to the changing market conditions.
 Twelve Myths
1. It is a great idea to start a great company.
2. Visionary companies require great and
charismatic visionary leaders.
3. The most successful companies exist first and
foremost to maximize profits.
4. Visionary companies share a common subset
of correct core values.
5. The only constant is change.
6. Blue-chip companies play it safe.
7. Visionary companies are great place to work.
 Twelve Myths
8. Highly successful companies make their
best moves by brilliant and complex strategic
planning.
9. Companies should hire outside CEO s to
stimulate fundamental change.
10. The most successful companies focus
primarily on beating the competitors.
11. You can not have your cake and eat it too.
12. Companies become visionary primarily
through vision statement.
Is There a right Ideology?
No specific ideological content
essential to being a visionary
company.
Consistent alignment with the
ideology counts more than the
content of the ideology.
Conceptual Framework
The critical importance of creating
tangible mechanisms alligned to
preserve the core and stimulate
progress.
This is the essence of clock building.
Big Hairy Audacious Goals
A big hairy audacious goal, or BHAG, is a
clear and compelling target for an
organization to strive for. The term was
coined in the book “Built to Last: Successful
Habits of Visionary Companies” by Jim
Collins and Jerry Porras. A BHAG—
pronounced “bee hag”—is a long-term goal
that everyone in a company can understand
and rally behind.
 B.H.A.G.
A BHAG engage people. It reaches out
and grabs them in the gut.

It is tangible, energizing, highly focused.

People get it right away, it takes little or

no explanation.
 B.H.A.G.
SONY:
Change the image (around the world) of Japanese
products as poor in quality.

WAL-MART:
Make my little Newport store the best most profitable in
Arkansas within five years.

P&G:
Could provide steady employment by revolutionizing the
distribution system bypassing wholesalers.
 B.H.A.G.
BOEING:
Being on leading edge of aviation.------707; 747.

MERCK:
Preserving and improving human life, medicine is
for the patient. ---------Become the preeminent drug
maker worldwide, via massive R&D and new
products that cure disease.
 B.H.A.G.
The BHAGs looked more audacious
to outsiders than to insiders.
A company should be careful to
preserve its core while pursuing
BHAGs
 Visionary
Does not mean soft and
undisciplined. They have clarity
and tend to not have much room for
people unwilling or unsuited to
their demanding standard.
Evolutionary process as branching
and pruning to prosper to an ever
changing environment.
 Visionary
Evolutionary processes can be a
powerful way to stimulate progress.
Examples 3 M.
Although the invention of the Post
it note might be accidental, the
creation of the 3 M environment
that allowed it was anything but an
accident.
 Management
Discipline is the greatest thing in the
world. Where there is no discipline,
there is no character. Without Character
there is no progress.
Comfort is not the objective in a
Visionary companies. The visionary
companies install powerful mechanism
to create discomfort to stimulate change
and improvement before the external
world demands it.
 Management
Managers at the visionary
companies do not accept the
preposition that they must choose
between short term performance or
long term success. They build first
and foremost for long term while
simultaneously holding themselves
to highly demanding short term
standard.
 Management
Discipline is the greatest thing in the
world. Where there is no discipline,
there is no character. Without Character
there is no progress.
Comfort is not the objective in a
Visionary companies. The visionary
companies install powerful mechanism
to create discomfort to stimulate change
and improvement before the external
world demands it.
 Leader for CEO
Give it a try and quick. Do, Adjust,
Move and Act.
Accept that mistake will be made.
Take small step.
Give people the room they need.
Mechanism—built that tickling
clock.
 MERCK
Early 1920 GW Merck formulated
the backbone of vision:
Integrity.
Contribution to Society.
Responsibility to customers and
employees.
Unequivocal pursuit of Quality and
Excellence.
 MERCK
Early 1920: BHAG to build research capability.
Early 1930: BHAG Fully integrated pharma
company. Acquisition of Sharp & Dohme
become MSD.
Late 1970: BHAG Pre eminent drug maker
world wide.
Late 1980: BHAG Advance research in every
disease category.
Early 1990: BHAG Redefine the pharmaceutical
paradigm, acquisition of Medco to create more
of direct link with end customer.