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

A good company that can transform into a great company is a hedgehog. And, good companies that fail to transform are like foxes. This time Table Note will discuss a summary review of the book Good to Great by Jim Collins: Why Some Companies Make the Leap...and Others Don't. This book discusses how an ordinary company can become a great company and managed to outperform its competitors, this information comes from the analysis of 28 companies over 30 years.

Few people manage to become great people in their lives. This is because they are too quick to settle for a comfortable life. The same is true with companies. Indeed, most businesses are doing well, but they are stuck there instead of going beyond this point. Seeing this, Jim had a simple question, Is a company in good condition can be a great company? If so, how do you do it? After doing research, Jim concluded that this was very possible, a good company can be a great company.

Table Note summarizes it into three important points from this book:

The first, Strong leadership.

Research shows that successful leaders who transform companies into greatness are not the charismatic type of leaders, but rather quiet and shy. They are leaders with a combination of humility and professionalism. Jim describes a company that wants to be great needs to have 5 levels of leadership in the organization.

These 5 levels cover from staff level to executive level.

1. At level 1 are highly competent individuals. This is the type of staff who can contribute well, have good technical skills, and a brilliant work ethic.
2. At the second level, there are team members who actively contribute. This means employees can contribute actively in a team according to their respective competencies to achieve the goals that have been set by the organization.
3. At the third level, namely competent managers. This type of manager can manage his team to achieve the goals that were predetermined effectively.
4. At the fourth level, namely the effective leader. This is where the majority of leaders can be found. They can create a commitment from their team to pursue a clear vision with gusto. They are also able to produce a team that has high performance.
5. The last one is executive-level 5. These are great leaders. They have another four-level ability coupled with a unique combination of humility and professionalism.

It is the combination of these five things that makes them great leaders. A successful company is transformed into a great company, not only have great leaders, but also the right person. Instead of having a vision, then get people to work towards that vision.

Make sure the team you have can complement each other and reflect the Company's values. So how to find that great person?

Jim provides some tips for recruiting employees.

• Prioritize good character over technical skills and educational level when recruiting. This is because you can teach new employees about technical skills and educational levels. but you don't teach people about character.
• If you have any doubts, don't recruit that person. Follow your instincts.
• If you realize that your team is not quite right, then as a leader, we have to move fast and change it.
• For employees who have good performance, give them opportunities to grow. A new company can be great if it is also filled with great employees

Second, Understand the hedgehog concept.

The hedgehog concept is an important strategy that differentiates good companies from great companies. Maybe you are curious, why a hedgehog? Yes because the hedgehog as a species simplifies things that are complicated by just one idea or concept. This simplicity is important so that everyone in the Company can think clearly. Jim told the tale of the fox and hedgehog.

This concept stems from an essay by Isaiah Berlin entitled "The Hedgehog and the Fox". This story is based on an ancient Greek parable in which he divided the world into two categories: hedgehog and fox.

Foxes are very smart creatures. He sees the world in all its complexity and can pursue multiple goals at once. In contrast, a hedgehog is a much simpler creature. The hedgehog doesn't get stuck with all the hassle.

One thing that hedgehogs can do very well is to roll themselves into a ball and its fur as sharp as thorns will protect it from predators.

Therefore, a good company that can transform into a great company is a hedgehog. And, good companies that fail to transform are likened to a fox, which is unclear and inconsistent. Good companies that become great are led by a simple unifying concept and are easily understood by all employees, resulting in an extraordinary breakthrough.

Jim describes the frame of mind if the company wants to adopt the hedgehog concept through 3 big principles: In what field can you be the best? What's your biggest passion? What's the biggest factor that generates your income?

Companies must know their best areas. To be successful, the Company must be the best in the core business they live in. Just because the Company has been in business for a long time, does not mean that the company can be the best in its field.

Therefore, need to do an evaluation and focus on the areas where it can be the best. The second is about passion. great companies don't choose an idea and encourage employees to be passionate about it. Rather, from the very beginning, they pursued their passion.

The latter is all about the biggest factor driving your income. This is important so that we can make the right decisions by the big impact on the financial side of the company.

The concept of the hedgehog is the meeting point of these three things, be the best in their field, have high passion, and focus on the biggest revenue drivers.

Third, a safe environment for opinion.

Companies can transform successfully if they're able to make a series of good decisions. Of course, these decisions usually come from facts on the ground that needs to be improved. However, not all facts sound pleasant. That is why employees hesitate to speak up about what things should be improved in the Company. To be successful in becoming a great company, a leader must be able to create a safe environment for their employees so that employees can express their opinions. Leaders must have the courage to accept the parts of the company that are not good and acknowledged that there are things that need to be improved. This requires humility from a leader to make the company grow.

Jim provides tips on how a leader can create this environment.

• Use questions, not statements. You can dig into the real issue through a series of questions until you have a clear picture of which parts need improvement.
• Use dialogue, not coercion If the discussion starts to heat up, that's fine, the important thing is to be treated with maturity and a cool head. A heated discussion may lead to useful conclusions rather than just pretending to take input to maintain the relationship.
• Don't blame. To create a safe environment, we must be able to analyze a problem, without any intention of blame. Suppose all of this is part of the lesson and focus on building a strong system to avoid the same problem in the future.

A successful company is transformed into a great company lived a long time. Supported by strong leadership and a clear vision, a Company is on the right track to transforming into a Great Company. 

Thank you for reading Good to Great Jim Collins Summary Review: Why Some Companies Make the Leap...and Others Don't, author hopes that you have a happy day.