2. 2July 2013
Good to Great
nChicken in the egg was:
Ø Evolving
Ø Growing
Ø Developing
Ø Changing
3. 3July 2013
Good to Great
n Average company for over
40 years
n 1975 it began to climb, and
climb and climb
n Beat the general stock
market by 15 times
n How do we pinpoint
Walgreens’ ‘good-to-great’
transformation?
4. 4July 2013
Good to Great
The flywheel effect
nRight now, your flywheel is at a
standstill
nPut your shoulder into it…. And
push!
nEventually get some forward
movement….
nNo longer pushing alone
HOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPENHOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPEN
5. 5July 2013
Good to Great
HOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPENHOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPEN
The flywheel effect
nThe faster you go, the more
people you have joining you
nMomentum starts working in
your favor
nAren’t pushing any harder, but
wheel keeps accelerating
nThat’s how companies make the
transition from good to great
6. 6July 2013
Good to Great
§What happens when companies
don’t commit to the quiet
discipline of slow, progressive
change?
n They fall into…..
The DOOM LOOP!
HOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPENHOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPEN
7. 7July 2013
Good to Great
§Companies that fall into the Doom
Loop want change over night
n They bring in a new leader, who takes
them in a new direction
n See the pattern?
HOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPENHOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPEN
Walter-Lambert Ca.
n1979 – Started as consumer products
n1980 – Healthcare
n1981 – Return to consumer products
n1987 – Global pharmaceuticals
n1990’s – Return to consumer products
n2000 – Swallowed by Pfizer
8. 8July 2013
Good to Great
§Real people want to
contribute to produce
real results
n Feel the magic of
momentum
n That’s how change
really happens….
HOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPENHOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPEN
9. 9July 2013
Good to Great
HOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPENHOW CHANGE DOSENHOW CHANGE DOSEN’’T HAPPENT HAPPEN
u Mediocre people equal
mediocre results
u If you have the wrong
people, nothing else
matters
Fannie Mae
14 of 26 executives “got off the bus” before
good to great changes occurred, no
questions asked
10. 10July 2013
Good to Great
Fox and the Hedgehog
DISCIPLINED THOUGHTDISCIPLINED THOUGHTDISCIPLINED THOUGHTDISCIPLINED THOUGHT
n A Greek Parable explains
that
ØFoxes know many
small things
ØHedgehogs know one
big thing
11. 11July 2013
Good to Great
n All good to great leaders are
hedgehogs
n But why : They ask three
piercing questions
DISCIPLINED THOUGHTDISCIPLINED THOUGHTDISCIPLINED THOUGHTDISCIPLINED THOUGHT
Ø What can we be the best in the world
at?
Ø What is the economic denominator
that drives cash flow?
Ø What are our core people passionate
about?
12. 12July 2013
Good to Great
Wells Fargo
n Initially in global bank,
was mediocre
n Switched company
philosophy and industry
n New mantra and drive for
employees
n Led to success
DISCIPLINED THOUGHTDISCIPLINED THOUGHTDISCIPLINED THOUGHTDISCIPLINED THOUGHT
13. 13July 2013
Good to Great
DISCIPLINED ACTIONDISCIPLINED ACTIONDISCIPLINED ACTIONDISCIPLINED ACTION
n Good to Great
leaders distinguish
themselves
n Decide what not to
do
n If it doesn’t fit
tightly within your
Hedgehog Con-
cept, don’t do it
14. 14July 2013
Good to Great
n Started in the paper mill
industry
n Decided to change focus
n The consumer business was
best for the company
DISCIPLINED ACTIONDISCIPLINED ACTIONDISCIPLINED ACTIONDISCIPLINED ACTION
n One magazine wrote
§ “Kimberly-Clark making the switch was a dumb idea”
§ 21 years later that same magazine wrote “as it turns
out it was a smart one”
15. 15July 2013
Good to Great
nChicken in the egg was:
Ø Evolving
Ø Growing
Ø Developing
Ø Changing
16. 16July 2013
Good to Great
We called for change in ‘2000
nThe plan was to become
‘Good’ and then move forward
‘Great’
We definitely failed
and got into…..
The DOOM LOOP!
17. 17July 2013
Good to Great
‘2012 we called for another change
Same plan : becoming Good
Brutal Facts
§Lack of vision
§Many small things…
§Wrong people on the bus
§Plan to change over night
Another DOOM LOOP ?
18. 18July 2013
Good to Great
We’ll probably call for another
change in ‘2017 but we’ll never
get there : becoming Good
u Mediocre people equal mediocre results
u If you have the wrong people, nothing else
matters
