2. THE CHALLENGE
• By defining the management study
of nineties, it has showed that
great companies triumph over time
and how long term sustained
performance can be engineered into
the DNA of an enterprise from the
beginning.
3. NOT BORN WITH GREAT DNA???
How can good companies or enterprise
or mediocre companies and even bad
companies achieve enduring
greatness?????
How do companies defy gravity and
convert long term mediocrity or worse
into long term superiority?
What are universal distinguishing
characteristics that cause a company
to Cross the THRESHOLD and take a
leap while others can’t.
4. GOOD IS THE ENEMY OF GREAT
That's the key reason why so less become
great.
It is remarkable to note so many
companies who have been utterly
unremarkable, seemingly out of no
where------ BANG.
they CLIMB ..CLIMB..CLIMB and
Then
CLIMB and just keep CLIMBING.
5. THRESHOLD
160
140
120 TRANSITION TIME
100
80
60
40
GREAT
20
General market
Direct comparsion
0
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th
6. WALGREENS
$1 INVESTED IN WALGREENS
BEAT TECH SUPERSTAR INTEL
BY NEARLY TWO TIMES.
IT BEAT GENERAL ELECTRIC
FIVE TIMES, COCA COLA BY
EIGHT TIMES, AND GENERAL
STOCK MARKET BY FIFTEEN
TIMES.
7. COMPARED TO WHAT??
THEY WERE COMPARED TO ‘DIRECT
COMPARISONS’ AND ‘UNSUSTAINED
COMPARISONS’.
QUESTION IS NOT WHAT IS COMMON
BETWEEN THEM, BUT WHAT IS THAT MADE
THIS DIFFERENCE.
GOLD MEDAL WINNERS AND LOOSERS
BOTH HAVE A COACH, BUT WHAT IS THAT
DIFFERENCE THAT MAKES ONE A WINNER?
8. INSIDE T E B ACK B
H L OX
WHAT’S
INSIDE THE
BLACK
BOX?
160
140
120
100
80
60
40
GREAT
20
General market
Direct comparsion
0
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th
9. BASIS OF RESEARCH
STRATEGY.
TECHNOLOGY.
LEADERSHIP.
INTERVIEW OF EXECUTIVES OF
TRANSITION PERIOD.
QUALITATIVE TO QUANTITATIVE ANLYSES
LOOKING AT ACQUISITION TO EXECUTIVE
COMPENSATION, FINANCIAL RATIOS TO
MANAGEMENT TURNOVER.
10. DOGS THAT DID NOT BARK
SPECIAL NOTE OF THE UNSUSTAINED
COMPARISON WHO STARTED
CLIMBING BUT COULD NOT SUSTAIN
THE CLIMB.DOGS THAT DID NOT
BARK.
‘THE ADVENTURE OF SILVER BLAZE’
SHERLOCK HOLMES.
DOGS THAT DID NOT BARK TURNED
OUT TO BE THE BEST CLUES.
11. WHAT WAS NOT FOUND
INSIDE THE BLACK BOX
LARGER THAN LIFE CELEBRITY
LEADERS WHO CAME FROM
OUTSIDE. ALL THE LEADERS WERE
FROM WITHIN THE CO.
NO SYSTEMATIC PATTERN LINKING
SPECIFIC FORMS OF EXECUTIVE
PACKAGES.
STATEGERY PER SE.
12. WHAT WAS NOT FOUND
INSIDE THE BLACK BOX
THEY DID NOT FOCUS ON WHAT TO DO INSTEAD
FOCUSED ON WHAT NOT TO DO AND WHAT TO
‘STOP DOING’.
TECH DID NOT IGNITE THE TRANSFORMATION, IT
ACCELERATED IT.
THEY PAID SCANT ATTENTION TO MANAGING
CHANGE, MOTIVATING PEOPLE AND CREATING
ALINGMENT.
NO NAME, TAG LINE, LAUNCH EVENT OR
PROGRAM SIGNIFIED THEIR TRANSFORMATION.
13. WHAT WAS NOT FOUND
INSIDE THE BLACK BOX
MERGERS AND ACQUISITIONS
PLAYED VIRTUALLY NO ROLE IN
IGNITING TRANSFORMATION.
THEY WERE NEVER BY AND
LARGE IN GREAT INDUSTRIES.
SOME WERE IN TERRIBLE
INDUSTRIES.
14. CHAOS TO CONCEPT:
‘FLYWHEEL CONCEPT’
1 ST WHO.. CONFRONT CULTURE
LEVEL 5 THE BRUTAL HEDGEHOG OF TECH
LEADERSHIP THEN WHAT FACTS CONCEPT DISCIPLINE ACCELATOR
DISCIPLINED PEOPLE DISCIPLINED THOUGHT DISCIPLINED ACTION
FLYWHEEL
15. LEVEL 5 LEADERSHIP
SELFEFFACING, QUIET,
RESERVED, SHY---
PARADOXIAL BLEND OF
PERSONAL HUMILITY AND
PROFESSIONAL WILL.
MORE LIKE LINCON AND
SOCRATES THAN PATTON OR
CEASOR.
16. FIRST WHO….. THEN WHAT
THEY DO NOT BEGIN BY SETTING A NEW
VISION OR STRATEGY.
THEY BEGIN WITH RIGHT PEOPLE ON THE
BUS, WRONG PEOPLE OFF THE BUS,
RIGHT PEOPLE IN RIGHT SEAT …...
AND THEN THEY DECIDE WHERE TO
DRIVE.
PEOPLE ARE YOUR MOST IMP ASSET.
WRONG….
RIGHT PEOPLE ARE YOUR MOST IMP
ASSET.
17. CONFRONT THE BRUTAL FACTS
(Yet never loose faith)
LESSON FROM PRISNOR OF WAR, WHAT
NO CORPORATE STRATEGY DEFINED.
STOCKDALE CONCEPT.
MAINTAIN UNWAVERING FAITH THAT YOU
CAN AND WILL PREVAIL IN THE END,
REGARDLESS OF DIFFICULTIES,
AND at the same time HAVE THE DISCIPLINE
TO CONFRONT THE MOST BRUTAL FACTS
OF YOUR CURRENT REALITIES,
WHATEVER THEY MIGHT BE.
18. HEDGEHOG CONCEPT
(Simplicity within three circles)
Greatness requires transcending the curse of
competence.
Just because something is your core
business--Just because you are doing it for
years----or even decades—does not
necessarily mean you can be best in world at it.
And if you cannot be the best in the world at
your business, then your core business
absolutely cannot form basis of a great
company.
It must be replaced with a simple concept that
ref lects deep understanding of three intersecting
circles.
19. CULTURE OF DISCIPLINE
ALL COMPANIES HAVE A CULTURE, SOME
COMPANIES HAVE DISCIPLINE, BUT FEW
COMPANIES HAVE A CULTURE OF
DISCIPLINE.
WHEN YOU HAVE DISCIPLINED PEOPLE
YOU DON’T NEED HIERARCHY.
WHEN YOU HAVE DISCIPLINED THOUGHT
YOU DON’T NEED BUREAUCRACY.
WHEN YOU HAVE DISCIPLINED ACTION
YOU DON’T NEED EXCESSIVE
CONTROL.
20. CULTURE OF DISCIPLINE
When we combine
A CULTURE OF DISCIPLINE
with
AN ETHIC OF
ENTREPRENEURSHIP,
we get the
MAGICAL ALCHEMY OF GREAT
PERFORMANCE.
21. TECHNOLOGY ACCELERATORS
Tech never the primary means
of igniting a transformation.
Yet they are pioneers in
application of carefully selected
technology.
Technology is never the root
cause of greatness or decline.
22. THE FLY WHEEL AND
DOOM LOOP
Revolution,dramatic changes,restructuring
fails to take a leap.
There is no single defining action,grand
program, no one killer innovation, no
solitary lucky break, no miracle moment.
Rather the process resembled relentlessly
pushing a giant heavy flywheel in one
direction, turn upon turn,building
momentum until a point of breakthrough,
and beyond.
23. LEVEL 5 LEADERSHIP
FIRST WHO….. THEN WHAT
CONFRONT THE BRUTAL FACTS
(Yet never loose faith)
HEDGEHOG CONCEPT
(Simplicity within three circles)
CULTURE OF DISCIPLINE
TECHNOLOGY ACCELERATORS
THE FLY WHEEL AND DOOM LOOP
