good book

1. Good to GreatGood to Great
Article by Jim CollinsArticle by Jim Collins
October 2001October 2001
Presenters:Presenters:
Samantha Bell, Brodie Pattenden,Samantha Bell, Brodie Pattenden,
JJ Machalski, Tea Taing,JJ Machalski, Tea Taing,
Kristine WiddifieldKristine Widdifield

2. AgendaAgenda
 How change doesn’t happenHow change doesn’t happen
 How change does happenHow change does happen
 Disciplined peopleDisciplined people
 Disciplined thoughtDisciplined thought
 Disciplined actionDisciplined action

3. How change doesn't happenHow change doesn't happen
The Chicken and the EggThe Chicken and the Egg

4.  No ‘miracle moment’No ‘miracle moment’
 Chicken in the egg was:Chicken in the egg was:
 EvolvingEvolving
 GrowingGrowing
 DevelopingDeveloping
 ChangingChanging
How change doesn't happenHow change doesn't happen

5. WalgreensWalgreens
 Average company for over 40 yearsAverage company for over 40 years
 1975 it began to climb, and climb and1975 it began to climb, and climb and
climbclimb
 Beat the general stock market by 15Beat the general stock market by 15
timestimes
 How do we pinpoint Walgreens’ ‘good-How do we pinpoint Walgreens’ ‘good-
to-great’ transformation?to-great’ transformation?

6. How does change happen?How does change happen?
The Flywheel EffectThe Flywheel Effect

7. How does change happen?How does change happen?
 Right now, your flywheel is at aRight now, your flywheel is at a
standstillstandstill
 Put your shoulder into it…. And push!Put your shoulder into it…. And push!
 Eventually get some forwardEventually get some forward
movement….movement….

8. How does change happen?How does change happen?
 No longer pushing aloneNo longer pushing alone
 The faster you go, the more peopleThe faster you go, the more people
you have joining youyou have joining you

9. How does change happen?How does change happen?
 Momentum starts working in your favorMomentum starts working in your favor
 Aren’t pushing any harder, but wheelAren’t pushing any harder, but wheel
keeps acceleratingkeeps accelerating
 That’s how companies make theThat’s how companies make the
transition from good to greattransition from good to great

10. How does change happen?How does change happen?
 What happens when companies don’tWhat happens when companies don’t
commit to the quiet discipline of slow,commit to the quiet discipline of slow,
progressive change?progressive change?
 They fall into…..They fall into…..
The DOOM LOOP!The DOOM LOOP!

11. How does change happen?How does change happen?
 Companies that fall into the DoomCompanies that fall into the Doom
Loop want change over nightLoop want change over night
 They bring in a new leader, who takesThey bring in a new leader, who takes
them in a new directionthem in a new direction
 See the pattern?See the pattern?

12.  1979 – Started as consumer products1979 – Started as consumer products
 1980 – Healthcare1980 – Healthcare
 1981 – Return to consumer products1981 – Return to consumer products
 1987 – Global pharmaceuticals1987 – Global pharmaceuticals
 1990’s – Return to consumer products1990’s – Return to consumer products
 2000 – Swallowed by Pfizer2000 – Swallowed by Pfizer
Walter-Lambert Co.Walter-Lambert Co.

13. How does change happen?How does change happen?
 Real people want to contribute toReal people want to contribute to
produce real resultsproduce real results
 Feel the magic of momentumFeel the magic of momentum
 That’s how change really happens….That’s how change really happens….

14. Filling the BusFilling the Bus
Disciplined PeopleDisciplined People

15.  Mediocre people equal mediocre resultsMediocre people equal mediocre results
 If you have the wrong people, nothing elseIf you have the wrong people, nothing else
mattersmatters
Disciplined PeopleDisciplined People

16. Fannie MaeFannie Mae
 14 of 26 executives “got off the bus”14 of 26 executives “got off the bus”
before good to great changesbefore good to great changes
occurred, no questions askedoccurred, no questions asked

17. Disciplined ThoughtDisciplined Thought
Fox and the HedgehogFox and the Hedgehog

18. Disciplined ThoughtDisciplined Thought
 A Greek Parable explains thatA Greek Parable explains that
 Foxes know many small thingsFoxes know many small things
 Hedgehogs know one big thingHedgehogs know one big thing

19. Disciplined ThoughtDisciplined Thought
 All good to great leaders areAll good to great leaders are
hedgehogshedgehogs
 But why?But why?
 They ask three piercing questionsThey ask three piercing questions

20. Disciplined ThoughtDisciplined Thought
 What can we be the best in the worldWhat can we be the best in the world
at?at?
 What is the economic denominatorWhat is the economic denominator
that drives cashflow?that drives cashflow?
 What are our core people passionateWhat are our core people passionate
about?about?

21. Wells FargoWells Fargo
 Initially in global bank, was mediocreInitially in global bank, was mediocre
 Switched company philosophy andSwitched company philosophy and
industryindustry
 New mantra and drive for employeesNew mantra and drive for employees
 Led to successLed to success

22. Disciplined ActionDisciplined Action
The Stop Doing ListThe Stop Doing List

23.  Good to Great leaders distinguishGood to Great leaders distinguish
themselvesthemselves
 Decide what not to doDecide what not to do
 If it doesn’t fit tightly within yourIf it doesn’t fit tightly within your
Hedgehog Concept, don’t do itHedgehog Concept, don’t do it
Disciplined ActionDisciplined Action

24.  Started in the paper mill industryStarted in the paper mill industry
 Decided to change focusDecided to change focus
 The consumer business was best forThe consumer business was best for
the companythe company
Kimberly-ClarkKimberly-Clark

25.  One magazine wroteOne magazine wrote
 ““Kimberly-Clark making the switch was aKimberly-Clark making the switch was a
dumb idea”dumb idea”
 21 years later that same magazine wrote21 years later that same magazine wrote
“as it turns out it was a smart one”“as it turns out it was a smart one”
Disciplined ActionDisciplined Action

26. ConclusionConclusion
 The Chicken and the EggThe Chicken and the Egg
 The Flywheel EffectThe Flywheel Effect
 Disciplined PeopleDisciplined People
 Filling the BusFilling the Bus
 Disciplined ThoughtDisciplined Thought
 Fox and the HedgehogFox and the Hedgehog
 Disciplined ActionDisciplined Action
 The “Stop Doing” listThe “Stop Doing” list

27. Thanks for listening!Thanks for listening!
QUESTIONS???QUESTIONS???