Good to Great:
Why some companies make the leap...
And others don’t?
Good to Great, published in March 2001 , is actually a narrative presentation of the quest of Jim Collins and his team as they conducted a research study regarding company performance which rooted from a single question: Can a good company become a great company and, if so, how?
This seed of question was planted in the mind of Collins when confronted by Bill Meehan that his book “Built to Last”, which was about “how you take a company with great results and turn it into an enduring great company of iconic stature”, is considered useless in the world of business. As pointed out by Meehan, the companies written in ...view middle of the document...
. As defined in the book, a level 5 leader is an individual who blends extreme personal humility with intense professional will. They are indeed ambitious yet their ambition is for the whole institution and not for themselves. Level 5 leaders made a complete detour in making a good company great. Instead of making a new vision and strategy, first, they have actually made it clear that people are not the most important asset but the right people are- which I cannot disagree anymore. Every organization should know very well who to keep and who to weed out. That is why I believed that the best method to use in motivating employees to work well and so to contribute to the entity’s effectiveness should be performance based methods such as Piece-rate Pay Plan and Commission Plan.
Remember, the good-to-great companies have chosen the “right” people before they acted on their strategies. Therefore, the right people need not be motivated extensively but instead, they will be self-motivated.
Another key concept that distinguishes the good-to-great companies is their culture of discipline. Yes, all organizations have different cultures, many of them have utmost discipline in the work field but what is common to the good-to-great companies is the “culture of discipline”. But same as I did, readers may ask how did the good-to-great companies achieve a culture of discipline? Well, we need to go back to the first step of the company, which was to choose the right people. The right people must be self-disciplined who didn’t need to be managed. People who are disciplined will have disciplined thoughts and disciplined actions. This is primarily coupled by transparency in their workplace where they are confronted by the brutal facts of reality and not the fantasies in the dreams of their leaders. As I have learned in my Organizational Behaviour class, a climate of openness in the workplace where truths are laid in front of the employees and unbiased decisions were made will surely lead to high satisfaction and low employee turnovers. As a follower, I too will surely discipline myself, take initiative and develop intrinsic motivation if I could see that my environment especially my leader acts in the same manner.
Good-to-great companies also adopted the Hedgehog concept. Not that they are simpletons but because they have a piercing insight that allows them to see through complexity and discern underlying patterns, Collins emphasized.
What more can we ask for from our leaders? Obviously, it would be the simple answers for complex questions and solutions to the conflicts that have arisen. Good-to-great companies work efficiently through simplicity and consistency. However, Collins and his team lacked to emphasize the importance of communication. I...