In their pursuit of unlocking the keys to greatness, Jim Collins and his 21-person research team undertook an extensive and meticulous five-year project. They diligently read and analyzed 6,000 articles, transcribed over 2,000 pages of interviews, and generated 384 megabytes of computer data. The astonishing findings from this research may surprise some readers and even upset others.
The core question that troubled Jim Collins was this: How can companies without an inherent advantage achieve enduring greatness? While his previous study, “Built to Last,” focused on companies with exceptional DNA from the outset, he now sought to understand how average or underperforming companies could transform into greatness over the long term.
To answer this question, Collins and his team set stringent benchmarks and identified a select group of elite companies that achieved remarkable results and maintained that level of performance for at least fifteen years. These “good-to-great” companies outperformed the general stock market by an average of seven times over the same period, surpassing even renowned companies like Coca-Cola, Intel, General Electric, and Merck.
The study compared the good-to-great companies with a carefully chosen set of comparison companies that failed to make the leap to greatness. The goal was to discover the distinguishing factors that led to such divergent outcomes.
The results of the study offer profound insights into various aspects of management strategy and practice. They encompass:
1. Level 5 Leaders: The research team was astounded by the type of leadership that proved essential for achieving greatness.
2. The Hedgehog Concept (Simplicity within the Three Circles): To transcend mediocrity, companies must move beyond mere competence.
3. A Culture of Discipline: Great results emerge when a culture of discipline converges with an entrepreneurial ethic.
4. Technology Accelerators: Good-to-great companies adopt a unique perspective on the role of technology.
5. The Flywheel and the Doom Loop: Initiating radical change programs and wrenching restructurings typically lead to failure rather than greatness.
These findings illuminate the path to greatness, offering invaluable guidance for companies and leaders seeking to elevate their performance and achieve lasting success.
