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1www.exploreHR.org
Creating Good-to-GREAT
Company
2www.exploreHR.org
You can download these
excellent slides at :
www.HR-Management-Slides.com
3www.exploreHR.org
Six Key Elements of
Good to Great Company
4www.exploreHR.org
Element 1 :
Level 5 Leadership
5www.exploreHR.org
Element 2 :
First Who…..then What
6www.exploreHR.org
Element 3 :
Confront the Brutal Facts
(Yet Never Lose Faith)
7www.exploreHR.org
Element 4 :
The Hedgehog Concept
8www.exploreHR.org
Element 5 :
A Culture of
Discipline
9www.exploreHR.org
Element 6:
Technology
Accelerators
10www.exploreHR.org
Element 1:
Level 5 Leadership
11www.exploreHR.org
Level 5: Good-to-Great Leader
Level 4: Effective Leader
Level 3: Competent Manager
Level 2: Contributing Team Member
Level 1: Highly Capable Individual
Level 5 Leadership
12www.exploreHR.org
Level 5 leaders display a
compelling modesty, are self-
effacing and understated.
13www.exploreHR.org
In contrast, two thirds of the
comparison companies had
leaders with gargantuan
personal egos that contributed
to the demise or continued
mediocrity of the company
14www.exploreHR.org
Level 5 leaders are fanatically driven,
infected with an incurable need to
produce sustained results.
15www.exploreHR.org
Element 2:
First Who…Then What
16www.exploreHR.org
The good-to-great leaders began the
transformation by first getting the right
people on the bus (and the wrong
people off the bus) and then figured out
where to drive it
17www.exploreHR.org
The key point of
this element is
not just the idea
of getting the
right people on
the team.
18www.exploreHR.org
The key point is that "who" questions
come before "what" decisions—
before vision, before strategy, before
organization structure, before tactics.
First who, then what — as a
rigorous discipline, consistently
applied.
19www.exploreHR.org
Element 3:
Confront the Brutal Fact
20www.exploreHR.org
All good-to-great companies began
the process finding a path to
greatness by confronting the
brutal facts of their current reality
21www.exploreHR.org
A key psychology for leading from good to great is the
Stockdale Paradox : Retain absolute faith that you
can and will prevail in the end, regardless of the
difficulties, and at the same time confront the most
brutal facts of your current reality,
whatever they might be.
22www.exploreHR.org
A primary task in taking a company from
good to great is to create a culture wherein
people have a tremendous opportunity
to be heard and, ultimately,
for the truth to
be heard
23www.exploreHR.org
Element 4:
Hedgehog Concept
24www.exploreHR.org
The good-to-great companies are more like
hedgehogs — simple, dowdy creatures that
know "one big thing" and stick to it. The
comparison companies are more like foxes —
crafty, cunning creatures that know many things
yet lack consistency.
25www.exploreHR.org
It took four years on average for the
good-to-great companies to get a
Hedgehog Concept.
26www.exploreHR.org
You absolutely do not need to be in a
great industry to produce sustained
great results. No matter how bad the
industry, every good-to-great
company figured out how to produce
truly superior economic returns.
27www.exploreHR.org
Element 5:
A Culture of Discipline
28www.exploreHR.org
The good-to-great companies
appear boring and pedestrian
looking in from the outside,
but upon closer inspection,
they're full of people who
display extreme diligence
and a stunning intensity
29www.exploreHR.org
A culture of discipline is
not just about action. It is
about getting disciplined
people who engage in
disciplined thought and
who then take
disciplined action.
30www.exploreHR.org
A culture of discipline
involves a duality. On the
one hand, it requires
people who adhere to a
consistent system; yet,
on the other hand, it gives
people freedom and
responsibility within the
framework of that system.
31www.exploreHR.org
Element 6:
Technology Accelerators
32www.exploreHR.org
The key question about any technology is:
does the technology fit directly with your
Hedgehog Concept? If yes, then you need
to become a pioneer in the application of
that technology. If no, then you can settle
for parity or ignore it entirely.
33www.exploreHR.org
The good-to-great companies used
technology as an accelerator of
momentum, not a creator of it.
None of the good-to-great
companies began their
transformations with pioneering
technology, yet they all became
pioneers in the application of
technology once they grasped how
it fit with their strategies.
34www.exploreHR.org
Source of Reference:
Jim Collins, Good to Great : Why Some Companies Make
the Leap…and Others Don’t, Harper Business

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