Most Helpful Customer Reviews
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105 of 113 people found the following review helpful:
5.0 out of 5 stars
A book for the ages! Excellent for managers and start-ups, October 23, 2001
Jim Collins, co-author of Built To Last, has done it again! This time he spent 5 years trying to find out what differentiates good companies from great companies. This study can be applied to entrepreneurial ventures and to current corporate America. After reading this book you may see your company from a much different perspective than in the past and it may have you thinking about the effectiveness of senior managers within your company. I believe it is a book that business executives will read and keep handy for reference.This book is a study of companies that exceed their industry, the overall stock market and produce PHENOMENAL returns over a 15-year period (15 of them are very "normal" years and the next 15 years are full of explosive growth). Some key points you will take away from this book include: 1) Growth in most companies came after years and years of trying to adapt / mold a concept into something the company truly believed in. Once this happened the growth engine got going.
2) Great managers worry more about getting the right people on board and the wrong people off board BEFORE they establish a corporate stategy.
3) Most great CEOs came from within their own ranks and weren't recruited from the outside.
4) Executive compensation didn't appear to be a key driver of corporate performance
5) The respective great companies exceeded the overall stock market in creating shareholder value by at least 3x during their 15 year run measured (some for many more years). While some may say this is not much think about the steel industry and how many are filing for bankruptcy. Nucor Steel still managed to beat the S&P by more than 3x.
6) The great companies in this book blew away their comparable peer group. Wells Fargo vs. Bank of America, Kroger vs. other grocery chains, Walgreens vs. Eckerd, etc.
7) Collins describes a Level 5 leader. After reading this section I was amazed at how many CEOs I recognized as not being Level 5 leaders. This may, in the near future, shake up executive compensation plans, CEO searches and potentially affect corporate governance.
8) Technology accelerated a transformation but was regarded as a tool. It didn't define the company.
9) M&A activity played virtually no role in going from good to great. That is all I will write about the book. I could write on and on about how good this book is. Read it. It will change the way you think about business. Other very good books on the principles of business and entrepreneurship are Leading at the Speed of Growth by Catlin and Mathews and The 22 Immutable Laws of Marketing by Jack Trout and Al Ries.
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96 of 103 people found the following review helpful:
5.0 out of 5 stars
Good to Great + consistent Optimal Thinking = Best, April 20, 2004
By A Customer
This book is a fascinating read! A study taken over five years began with twenty-eight corporations and revealed eleven that had made the leap from Good to Great. From this study, I gained an instant understanding of the role of humility in leadership. The primary ambition of great leaders is focused on the success of their company, not on themselves. Collins advocates the Hedgehog Concept - a combination of discovering what you can be best in the world at (Optimal Thinking), what you are passionate about, and what drives your economic engine. Collins states that sustained disciplined action is primarily achieved by "fanatical adherence to the Hedgehog Concept and the willingness to shun opportunities that fall outside the three circles." So my question is: How do you identify the best? I recommend Optimal Thinking: How To Be Your Best Self by Dr. Rosalene Glickman as an adjunct to this powerful book to provide the mental resource to identify the best, optimize emotional and financial intelligence and create a corporate culture of optimization. From Good to Greatest to Best!"
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127 of 138 people found the following review helpful:
1.0 out of 5 stars
Neither Good Nor Great, July 30, 2008
This book by Jim Collins is one of the most successful books to be found in the "Business" section of your local megabookstore, and given how it purports to tell you how to take a merely good company and make it great, it's not difficult to see why that might be so. Collins and his crack team of researchers say they swam through stacks of business literature in search of info on how to pull this feat off, and came up with a list of great companies that illustrate some concepts central to the puzzle. They also present for each great company what they call a "comparison company," which is kind of that company with a goatee and a much less impressive earnings record. The balance of the book is spent expanding on pithy catch phrases that describe the great companies, like "First Who, Then What" or "Be a Hedgehog" or "Grasp the Flywheel, not the Doom Loop." No, no, I'm totally serious.
I've got several problems with this book, the biggest of which stem from fundamentally viewpoints on how to do research. Collin's brand of research is not my kind. It's not systematic, it's not replicable, it's not generalizable, it's not systematic, it's not free of bias, it's not model driven, and it's not collaborative. It's not, in short, scientific in any way. That's not to say that other methods of inquiry are without merit --the Harvard Business Review makes pretty darn good use of case studies, for example-- but way too often Collins's great truths seemed like square pegs crammed into round holes, because a round hole is what he wants. For example, there's no reported search for information that disconfirms his hypotheses. Are there other companies that don't make use of a Culture of Discipline (Chapter 6, natch) but yet are still great according to Collins's definition? Are there great companies that fail to do some of the things he says should make them great? The way that the book focuses strictly on pairs of great/comparison companies smacks of confirmatory information bias, which is a kink in the human mind that drives us to seek out and pay attention to information that confirms our pre-existing suppositions and ignore information that fails to support them.
Relatedly, a lot of the book's themes and platitudes strike me as owing their popularity to the same factors that make the horoscope or certain personality tests like the Myers-Briggs Type Indicator so popular: they're so general and loosely defined that almost anyone can look at that and not only say that wow, that make sense, and I've always felt the same way! This guy and me? We're geniuses! The chapter about "getting the right people on the bus" that extols the virtue of hiring really super people is perhaps the most obvious example. Really, did anyone read this part and think "Oh, man. I've been hiring half retarded chimps. THAT'S my problem! I should hire GOOD people!" Probably not, and given that Collins doesn't go into any detail about HOW to do this or any of his other good to great pro tips, I'm not really sure where the value is supposed to be.
It also irked me that Good to Great seems to try and exist in a vacuum, failing to relate its findings to any other body of research except Collins's other book, Built to Last. The most egregious example of this is early on in Chapter 2 where Collins talks about his concept of "Level 5 Leadership," which characterizes those very special folks who perch atop a supposed leadership hierarchy. The author actually goes into some detail describing Level 5 leaders, but toward the end of the chapter he just shrugs his figurative shoulders and says "But we don't know how people get to be better leaders. Some people just are." Wait, what? People in fields like Industrial-Organizational Psychology and Organizational Development have been studying, scientifically, what great leaders do and how to do it for decades. We know TONS about how to become a better leader. There are entire industries built around it. You would think that somebody on the Good to Great research team may have done a cursory Google search on this.
So while Good to Great does have some interesting thoughts and a handful of amusing or even fascinating stories to tell about the companies it profiles (I liked, for example, learning about why Walgreens opens so many shops in the same area, even to the point of having stores across the street from each other in some cities), ultimately it strikes me as vague generalities and little to no practical information about how to actually DO anything to make your company great.
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by Jim Collins
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