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Good to Great

Buildup Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts
Buildup
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Concept
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

Good to Great

Buildup Level 5 Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Leadership Then
Buildup
Level 5
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Leadership
Then What
Brutal Facts
Concept
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

Level 5 Leadership

5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
5–Level 5 Executive
4–Effective Leader
3–Competent Manager
2–Contributing Team Member
1–Highly Capable Individual

Level 5 Leadership

Leaders who employ a paradoxical mix of personal humility and professional will Set up successors for even greater success Compelling modesty, self-effacing, understated

5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
5–Level 5 Executive
4–Effective Leader
3–Competent Manager
2–Contributing Team Member
1–Highly Capable Individual

Fanatically driven to produce sustainable results More plow horse than show horse

Level 5 Leadership

5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
5–Level 5 Executive
4–Effective Leader
3–Competent Manager
2–Contributing Team Member
1–Highly Capable Individual

Attribute success to other than themselves Look in mirror and take full responsibility for poor decisions Many people have the potential to evolve into Level 5

Good to Great

Buildup First Who… Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What
Buildup
First Who…
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Then What
Brutal Facts
Concept
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

First Who

. . .

Then What

First Who . . . Then What  Leaders began the transformation by first getting the

Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).

“Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.

First Who

. . .

Then What

Leaders were rigorous, not ruthless in people decisions. Three practical disciplines for being rigorous:

When in doubt, don’t hire When you know you need to make a people decision, act

First Who . . . Then What  Leaders were rigorous, not ruthless in people decisions.

Put your best people on your best opportunities, not biggest problems

First Who

. . .

Then What

Management teams debate vigorously to find best answers, yet unify behind decisions.

First Who . . . Then What  Management teams debate vigorously to find best answers,

“Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.

Good to Great

Buildup Confront the Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What
Buildup
Confront the
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Brutal Facts
Concept
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

Confront the Brutal Facts

Confront the Brutal Facts  Setting off on the path to greatness requires confronting the brutal

Setting off on the path to greatness requires confronting the brutal facts of current reality.

Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.

Confront the Brutal Facts

Confront the Brutal Facts  Four basic practices:  Lead with questions, not answers  Engage

Four basic practices:

Lead with questions, not answers Engage in dialogue and debate, not coercion Conduct autopsies, without blame Build red flag mechanisms where information cannot be ignored

Confront the Brutal Facts

Confront the Brutal Facts  Stockdale Retain absolute faith that you can and will prevail in

Stockdale Paradox:

Retain absolute faith that you can and will prevail in the end, AND at the same time confront the most brutal facts of your current reality, whatever they might be.

Good to Great

Buildup Hedgehog Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal
Buildup
Hedgehog
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Concept
Concept
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

Hedgehog Concept

Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything. Hedgehogs see what is essential, and ignore the rest.

Hedgehog Concept  Hedgehogs simplify a complex world into a single organizing idea, a basic principle

Hedgehog Concept

The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept:

Hedgehog Concept  The Hedgehog Concept is a deep understanding of three intersecting circles translated into

What you are deeply passionate about What you can be best in the world at What drives your economic engine

Hedgehog Concept What you are deeply passionate about What you can be the best in the

Hedgehog Concept

What you are deeply passionate about What you can be the best in the world at
What you are deeply
passionate about
What you can
be the best in
the world at
What drives
your
economic
engine

Simplicity within the three circles

Hedgehog Concept

Getting the Hedgehog Concept takes an average of four years. It is an iterative process by The Council:

Hedgehog Concept  Getting the Hedgehog Concept takes an average of four years.  It is

The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles

Hedgehog Concept

All Guided by

An Iterative Process

Ask Questions

the Three

Circles

The Council
The
Council
Hedgehog Concept All Guided by An Iterative Process Ask Questions the Three The Council Executive Dialogue

Executive

Dialogue & Debate

Autopsies & Analysis

Decisions

Good to Great

Buildup Culture of Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What
Buildup
Culture of
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Concept
Discipline
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

Culture of Discipline

Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles People who “rinse their cottage cheese” Not about a tyrant who disciplines

Culture of Discipline  Getting disciplined people who engage in disciplined thought and who then take

Culture of Discipline

Culture of Discipline  Involves a duality.  Requires people who adhere to a consistent system.

Involves a duality. Requires people who adhere to a consistent system. Gives people freedom and responsibility within framework of that system.

Culture of Discipline

Includes willingness to shun opportunities that fall outside the three circles. Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.

Culture of Discipline  Includes willingness to shun opportunities that fall outside the three circles. 

“Stop doing” lists are more important than “to do” lists. “Anything that does not fit with our Hedgehog Concept, we will not do.”

Good to Great

Buildup Technology Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal
Buildup
Technology
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Concept
Discipline
Accelerators
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough

Technology Accelerators

Good-to-greats avoid technology fads and bandwagons. Yet they often become pioneers in the application of carefully selected technologies. Does it fit directly with your Hedgehog Concept? Good-to-greats used technology as an accelerator of momentum, not a creator of it.

Technology Accelerators  Good-to-greats avoid technology fads and bandwagons.  Yet they often become pioneers in

Technology Accelerators

Technology by itself is never a root cause of either greatness or decline.

Technology Accelerators  Technology by itself is never a root cause of either greatness or decline.

“Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.

Good to Great Buildup Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then
Good to Great
Buildup
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Concept
Discipline Accelerations
Disciplined People
Disciplined Thought
Disciplined Action
Flywheel
Breakthrough

The Flywheel

Good-to-great transformations never happened in one fell swoop. There was no single defining action, no grand program, no one killer innovation, no

The Flywheel  Good-to-great transformations never happened in one fell swoop.  There was no single

solitary lucky break, no miracle moment. Instead they followed a predictable pattern of buildup and breakthrough. Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at

all, but

. .

.

The Flywheel  With persistent pushing .  In a consistent direction . .  The

The Flywheel

With persistent pushing

.

In a consistent direction

.

 

.

The flywheel builds momentum

. Eventually hitting a point of breakthrough.

. .

In good-to-great companies problems of commitment, alignment, motivation, and change largely take care of themselves. Alignment follows from results and momentum, not the other way around.

Good to Great

Buildup Level 5 First Who… Confront the Hedgehog Culture of Technology Leadership Then What Brutal Facts
Buildup
Level 5
First Who…
Confront the Hedgehog
Culture of
Technology
Leadership
Then What
Brutal Facts
Concept
Discipline
Accelerators
Disciplined People
Disciplined Thought
Disciplined Action
Breakthrough