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Chapter 9: From Good to Great to Built to Last - Coggle Diagram
Chapter 9: From Good to Great to Built to Last
In a truly great company, profits and cash flow become like blood and water to a healthy body
Essential for life, but they are not very point of life
Enduring great companies
Preserve their core values and purpose
Yet their business strategies and operating practices adapt to the changing world. Also, specific goals and strategies
Preserve their core concerns and stimulate progress at teh same time
BHAG
Key way to stimulate progress while preserving the core
Huge and daunting goal
Three circles
What you are passionate about
What drives your economic engine
What can you be the best in the world at
To remain greart overtime
Stay within the three circles
If we rorganized the majority of our work ime around applying these principes our lives would be simpler and our results may improve
Change specific manifestation of what's inside the three circles any given moment
From good to great to Build to last: conceptual links
Genius of AND
Level 5 leadership
Personal humility AND professional will
First Who... Then What
Right poeople on the boss AND wrong ones off
Confront the Brutal Facts (Stockdale Paradox)
AND retain unwavering faith will prevail in the end
Hedgehog Concept
Deep understanding AND incredible simplicity
Culture of Discipline
Freedom AND responsability
Technology Accelerators
AND pioneer its application
Flywheel, Not Doom Loop
Evolutionary, incremental AND revolutionary, dramatic results
Core Ideology
Confront the Brutal Facts (Stockdale Paradox)
Clarifies te values the company holds vs the ones it would like to hold as core
Hedgehog Concept
Passionate circle overlaps nicely with core values and purpose
Culture of Discipline
Ejects those who don't share the companies values abd standards
First Who... Then What
Selecting people more on their fit with the core values and purpose, not skills and knowledge
Level 5 leadership
Ambitious for the company and what it stands for. Sense of purpose beyond their own success
Flywheel, Not Doom Loop
Doom Loop: Impossible to instill core values and purpose
Technology Accelerators
Subservient to core values
Clock building, not time telling
Hedgehog Concept (The Three Circles)
The Council mechanism is consummate clockbuilding
Culture of Discipline
Enduring culture of discipline is clock building
Confront the Brutal Facts (Stockdale Paradox)
Where the thruth is heard is clock building
First Who... Then What
First Who is clock building
Level 5 leadership
Company that can tick without them
Technology Accelerators
Key part of the clock
Flywheel, Not Doom Loop
Creates the sustained building of momentum
Preserve the Core/Stimulate Progress
Confront the Brutal Facts (Stockdale Paradox)
Clarifies what must be done
First Who... Then What
Bias for promoting from within
Hedgehog Concept
Good BHAGs flow from understanding while bad BHAGs flow from bravado
Level 5 Leadership
Relentless in stimulating progress toward tangible results and achievement
Culture of Discipline
Give people more freedom to experiment and find their best path
Technology Accelerators
Accelerate momentum in the flywheel, towardthe achievement of
BHAGs
Flywheel, Not Doom Loop
Perfect conditions forinstilling core values while stimulating changeand progress