Good to Great Good to Great Level 5 Leadership 5 ...
10/4/2012
Good to Great
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
Good to Great
Buildup
Level Level 5 5 First Who… Leadership Then What Leadership Disciplined People
Confront the Hedgehog Culture of Technology Brutal Facts Concept Discipline Accelerators Disciplined Thought
Disciplined Action
Level 5 Leadership
5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
1
10/4/2012
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 Fanatically driven to 4–Effective Leader produce sustainable results 3–Competent Manager More plow horse than2–Contributing Team Member show horse 1–Highly Capable Individual
Level 5 Leadership Attribute success to other than themselves 5–Level 5 Executive Look in mirror and take full responsibility 4–Effective Leader for poor decisions 3–Competent Manager Many people have the 2–Contributing Team Member potential to evolve 1–Highly Capable Individual into Level 5
Good to Great
Buildup Level 5 First First Who… Who… Confront the Hedgehog Culture of Technology LeadershipThen Then What WhatBrutal Facts Concept Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
2
10/4/2012
First Who . . . Then What 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 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. “Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.
3
10/4/2012
Good to Great
Buildup
Confront theHedgehog Culture of Technology Level 5 First Who… Confront the Leadership Then What BrutalFacts Facts Concept Discipline Accelerators Brutal Disciplined People
Disciplined Thought
Disciplined Action
Confront the Brutal Facts 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 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
4
10/4/2012
Confront the Brutal Facts 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 FactsConcept Concept Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
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.
5
10/4/2012
Hedgehog Concept The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept: 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 world at
Simplicity within the three circles
What drives your economic engine
Hedgehog Concept Getting the Hedgehog Concept takes an average of four years. It is an iterative process by The Council: The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles
6
10/4/2012
Hedgehog Concept All Guided by the Three Circles
An Iterative Process
Ask Questions
The Council
Autopsies & Analysis
Dialogue & Debate
Executive Decisions
Good to Great
Buildup Level 5 First Who… Confront the HedgehogCulture Culture ofofTechnology Leadership Then What Brutal Facts Concept Discipline Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
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
7
10/4/2012
Culture of Discipline 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. “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 Level 5 First Who… Confront the Hedgehog Culture ofTechnology Technology Leadership Then What Brutal Facts Concept Discipline Accelerators Accelerators Disciplined People
Disciplined Thought
Disciplined Action
8
10/4/2012
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 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 What Brutal Facts Concept Discipline Accelerations Disciplined People
Disciplined Thought
Disciplined Action
Flywheel
9
10/4/2012
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 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 . . . Over a long period of time . . . 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 Concept Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
10
Good to Great
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
Good to Great
Buildup
Level Level 5 5 First Who… Leadership Then What Leadership Disciplined People
Confront the Hedgehog Culture of Technology Brutal Facts Concept Discipline Accelerators Disciplined Thought
Disciplined Action
Level 5 Leadership
5–Level 5 Executive 4–Effective Leader 3–Competent Manager 2–Contributing Team Member 1–Highly Capable Individual
1
10/4/2012
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 Fanatically driven to 4–Effective Leader produce sustainable results 3–Competent Manager More plow horse than2–Contributing Team Member show horse 1–Highly Capable Individual
Level 5 Leadership Attribute success to other than themselves 5–Level 5 Executive Look in mirror and take full responsibility 4–Effective Leader for poor decisions 3–Competent Manager Many people have the 2–Contributing Team Member potential to evolve 1–Highly Capable Individual into Level 5
Good to Great
Buildup Level 5 First First Who… Who… Confront the Hedgehog Culture of Technology LeadershipThen Then What WhatBrutal Facts Concept Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
2
10/4/2012
First Who . . . Then What 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 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. “Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.
3
10/4/2012
Good to Great
Buildup
Confront theHedgehog Culture of Technology Level 5 First Who… Confront the Leadership Then What BrutalFacts Facts Concept Discipline Accelerators Brutal Disciplined People
Disciplined Thought
Disciplined Action
Confront the Brutal Facts 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 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
4
10/4/2012
Confront the Brutal Facts 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 FactsConcept Concept Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
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.
5
10/4/2012
Hedgehog Concept The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept: 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 world at
Simplicity within the three circles
What drives your economic engine
Hedgehog Concept Getting the Hedgehog Concept takes an average of four years. It is an iterative process by The Council: The right people Engaged in vigorous dialogue and debate Infused with the brutal facts Guided by questions formed by the three circles
6
10/4/2012
Hedgehog Concept All Guided by the Three Circles
An Iterative Process
Ask Questions
The Council
Autopsies & Analysis
Dialogue & Debate
Executive Decisions
Good to Great
Buildup Level 5 First Who… Confront the HedgehogCulture Culture ofofTechnology Leadership Then What Brutal Facts Concept Discipline Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
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
7
10/4/2012
Culture of Discipline 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. “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 Level 5 First Who… Confront the Hedgehog Culture ofTechnology Technology Leadership Then What Brutal Facts Concept Discipline Accelerators Accelerators Disciplined People
Disciplined Thought
Disciplined Action
8
10/4/2012
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 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 What Brutal Facts Concept Discipline Accelerations Disciplined People
Disciplined Thought
Disciplined Action
Flywheel
9
10/4/2012
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 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 . . . Over a long period of time . . . 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 Concept Discipline Accelerators Disciplined People
Disciplined Thought
Disciplined Action
10
