Good to Great@company analysis. Review on Good To Great - Jim Collins

Good is the enemy of great.

We don’t have great school,great government,great company primarily because we have good school,good government and so on.the vast majority of the company had never became a good company because precisely they were quite good-and that was the main problem. We all just get satisfied by being good then to achieve greatness.

Jim colins in this book describe about what was the main reason that great company stand apart good ones.

He along with his group of researcher dwell into this vividly search for what distinguish the good companies with the great one. The study began with a field of 1,435 companies(all selected from fortune 500 list as far back from 1965)again they deduce that in 126 companies (base on ten year returns to investors)then choose 19 companies(based onindustry analysis) and emerged with a list of 11 good-to-great companies(most of the big names such as Pepsi,kellog,Coca Cola were omitted from the simple basic assumption that they these company had demonstrated relative shift with that of the industry specific the end result was Abbott Laboratories(health care,hospital nutritional and diagnostics), Circuit City(leader in retail outlet), Fannie Mae(best player in capital mortgage), Gillette Co.(razor co deal with sophisticated manufacturing technology), Kimberly-Clark Corp.(paper base company), the Kroger Co.(super combo chains), Nucor Corp(steel co)., Philip Morris Cos. Inc.(cigarette co), Pitney Bowes Inc.(office automation equipment), Walgreens(drug co), and Wells Fargo(banking).

The main criteria was

“15 yrs cumulative stock returns at par or below the general stock market, punctuated by a transition point, then cumulative returns at least 3 times the market over the next 15 yrs along with the independence of the industry”

whats inside the black box?

What is that distinguish a good to great company with that of Comparison Company or the unsustained companies. Its same as we want to to study what makes gold medal winner in the Olympic games. If we only study the gold medal winner by themselves you will find that they all have coaches but if you looked at the athellete that made the Olympic company but never won a medal you did find that they also had coaches.The key question here is what distinguish the gold medal winner to that with people who never won a medal?

This book deals with different concept such disciplined people, disciplined thought and disciplined action. Good to Great company have people who are great leader who live for the company rather then for themselves, they are simple people with a vision of greatness. This people drive the company to greatness with various entity such as the hedgehog concept, don’t do it list and the flywheel concept.

Hat’s up to the great people and the great organization culture that made some of the unsung companies in the world to achieve greatness.