[Dec/2022-Archive-Feb/2022 | Business] Good to Great Notes


  • good to great companies – stock based metric
  • great companies are the ones whose stock returns are much better than “comps”

Chap2 Level-5 Leadership

  • Level 5 = Personal Humility + Professional Will
  • Window & Mirror : attribute good luck to external factors, attribute back luck to self

Chap3 First Who Then What

  • Get the right people and get rid of the wrong people
  • Rigorous not ruthless
    • When in doubt, don’t hire, keep looking
    • When you know you need to make a people change, act – best people don’t need to be tightly managed
    • Put best people on biggest opportunies, not biggest problems

Chap4 Confront the brutal facts

  • Liability of strong personality – when leader becomes what people worry about, tend to deliver weak/mediocre results
  • A climate where truth is heard
    • Lead with Qs not As
    • Engage dialogue / debate, not coercion
    • Conduct autopsies without blame
    • Build red-flag mechanisms

Chap5 Hedgehog Concept (Simplicity Within The Three Circles)

  • Hedgehog vs. Fox – hedgehog knows one big thing, fox knows many things
  • Economic Engine – Denominator
    • Change & Focus the KPI, profit per X
    • Fannie Mae – profit per risk level of mortgage not profit per mortgage
  • Passion
    • Not necessarily the mechanism of what companies does, but also the mission/value company has
  • Scientific Feedback Loop – the council

Chap6 Culture of Discipline

  • Y-axis Discipline, X-axis Entrepreneurship
  • Culture of discipline
    • Rinse the cottage cheese – get rid of excessive fat
    • Culture not tyrant
    • Stop doing list
  • Bureaucracy rise as counter for lack of discipline

Chap7 Technology Accelerators

  • Tech as accelerator, not creator, of momentum
  • Tech – hedgehog

Chap8 Fly Wheel & Doom Loop

  • Good-to-great company higher success rate at acquisitions.
    • Because acquisition as accelerator of flywheel not creator

Chap9 From Good to Great to Built to Last

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