Good To Great - Abstract

GOOD TO GREAT
by Jim Collins
from FC issue 51, page 90

Jim Collins summarizes in this article the results of a five-year study in which he and his team scoured a list of 1,435 established companies to find every extraordinary case that made a leap from average results to great results. To qualify, a company had to generate cumulative stock returns that exceeded the general stock market by at least three times over 15 years. The 11 good-to-great companies that we found averaged returns 6.9 times greater than the market's.

The results of this comprehensive study amazingly point to the need for simple, sustained, broad-based focus and execution.

Two highlights of findings include:

- “There was no miracle moment. Instead, a down-to-earth, pragmatic, committed-to-excellence process -- a framework -- kept each company, its leaders, and its people on track for the long haul. In each case, it was victory of steadfast discipline over the quick fix. “
- “When people begin to feel the magic of momentum -- when they begin to see tangible results and can feel the flywheel start to build speed -- that's when they line up, throw their shoulders to the wheel, and push. And that's how change really happens. “

Jim closes by stating, “After five years of research, I'm absolutely convinced that if we just focus our attention on the right things -- and stop doing the senseless things that consume so much time and energy -- we can create a powerful Flywheel Effect without increasing the number of hours we work.