GOOD TO GREAT BOOK — 1
Good to great is a business life book published by Jim Collins in 2001. As the title suggests, the book focuses on companies that are initially ‘good’ and then become ‘great’. Jim Collins and his team have been conducting research and interviews for 5 years to identify these companies and find the factors that distinguish them from other companies. As a result, 11 companies that have turned from good to great, and can maintain this excellence for at least 15 years are determined, and then these companies are compared with companies that make a progress with excellent results, but cannot make it permanent or cannot make any progress. The fact that these companies surpass the already excellent companies shows that it is possible to make the transition from good to great in any situation.
So what did these companies do differently from the others? As a result of their work, Jim Collins and his team develop a diagram that covers the transition from good to great to answer this question
LEVEL 5 LEADERSHIP
All the leaders of the 11 companies that made the transition from good to great had common characteristics. Leaders with these characteristics, which the author described as level 5 leadership, made companies perfect regardless of their industry, history, and company size. Managers with the 5th level leadership characteristics, which is also defined as the highest managerial skill, were generally known by their acquaintances as calm, docile, humble, loving to praise others, and not liking to stand out. These managers, who are ‘we’ centrist rather than ‘me’, did not hesitate to take any steps for their companies, and showed a fearless and determined stance when it comes to their companies. They used their ambitions to make their company the best they could, rather than increase their individual success and reputation.
Another feature of these leaders is that they choose the person who will replace them very well. According to the research of the author and his team, companies that turned from good to great were able to continue to progress after the leaders who made this transformation, but it was revealed that other companies experienced a decline with the managers who came after their ‘self-centered’ leaders.
Finally, the author sees level 5 leadership as a combination of personal humility and professional will and claims that these leadership characteristics can be developed.
FIRST WHO…/ THEN WHAT
The leaders of companies that turned from good to great, unlike others, did not start by determining a new strategy and direction, but by putting the right people in the right seats first. Thus, the difficulties of motivating and managing them were also eliminated because the right person did not need to be guided and motivated. The right team could easily adapt to change, and perfect visions could be realized successfully. While doing these, it is necessary to get the wrong people from the seats, and the managers of companies that have gone from good to great are very strict in this regard and are consistent in their standards. The managers of other companies, on the other hand, first determined their strategies and then recruited staff to assist them. For this reason, the assistants did not know what to do when they were not in the lead.
When it comes to executive salaries and wage incentives, there doesn’t seem to be a stark difference between good-to-great companies and others. According to the author, incentive systems should be used in companies to recruit and retain the right people. One Wells executive summed it up this way: “The only way to encourage successful people is to not put unsuccessful people on them.”
