Good to Great: Why Some Companies Make the Leap...And Others Don't

by Jim Collins

Core Ideology: Confronting the brutal facts clarifies the values an organization truly holds as core versus those that it would like to hold as core.

Preserve the Core/Stimulate Progress: Brutal facts clarify what must be done to stimulate progress.

Brutal facts clarify what must be done to stimulate progress.

Genius of AND: Deep understanding AND incredible simplicity.

Deep understanding AND incredible simplicity.

Core Ideology: The “what you are passionate about” circle overlaps nicely with core values and purpose. Only those values about which you are so passionate that you would never, under any conditions, give them up qualify as truly core.

The “what you are passionate about” circle overlaps nicely with core values and purpose. Only those values about which you are so passionate that you would never, under any conditions, give them up qualify as truly core.

Preserve the Core/Stimulate Progress: Good BHAGs flow from understanding; bad BHAGs flow from bravado. Great BHAGs sit right smack in the middle of the three circles.

Good BHAGs flow from understanding; bad BHAGs flow from bravado. Great BHAGs sit right smack in the middle of the three circles.

Clock Building, Not Time Telling: Operating through sheer force of personality as a disciplinarian is time telling; building an enduring culture of discipline is clock building.

Genius of AND: Freedom AND responsibility. Core Ideology: A culture of discipline ejects those who do not share the values and standards of an organization. Preserve the Core/Stimulate Progress: When you have a culture of discipline, you can give people more freedom to experiment and find their own best path to results.

Freedom AND responsibility.

A culture of discipline ejects those who do not share the values and standards of an organization.

When you have a culture of discipline, you can give people more freedom to experiment and find their own best path to results.

Clock Building, Not Time Telling: The flywheel effect creates the sustained building of momentum, and does not depend on the presence of a charismatic visionary to motivate people.

The flywheel effect creates the sustained building of momentum, and does not depend on the presence of a charismatic visionary to motivate people.

It shows "Level 5 Leadership" as the concepts in Good-To-Great and "Clock building not time telling," "Genius of A N D," "Core ideology," and "Preserve the Core" as the concepts in Built to Last.

the connection between BHAGs and the three circles of the Hedgehog Concept. In Built to Last, we identified BHAGs as a key way to stimulate progress while preserving the core. A BHAG (pronounced bee-hag, short for “Big Hairy Audacious Goal”) is a huge and daunting goal—like a big mountain to climb. It is clear, compelling, and people “get it” right away. A BHAG serves as a unifying focal point of effort, galvanizing people and creating team spirit as people strive toward a

A BHAG (pronounced bee-hag, short for “Big Hairy Audacious Goal”) is a huge and daunting goal—like a big mountain to climb. It is clear, compelling, and people “get it” right away. A BHAG serves as a unifying focal point of effort, galvanizing people and creating team spirit as people strive toward a finish line. Like the 1960s NASA moon mission, a BHAG captures the imagination and grabs people in the gut.

Bad BHAGs, it turns out, are set with bravado; good BHAGs are set with understanding. Indeed, when you combine quiet understanding of the three circles with the audacity of a BHAG, you get a powerful, almost magical mix.

To create an enduring great company requires all the key concepts from both studies, tied together and applied consistently over time. Furthermore, if you ever stop doing any one of the key ideas, your organization will inevitably slide backward toward mediocrity. Remember, it is much easier to become great than to remain great. Ultimately, the consistent application of both studies, one building upon the other, gives the best chance for creating greatness that lasts.

The beauty and power of the research findings is that they can radically simplify our lives while increasing our effectiveness. There is great solace in the simple fact of clarity—about what is vital, and what is not.

No, the point is to realize that much of what we’re doing is at best a waste of energy. If we organized the majority of our work time around applying these principles, and pretty much ignored or stopped doing everything else, our lives would be simpler and our results vastly improved.

This created the strongest culture of discipline possible, as the seven varsity runners felt personally responsible for winning state—a commitment made not to the coaches, but to each other.

They’re just focusing on the right things, and not the wrong things. They’re doing virtually everything we write about in this book, within their specific situation, and not wasting time on anything that doesn’t fit. Simple, clean, straightforward, elegant—and a heck of a lot of fun.

the search for meaning, or more precisely, the search for meaningful work.

If you’re doing something you care that much about, and you believe in its purpose deeply enough, then it is impossible to imagine not trying to make it great. It’s just a given.

You don’t need to have some grand existential reason for why you love what you’re doing or to care deeply about your work (although you might). All that matters is that you do love it and that you do care.

you’re engaged in work that you love and care about, for whatever reason, then the question needs no answer. The question is not why, but how.

Indeed, the real question is not, “Why greatness?” but “What work makes you feel compelled to try to create greatness?” If you have to ask the question, “Why should we try to make it great? Isn’t success enough?” then you’re probably engaged in the wrong line of work.

Get involved in something that you care so much about that you want to make it the greatest it can possibly be, not because of what you will get, but just because it can be done.

Perhaps it is when you care deeply enough about the work in which you are engaged, and when your responsibilities line up with your own personal three circles.