Good to Great – Why Some Companies Make the Leap. . and Others Don’t
Good to Great – Why Some Companies Make the Leap. . and Others Don’t
[pic 1]GOOD TO GREATSummery[pic 2]Submitted By:Usama Khan14022034010MBA Eve[pic 3]Good to GreatWhy some companies make theLeap. . .And others don’tAs according to the author JAMES C. COLLINS said “Good is the enemy of great “defines everything about the concept that is described in this article. Every day when we awake we see all things are going same as they were in yesterday there is a minor chance we feel that now there is some change but not. In this short summery I am trying to describe everything that is described in article, Now a question appears in our mind that “Can a company become great”? Then the answer is why not if a company focuses on the ideas that is mention in this article then there is no one to stop them to become it a great company. First of all what are the ability of a great company then if a company done well job more than 3 times the general market that considered a great company.Now a question appears that “How Did They Do It” as according to author and his team made a benchmark to conduct a research in which they choose eleven company who done well more than general market and they collect the data of fifteen years in which they see the leap of return from the market this research shows that these companies focus on how to become great and the other companies which didn’t done well they never focus on the theory of good to great if there is some companies who made it but unfortunately they didn’t sustain it.Steps to Becoming Good to Great[pic 4][pic 5]Level 5 Leadership:One of the most surprising result of the research of good to great companies was the discovery of leadership that require it to turn a good company in to great one. The main thing is, these companies led by the high profile leadership those in headlines and become celebrities. As according to level 5 hierarchy there are five main points which change good too great.[pic 6]For ExampleWhen George Cain became CEO of Abbott Laboratories, the company was not much progressive in the history of pharmaceutical industry. George does not have an inspiring personality and also was not a celebrity to make unbelievable changes in the company but he has a fast intolerance for mediocrity. He destroy the early norms and failure causes of the industry and reconstruct a executive team with the best people available and made company good to great.
First Who . . . Then What:If we think that when we study the great company’s history then we can easily drive ourselves towards change so, the truth is quite opposite from it. As according to the good to great concept the first thing appears is how and what decisions should made before vision, strategy, tactics, and structure of the organization.There are three main truths which can easily drive the company towards great.If you begin with the “who” rather than the “what” you can more easily adopt the changing of the world.If you have the right people on the bus, then it became easier to motivate and manage people largely goes away.If you have the wrong people on the bus which you want to drive toward the great, it doesn’t matter you find the right direction you still can’t find the great company.Good to great companies have different culture always where the all management including top management work in well-mannered and observer deeply all the process there are some things which made employs more punctual from the leadership life if you see some doubt in someone then don’t fire just keep looking. When you want to make change then don’t depend on your people just act. And last put your best people on opportunities not on problems.Confront the brutal facts:All good to great companies began their routes to success by confronting the brutal facts of their current reality. When a company starts with great diligent efforts and honest to determine the right path for their company’s situation then the right decision often become appears.For example: The great Atlantic and Pacific Tea Company (A & P) made the best business model for selling the product when they feel the gap between the need of the customer that what they want now like in America the buying behavior of the people changed they want more diversify stores for shopping they want everything under one roof. So, to fulfill this gap of thinking the A&P opened a store as according to the expectations of the customers. Wal-Mart also done this activity in recent years and now a days we can see there are many great chains of stores are now available in United States.