Enemy of Great, Jim Collins

¶ … enemy of great," Jim Collins critiques the culture of mediocrity in the bestselling Good to Great. Collins' study of effective organizational management presents case studies and quantitative data to illustrate why and how some companies succeed, becoming the best in their field. Greatness comes from a combination of factors, according to Collins. Companies transition from being good to being great in three basic stages: amassing the right team of disciplined people; creating a disciplined organizational culture; and acting in systematic and disciplined ways. The repeated appearance of the word 'discipline' in each of these stages is no accident, for Collins is a firm believer in pragmatism over miracles; hard work over charisma or luck. The author also sets out to offer managerial staff guidelines with which to craft an organizational culture that cultivates greatness, and to point out potential pitfalls that prevent organizations from reaching their highest potential.

Some of the findings of Collins' research are summarized on page 10. CEOs, for example, are rarely "celebrity leaders" in good-to-great companies and most great organizations cull their CEOs from inside. Technology can assist the transformation from good to great but technology alone cannot cause such a transformation. Most significantly, Collins found that becoming great is rarely a revolution; rather, becoming great is a long-term and steady process based on realistic yet rigorous methods. Interestingly, greatness rarely depends on luck or even fortunate circumstances but instead, on the conscious decision to take disciplined action. With such a strong emphasis on discipline, Collins takes the magic out of corporate empire-building and replaces myth with common sense and evidence-based results.

Good to Great is divided into nine chapters plus an epilogue, appendixes, and reference notes. The first chapter: "Good is the Enemy of Great," outlines the motivations behind Collins' undertakings, the research methodologies, and the overall findings. The author admits that he was motivated mainly by curiosity and personal interest in the transformation of good companies into great organizations. Comparing the good-to-great companies with a control group enabled the author to point out exactly which factors distinguished the greats from the rest. Collins selected comparison groups in the same industries, "with the same opportunities and similar resources at the time of transition," (p. 8). Additionally, the author examined a handful of organizations that made a short-term leap to greatness but failed in the long-term to maintain their supremacy. Evidence was based on peer-reviewed articles, interviews, and quantitative financial data. Finally, Collins shows why his research is important by claiming that his findings can be broadly applied to all areas of human endeavor with the goal of overcoming mediocrity.

Chapter 2 describes the qualities of "Level 5 Leadership." Level 5 leaders help transform good companies into great ones through immense personal sacrifice and self-discipline, according to Collins. A Level 5 leader is "self-effacing" and "their ambition is first and foremost for the institution, not themselves," (p. 21). Collins also describes Level 5 leadership as being a "paradoxical blend of personal humility and professional will," (p. 20). Level 5 leaders resist blaming others for their failures and instead look to ways they can personally improve their organization's chances.

The author's leadership pyramid and description of the levels of leadership on page 20 may be arbitrary if not juvenile but nevertheless illustrates the core differences between managers who are merely effective and those who lead their organizations to ultimate success. Humility plus determination seems to be the magical formula for the development of greatness. To illustrate the case, Collins compares the leaders of two rival paper companies, Kimberly-Clark and Scott. The CEO of Kimberly-Clark was a mild-mannered man who seemed barely qualified for the pressures of leadership. Darwin Smith was known for his shyness, not his schmoozing with powered individuals. Collins attributes his transforming of Kimberly-Clark into an industry giant at least in part to Smith's Level 5-style leadership. The author contrasts the Clark story with Kimberly-Clark's competitor Scott Paper. Scott CEO Al Dunlap was "a man cut from a very different cloth than Darwin Smith," according to Collins, and unlike Smith, Dunlap reveled in his on personal glory and compared himself to Rambo (p. 29). Collins compares Dunlap to the notorious Lee Iacocca.

In Chapter 3, Collins continues to discuss the importance of people by focusing on teams and team management. In "First Who...Then What," Collins criticizes the "genius with a thousand helpers" model of teambuilding and instead advocates a more egalitarian model: the Level 5 Team. Using catchy phrases like "rigorous, not ruthless," Collins repeatedly emphasizes the importance of the "right people." Being rigorous and attracting the right people means hiring self-motivated and creative individuals committed to the organization and who can be guided without being tightly managed. With the current emphasis on human resources, Collins' advice will ring true for many managers reading Good to Great. Hiring and keeping the right staff may be one of the keys to success for organizations. Moreover, Collins claims that good-to-great organizations resist restructuring and layoffs, instead placing an emphasis on keeping the "right people" on the team for good.

Collins advises managers to "Confront the Brutal Facts (Yet Never Lose Faith)" in Chapter 4. In keeping with his theme on pragmatism, Collins compares a&P to Kroger to show the difference between mediocre success and greatness. The two grocery giants started off in nearly the same manner but only Kroger and its executive leaders were able to accept the death of the old model of grocery store. Kroger became willing to change their business model to welcome the model that persists today: the superstore chain with branded items and strategic locations. a&P did not confront the brutal facts and as a result, their business languished.

Similarly, Collins shows how the "hedgehog" model has ensured success for good-to-great companies like Walgreens. Unlike its pharmacy competitor Eckerd, Walgreens implemented simple ideas with remarkable efficiency, merely offering customers more convenient clustered locations that increased profits on per-customer visits. Hedgehogs patiently pursue a goal of greatness, are constantly on the lookout for dangers and acknowledge the need for change. The Hedgehog model company focuses on its strengths and determinately pursues its passions. By understanding what the company is capable of and by knowing its limitations, it strives to become the best in its field. Collins outlines the Hedgehog model in Chapter 5.

To become the best in its field the good-to-great organization also pursues a culture of discipline, which Collins describes in Chapter 6. Creative discipline is not authoritarian but supportive; members of the organization have freedom but work within a meaningful framework. As a result, the organization does not pursue unrealistic goals and is not seduced by flashy opportunities. Collins suggests that organizations develop a "stop doing list" to encourage disciplined action.

Discipline comes into play in the ways good-to-great companies integrate technology into their operations. Rather than implement technology for technology's sake, good-to-great organizations use technology as a tool specific to their needs. Technology never prevents a great company from losing its footing or discipline. Technology, according to Collins in Chapter 7, "Technology Accelerators," accelerates change and can help an organization remain competitive and on-target with goals. Rarely does technology actually catalyze the shift from goodness to greatness. In the following chapter Collins claims that great companies use acquisitions as accelerators, rather than as instigators, of change.