Good is the Enemy of Great

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Good is the Enemy of Great

• Ordinary Companies Creating Extraordinary
  Breakthroughs

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Good to Great Research

• 6-10 times stock return
• Maintained for 15 years plus
• Comparisons to like companies before the
  breakthroughs
• What was common
• What was distinctive

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Good to Great
Breakthrough
Build Up
Disciplined People
Disciplined Thought
Disciplined Action
Brutal Facts
Hedgehog Principle
Level 5 Leadership
First who..
Culture of Discipline
Technology Accelerators
Know Thyself Scribes of Delphi via Plato
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Disciplined PeopleLevel 5 Leaders

• Humility will level 5
• Ambition for the company set up successors for
  success
• A compelling modesty
• Unwavering resolve to do what must be done
• The window and the mirror

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Disciplined People First Who, Then What

• Rigorous, not ruthless
• When in doubt, dont hire keep looking
• When you know you need to make a people change
  act
• Put your best people on your biggest
  opportunities not your biggest problems
• Debate vigorously, yet unify behind decisions

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Disciplined Thought Brutal Facts

• Brutal facts
• Ensure the truth can be heard
• Customers, team members, potential customers,
  economic data of company
• Lead with questions not answers
• Communication skill
• Conduct autopsies without blame
• Not who but what, where, when
• Turn information into information that cannot be
  ignored

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Disciplined Thought Hedgehog Concept?

• Is
• Simple ideas
• Letting abilities determine activities
• Sustained cash flow and profit
• Discovering what makes you passionate

• Is not
• Snazzy and complex strategies for growth
• Letting ego determine activities
• Getting revenue wherever you can
• Stimulating passion

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..deep understanding where these 3
circles intersect
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Why the Need to Focus

• Chaos breeds order
• Sustained growth, cash flow, and profitability
• Industry is maturing

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HHP No. 1 Best in the World

• What can you be the best at and cannot be the
  best at?
• What can you do better not what you should do
  better?
• What current realities are you confronting?
• How are you distinguishing what is a core concept
  (something you have been doing for years) vs.
  what you can be the best in the world at?
• What is your severe standard of excellence?

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HHP No. 2 Drives Your Economic Engine

• If you could pick only one ratio profit per x to
  increase over time, what x would give you the
  most sustainable impact on your economic engine?

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HHP No. 3 What are you passionate about?

• Not Okay, Folks, lets get passionate about
  what we do
• It is We should only do these things we can get
  passionate about
• What does your business stand for?

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Why not?

• Control
• Ego
• Low trust
• Hard to let go of start up mentality
• Easy to scapegoat
• Habit of being a generalist
• Confused about customer request
• Fear of the uncertainty
• Fear of screwing up
• Fear of losing the customer
• Getting cash from anywhere is better than cash
  from nowhere

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How do you know you are focusing on the right
things?

• Customers are willing to pay for your
  service/product
• Customers complain less
• No one else is better
• Earning revenue
• Iterative process
• Verify internal/external
• More clarity
• Ease of decision making

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So, the HH it is

• Focus
• Partnering
• Connecting to passion
• Better financial decisions
• Its a part of a bigger process

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Disciplined Action Culture of Discipline
High Culture of Discipline Low
Hierarchical Organization
Great Organization
Bureaucratic Organization
Start Up Organization
Low Entrepreneurship High
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Disciplined Action Culture of Discipline

• Freedom and responsibility
• Fanatical adherence to the hedgehog principle
• Start a stop doing list
• Ability to say no, thank you

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Disciplined Action Technology Accelerators

• Avoid fads and bandwagons yet are pioneers in
  carefully adapted technologies
• Used technology as an accelerator not a creator
• Not motivated by fear of being left behind
• Crawl walk run philosophy

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Good to Great
Breakthrough
Build Up
Disciplined People
Disciplined Thought
Disciplined Action
Hedgehog Principle
Level 5 Leadership
First who..
Brutal Facts
Culture of Discipline
Technology Accelerators
Know ThyselfScribes of Delphi via Plato
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Questions and Answers