Good to Great Article by Jim Collins October 2001

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Good to GreatArticle by Jim CollinsOctober 2001

• Presenters
• Samantha Bell, Brodie Pattenden,
• JJ Machalski, Tea Taing,
• Kristine Widdifield

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Agenda

• How change doesnt happen
• How change does happen
• Disciplined people
• Disciplined thought
• Disciplined action

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How change doesn't happen

• The Chicken and the Egg

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How change doesn't happen

• No miracle moment
• Chicken in the egg was
• Evolving
• Growing
• Developing
• Changing

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Walgreens

• Average company for over 40 years
• 1975 it began to climb, and climb and climb
• Beat the general stock market by 15 times
• How do we pinpoint Walgreens good-to-great
  transformation?

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How does change happen?

• The Flywheel Effect

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How does change happen?

• Right now, your flywheel is at a standstill
• Put your shoulder into it. And push!
• Eventually get some forward movement.

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How does change happen?

• No longer pushing alone
• The faster you go, the more people you have
  joining you

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How does change happen?

• Momentum starts working in your favor
• Arent pushing any harder, but wheel keeps
  accelerating
• Thats how companies make the transition from
  good to great

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How does change happen?

• What happens when companies dont commit to the
  quiet discipline of slow, progressive change?
• They fall into..
• The DOOM LOOP!

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How does change happen?

• Companies that fall into the Doom Loop want
  change over night
• They bring in a new leader, who takes them in a
  new direction
• See the pattern?

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Walter-Lambert Co.

• 1979 Started as consumer products
• 1980 Healthcare
• 1981 Return to consumer products
• 1987 Global pharmaceuticals
• 1990s Return to consumer products
• 2000 Swallowed by Pfizer

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How does change happen?

• Real people want to contribute to produce real
  results
• Feel the magic of momentum
• Thats how change really happens.

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Filling the Bus
Disciplined People
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Disciplined People

• Mediocre people equal mediocre results
• If you have the wrong people, nothing else
  matters

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Fannie Mae

• 14 of 26 executives got off the bus before good
  to great changes occurred, no questions asked

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Disciplined Thought

• Fox and the Hedgehog

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Disciplined Thought

• A Greek Parable explains that
• Foxes know many small things
• Hedgehogs know one big thing

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Disciplined Thought

• All good to great leaders are hedgehogs
• But why?
• They ask three piercing questions

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Disciplined Thought

• What can we be the best in the world at?
• What is the economic denominator that drives
  cashflow?
• What are our core people passionate about?

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Wells Fargo

• Initially in global bank, was mediocre
• Switched company philosophy and industry
• New mantra and drive for employees
• Led to success

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Disciplined Action
The Stop Doing List
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Disciplined Action

• Good to Great leaders distinguish themselves
• Decide what not to do
• If it doesnt fit tightly within your Hedgehog
  Concept, dont do it

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Kimberly-Clark

• Started in the paper mill industry
• Decided to change focus
• The consumer business was best for the company

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Disciplined Action

• One magazine wrote
• Kimberly-Clark making the switch was a dumb
  idea
• 21 years later that same magazine wrote as it
  turns out it was a smart one

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Conclusion

• The Chicken and the Egg
• The Flywheel Effect
• Disciplined People
• Filling the Bus
• Disciplined Thought
• Fox and the Hedgehog
• Disciplined Action
• The Stop Doing list

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Thanks for listening!
QUESTIONS???