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12.09.2013
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They are the inspiration of this blog.Passionate about child passenger safety, Wendy has been a certified Car Seat Technician in Ontario, Canada since 2008. Collins focused on distilling the principles that were common to these exceptional companies and that distinguished them from their peers.What they found was that a sustained transformation to greatness was not the result of specific strategies, business models or industry choice, but rather the result of a relentless application of specific leadership and management attitudes, actions and disciplines.
My girls headed back to school this week after 6 weeks off and there really are no more excuses for getting started. The right people are those with the right character traits and innate capabilities, rather than those with specific knowledge, background or skills.
They also did not rely on restructurings and layoffs as a primary strategy for improving performance.
Importantly, the best people were always put on the biggest opportunities, not the biggest problems.


The purpose of compensation is seen as a way to retain the right people, not motivate the right behaviours from the wrong people. This requires leadership to confront the brutal facts of the company’s current reality. If one starts with an honest and diligent effort to determine the truth of the situation, the right decisions often become self-evident. Truth first – vision later!The next step is to implement the hedgehog concept, which sows the seeds of greatness and sets up a breakthrough. A hedgehog is a single minded and determined animal that relentlessly focuses on only a few important things. It asks what the company is truly passionate about (or can be passionate about) and is able to be the best in the world at.
Once this is decided, the company must get insight into the drivers of its economic engine. This should be distilled into one single denominator that has the biggest economic impact (e.g. Interesting to note is that Collins found that companies do not need to be in a great industry to produce sustained great results - this is counter to much investing and business wisdom!It is the continuous and disciplined implementation of the hedgehog concept and principles of stages one and two that are the fuel of breakthrough to sustained great results. It calls for a culture of disciplined adherence to the good-to-great principles and, if needed, the appropriate use of carefully selected technologies.


It is important to note that technology itself was never the primary root cause of greatness - rather it was an accelerator of the momentum to greatness, which was already taking place. Great companies are not necessarily technology focused, but are pioneers in the application of technologies that fit into their hedgehog concept. Lastly, Collins’ observes that good-to-great transformations never happen in one fell swoop but are an organic and cumulative process that takes time. First, you need to look for concrete signs of adherence to the principles of good-to-great in companies’ communications, actions and results. But surely if you wait for good results to materialize, you will ‘miss the boat’ in terms of the share price rise? It is only after a few years of great results driven by the implementation of the correct principles that one should venture to make an investment in a potentially great company.
One can do this confident that there will still likely be 10+ years of great results to follow! Collins’ research shows that appropriately principled companies can continue to produce outstanding results and returns for periods much longer than we think.



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