Good to Great: Why Some Companies Make the Leap... and Others Don't

The second classic from Prof. Collins comes out with specific dimensions (like Level 5 leadership, Hedgehog Concept, First Who; Then What etc with a chapter devoted to each) on the transformation of good companies towards becoming great. One is sure to come across surprises in each, since findings from the data analysis of several hundred companies (from which the 11 great companies finally emerge), is much contrary to commonly held perceptions and beliefs. This makes it a great experience to read this book, page after page.

I have read "Built to Last " (Co-authored by Prof. Collins) twice; once when it was published and for the second time in Q2-2000 wondering what the "New Economy" was for the "Old economy" Visionary Companies that were "Built to last ". In my opinion "most of the visionary companies would succeed in any kind of transformation in the marketplace...Dot Coms may kindly note.... " (Read my review on Amazon.com- published May 9, 2000).

Given this insight, "Good to Great" is certainly a must read to see if anything has changed since then. I looked at the similarities and differences between these two research studies. In my opinion, it is hard to separate the two. By the time one finishes reading the good to great concepts, the similarity is striking. It would be wonderful to see companies that are great and ALSO built to last. Prof. Collins devotes a chapter exclusively to bring out the synergy between the "Built to last" and "Good to Great " concepts. The equation is:

Established Company or Start-up + Good to Great Concepts -> Sustained Great Results + Built to Last Concepts -> Enduring Great Company.

It is interesting to note that these concepts in the author's opinion can be applied for achieving greatness of any Organization, provided one is convinced that these principles can be applied.

The research methodology, selection criteria, rigor in data collection, data analysis and conclusions and the innumerable examples supporting each dimension is of the highest academic standards. The notes at the end of the book will prove useful for any student pursing research on similar topics.

The book opens with the words " Good is the enemy of Great". Probably I need to change my vocabulary after reading this book!

Highly recommended.


fantastic perspective on business today   January 4, 2002
 0 out of 2 found this review helpful

this rates as one of the best management books I have ever read. Simple, doable and repeatable.

Don't read it if you are happy and complacent and comfortable in your job.


a critique rather than review of the book   December 26, 2001
 34 out of 50 found this review helpful

As with so many business books, this one lauds a few great companies (let us see where they are in 10 years) and then look at what they have in common.

A couple of points....

(a) Minor complaint since this book was written by Academics. This is what anyone with elementary training in methodology or statistics would call selection on the dependent variable. Select good companies then ask why they are good. Look for commonalities. Write a book. Well how do you concretely test whether other companies have these traits or not?

Proper testing would have been to select the entire universe of companies in some year (say 1950) and code each company based on all of these factors/vaiables and test the relationships between each of these "variables" and their stock price.(Who are these reviews that see this book as built on mountains of good data?)

(b) Basically same thrust as the last book (built to last)..great companies built on an internal culture that (hopefully) encourages meritocracy, adaptability and innovativeness and solid management.

Brilliant leaders don't help because by their nature they are one man shows and have trouble building solid management and culture to survive them.

Similarly they are not apt to be one product companies because those product markets will change and they will have no new sources of growth (the Polaroid or Xerox problem).

I guess I just feel like the early points are clear in the beginning and can easily be summed up in two pages.

(c) Most importantly, even if we assume their points are correct, the tougher question remains. How do we create the right corporate culture? Many CEOs know their company has the wrong culture but have difficulty changing it. Jack Welch was working on GEs for 20 years and it was not so bad to start with.

Why not study GE's culture? Toyota's legendary ability to innovate. Microsoft? Intel? All companies that have adapted particular cultures that demonstrates their ability to go head to head and consistently out think and out perform other companies. How about an investment bank, where all the value is in the people and therefore culture and management would be even more important.

(e) On the other hand, it is good to congratulate them on choosing companies that are not overstudied (GE) or gain huge competitive advantages because of a particularly business model, that while brilliant make it hard to assess the overall management of the firm (Dell, Walmart). Looking at a bank (wells fargo), a consumer products firm (Gillette), and a retailer (Walmart) makes for interestign studies with which people are not familiar.

This seems to be the real key tough question.

(f) Gillete is listed as a great company. It trades at where it did in 1996/1997.

Not to complain as all companies have their ups and downs and it is dangerous to do any study as inevitably at least one company in a study will be doing poorly, but doesn't this offer caution to any findings.


Don't read this book unless...   December 5, 2001
 7 out of 9 found this review helpful

you want to have a seed of discontent planted inside yourself. This book can make you very uncomfortable with its revelations. However, if you can withstand the brutal challenge to what you may have thought constituted great management and leadership, then you too may be at that transition point to transform your organization and yourself from good to great. Collin's book may also bring you to the realization that being part of greatness is your aspiration and that you can't get there with your present organization. Then you have a checklist with which to evaluate prospective employers in your quest. Even if being part of a great group is not a driver for you, the points Collins makes allow you know how far off the group is.


Brings Einstein kind of clarity to business management   December 2, 2001
 18 out of 20 found this review helpful

In this book, Collins mentions about how, before Einstein, two other eminent scientists wrote down a formally equivalent theory to Einstein's theory of Special Relativity, but it was not until Einstein's piercing insight simplified the theory to some basic postulates, did scientists appreciate the truth. For people who were trying to build a solid business and get it on the path to greatness, the spectacular growth (atleast in market value) of companies during the Internet boom years did not ring true, but who would listen, least of all the hundreds of VCs fueling this exuberance. In contrast, the insights gained by Collins and his team, from over 15,000 hours of well-directed research done over five years, will ring true to anybody who is going through the process of building a great company through deliberate steps without being swayed by the most current management fad or the hottest unrelated market opportunity.

The "Hedgehog Concept" and the "Flywheel" findings explained in the book reiterate that, achieving true greatness is not simply a matter of capitalizing on being in the right place at the right time, but it is achieved through well thought out, focused, and sustained work. And in a highly competitive world, companies that want to stand out from the crowd need to get the best people on board first.

While these findings seem like self-evident truths, during times of trouble, companies almost always feel like they do not have time for such "idealistic" approaches. What this book does, is provide the right ideas to enable good companies to move towards greatness before getting into crisis. Collins great presentation of these findings, borne out of research on the present day good-to-great companies, brings a kind of clarity and understanding that will act like fresh fuel for companies on their way to greatness.