Collins' findings should not be surprising to adherents of Simplified Strategic Planning. Basically put, the transformation of the studied companies was built upon seven major ideas:

Leadership
Successful leaders in the study were not flashy, but tended to give credit for success to others while taking responsibility for failures on themselves.

People
Successful companies get the right people in place first, and then worry about what they are going to do. This is not just a focus on people and culture, but a focus on having the right people in your organization - and getting the wrong people out.

Information
Collins says "face the brutal facts", which, in the large public companies he studied, amounted to assuring open communications and the discipline to face unpleasant realities about the industry you are in.

Focus
In an interesting twist on strategic competencies, Collins notes some common factors of companies using what he calls "the hedgehog concept":

  1. Don't focus on what you are good at - focus on what you can be the best in the world at.
  2. Understand the economic drivers that measure how well you do what you are focusing on.
  3. Focus on something you can be passionate about.

Discipline
Successful companies resist the urge to grow outside of their "hedgehog" focus, no matter how attractive the opportunities are. They also tend to remain disciplined about getting where they intend to go, rather than being distracted by fads and crises.

Approach to technology
The successful companies reviewed did not pioneer new technologies, rather, they pioneered applications of those technologies once the potential value within their focus was well-established. Thus, instead of innovating totally new technologies, they innovated by accelerating adoption of proven technologies in new applications.

Approach to change
Using a concept Collins calls the "Flywheel of Success", Good-to-great companies built their way into change through the demonstration of incremental successes rather than seeking instant breakthroughs.

Overall, Good to Great, while based entirely on data collected from large, public companies, gives plenty of useful insights into ways in which successful companies differ from less successful companies. You won't find flashy, smoke-and-mirrors consultant-speak in this book - just the cold, hard, and incredibly useful facts. I was initially taken aback that nearly a third of the book - 67 pages - is taken up by notes and appendices, but Good to Great is an enjoyable book to read, full of unusual insights and terrific tips for managers at all levels.

Robert Bradford is President and CEO of Center for Simplified Strategic Planning, Inc. He can be reached via e-mail at rbradford@cssp.com.

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