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Friday, May 20, 2011

From "Good to Great - By Jim Collins"

On my recent flight to India, I started re-listening (b'cos actually started this book long time back. But, didn't had time to make notes.) to "Good to Great-By Jim Collins" and made some short notes.
I found some interesting points to be noted, if I ever want to run a company or start a business.

1. Nepotism doesn't work if you want to build a great and successful company.

2. If you want to build a successful company you need to have guts to cut-off your own arm when it's effected by cancer. In the sense, guts to take unpopular decisions which are good for the company.

Ex: Walgreens sold their restaurant business, Kimberly-Clark's Darwin smith sold paper mills which are used to be their core businesses.

3. Luck also plays a wide role in building a great company.

4. Good is enemy of great.

5. You need to have guts to put yourself in the front-row to face any problem.

6. Qualities of top-most level-5 leaders:

  • Never boast about success.

  • Take full responsibility.

  • Charismatic.

  • Fanatically driven.

  • They'll have guts to take hard and unpopular decisions.

  • For them, company is the first priority

  • Never settle for less than great results.

7. what takes it to build great company:

  • Strong discipline and culture.

  • "First who and then what". Either on the bus or off the bus.

  • Sell off the problems but don't sell people.

  • Great vision without people is irrelevant.

  • Right people doesn't have to be motivate or managed.

Strong points to understand and remember. As per a punch line in the book, "If used right, technology can be accelerator of momentum in business, but not the creator of the momentum". Not sure if this still relevant to latest technology only companies like Facebook, Twitter, etc.

There are some key things worth noting from this :

1. Understanding the Hedge-hog concept which revolves around three circles : a. what you're deeply passionate about ? b. what you can be best in the world at ? what you cannot be best in the world at ? 3. what drives your economic engine ?

2. Building a good-to-great company or becoming good-to-great will be a cumulative process.  Cannot be a overnight success.

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