Good To Great Analysis

2013 Words9 Pages
Introduction In Good to Great, Jim Collins explores what makes great companies great and how they sustain that greatness over time. Collins noted that great companies have always been great, while a vast majority of good companies remain just that; good, but not great. Somehow, some good companies has managed to turn their long-term weaknesses into major strengths. To distinguish between good and great companies, Collins uses stringent benchmarks. Notably, some of the benchmarks leave out some big companies such as Coca Cola, and General Electric. The elaborate outline of Collins’ book has attracted a lot of attention from institutions from different industries. This is because Collins does not focus solely on what good companies do to become…show more content…
Long-term Success In Good to Great, one of the benchmarks for a great company is a cumulative stock returns at or below the general stock market for a period of fifteen years. There is then a transition point into cumulative returns of at least three times the stock market for the same duration of time. It is acceptable for the school to perform dismally, but there has to be a transition to high performance. This is so because the initial stages of an institution may be capital intensive. However, the management has to find a way to become highly profitable through good leadership. Independent of Industry The school has to demonstrate a good-to-great pattern independent of its industry. An entire industry can undergo considerable growth over a specific period. It can also experience decline. To eliminate the chances that the performance of the school is solely determined its industry, its accomplishments must be independent of its industry. In such an instance, the only viable explanation for great performance is individual brilliance. It is important to note that poor performance is part of success. In the process of becoming great, an entity has to shift from ordinary to exceptional performance. It should be verifiable that exceptional performance of the school is a result of its own…show more content…
The leaders in charge of an institution have a profound influence on the running of the entire establishment. According to Collins, it is imperative to ensure that the leaders in charge of a company are aware of its objectives, and are highly-capable of attaining them. Further, there are pivotal characteristics of leaders that allows or negates their capacity to attain greatness. The most capable leaders are referred to as Level-5 leaders. Level-5 leaders are those who can combine utmost personal humility with deep professional will. Notably, there is a negative outcomes when leaders adopt celebrity

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