This work is the result of a cohort business study. The control group consisted of publicly owned companies that had good performance for 15 years and then great performance (defined as outperforming the market by over three times) for 15 years. There were only 11 good-to-great companies. Eleven other companies in similar lines of work were chosen into the comparison group. Then the research group dissected those companies to figure out what the great companies had in common and how they different from the comparison companies. The result is this book.
Collins and his research team undertook interviews, performed research on publicly available information, and tried to details as much as possible. As such, Good to Great not only covers abstract principles which animate these companies, but also, it shares the stories of excellent success along with the not-as-excellent narratives of the comparison group.
On occasion, this book’s writing seems to lapse into marketing and hype, but I guess that is to be expected among the business genre. Although the book is not as hard of a science as something like physics, Collins’ team seems to aspire to genuinely making their study as scientific as possible. It’s clear that they looked for fundamental insights instead of just covering the surface. For that, they deserve to be praised. Also, because of the stringent inclusion requirements (which require 30+ years of historical data), tech companies are not considered in this work. The qualities that make tech companies great – especially in the face of constant changing environments – is of particular interest to me, and I would like to see further exploration on that topic.
Their overall findings suggest a category of leader that they term a “Level-Five Leader.” This type of leader consistently puts the organization above her or his personal needs. They serve as the mortar which connect the bricks of a group into a strong wall. Through reading this book, you can explore more of this quality of leader.
Unfortunately, time has shown that several of these companies have engaged in ethically questionable policies. That blunts this book’s impact significantly. It goes to show that in the field of business research, it is difficult to adequately control all the factors, such as hidden cheating. It was a good attempt, and still brings forth historical insights into an era. Nonetheless, enthusiasm needs to be dampened with reality.
Good to Great: Why Some Companies Make the Leap and Others Don’t
by James C. Collins
Copyright (c) 2001, 2005
Harper Business
ISBN13 9780066620992
Audiobook
Genre: Business/Management, Leadership
www.amazon.com