Resumo de Good To Great

consumer products, selling off its paper mills.
1. Good-to-great companies founded strategies on a deep understanding of 3 key circles
2. Good-to-great companies translated understanding into a simple crystal clear concept
that guided all efforts and decision-making.
THE HEDGEHOG CONCEPT IS A SIMPLE, CRYSTALLINE CONCEPT THAT FLOWS FROM
THE DEEP UNDERSTANDING ABOUT THE INTERSECTION OF THE FOLLOWING THREE
CIRCLES:
1. WHAT YOU CAN BE BEST IN THE WORLD AT, REALISTICALLY, AND WHAT YOU
CANNOT BE BEST IN THE WORLD AT
2. WHAT DRIVES YOUR ECONOMIC ENGINE
3. WHAT YOU ARE DEEPLY PASSIONATE ABOUT
To achieve greatness, the three circles need to intersect.
They stick with what they understand, and let their abilities, not their egos determine
what they should attempt.
-Warren Buffet on Wells Fargo
Wells Fargo?s Hedgehog concept was to run a bank like a business and focus on the Western
United States.
Just because something is your core business doesn?t mean you can be the best in the world at
it. And if you cannot be the best in the world at your core business, then your core business
cannot form the basis of your hedgehog concept.
Abbott Laboratories
? Confronted reality it could not become the best pharmaceutical company in the world
despite pharmaceuticals being 99% of its core business
? Shifted focus to creating a product portfolio of low-cost health care products for
nutritionals, diagnostics, and hospital supplies.
Circuit City?s Hedgehog concept was the 4-S model:
? Service
? Selection
? Savings
? Satisfaction
Fannie Mae
? Full capital markets player with a unique capability to assess risk in mortgage-related
securities
? Let all classes and races of people own a home and realize the American dream,
democratizing home ownership
Gillette
? Focus on being the best in the world at offering non-disposable shaving systems
Kimberly Clark
? Focus on products like Kleenex, where the brand name is what people call the
product.
? People say ?Pass me a Kleenex? not ?Pass me a tissue.?
Nucor
? Focus on low-cost steel production
Philip Morris
? Be the best at ?sinful? products like tobacco, beer, coffee, chocolate (Marlboro, Miller,
Maxwell House, Toblerone)
? Focus on messaging (high-end faxes, copiers, meter machines)

A COMPANY NEED NOT BE IN A GREAT INDUSTRY TO BECOME A GREAT COMPANY.
Comparison companies never asked the right questions, their strategies were based on bravado
and not deep understanding. A hedgehog concept is a process, not an event. It took good-togreat
companies many years to clarify their hedgehog concepts.
Build A Council where:
? It exists as a device to gain understanding about important issues facing the organization.
? Assembles and is used by the leading executive, consisting of five to twelve people.
? Each member has the ability to argue and debate in search of understanding, not from
the egotistic need to win a point or protect a parochial interest.
? Each member retains respect for every other Council member without exception.
? Members come from a wide range of perspectives, but each member has a deep
knowledge about some aspect of the organization and the environment in which it
operates.
? Includes key members of the management team but is not limited to members of the
management team, nor is every executive automatically a member.
? The council is a standing body, not an ad hoc committee assembled for a specific project
? It meets periodically, as much as once a week, or as infrequently as once per quarter.
? It does not seek consensus, recognizing that consensus decisions are often at odds with
intelligent decisions. The responsibility for the final decision rests with the leading
executive.
? It is an informal body, not listed on any formal organization chart or document.
? It may have a range of possible names, in good to great companies; they had benign
names like Long-Range Profit Improvement Committee, Corporate Products Committee,
Strategic Thinking Group, and Executive Council.
YOU CAN?T MOTIVATE PEOPLE TO FEEL PASSIONATE.
One company did not hire a top business school graduate because she didn?t show enough
passion for deodorant.

?A Culture of Discipline?
? Avoid bureaucracy and hierarchy. Instead, create a culture of discipline with an ethic of
entrepreneurship. This will lead to superior performance and sustained great results.
? Build a culture around the idea of freedom and responsibility, within a framework of the
three circles.
? Fill that culture with self-disciplined people willing to go to extreme lengths to fulfill their
responsibilities.
? Don?t confuse a culture of discipline with a tyrannical disciplinarian.
? Adhere with great consistency to the Hedgehog concept. Create a ?Stop Doing? list as
well as a ?To-do? list. Unplug any extraneous activities. Have clear constraints. Hire
people who don?t need to be managed, so you manage the system, not the people.
Disciplined People Æ Disciplined Thought Æ Disciplined Action
THE GOOD TO GREAT VOCABULARY
Disciplined Fastidious Focused

Resumos Relacionados