Good to Great

Good to Great

There is a difference between a good company and a great company. There is a difference between long-term mediocrity and long-term superiority. The reason why most companies never become great is because they limit themselves to just being good. Good is the enemy of great. There are certain criteria that great companies share that helped them make the rare transition from solid to outstanding performance. All great companies will always have the right group of people to get the job done, a clear sense of thought as to what is expected and what goals are attainable, and the right process scheme as to how their objectives will be met and fulfilled.

Great companies first focus on choosing people who will benefit the company in the short run and in the long run. They focus on getting the right people on the team while getting the wrong people off before setting up the platform as to where the company will move towards. The right people are those who don't need to be tightly managed or persuaded in order for them to perform at the best of their abilities. They are self-motivated and willing to give their best work to create or be part of something important. When choosing the right person, great companies look not only for specific knowledge and skill, but also evaluate the innate capabilities, values, and traits of the person. Choosing the right people is also applicable at the higher level positions of a great company. The leaders of these great companies are not focused on the celebrity aspect of their position, but rather are incredibly humble and totally dedicated to developing excellence in their organization. They credit success to factors other than themselves and take the blame when things go wrong. Great leaders also have a unique way to deal with their employees. They create a legitimate and personal relationship with their employees that results in employee awareness of when they are being an asset to the company or when they are not performing to standards. Leaders must not hesitate to deal with low performers and take whatever means necessary to ensure that only high performing people are involved in reaching the goals of the company. In essence, a leader's way of promoting hard work, communicating high expectations, and serving as a source of drive and inspiration contributes to the overall success of any great company.

Companies that are in the process of going from good to great must first confront the brutal facts of their current situation. The company must be able to retain the conviction that they can prevail irrespective of any difficulties that they might be facing. Open expression from all individuals in the company must be encouraged so that the truth comes out and solutions to the problems are found. Great companies not only acknowledge that there are problems that need to be addressed, but also stick to what they know how to do best. This is the general principle of the hedgehog concept. All good to great companies show deep understanding of the three intersecting circles of the simple Hedgehog Concept. First of all, the company must have a clear understanding of what it can be the best at and what it cannot. Secondly, it is very important for there to be a strong passion for what the company is doing. If the company becomes the best at something, it will never remain at the top unless there is an overall sense of passion and desire. Thirdly, it would make no sense to be the best at something if there were no economic compensation for it. There must be an economic engine in order for there to be prosperous results. Companies that are guided by the hedgehog concept will usually have a Council. The Council consists of a group of the right