Good to Great: Why Some Companies Make the Leap and Others Don’t
This management book by Jim C. Collins discusses how organizations or firms shift from being good companies to great companies. It also tackles why some companies fail to in such transition. Collins studied companies from 1965 to 1995. He filtered the companies and made sure that only those who outperformed in their industries were included. The companies that were studied were Abbott Laboratories, Fannie Mae, Circuit City, Gillete, Kroger, Kimberly-Clark, Nucor, Pitney Bowes, Philip Morris, Walgreens, and Wells Fargo.
The main premise of the book was that all the companies that were studied have Level 5 leaders. Level 5 leaders refer to those individuals who are humble at a personal level but have something to offer and contribute to the company because they driven and they have the desire to success. And when they talk about success, they don’t see it at a personal level, but is something that would last their time. Level 5 leaders are individuals who have unwavering commitment to the companies where they work for and they wasn’t to make sure that they are bringing the company to the top. However, since they are humble, they don’t consider themselves as the reason why the company is successful. They just do their job, perform well, and achieve the objectives of the company. For them, they are already successful just by doing so. It also talks about whether level 5 leaders are born or made. According to Collins, many people have the ability and attitude to achieve this kind of status. So basically, the companies that are able to shift from good to great are those who have the right people in their team. Great companies, as said by Collins, are those that are not depending on one single person for success rather they have all the right people who are working toward the success of the company.
I have to agree with what Collins has argued in his book. I believe that the people or the employees are the key success factor of any organization or company. It would be hard to achieve any goal if the people are not willing to do so. It is important that you have the right people who understand the company’s goals and are working toward achieving it. It is crucial for any company to find the employees who are level 5 leaders. They must be able to have the employees who are on the same page as the rest of the team. Otherwise, they will just pull everyone down. I agree that a company needs to be 100% sure before they hire someone. They need to make sure that the employee is the right person they are looking for. It is better for a company to wait and fins someone who is a good fit. If an employee is no longer performing well and doesn’t meet the needs of the company, if it is really necessary to fire him, then let it be done. However, it must be done fairly. The management must be sure that the employee is not really performing well before firing him. So making the right decisions is also very important for the success of a company. Also, I agree that in order for employees to work hard, they must be given with good opportunities as well. They must be able to have a chance to take advantage of the opportunities that could make them great and would improve their lives as well. There must be a good work and life balance. Aside from having deep commitment to the company, they must still give importance to other things in their lives. They must have a good life so they will be inspired and give their best performance at work as well. In order to make the transition from good to great, the right people who are level 5 leaders are the key factor.
