Another finding in the study was how larger than life celebrity leaders who ride in from the outside are negatively correlated with going from good to great.
Ten of eleven good to great CEOs came from inside the company, whereas the comparison companies tried outside CEOs 6 times more often.
All good-to-great companies began the process of finding a path to greatness by confronting the brutal facts of their current reality.
When you start with an honest and diligent effort to determine the truth of your situation, the right decisions often become self-evident.
Instead, he wanted to look at a set of companies that made a leap from average or below average results in the stock market, to great results which needed to be sustained at least 15 years.
What was surprising, was these good to great companies generated cumulative stock returns that beat the market by an average of seven times in fifteen years, better than the results delivered by an index of the world’s greatest companies (Coca-Cola, GE, Intel, etc.)Next, the research team contrasted the good-to-great companies with a carefully selected set of comparison companies that failed to make the leap from good to great.Good to Great, by Jim Collins, presents the conclusions after studying a certain subset of publicly traded companies to identify key attributes of how companies go from good to great.Collins wanted to answer the question, “How can good companies, or even bad companies, achieve enduring greatness?Level 5 refers to a five level hierarchy of executive capabilities, with level 5 at the top.Level 5 leaders embody a paradoxical mix of personal humility and professional will.It is impossible to make good decisions without infusing the entire process with an honest confrontation of the brutal facts.Creating a climate where the truth is heard involves four basic practices: Leadership does not begin just with vision.Going from good to great requires a deep understanding of three intersecting circles: The key is to understand what your organization can be the best in the world at, and equally important what it cannot be the best at – not what it “wants” to be the best at.The Hedgehog concept is not a goal, strategy, or intention, it is an understanding.When things go poorly, however, they look in the mirror and blame themselves, taking full responsibility.The comparison CEOs often did just the opposite – they looked in the mirror to take credit for success, but out the window to assign blame for disappointing results.