Jim Collins Good to Great - Book Report/Review Example

Involved in the conducted research were the 11 companies from the list of Fortune 500. These companies are Kimberly-Clark, Kroger, Nucor, Philip Morris, Piney Bowes, Walgreen, Wells Fargo, Abbott Laboratories, Circuit City, Fannie Mae, and Gillette. To simplify the criteria of the companies' belongingness for such was through the survival of its stock prices in the past 15 years. It relies on the growth and their ability to cope with the changes of economic events. In the book, Collins cited various approaches based on different principles he, along with his team, gathered through their study for the dynamic retort of the business industry.

Thus the given principles can answer further the queries that come alongside the main thesis. One is to answer the who and the what of the approach for the acquisition of greatness of a company. Quoting Collins, he stated "the main point is to first get the right people on the bus (and the wrong people off the bus) before you figure out where to drive it. The second key point is the degree of sheer rigor needed in people's decisions in order to take a company from good to great."It is suggestive that good companies absorb the right people to work for them.

In critical conditions that a company is facing, Collins implies not to sell the best people but to sell the biggest problem. These best people he regarded should be the adaptive ones to be able to cope with the changing world. A company with excellent vision but never possessed the best people most likely would not survive in the long run. Changing people in certain positions if it's a must in a situation is inevitable, but also to consider that people to put should be the right ones in the position as suggested by Collins.

Keeping the right people should be the first act, thus the compensation will deserve the right people to get motivated.Another approach is the Hedgehog concept or the Simplicity within the Three Circles. The three circles are in the question form. These are as follows: 1. what you can be the best in the world at, 2. what drives your economic engine, 3. what you are deeply passionate about. This concept is not about aiming or setting a goal to be the best, but having an understanding of what you can be the best at.

Through the team's study, they have proven that understanding can beat audacity or confidence. Thus being aware of the three circles or the three questions and the ability to supply viable answers can lead people to understand what they can be best at. Another approach was cited that corresponds with the Three Circles concept, the Stockdale Paradox. Stockdale Paradox suggests leading with questions, not answers. This principle is "refraining faith that you will surely prevail at the end, regardless of the difficulties, and at the same time, confronts the most brutal facts of your current reality, whatever they might be."