Good to Great by Jim Collins - Book Report/Review Example

"Good to Great" by Jim Collins Cited as the best management book by some members of Wall Street Journal's CEO Council and applauded for its simple and plausible business perspective by Publishers Weekly, Jim Collin’s ‘Good to Great’ is a laudable best-seller, its sales of 4 million copies enunciating it proliferation to its audience. It is a business book that elucidates the critical recipe in the transitioning of an average to large successful business and how big companies inadvertently make imprudent and un-evaluated decisions that inevitably lead to their downfall (Murray 29). Scouring through 1,435 established companies, Jim Collins compiles extra-ordinary cases of leapfrogging by average companies to become revered ones thence providing unorthodox insights into economic success. Using analogies of simple rules of life, Collins puts across fundamental business strategies, which are deducible to several themes in his book ‘Good to Great’, that he emphasizes are imperative for that sort-after change (Levitt 09). One of the striking themes is corporate social responsibility whereby a business or company monitors and self-regulates itself ensuring that laws related to the business, ethical standards and norms are complied with and in a spirited way. Jim Collins uses the analogy of a flywheel that initially requires tremendous effort or energy to gather momentum before its own weight can propel it. To attain this momentum, energy has to be arduously amassed from every individual in the company by embracing concerted responsibility for the company’s actions (Levitt 13). Lack of accountability, on the other hand, leads to decrepitating of this energy abating the Flywheel effect that plunges companies into what Collins refers to as ‘Doom loops’. Jim Collis underscores this to those mega –programs initiated into the company but fail to take off resulting to disappointing results. Its aftermath eventually is the rigorous recruitment of new leadership along with novel programs that lead to no change but adamant spiraling of the company in a steady downward lurch. Jim Collins cites elaborately a great embodiment of the ‘Doom Loop’ with the Warner-Lambert Co. company. It reeled back and forth in its programs from a consumer products company to healthcare then back again to consumer goods pending healthcare reforms, undertaking three major restructuring, each per CEO, eventually ended up being bought out by Pfizer in 2000 (Murray 33). When every employee, in the company, takes responsibility, they feel the excitement and satisfaction of the company’s success as the flywheel effect starts to build up, and thereafter they aren’t necessarily pushing harder like before to keep the flywheel accelerating once there is momentum. Jim Collins also advocates the right values and ethics to achieving business success and the discipline in sticking to those values (Bryant 16). Some of the values emphasized on are shear will and humility. In an analogy of a bus, its bus driver and passengers to depict the company, leader and employees respectively, Jim Collins insists that only passengers with the right values should be allowed to board the bus. In his “who” before “what” policy, he asserts that before setting the direction or articulating the corporate vision, a CEO commences by getting impeccable people on the bus. People who are resolute and willing to give 100 percent effort and capable of sitting out a tough and demanding ride with neither questions asked nor recrimination (Levitt 20). CEO of Fannie Mae in 1981, David Maxwell’s bus ride is used as worthy incarnation. His company was losing $ 1 million daily and losing mortgage loans worth $ 56 billion by defaulters with the board desperate for Maxwell to rescue the company. Maxwell introduced new values and norms in the company and demanded that they be adhered to the latter which turned out to be pious for 14 of the total 26 executives, who resigned. David Maxwell introduced the best, hardworking and smart employees to conform to the values introduced; he was able to bring around the company with $ 4 million daily earnings by the fall of his tenure (Bryant 11). Collins reiterates that if you have the right people in your bus, the least of your concern would be the task of motivating them since the right people should be self-motivating. He states that, however, splendid or adept you are in skimming visionary programs, with mediocre people on your bus greatness will only remain a word in your dictionary (Levitt 37). The theme of motivation is conceived of in his hedgehog concept of managing the complexities of the business world into organized ideas demonstrating insight. By focusing and aligning the company with what employees are best in the world at, what they are passionate about and what drives your economic engine best will always have rejuvenated workforces with the spirited attitude reverberating throughout the company. He calls this the three inter-lapping circles with the hedgehog concept at the intercept. This appeals the employees to run the business as though it is their own (Murray 31). Jim Collin’s ‘Good to Great’ should not be presumed as a book only fettered to the business world audience. The book identifies with every individual with regards to the nitty-gritty of success and the values and ethics that go along with this. Values such as self-motivation, responsibility, humility and discipline, all denoted as imperative to have for business success, apply in all life-affiliated aspects and every person who reads the book should feel inspired (Murray 46). The egg analogy by Jim Collins that befits as a good conclusion pitches that those who are not keen would get baffled when suddenly an egg that was just sitting around hatches a chick as though the young just radically transformed it. The lesson being accentuated here being that not a sole key event can cause success but an amalgam of events and radicalization before that breakthrough moment of cracking of the egg to reveal the product of pliancy (Levitt 35). 5 takeaways for a prospective career planner to draw from Jim Collins should be (Murray 39): Leaders should show humility and know what drives best the company’s success Find the right people on your bus first, then figure out the direction or vision to follow. Practice the culture of discipline to the set out norms and standards Follow the hedgehog concept of the three overlapping circles of ‘passion’, ‘driving resource’ and’ best at’ Taking small initiatives in concerted efforts that will act on each other like compound interest causing the flywheel effect. Works Cited Bryant Adam. For This Guru, No Question Is Too Big. 2009 Murray Alan. The Wall Street Journal Essential Guide to Management .2010 Levitt, Steven D. From Good to Great … to Below Average. 2008 Read More