Good to Great (1)

One of my favorite books is Jim Collins’ Good to Great, an international best seller. Jim Collins and his team wrote the book based on a very serious research. The research was conducted on eleven companies (1965-1995) that in fifteen years (1980-1995) accumulated return at least three times each industry’s average, after for fifteen years before (1965-1980) were only average companies or worse. The eleven companies are compared to competitors that were only average or worse. The research was also equipped with observations to a few companies that once were great but could not last. According to Jim Collins and team, the factors for a company transformation from good to great are:

1. the company is lead by a level five leader; 
   
2. the level five leader prioritize people more than system; 
   
3. the level five leader and colleagues always confront reality, however fierce; 
   
4. the company then has a clear and simple business concept; 
   
5. the company develops a culture of discipline; and 
   
6. the company uses technology as a catalyst of an already good business.
   

What does each factor mean? Wait for my next post.