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Saturday, March 29, 2008

Good to Great (6)

The fifth factor that makes good companies transform to great companies is a culture of discipline. It entails discipline people, a discipline concept, and discipline actions. Without a culture of discipline, a company has to add an unnecessary bureaucracy. Jim Collins moreover writes that a company’s bureaucracy is needed only if it has no culture of discipline. To develop a good culture, Collins and friends underline the importance of having the right people in the first place. Because it also entails a discipline concept, a culture of discipline needs a clear and simple – hedgehog – concept.

Discipline people (not tyrant) are the ones willing to spend more time and effort to gain better results. The discipline people then are able to run the business based on a discipline concept and are able to avoid other irrelevant businesses. In running a hedgehog business and avoiding other irrelevant ones, they act with discipline in mind.

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