Good to Great
“Good to Great: Why Some Companies Make the Leap…And Others Don’t” written by Jim Collins - I started to read this book on Aug 24 and recently finished it. It summarizes a research study uncovering patterns and principles that differentiate “great” companies from the rest. I find it also helpful for professional development. Two most impressive concepts to me are “Level 5 Leadership” and “The Hedgehog Concept”.
Level 5 Leadership
There are five levels of leadership: 1) level 1 - highly capable individual, 2) level 2 - contributing team member, 3) level 3 - competent manager, 4) level 4 - effective leader, 5) level 5 - executive leader.
Level 5 Leadership is the highest level and is marked by a paradoxical blend of personal humility and professional will:
- Personal Humility: Level 5 leaders are modest, understated, and self-effacing. They rarely seek public attention and often attribute success to others, to good luck, or to external factors. They avoid the limelight and focus on the success of the organization rather than their personal accolades.
- Professional Will: Despite their humility, these leaders possess an intense resolve and determination to do whatever it takes to make the company great. They are incredibly ambitious, but their ambition is channeled toward the organization, not personal gain. They set high standards and push the company toward greatness with unwavering tenacity.
Characteristics of level 5 leaders:
- Focus on long-term success: They prioritize the enduring success of the company rather than short-term wins or personal gain.
- Credit to others: They credit the team, luck, or external factors for successes but take personal responsibility for failures or setbacks.
- Resolve in tough times: They confront difficult realities head-on and have a steadfast determination to overcome obstacles, never losing faith in the company’s ability to succeed.
- Succession planning: They ensure that the company can continue its success without them, often preparing successors who will carry the torch without a dip in performance.
The Hedgehog Concept
The Hedgehog Concept is a central idea in this book. It involves identifying the intersection of three crucial areas. When a company operates within this intersection, it can focus its efforts on what it’s passionate about, what it can truly excel at, and what drives its economic success. This creates a clarity of focus that allows a company to ignore distractions and build sustained momentum.
It’s not only about company. Individuals can use it to guide their career choices and personal development. By aligning your career or life mission with your personal Hedgehog Concept, you’re more likely to find purpose, fulfillment, and success. Think about the three questions:
- What are you deeply passionate about? - your personal mission, what gives you energy and a sense of fulfillment.
- What can you be the best in the world at? - your unique strengths and abilities.
- What drives your economic engine? - how you can generate income or provide value in a way that sustains your livelihood.
I’m glad that I found my answers to these three questions when I was 20 years old. I’m 100% sure that my answers won’t change through my whole life no matter what happened or will happen. The answers in my mind - I believe I’m born for it, it’s the mission of my life. So how about you?