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PeekaBOOK Review: Good to Great by Jim Collins

Updated: Jan 20


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How can a good business grow and thrive?

In order to succeed in business today, you must be adaptable and possess strong organizational and planning skills. Many people start businesses with the expectation that they can turn on their computers or open their doors and start making money, only to discover that doing so is much more complex than anticipated. There is no such thing as too much or too quick growth, but you should always look for ways to improve your company.


By taking your time and carefully organizing every step you must take to be successful, you can avoid this in your business endeavors. You can succeed in your venture by using the following suggestions from this book, regardless of the type of business you want to launch or have.


Let's be great with Jim Collins

Red book cover of "Good to Great" by Jim Collins. White and black text with a subtle graph line. Emphasizes business success.

In a five-year project, Collins' 21-person research team read and coded 6,000 articles, produced over 2,000 pages of interview transcripts, and generated 384 megabytes of computer data in search of the secrets to greatness. Many readers will be surprised by the results, and others will be upset, to put it bluntly.


Collins's book is very thoroughly investigated and documented. It is lengthy (300 pages), but the last 100 are taken up by the appendix and bibliography. The criteria are specified in detail, as are the research techniques. There is a process of the ideas they found. Even though leadership is where it all begins, it soon becomes clear that the leader isn't the most crucial factor. Here are some takeaways from the book.


The Level 5 Leadership

Hierarchy pyramid with levels: Level 5 Executive, Effective Leader, Competent Manager, Contributing Team Member, Highly Capable Individual.

The first component of greatness, according to Collins' research team, was a leader who possessed a "contradictory blend of personal humility and professional will." Despite popular belief, the leaders of organizations regarded as great did not always have a strong public profile or a history of notoriety.


They were the polar opposite. It's a difficult task, though, to try and understand the complexity of the business world in order to develop a model that helps a company succeed.



The Hedgehog Concept

Three blue overlapping circles with questions: Deeply passionate, Best in world, Economic engine. Orange center signifies shared focus.

To advance from good to great, one must overcome the curse of competence. (Simplicity within the Three Circles) Organizations must base their strategy on three dimensions, according to the hedgehog concept, a key element of the framework: There are three things you should focus on: what you can excel at, what powers your economy, and what you are truly passionate about.


The Hedgehog Concept provides comprehension. The good-to-great businesses resembled hedgehogs more than foxes. They had a clear direction in mind and tied with it. The companies used as a comparison were similar to foxes, which are strategic and knowledgeable but inconsistent.


The Hedgehog Concept was discovered four years after the average good-to-great company looked for it. One's ability to compete in a particular field can be compromised by diversifying one's business offerings. Therefore, businesses should look to identify their hedgehog concept and devote all of their resources to it. The company will be able to survive thanks to this long-term competitive strategy.

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