1. “Framework for Building an
Enduring Organization”
PRESENTED BY:
Leke Oshiyemi
HR-Business Partner (Services)
Honeywell Flour Mills Plc.
Friday, April 08, 2011

2. Jim Collins Is the author of “good to great”, “built to
last” and “how the mighty fall”.
James C. "Jim" Collins, An American Business
Consultant, Author, and Lecturer on the subject
of company sustainability and growth.
Jim Collins frequently contributes to Harvard
Business Review, Business Week, Fortune and
other magazines, journals, etc. He is also the
author of several books.

4. THE CHIMP
MEMBERS OF THE GOOD -TO - GREAT RESEARCH TEAM

5. Outline
• Background
• The Flywheel
• Level 5 Leadership
• First Who... Then What
• Confront the Brutal Facts (Yet Never Lose Faith)
• The Hedgehog Concept
• A Culture of Discipline
• Technology Accelerators
• The Flywheel and the Doom Loop
• From ‘Good to Great’ to ‘Built to Last’
• END

6. • Good to Great is possible
• Major research to uncover the underlying variables that make
it happen
• Identified companies that made the leap from good results to
great results and sustained those results for at least 15 years
• Compared them to a carefully selected control group of
comparison companies that failed to make the leap, or if they
did, failed to sustain it
• Compared the two sets of companies to discover the
essential and distinguishing factors at work

7. Background
• Good to Great Pattern (Criteria for selection)
– 15 years cumulative returns at or below the general stock
market
– Punctuated by a transition point
– Then cumulative returns at least 3 times the market over the
next 15 years
• Widely acknowledged great companies did not make it: 3M,
Boeing, Coca-Cola, GE, HP, Intel, Johnson & Johnson, Merck,
Motorola, Pepsi, Procter & Gamble, Wal-Mart and Walt Disney
• Only eleven companies made it from all Fortune 500 between 1965
and 1995

8. GOOD-TO-GREAT COMPANIES
Company Result from Transition Point to 15 yrs T Year to
beyond Transition Point T Year + 15
1. Abbott 3.98 times the market 1974 -1989
2. Circuit City 18.50 times the market 1982-1997
3. Fannie Mae 7.56 times the market 1984-1999
4. Gillette 7.39 times the market 1980-1995
5. Kimberly-Clark 3.42 times the market 1972-1987
6. Kroger 4.17 times the market 1973-1988
7. Nucor 5.16 times the market 1975-1990
8. Philip Morris 7.06 times the market 1964-1979
9. Pitney Bowes 7.16 times the market 1973-1988
10. Walgreens 7.34 times the market 1975-1990
11. Wells Fargo 3.99 times the market 1983-1998

9. Background
• Contrasted them with a carefully selected list of
comparison companies
– Direct Comparisons (Same industry)
– Unsustained Comparison
• The crucial question is, what did the good-to-great
companies share in common that distinguished
them from the comparison companies?
• Understanding what the good-to-great companies
did and consistently, rigorously applying them will
put us on the path to greatness

10. “GOOD IS THE ENEMY OF GREAT”
Jim Collins goes on to state that ... "We don't have great
schools, principally because we have good schools. We
don't have great government, principally because we have
good government.
Few people attain great lives, precisely because it is easy to
settle for a good life. The vast majority of companies never
become great precisely because they become quite good. -
and that is their main problem."

11. “GOOD IS THE ENEMY OF GREAT”
Greatness is a choice! And choice is the democratic
equalizer of all people. Everyone, regardless of their
rank, social status or income level has the power to
choose great over good.
Practice a policy of planned neglect. In other words,
once you have established your theme or singular
purpose (the one thing you can be the best in the
world at) get into the habit of practicing your main
habit FIRST before anything else.

12. THE FLYWHEEL

13. Level 5 Leadership
LEVEL 5
LEADERSHIP

14. • Level 5 Hierarchy
Level 5 • Traits of Level 5 Leaders
Leadership
• Cultivating Level 5 Leadership

15. Level 5 Hierarchy
LEVEL 5 LEVEL 5 EXECUTIVE
Build enduring greatness through a blend
of personal humility and professional will
LEVEL 4 Effective Leader
Catalyzes commitment to and vigorous pursuit of a clear and
compelling vision, stimulating higher performance standards
LEVEL 3 Competent Manager
Organizes people and resources towards the efficient and
effective pursuit of predetermined objectives
LEVEL 2 Contributing Team Member
Contributes individual capabilities to the achievement of group
objectives and works effectively with others in a group setting
LEVEL 1 Highly Capable Individual
Makes productive contributions through talent, knowledge,
skills and good work habits.

16. Traits of Level 5 Leaders
 Level 5 = Humility + Professional Will
 Ambition for the company
 Not that they don’t have ego or self interest
 Their ambition is first and foremost for the company and concern for its success rather
than for their own riches and personal greatness
 They set up successors for success. Want to see the company even more successful in
the next generation
 A compelling modesty
 Quiet, humble, modest, reserved, shy, self effacing
 Made remarkable results, yet almost no one ever remarked about them
 Never wanted to become larger than life heroes (Never talk about their
accomplishments)
 The comparison leaders were the exact opposite ( They use ‘I’ instead of ‘We’
 Unwavering resolve to do what must be done
 Not just about humility and modesty
 Incredible need to produce results
 Sell the Mill or fire their brother if that’s what it takes to make the company great
 The window and the mirror
 When things go well, Level 5 leaders look out of the window to apportion credit to
factors outside themselves (and if they cannot find a specific person or event, they
credit good luck)
 When things go wrong, they look in the mirror to apportion responsibility (never
blaming bad luck)

17. Cultivating Level 5 Leadership
There are two categories of people:
• Those who do not have the seed of level 5
– Could never bring themselves to subjugate their egoistic needs to the
greater ambition of building something larger and more lasting than
themselves
• Those who have the seed of level 5
– Have the potential to evolve to level 5.
– The capability resides within them and under the right circumstances
they begin to develop
– Most Level 5 leaders had significant life experience that furthered their
maturation
• Level 5 leaders exists all around us – Look for situations where extra ordinary
result exists, but where no individual steps forth to claim excess credit
• “You can accomplish anything in life provided you do not mind who gets the
credit” - Harry Truman

18. First Who... Then What
“In tumultuous environments it is even more important
what people do.”- Jim Collins

19. First Who... Then What
• First step is to get the right people on the bus (and the wrong people off
the bus) and then figure out where to drive it
– If you begin with “who” rather than “what”, you can more easily adapt
to a changing world
– If you get the right people on the bus, the problem of how to motivate
and manage people largely disappear
– If you have the wrong people, it doesn’t matter whether you discover
the right direction, you still won’t have a great company
• “First who” is a very simple idea to grasp and a very difficult idea to do
• Build a strong executive team, not a “genius with a thousand helpers”
• It’s who you pay, not how you pay them
• If you have the right people, they will do anything within their power to
make the company great, not because of what they will get, but because
they simply cannot imagine settling for anything less
• The purpose of a compensation system should not be to get the right
behaviors from the wrong people, but to get the right people on the bus in
the first place and to keep them there

20. First Who... Then What
 The right people
don’t need to be
tightly managed or
fired up. P.42

21. First Who... Then What
• In determining the right people, the good-to-great companies placed
greater weight on character attributes than on specific educational
background, practical skills, specialized knowledge or work experience
• Good to Great companies have rigorous, not ruthless cultures.
• 3 ways to be rigorous
– When in doubt, don’t hire – keep looking
– When you know you need to make a people change – act
• The moment you feel the need to tightly manage someone, you‘ve
made a hiring mistake
• Letting the wrong people hang around for too long is unfair to all
the right people
• Waiting for too long before acting is equally unfair to the people
who need to get off the bus
• Good-to-great leaders will not rush to judgment. They will first
determine whether they have the right person in the wrong seat
– Put your best people on the biggest opportunities, not your biggest
problems

22. Confront The Brutal Facts
CONFRONT THE
BRUTAL FACTS

23. Confront the Brutal Facts
(Yet Never Lose Faith)
• All good-to-great companies began the process of
finding a path to greatness by confronting the brutal
facts of their current reality
• When you start with an honest and diligent effort to
determine the truth of your situation, the right decision
often become self evident
• A primary task in taking a company from good-to-great
is to create a culture wherein people have a
tremendous opportunity to be heard and, ultimately,
for the truth to be heard

24. Confront the Brutal Facts
(Yet Never Lose Faith)
• Creating a climate where the truth is heard involves four
basic practices:
i. Lead with questions, not answers
ii. Engage in dialogue and debate, not coercion
iii. Conduct autopsies, without blame
iv. Build red flag mechanisms that turn information into
information that cannot be ignored
• The good-to-great companies faced just as much adversity as
the comparison companies but responded to that adversity
differently. They faced the realities of their situation head on.
As a result they emerged from adversity even stronger.

25. Confront the Brutal Facts
(Yet never lose faith)
“You absolutely cannot
make a series of good
decisions without first
confronting the brutal
facts.” P. 70

26. Confront the Brutal Facts
(Yet Never Lose Faith)
“You absolutely
cannot make
a series of
good
decisions
without first
confronting
the brutal
facts.” P. 70

27. Confront the Brutal Facts
(Yet never lose faith)
• Fred Purdue of Pitney Bowes
said, “When you turn over
rocks and look at all the
squiggly things underneath,
you can either put the rock
down, or you can say, ‘My job
is to turn over rocks and look
at the squiggly things,’ even if
what you see can scare the
(stuffens’) out of you.” P. 72

28. Confront the Brutal Facts
(Yet never lose faith)
• “Yes, leadership is about
vision. But leadership is
equally about creating a
climate where the truth is
heard and the brutal facts
confronted. There’s a huge
difference between the
opportunity to ‘have your
say’ and the opportunity to
be heard.” P.74

29. Confront the Brutal Facts
(Yet never lose faith)
• Creating a climate where truth
is heard:
– 1. Lead with questions,
not answers.
– 2. Engage in dialogue and
debate, not coercion.
– 3. Conduct autopsies,
without blame.
– 4. Build “red flag”
mechanisms.

30. HEDGEHOG CONCEPT
HEDGEHOG
CONCEPT

31. The Hedgehog Concept
•A simple concept that flows from a deep
understanding of three intersecting circles.
•It is not a goal, strategy or plan to be the best. It is
an understanding of what you can be the best at.

32. Hedgehog Concept - Examples
Good-To-Great Best in the Key Economic Key Insight
Companies World At Insight Denominator
1.Walgreens Could become Walgreens saw that it Profit per Shift from profit per
the best at was not just a drug customer visit store to profit per
convenient store but also a customer visit
drugstores convenience store. reflected a
Sought the best sites relationship
for convenience, between convenient
clustered stores and (and expensive)
pioneered drive- store sites and
through pharmacies sustainable
economics
2. Kroger Could become Kroger always had a Profit per local Shift from profit per
the best at strength in grocery population store to profit per
innovative store innovation. local population
super-combo Applied this skill to the reflected the insight
stores question of how to that local market
create a combination share drove grocery
store with many economics. If you
innovative, high cannot be no. 1 or 2
margin ‘mini stores’ in local share, you
under one roof should not play

33. A CULTURE OF DISCIPLINE
CULTURE OF
DISCIPLINE

34. A Culture of Discipline
• Sustained great results depend upon building a culture full
of self disciplined people who take disciplined action,
fanatically consistent with the three circles
• Fill that culture with self disciplined people who are willing
to go to extreme lengths to fulfill their responsibility
• Don’t confuse a culture of discipline with a tyrannical
disciplinarian
• The single most important form of discipline for sustained
result is fanatical adherence to the Hedgehog concept and
the willingness to shun opportunities that fall outside the
three circles

35. A Culture of Discipline
• Bureaucratic cultures arise to compensate for incompetence
and lack of discipline which arise from having the wrong
people on the bus in the first place
• If you get the right people on the bus and the wrong people
off, you don’t need bureaucracy
• a culture of discipline with an ethic of entrepreneurship, you
get superior performance and sustained result

36. Technology Accelerators
TECHNOLOGY
ACCELERATORS

37. Technology Accelerators
• Good-to-great organizations think differently about technology
and technology change
• They avoid technology fads and bandwagons, yet they become
pioneers in the application of carefully selected technologies
• The key question about any technology is, Does the technology
fit directly with your Hedgehog Concept?
• The good-to-great companies used technology as an
accelerator of momentum, not a creator of it.
• Two companies can use the same technology but may not
necessarily achieve the same result
• Mediocrity results first and foremost from management failure,
not technological failure
• Technology is important. But technology by itself is never a
primary cause of either greatness or decline

38. The Flywheel

39. The Flywheel & The Doom Loop
• The good-to- great transformations never happen in one
fell swoop. It comes about by a cumulative process
• No grand program, no one killer innovation, no lucky break,
no miracle moment and no name for their transformation
• Sustainable transformation follow a pattern of buildup
and breakthrough – like pushing on a giant heavy flywheel
• The comparison companies followed a different pattern –
the doom loop
• Rather than accumulating momentum – they try to skip
buildup and jump immediately to breakthrough
• They frequently launch new programs only to find that the
program fail to produce sustained result.

40. The Doom Loop

41. +

42. “GOOD-TO-GREAT”
…Building an Enduring Organization
Sustained Enduring
+ Good to Great
concepts
Great
Results
Great
Company

43. IMPLICATIONS FOR
 We must use Good to Great to understand how we can keep
doing the right things.
 We must imbibe the framework/values from “Good to Great”
and must be committed to applying what we learn to whatever
we do for our company and your own lives.
 The Good to Great performance pattern must be a company
shift, not an industry event. In other words, HFMPLC must
demonstrate the pattern not only relative to the market, but
also relative to its industry.

44. HONEYWELL
Building Vision
Flour Mills Plc.
(RC: 55495)
• WHO ARE WE? WHO AM I?
• DO WE HAVE DISCIPLINED PEOPLE,
THOUGHT & ACTIONS?
• WHAT IS OUR VISION?
• DO WE KNOW WHAT IS CORE AND WHAT
IS NOT?
• DO WE HAVE A GOOD BHAG?
(BIG-HAIRY-AUDACIOUS GOAL)
D

45. IN conclusion
 Sustainable transformations follow a predictable pattern of buildup
and breakthrough. Like pushing on a giant, heavy flywheel, it takes a
lot of effort to get the thing moving at all, but with persistent pushing in
a consistent direction over a long period of time, the flywheel builds
momentum, eventually hitting a point of breakthrough.
 The comparison companies followed a different pattern, the doom loop.
Rather than accumulating momentum-turn by turn of the flywheel-they
tried to skip buildup and jump immediately to breakthrough. Then, with
disappointing result, they’d lurch back and forth, failing to maintain a
consistent direction.
 The comparison companies frequently tried to create a breakthrough
with large, misguided actuations. The good-to-great companies, in
contrast, principally used large acquisitions after breakthrough, to
accelerate momentum in an already fast-spinning flywheel.

46. IN conclusion
Ultimately, the consistent
APPLICATION of the concepts from
“Good to Great” will give us the best
chance for creating GREATNESS!
GREATNESS
&

47. “Keep your dreams alive. Understand to achieve anything requires
faith and belief in yourself, vision, hard work, determination, and
dedication. Remember all things are possible for those who believe.”
believe
- John. C. Maxwell
“Give us clear vision that we may know where to stand and
what to stand for- because unless we stand for something
we shall fall for anything”- Peter Marshall
“Vision without action is a dream.
Action without vision is simply passing the time.
Action with Vision is making a positive difference.”
- JOEL BARKER

50. END

51. About me
Let’s Connect:
leke_oshiyemi@yahoo.com
www.linkedin.com/in/lekeoshiyemi
www.twitter.com/lekeoshiyemi
+2348033071649