Good to Great — Jim Collins

 

​Rating: ★★★★½

​Summary: Exhaustive research shows that there are key differentiating factors between good businesses and great ones.

Great businesses have leaders who are humble, but also determined to ensure the company's long-term success. Mediocre companies have leaders who are more concerned with their own legacy and wealth than about what happens after they leave the firm.

Great companies spend considerable time and effort getting the right people on the team. Less-than-great companies spend similar amounts of time and effort to motivate, promote their "vision", and deal with the inevitable problems that arise when the wrong people are on the team. 

Excellent companies stick to their Hedgehog Concept: what they are passionate about, what drives their economic engine, and what they can be best in the world at. Lesser companies flit from one trending area to another, never settling on a single, suitable area of expertise. 

Great companies follow the Stockdale Paradox: they confront the brutal truths of their industry, but possess an unwavering faith in their ability to adapt and thrive. Other companies avoid harsh truths, and naively shift their attention toward perceived strengths.
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The best companies make use of the Flywheel Effect. They build momentum slowly, by pushing the flywheel in a direction that fits with their Hedgehog Concept. Results start to trickle in, which leads to more momentum. Other companies are always stopping to find a better flywheel, and lose valuable progress and momentum in the process.

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Source: Good to Great by Jim Collins