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Who makes a Company great?<\/b><\/p>\n
According to Jim Collins, author of \u201cGood to Great,\u201d \u201cCompanies that make the change from good to great have no name for their transformation\u2014and absolutely no program. They neither rant nor rave about a crisis\u2014and they don\u2019t manufacture one where none exists. They don\u2019t \u201cmotivate\u201d people\u2014their people are self-motivated.\u201d These facts became clear as Jim Collins and his research team completed a five-year project to determine what it takes to change a good company into a great one. They systematically scoured a list of 1,435 established companies to find every extraordinary case that made a leap from no-better-than-average results to great results. How great? After the leap, a company had to generate cumulative stock returns that exceeded the general stock market by at least three times over 15 years\u2014and it had to be a leap independent of its industry. In fact, the 11 good-to-great companies that were found averaged returns 6.9 times greater than the market\u2019s\u2014more than twice the performance rate of General Electric under the legendary Jack Welch.<\/p>\n
The surprising good-to-great list included such unheralded companies as Abbott Laboratories (3.98 times the market), Fannie Mae (7.56 times the market), Kimberly-Clark Corp. (3.42 times the market), Nucor Corp. (5.16 times the market), and Wells Fargo (3.99 times the market). One such surprise, the Kroger Co.\u2014a grocery chain\u2014bumped along as a totally average performer for 80 years and then somehow broke free of its mediocrity to beat the stock market by 4.16 times over the next 15 years. And it didn\u2019t stop there. From 1973 to 1998, Kroger outperformed the market by 10 times.<\/p>\n
What Collins found was that in each of these dramatic, remarkable, good-to-great transformations, the same things were found: There was no miracle moment. Instead, a down-to-earth, pragmatic, committed-to-excellence process\u2014a framework\u2014kept each company, its leaders and its people on track for the long haul.<\/p>\n
Note, it takes a company, its leaders and its people to go from good to great…<\/b><\/p>\n
A company \u2013 A great company works on what it is passionate about, what it can be the best at and what makes it money, not at just what makes it money.<\/p>\n
Its leaders \u2013 leaders are just ordinary people quietly producing extraordinary results, guided by determination to do whatever needs to be done to make the company great.<\/p>\n
Its people \u2013 the \u201cit\u201d is the key. It is such a small word, just a couple of letters, but between the \u201ci\u201d and the \u201ct\u201d is a lot of choices and a world of opportunities. It says everything about the people in a Company.<\/p>\n