Is 'Good To Great' Still Relevant For Modern Businesses?

2025-06-20 20:20:21 166

2 Answers

Piper
Piper
2025-06-21 11:50:20
its core principles still hit hard in today's business landscape. The concept of Level 5 Leadership feels more relevant than ever - leaders who blend humility with fierce resolve are exactly what modern companies need in this era of rapid change. Companies like Apple and Microsoft continue to prove that getting the right people on the bus before setting direction creates unstoppable teams. The hedgehog concept's focus on doing what you can be the best at remains golden advice in our oversaturated markets where differentiation is survival.

Where some argue it feels outdated is in its pre-digital revolution case studies, but the fundamental truths transcend technology shifts. The flywheel effect perfectly describes how companies like Amazon built dominance through consistent pushes in one direction rather than erratic pivots. Modern startups applying these principles see similar compounding results. The book's emphasis on confronting brutal facts while maintaining faith you'll prevail is exactly the mindset needed during economic uncertainty or industry disruption. While execution details evolve, the discipline framework Jim Collins outlined still provides the best blueprint for building enduring greatness.
Henry
Henry
2025-06-26 11:42:26
'Good to Great' holds up surprisingly well despite being over 20 years old. The book's research-backed approach means its findings aren't just trendy management fads. The Stockdale Paradox about confronting reality while maintaining hope is something I see successful founders applying constantly during crises. Modern businesses might operate faster now, but Collins' emphasis on disciplined people, thought, and action creates the stability needed for sustainable growth. Tech companies especially benefit from the 'first who, then what' principle when navigating unpredictable markets. While some case study companies have faded, the patterns of greatness remain timeless.
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Why Do Some Companies Fail To Leap In 'Good To Great'?

2 Answers2025-06-20 07:45:52
I’ve always been fascinated by the ideas in 'Good to Great' because it digs into why some companies soar while others stall. One big reason companies fail to make the leap is ignoring the Hedgehog Concept—the sweet spot where passion, talent, and economic drivers intersect. Too many leaders chase trends or spread themselves thin trying to do everything, instead of focusing on what they can be the best at. The book’s case studies show how great companies relentlessly simplify their focus. But failing firms? They get distracted by shiny opportunities or ego-driven projects that don’t align with their core strengths. It’s like watching a chef try to bake, grill, and fry at the same time—they end up burning half the dishes. Another pitfall is weak leadership, especially the lack of Level 5 Leaders. These are the humble, driven CEOs who prioritize the company over personal glory. Struggling companies often have charismatic leaders who love the spotlight but can’t build enduring teams. They might rack up short-term wins, but without a culture of discipline—another key theme in the book—the organization crumbles under pressure. I’ve seen this in tech startups where the founder’s vision overshadows operational grit. The book contrasts this with companies like Kroger, where disciplined action trumped flashy moves. Failing firms also skip the 'flywheel effect,' expecting overnight success instead of compounding small wins. Impatience kills momentum; greatness isn’t a sprint, it’s a thousand tiny pushes in the same direction.

What Are The Critical Differences Between Good And Great Companies In 'Good To Great'?

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In 'Good to Great', the critical differences between good and great companies are fascinating. Great companies have Level 5 Leadership, where leaders are humble yet driven, focusing on the company's success rather than personal glory. They also follow the Hedgehog Concept, which is about understanding what they can be the best at, what drives their economic engine, and what they are deeply passionate about. Another key difference is the Culture of Discipline, where disciplined people engage in disciplined thought and take disciplined action. Great companies also focus on getting the right people on the bus and the wrong people off the bus before figuring out where to drive it. They use technology as an accelerator, not a creator, of momentum. These principles collectively transform good companies into great ones, making them stand out in their industries.

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I’ve been obsessed with business books for years, and 'Good to Great' is one of those gems that sticks with you. Jim Collins and his team didn’t just pick random companies—they dug deep into decades of data to find firms that leaped from mediocre to extraordinary and stayed there. The eleven companies they analyzed are like a masterclass in sustained excellence. Abbott Laboratories, Circuit City, Fannie Mae, Gillette, Kimberly-Clark, Kroger, Nucor, Philip Morris, Pitney Bowes, Walgreens, and Wells Fargo made the cut. What’s fascinating is how different these industries are—pharmaceuticals, retail, banking, steel manufacturing—yet they all shared common traits. Collins called them the 'Hedgehog Concept,' the 'Flywheel Effect,' and getting the right people 'on the bus.' Take Nucor, for example. A steel company that outperformed giants by focusing relentlessly on efficiency and employee motivation. Or Walgreens, which shifted from being a decent pharmacy chain to dominating its market by obsessing over convenience and store locations. What’s wild is that some of these companies later faltered (Circuit City went bankrupt, Fannie Mae crashed during the 2008 crisis), but Collins’s research focused on their *transition* period—when they defied expectations. The book isn’t about eternal perfection; it’s about how ordinary companies tapped into something extraordinary for a defining era. I still reread the case studies for inspiration, especially how Kimberly-Clark pivoted from paper mills to beating Procter & Gamble in the tissue war. It’s proof that greatness isn’t about luck—it’s about discipline, culture, and a refusal to settle.

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