From “Good to Great” by Jim Collins
Building a great organization proceeds in four basic stages.
Stage 1: Disciplined People
Level 5 Leadership – leaders that are ambitious for the cause and not themselves. The resolve to do whatever it takes. A blend of personal will and humility.
First Who Then What – right people on the bus and wrong people off of the bus. The right people in the right seats. Level Five leaders always think “who” first the “what”!
Stage 2: Disciplined Thought
Confront the Brutal Facts – The Stockdale Paradox – retain the unwavering faith that we can and will prevail, regardless of difficulties, and at the same time have the discipline to confront the most brutal facts of your current reality.
The Hedgehog Concept – greatness comes by a series of good decisions consistent with a simple, coherent concept – a Hedgehog Concept. The Hedgehog Concept is an operating model that reflects understanding of three intersecting circle: what can you be the best in the world at, what are you deeply passionate about, and what best drives your economic or resource engine.
Stage 3: Disciplined Action
Culture of Discipline – disciplined people who engage in disciplined thought and who take disciplined action – operating with freedom within a framework of responsibilities. In a culture of discipline, people do not have jobs, they have responsibilities.
The Flywheel – there is no single defining action, no grand program, no one killer innovation it is relentlessly pushing the giant business flywheel in one direction, turn upon turn, building momentum until a point of break through.
Stage 4: Building Greatness to Last
Clock Building, Not Time Telling – truly great organizations prosper through multiple generations of leaders. Leaders in great organizations build catalytic mechanisms to stimulate progress, and do not depend upon having a charismatic personality to get things done.
Preserve the Core and Stimulate Progress – fundamental duality. First, a set of timeless core values and core reasons that remain constant over long periods of time. Second, a relentless drive for change and progress – a creative compulsion that often manifests itself in BHAG (Big Hairy Audacious Goals). Great organizations keep clear the difference between their core values (which never change) and operating strategies and cultural practices (which endlessly adapt in a changing world).