Visionary Organizations

1
Good to Great
2
What is Good to Great?
3
What is Good to Great?
4

• Level 5 Leadership

5

• Level 5
• Leadership

6
Level 5 Leadership

• Traits of a Level 5 Leader
• More of a plow horse than show horse
• Spends time developing leadership processes
  rather than showy projects
• Accepts personal blame for failures, shares
  credit for successes
• Exhibits humility, but a great will for the
  organization to succeed

7
Level 5 Leadership
Sir Ernest Shackleton Antarctic Explorer Level 5
Leader
8
(No Transcript)
9
(No Transcript)
10
Sir Ernest ShackletonA Level 5 Leader

• He is always able to keep his troubles under
  and show a bold front.
• In spite of his own great disappointment he
  never appears to be anything but the acme of good
  humor and hopefulness.

11
First Who . . . Then What

• Level 5
• Management Team
• (Good-to-Great Companies)
• Level 5 Leader
• First Who
• Get the right People on the Bus. Build a
  superior executive team.
• Then What
• Once you have the right people in place, figure
  out the best path to greatness.

A Genius with a Thousand Helpers (Comparison
Companies) Level 4 Leader First What Set a
vision for where to drive the bus. Develop a
road map for driving the bus. Then Who Enlist a
crew of highly capable helpers to make the
vision happen.
12
First Who . . . Then What

• What do Great Leaders do?
• Get the right people on the bus
• (and the wrong people off the bus)
• Also, get the right people in the right seats.
• And then figure out where to drive it.
• Select the right people before the right strategy
• Rigorous, not ruthless (in people decisions)
• When in doubt, dont hire - keep looking
• When you know you need to make a people change,
  act (make sure you dont simply have someone in
  the wrong seat)
• Put best people on biggest opportunities not the
  biggest problems

13
First Who . . . Then What

• Whether someone is the right person has more
  to do with character traits and innate
  capabilities than with specific knowledge,
  background, or skills.

14

• The Hedgehog Concept

15
The Hedgehog the FoxSir Isaiah Berlin
(1909-1997)
The fox knows many things, but the hedgehog knows
one big thing. Archilochus (7th-century b.c.e.)
16
Examples of the Hedgehog Concept
Darwin Natural Selection
Marx Class Struggle
Einstein Relativity
Adam Smith Division of Labor

• What are our simplistic Hedgehog ideas?

17
The Hedgehog ConceptSimplicity within the 3
Circles
18

• A Culture of Discipline

19
A Culture of Discipline

• The Airline Pilot Model

Freedom and responsibility within the framework
of a highly developed system
20
A Culture of Discipline

• Disciplined Rigorous Dogged
• Determined Diligent Precise
• Fastidious Systematic Methodical
• Workmanlike Demanding Consistent
• Focused Accountable Responsible
• The rinsing your cottage cheese factor
• Start a Stop Doing list.

21
A Culture of Discipline

• A strict or fanatical adherence to the
  Hedgehog Concept

22
A Culture of Discipline

• A culture of discipline is not just about
  action. It is about getting disciplined people
  who engage in disciplined thought and who then
  take disciplined action.

23

• Confronting the
• Brutal Facts

24
The Stockdale Paradox

• 37 Years Regular Navy
• Fighter Pilot
• Shot down over Hanoi in 3rd Vietnam combat duty
• POW in Hanoi for 7 ½ yrs
• Tortured 15 times
• Solitary Confinement 4 yrs
• Leg irons for 2 years

Vice Admiral James Stockdale
25
The Stockdale Paradox

• Retain faith that you will prevail in the end,
  regardless of the difficulties.
• and at the same time
• Confront the most brutal facts of your current
  reality, whatever they might be.

26
Back to the Ice
27
A Brutal Reality
28
The End?

• -15 degrees Fahrenheit
• 350 miles from land

29
Whats your vision now?
To get your crew back alive.
30

• The Flywheel and the Doom Loop

31
The Flywheel
32
The Flywheel Doom Loop

• The Flywheel
• There was no miracle moment
• There was no one magical moment
• It wasnt a flash from the blue
• It wasnt a single switch that was thrown at one
  time
• The Doom Loop
• Skip buildup and jump right to breakthrough
• Implement big programs, radical change efforts,
  dramatic revolutions
• Spent a lot of energy trying align and motivate
  people

33
The Flywheel Doom Loop

• John Wooden
• 10 NCAA Championships
• in 12 years
• 61 game winning streak
• 1948 1963 nothing
• 1964 First Championship

34
1 invested on January 1, 1926 to December 31,
1990
General Market 415 Comparison Companies -
995 Visionary Companies - 6,356
35

• Preserving the Core
• Stimulating Progress

36
(No Transcript)
37
Preserving the Core Stimulating Progress

• Tyranny of the OR
• Genius of the AND

38
Preserving the Core Stimulating Progress

• Is BYU Built to Last?

Greater Efficiency
More Service
39
Preserve the Core vs Stimulate Progress

1. Stimulate Progress
2. ?
3. Preserve Core
4. Preserve Core
5. ?

1. Stimulate Progress
2. Stimulate Progress
3. ?
4. Preserve Core
5. Preserve Core

40
Preserve the Core vs Stimulate Progress

• 2. Build a 1 billion endowment.
• Preserve Core Stimulate Progress

5. Dismiss an employee openly critical of the
First Presidency. Preserve Core Stimulate
Progress
8. Establish goals to increase diversity within
the student body. Preserve Core Stimulate
Progress
41
Preserve the Core vs Stimulate Progress

• If you are involved in building and managing an
  organization, the single most important point to
  take away from this book is the critical
  importance of creating tangible mechanisms
  aligned to preserve the core and stimulate
  progress. This is the essence of clock
  building.
• - Built to Last, p.89

42
Conclusion
43
Conclusion

• As we look back on our findings, one giant
  realization towers above all the others Just
  about anyone can be a key protagonist in building
  an extraordinary business institution. The
  lessons of these companies can be learned and
  applied by the vast majority of managers at all
  levels. Gone forever at least in our eyes is
  the debilitating perspective that the trajectory
  of a company depends on whether it is led by
  people ordained with rare and mysterious
  qualities that cannot be learned by others . . .

44
Conclusion

• We hope you take many things from this book. We
  hope the hundreds of specific examples will
  stimulate you to immediately take action in your
  own organization. We hope the concepts and
  frameworks will embed themselves in your mind and
  help guide your thinking. We hope you take away
  pearls of wisdom that you can pass along to
  others. But, above all, we hope you take away
  confidence and inspiration that the lessons
  herein do not just apply to other people. You
  can learn them. You can apply them. You can
  build a visionary company.
• - Built to Last, Preface to
  Paperback edition

45

• Questions ?