“Good to Great”

1. “Good to Great”

2. What is “Good to Great”?

3. What is “Good to Great”?

4. Level 5 Leadership

5. LEVEL 5 EXECUTIVE Builds enduring greatness through a paradoxical blend of personal humility and professional will Level 5 Level 4 EFFECTIVE LEADER Catalyzes commitment to and vigorous pursuit of a clear and compelling vision, stimulating higher performance standards Level 3 COMPETENT MANAGER Organizes people and resources toward the effective and efficient pursuit of predetermined objectives Level 2 CONTRIBUTING TEAM MEMBER Contributes individual capabilities to the achievement of group objectives, and works efficiently with others in a group setting Level 1 HIGHLY CAPABLE INDIVIDUAL Makes productive contributions through talent, knowledge, skills, and good work habits 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

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, don’t hire - keep looking • When you know you need to make a people change, act (make sure you don’t 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 What are our simplistic “Hedgehog” ideas?

17. What you are deeply passionate about? What you can be best in the world at? What drives your resource engine? 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. What you are deeply passionate about? What you can be best in the world at? What drives your resource engine? 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. What’s 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 wasn’t a flash from the blue” • “It wasn’t 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. Preserve the Core Stimulate Progress

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 • Stimulate Progress • ? • Preserve Core • Preserve Core • ? • Stimulate Progress • Stimulate Progress • ? • Preserve Core • 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 ?