Good To Great Chapter 9: From Good to Great to Built to Last Team 3 Tiffany Oswald Kristen Steinbrecher McLean Jones Matt Youngs Amye Cervenka

Built to Last Based on a six year research project from the early 90s Answered the question as to what it takes to build a great company from the ground up Companies were compared that endured over the decades or even centuries Built to Last was out of the picture when researching Good to Great, to achieve minimal bias from previous work

Comparing the Two The two studies build on each other and can be used together Good to Great as seen as a prequel to Built to Last even though it was written later, says the author The two books can also coincide with each other Established Company, Good to Great Concepts, Sustained Great Results, Built to Last Concepts, Enduring Great Company

Good to Great in the Early Stages of Built to Last Wal-mart Began in 1945 as a single dime store Built second store seven years later Took 25 years to build 38 stores From 1970-2000 had 3000 stores and over $150 billion in revenue

Good to Great in the Early Stages of Built to Last Hewlett Packard Based on who not what The first founding meeting was on August 23, 1937 After WWII, hired a bunch of people streaming out of government labs “No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth and still become a great company.”

Core Ideology : The Extra Dimension of Enduring Greatness

Bill Hewlett Interview with ole Bill Hewlett H.P. and their set of Core Values The Extra Dimension?

A Brief Note Enduring great companies don’t exist merely to deliver returns to shareholders….

Merck Cares Cure for the blind Consistently outperformed the market from 1946-2000 Doesn’t consider their ultimate reason for being as making money

A Note on Core Values Essential for enduring greatness But… Doesn’t seem to matter what these core values are…please explain

The Walt Disney Story Walt was a Kansas boy who moved to LA to get into the movie biz Couldn’t get hired Set up a camera in a garage and made his own cartoons Walt opens up Disney World and the rest of the Disney Parks Disney’s core values

Good Bhags, Bad Bhags

Four Key Ideas Each of the Good to Great findings enables all four key ideas from built to last

1. Clock Building, Not Time Telling “Build an organization that can endure and adapt through multiple generations of leaders and life cycles.”(pg.197) The opposite of being built around a single leader or single idea

2. Genius of AND “Embrace both extremes or a number of dimensions at the same time. Instead of choosing A or B, figure out how to have A AND B – purpose AND profit, continuity AND change, freedom AND responsibility, etc.”(pg.198)

3. Core Ideology “Instill core values and core purpose as principles to guide decisions and inspire people throughout the organization over a long period of time.”(pg.198) Don’t let one factor drive you such as money

4. Preserve the Core/ Stimulate Progress “Preserve the core ideology as an anchor point while stimulating change, improvement, innovation, and renewal in everything else. Change practices and strategies while holding core values and purpose fixed. Set and achieve BHAGs consistent with the core ideology.”(pg.198)

BHAG Pronounced bee-hag Short for Big Hairy Audacious Goal

Three points in a BHAG What you are deeply passionate about… What you can be best in the world at… What drives your economic engine…

“Remember, it is much easier to become great than to remain great “Remember, it is much easier to become great than to remain great. Ultimately, the consistent application of both studies, one building on the other, gives the best chance for creating greatness that lasts.”(pg.204)

Why Greatness? Student asked “Why should I try to build a great company? What if I just want to be successful?” (p.205) “It is no harder to build something great than to build something good.” (p.205) High School cross-country example The search for meaningful work

Not why, but how… “The real question is not, “Why greatness?” but “What work makes you feel compelled to create greatness?” Becoming a Level 5 leader Meaningful work Responsibilities line up with personal three circles