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Breakthrough. Buildup. Flywheel. Good to Great. Level 5 Leadership. First Who… Then What. Confront the Brutal Facts. Hedgehog Concept. Culture of Discipline. Technology Accelerators. Disciplined People. Disciplined Thought. Disciplined Action. Breakthrough. Buildup. Flywheel.

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Breakthrough

Buildup

Flywheel

Good to Great

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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Breakthrough

Buildup

Flywheel

Good to Great

Level 5

Leadership

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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Level 5 Leadership

5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual


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Level 5 Leadership

  • Leaders who employ a paradoxical mix of personal humility and professional will

  • Set up successors for even greater success

  • Compelling modesty, self-effacing, understated

  • Fanatically driven to produce sustainable results

  • More plow horse than show horse

5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual


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5–Level 5 Executive

4–Effective Leader

3–Competent Manager

2–Contributing Team Member

1–Highly Capable Individual

Level 5 Leadership

  • Attribute success to other than themselves

  • Look in mirror and take full responsibility for poor decisions

  • Many people have the potential to evolve into Level 5


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Breakthrough

Buildup

Flywheel

Good to Great

First Who…

Then What

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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First Who . . . Then What

  • Leaders began the transformation by first getting the right people on the bus (and the wrong people off the bus).

  • “Who” questions came before “what” decisions - before vision, strategy, organization structure, and tactics.


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First Who . . . Then What

  • Leaders were rigorous, not ruthless in people decisions.

  • Three practical disciplines for being rigorous:

    • When in doubt, don’t hire

    • When you know you need to make a people decision, act

  • Put your best people on your best opportunities, not biggest problems


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First Who . . . Then What

  • Management teams debate vigorously to find best answers, yet unify behind decisions.

  • “Right” person has more to do with character traits and innate capabilities than with knowledge, background, or skills.


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Breakthrough

Buildup

Flywheel

Good to Great

Confront the

Brutal Facts

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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Confront the Brutal Facts

  • Setting off on the path to greatness requires confronting the brutal facts of current reality.

  • Must create a culture wherein people have a tremendous opportunity to be heard and, ultimately, for the truth to be heard.


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Confront the Brutal Facts

  • Lead with questions, not answers

  • Engage in dialogue and debate, not coercion

  • Conduct autopsies, without blame

  • Build red flag mechanisms where information cannot be ignored

  • Four basic practices:


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Confront the Brutal Facts

  • Stockdale Paradox:Retain absolute faith that you can and will prevail in the end, AND at the same time confront the most brutal facts of your current reality, whatever they might be.


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Breakthrough

Buildup

Flywheel

Good to Great

Hedgehog

Concept

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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Hedgehog Concept

  • Hedgehogs simplify a complex world into a single organizing idea, a basic principle or concept that unifies and guides everything.

  • Hedgehogs see what is essential, and ignore the rest.


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Hedgehog Concept

  • The Hedgehog Concept is a deep understanding of three intersecting circles translated into a simple, crystalline concept:

  • What you are deeply passionate about

  • What you can be best in the world at

  • What drives your economic engine


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What you are deeplypassionate about

What drives youreconomicengine

What you can be the best in the world at

Hedgehog Concept

Simplicitywithinthe three circles


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Hedgehog Concept

  • Getting the Hedgehog Concept takes an average of four years.

  • It is an iterative process by The Council:

  • The right people

  • Engaged in vigorous dialogue and debate

  • Infused with the brutal facts

  • Guided by questions formed by the three circles


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Hedgehog Concept

All Guided by the Three Circles

An IterativeProcess

Ask Questions

TheCouncil

Dialogue &Debate

Autopsies& Analysis

ExecutiveDecisions


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Breakthrough

Buildup

Flywheel

Good to Great

Culture of

Discipline

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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Culture of Discipline

  • Getting disciplined people who engage in disciplined thought and who then take disciplined action, fanatically consistent with three circles

  • People who “rinse their cottage cheese”

  • Not about a tyrant who disciplines


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Culture of Discipline

  • Involves a duality.

  • Requires people who adhere to a consistent system.

  • Gives people freedom and responsibility within framework of that system.


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Culture of Discipline

  • Includes willingness to shun opportunities that fall outside the three circles.

  • Budgeting is to decide which arenas fit Hedgehog Concept and should be fully funded and which should not be funded at all.

  • “Stop doing” lists are more important than “to do” lists.

  • “Anything that does not fit with our Hedgehog Concept, we will not do.”


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Breakthrough

Buildup

Flywheel

Good to Great

Technology

Accelerators

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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Technology Accelerators

  • Good-to-greats avoid technology fads and bandwagons.

  • Yet they often become pioneers in the application of carefully selected technologies.

  • Does it fit directly with your Hedgehog Concept?

  • Good-to-greats used technology as an accelerator of momentum, not a creator of it.


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Technology Accelerators

  • Technology by itself is never a root cause of either greatness or decline.

  • “Crawl, walk, run” can be a very effective approach, even during times of rapid and radical technological change.


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Breakthrough

Buildup

Flywheel

Good to Great

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerations

Disciplined People

Disciplined Thought

Disciplined Action

Flywheel


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The Flywheel

  • Good-to-great transformations never happened in one fell swoop.

  • There was no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment.

  • Instead they followed a predictable pattern of buildup and breakthrough.

  • Like pushing on a giant, heavy flywheel, it takes a lot of effort to get the thing moving at all, but . . .


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The Flywheel

  • With persistent pushing . . .

  • In a consistent direction . . .

  • Over a long period of time . . .

  • The flywheel builds momentum . . .

  • Eventually hitting a point of breakthrough.

  • In good-to-great companies problems of commitment, alignment, motivation, and change largely take care of themselves.

  • Alignment follows from results and momentum, not the other way around.


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Breakthrough

Buildup

Flywheel

Good to Great

Level 5

Leadership

First Who…Then What

Confront theBrutal Facts

HedgehogConcept

Culture ofDiscipline

TechnologyAccelerators

Disciplined People

Disciplined Thought

Disciplined Action


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