GOOD TO GREAT By Jim Collins. Chapter 1: Good is the Enemy of Great. Team 2 Presenters: Gabriel Gamez Chris Flockerzy Nancy Nguyen Sarah Doyle Raquel Vasquez Lydia Herschap Quintin Jordan Monica Del Bosque . Introduction/Concept Research.
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By Jim Collins
Chapter 1: Good is the Enemy of Great
Team 2 Presenters:
Gabriel Gamez Chris Flockerzy
Nancy Nguyen Sarah Doyle
Raquel Vasquez Lydia Herschap
Quintin Jordan Monica Del Bosque
Asset to Liability Ratio Best if Under 36%, higher than this percentage is considered a high risk.
“The focus of this particular research effort is on the very specific question of how to turn a good organization into one that produces sustained great results.”
Company shows a pattern of “good” performance punctuated by a transition point, after which shifts to “great” performance.
The good-to-great performance pattern must be a company shift, not an industry event.
At the transition point, the company must have been an established ongoing company, not a start-up. Also it had to have been publicly traded with stock return data available at least ten years prior to the transition point.
Transition point had to occur before 1985
The company had to appear in the 1995 Fortune 500 rankings, published in 1996
Finally, at time of selection, the company should still show an upward trend.
Selected from Fortune 500
1965 - 1995
Selected from full CRSP data pattern analysis
Selected into industry analysis
Selected into good-to-great set
Direct Comparison Companies
Unsustained Comparison Companies
Bank of America
-cnn.money.com Fortune 500 2009 list
What’s Inside The Black Box
“Core Method was a systematic process of contrasting the good to great examples to the comparisons, always asking, “What’s the difference?”
Darwin E. Smith
Chairman and CEOKimberly-Clark Corporation
Image found at: http://www.emeraldinsight.com/fig/2610300502001.png
Good to Sustained Build to Enduring
Great Great Last Great
Concepts Results Concepts Company