Jim Collins classic study of the companies that greatly exceeded the stock market and their nearest competitor over a 15 year period is an excellent study on how to take average/good organizations and get them on a more focused and discipline path to profitable growth. Although the case studies are with exchange listed/traded companies, the concepts are absolutely critical to businesses of any size looking to achieve greater results.
What We Love About this Book
Collins really brings the examples to life, relaying real life stories from the people who were making it all happen. The concepts are put into sequential process really well, as he takes us from getting the “Who” in place, to recognizing brutal facts, deciding a “Hedgehog Concept” and creating a culture of discipline before getting everything to really take off. Seeing the financial results of the focus companies versus the competition brings credibility to the process – it’s not just “who I admire”. The “Hedgehog Concept” in particular is one that we’ve driven home to “do everything” entrepreneurs in our Fractional CFO/COO work.
Any criticisms?
At this point, most of the studied companies have stood the test of time really well. Nucor, Walgreens, Kroger and Abbott in particular continue to shine in the 20+ years since the original publication. Circuit City and Philip Morris – not quite as much. It does start to feel a bit academic as the book goes on, which can be a little off-putting if you don’t have a deep love of business books.
