Jim Collins executive summary

(Part 1)

I enjoy attending WOBI. There is not a time when I do not get to learn precious leadership and business lessons from the best of the best. Today and for the next two Saturdays to come, I will present the executive summary of Jim Collin’s two-day virtual master class, and I hope you find these helpful.

Session 1: Disciplined people and thought

Jim begins by asking, “How would you figure out the principles that allow a company to grow and become one of the great and iconic visionary companies that have a lasting impact on the world it touches? How does one build such a company? What are the fundamental building blocks?

Over time, most organizations die and only a few become truly great. Look through historical data and find match pairs (companies that have the same potential, resources, industries, etc.) at the exact moment in time to track and determine what separated the ones that became great from the rest. Drawing from this, we can get insights that will allow us to understand what it takes to build a truly great company.

Consider the following series of questions:

Why do some small, mid-sized companies grow to become  iconic visionary companies that change the world, while others had the same start in time, but did not grow?

Can a good company change to become a great company? If so, how?

Can we learn from failures? Why do some companies keep on rising while others fall? From great to good to mediocre to bad to irrelevant.

Why do some companies that fall recover and come back as great companies?

Why do some companies and their leaders prevail in the face of uncertainty when hit by unpredictable moving forces?

In data accumulated by Collins, it was found that companies have a very high correlation between great results and high endurance. But equally important, there is also a high correlation between decline and catastrophe when leaders violate principles presented in this study.

What distinguishes the leaders of good to great companies and those in comparative companies are their leadership styles. Jim’s research shows that there is a hierarchy of capabilities:

·   Level 5: Level 5 executive (Good to great companies)

·   Level 4: Effective leader (Comparative companies)

·   Level 3: Competent manager

·   Level 2: Contributing team-member

·   Level 1: Highly capable individual

Level 5 leaders have a blend of genuine and deep personal humility combined with a will. It’s not about their personality. While Level 4 leaders have powerful personalities, but it is more about them and not about the company.

Leaders must be clear about what must be done and get people to do what must be done. When approaching leadership through this perspective, what matters most is getting others to see your vision and inspire them to want to achieve it. It is not relative to your upbringing, level of responsibility or whether people report to you or not, but more so your clarity and genuine humility.

The principle of “First Who, then What”

In his research, Jim found that leaders first get the right people on “the bus” then “drive the bus” in the right direction. Level 4 leaders first focused on the what before focusing on the who. Level 5 leaders understand that great vision without great people is irrelevant.

As we continue to move forward amidst the pandemic, there will be no new normal to go back to. Punctuated by big, unforeseen events, there will be no fundamental enduring stability from now on. The most important hedge against uncertainty is not knowing the “what,” because we cannot predict what is coming; rather, it is the “who” - having the right “who” around us will help us to adapt to the “what” that might arise. This helps navigate more easily.

Next Saturday, I will present Session 2 of Jim Collin’s master class executive summary organized by WOBI. Many of the principles have been featured in his books, but they are still relevant reminders and proof that the principles are timely and long-lasting.

Meanwhile, strive to be a Level 5 leader and be reminded of a thought I have always presented in my leadership webinars: “Leadership begins with you, but it’s not about you.”

(Francis Kong’s highly acclaimed Level Up Leadership Master Class online will be held fro  Aug. 25 to27. Develop your leadership skills that translate into personal, career, and business growth. For inquiries and reservations, contact April at +63928-559-1798 or and for more information, visit www.levelupleadership.ph)