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Target companies chart their own growth pathways. These companies are committed to their values and key goals while continuously adapt their business strategies to the changing environment. According to James Collins, this is the magic way from good to excellence. In Collins’ point of view turning good companies into excellent ones depends on 3 factors: Disciplined employees, disciplined ways of thinking and disciplined actions.
Leaders in excellent organizations are in 5th level. 5th level leaders are the ones with individual modesty and professional ambitions. They lead company in a way in which it is able to continue its path without them. The 5th level leaders work hard to progress and reach their goals.
Their greatest responsibilities are given to their best employees, so to select the right person who can be relied on to achieve goals and strategies, you need personality traits, more than academic background and skill or even work experience. Knowledge and skill can be learned, but traits such as work conscience, intelligence, and commitment are more related to human nature and cannot be easily changed.
Excellent companies create a situation in which the truth can be heard properly. Leaders create a culture in the organization where people have a freedom to express their opinions. Such companies become stronger and more flexible when they face an unpleasant situation, and it gives them a sense of joy. They know that it may take a long time, but eventually a way to succeed will be found.
Excellent companies are like hedgehogs. No matter how complex the world is, a hedgehog turns all the challenges into simple ideas. They see what is needed to be seen and ignore the others. Excellent companies are the same. They know what they do best, what boosts their economic growth, and what they are most interested in. Then they direct their efforts along with them.
Excellent companies have a well-organized culture. They create a system with clear restrictions but give their employees necessary freedom and responsibility. They hire disciplined people who do not need to be monitored and manage the “system” not people. These companies will not do anything that does not fit their hedgehog concept, even if those situations are great opportunities. Choosing opportunities is in their center of attention, and rejecting a great opportunity requires discipline. As they may say: “Opportunity knocks but once”, but if it is out of the company’s scope of work, this chance will not help to promote the company.
For excellent companies, technology is the booster, not the success main factor. Excellent companies have never begun their great time with technology, because we cannot make the most of that technology unless we know if it works properly for us or not. So, they use only technologies related to their hedgehog concept. Therefore, the attractiveness of technologies does not mislead them to use irrelevant or expensive technologies.
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