Good to Great Essay

1768 Words Jun 25th, 2005 8 Pages
Good to Great Book Review
To transform a good company to great company is all manages' dream, but only few of them make it. To find out the core factors which lead to a good company became a great company is very difficult, because in different era, different industry companies face different opportunities and threats. To begin the research for the Good-to-Great study, Jim Collins and his research team searched for companies that: performed at or below the general stock market for at least fifteen years; then at a transition point began to pull away from the competition, and sustained returns of at least 3 times the general market for the next fifteen years. He started with a list of 1,435 companies and found eleven that met his criteria.
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In the same time, Wells Fargo recruited talented people into the company without any specific job, because the CEO believed that these smart people could help company to face and deal with the future changes and difficulties (Collins, 2001, p.42). Well Fargo is easy to adapt to a changing world when banking deregulation arrived. Moreover, Wells Fargo went three times higher than general stock market which the banking fell 59 percent behind. CEO of Wells Fargo, Dick Cooley a level 5 leader, understand three simple truths. First, if you begin with "who," rather than "what," you can more easily adapt to a changing world. Second, if you have the right people on the bus, there are no problem to motivate and manage people goes. Right people are self-motivated by the inner drive to produce the best results, and right people don't need to be tightly managed, they know what they should or should not do. Third, if you have the wrong people on the bus, you won't get to the place where you want to go, whatever how hard to motivate and manage them. Right people are the most important asset in the company. Right people can turn a nearly bankruptcy company to Fortune 500 company.
The third reason why good-to-great companies outperform, is they do not cover up the bad news (confront the brutal facts). Nobody likes to hear the bad news, but we have to facing it and take reaction about it. Furthermore all good to great