Required Traits
Every single company that made the cut into the study, only 11 out of over 1450, had these similar traits
- Level 5 Leadership – Lincoln/Socrates vs Patton or Caesar
- First Who Then What – gather right people, kick out wrong people, THEN plan path (the where)
- Confront brutal facts – Stockdale Paradox – unwavering faith that we’ll prevail, regardless of difficulties, & have the discipline to confront the brutal facts of your current reality, whatever they are
- Hedgehog concept – transcend “curse of competence”. If you cannot be the best in the world at your core business, then your core business cannot form the basis of a great company. It must be replaced with a simple concept that reflects deep understanding of 3 intersecting circles
- A culture of discipline – Combine culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great performance. No hierarchy, bureaucracy, or control necessary.
- Technology accelerators – Never use tech as a primary means of transformation. But pioneer carefully selected tech
- Flywheel vs. Doom Loop – no big overhauls, slow steady progress pushing the flywheel until point of breakthrough and beyond
Good -> Great + Built to Last = Great company
Adhere to certain basic principles with rigor and discipline
Good is the enemy of great. Not a business problem, but a human problem.
Disciplined people, disciplined thought, disciplined action.
Applies outside of business. Principles apply across all life.