Posts Tagged ‘Jim Collins’

In 100 Words: The Influence of Peter Drucker

Friday, February 1st, 2013 by Troy Schrock

Amidst the plethora of new business writing published each year, it’s easy to lose sight of Peter Drucker’s significant influence.  Jim Collins said in a May 2006 speech that Drucker had a formative influence on every company he and Jerry Porras profiled in Built to Last.  In the introduction to his book, Go Put Your Strengths to Work, Marcus Buckingham notes that many people trace the “strengths movement” back to Drucker, who for years encouraged both individuals and organizations to focus on areas of strength.

Business advisors benefit greatly from a liberal sprinkling of Drucker’s writing in their reading regimen.

“I regard it as a compliment when some people call me the Father of Marketing.  I tell them that if this is the case, then Peter Drucker is the Grandfather of Marketing.”  (Philip Kotler)

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The Importance of Peter F. Drucker

Wednesday, January 9th, 2013 by Troy Schrock

Amidst the plethora of new business writing published each year, it’s easy to lose sight of Peter Drucker’s significant influence.  Known as the “father of modern management,” his writing provides the central themes of much of the current management, marketing, and general business writing.

Marketing guru Philip Kotler states, “…I regard it as a compliment when some people call me the Father of Marketing.  I tell them that if this is the case, then Peter Drucker is the Grandfather of Marketing.”  Jim Collins said at a dinner speech in May 2006 that Drucker had a formative influence on every company he and Jerry Porras profiled in Built to Last.  In the introduction to his most recent book, Go Put Your Strengths to Work, strengths guru Marcus Buckingham notes that many people trace the “strengths movement” back to Drucker, who for years encouraged both individuals and organizations to focus on areas of strength.

Business advisors benefit greatly from a liberal sprinkling of Drucker’s writing in their reading regimen.

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Rethinking Hedgehog

Thursday, June 28th, 2012 by Troy Schrock

I recently wrote about Phil Rosenzweig’s book The Halo Effect.  One of the notions he challenges is Jim Collins’s Hedgehog Concept – the discipline of focusing on one thing at which you are a uniquely high performer.  The “Good to Great” companies were Hedgehogs, but Rosenzweig cautions that Hedgehogs end up as roadkill at least as often as they succeed.

The opposite of the Hedgehog is the Fox, jumping about from thing to thing.  Andy Grove, the acclaimed CEO of Intel, is noted for Fox-like thinking.  The technology in his industry was changing way too fast for him to focus on one thing.  He repeatedly led his organization through radical changes, including some where they abandoned the very products that had brought them much success.  Had they not been successful, they would have likely been criticized for not having a Hedgehog Concept.  However, Grove realized that there are appropriate times to be a Fox.

To be clear, I am not suggesting we abandon the Hedgehog Concept, and I don’t think Rosenzweig is, either.  We must find the proper balance between Fox and Hedgehog-type behavior.  Once a strategic direction is established, it’s time to focus on making that work, but prior to that, it’s okay to behave like a Fox.  In fact, that Fox-like behavior may be what keeps you alive if your Hedgehog Concept fails.

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In 100 Words: Return on Luck

Friday, June 15th, 2012 by Troy Schrock

Success comes from a combination of shrewd judgment (strategy), hard work (execution), and good fortune – the last of which often plays a larger role than we would like to admit.

Every company, no matter how disciplined, is susceptible to seemingly coincidental events outside of its control.  We call it luck.  Sometimes it’s good.  Sometimes it’s bad.  It can never be predicted, and it is not obligated to “play fair.”

The critical question is (as Jim Collins writes in Great By Choice): do you get a high return on luck (both good and bad)?  Add that to your list of metrics!

“Luck is not a strategy, but getting a positive return on luck is.”  (Jim Collins)

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The Halo Effect

Thursday, May 31st, 2012 by Troy Schrock

One of the more challenging books I’ve read in recent years is Phil Rosenzweig’s The Halo Effect.  I call it challenging not because it was difficult to read, but because it strongly confronted some assumptions about good business that I have rallied around for a long time.  Starting with the “mother of all business questions” (What leads to high performance?), Rosenzweig strongly criticizes the methods of several well-known business researchers, including Jim Collins (Good to Great, Built to Last).  “This book is…written to help managers think for themselves,”  he writes, “rather than listen to the parade of management experts and consultants and celebrity CEOs, each claiming to have the next new thing.”

Buttressed by his own research, Rosenzweig claims financial results drive our impression of every aspect of a company.  Thus, when a company is performing well, employees love working for the company and speak glowingly of superiors, executives are thought to have brilliant strategy, customer focus is considered top-notch, and so on.  When financial results drop, those same employees change their tune, and those same executives are criticized for their strategic mistakes.

Rosenzweig does not say that Collins and others are wrong; in fact, he concedes that they point us in the right direction.  Yet, he cautions against treating their advice as automatic cause-and-effect formulas.

As much as The Halo Effect challenged me to rethink some things, it also reinforced the importance of disciplined strategy execution.  Writing about Logitech CEO Guerrino de Luca:

De Luca emphasized the importance of execution.  Once strategic choices were made, the focus shifted to getting things done.  “We learned many times,” he said, “modestly defined strategies have given dramatic success through great execution.” …Did Logitech’s CEO think he was following a blueprint for enduring success?  No.  But he made thoughtful decisions about strategic choices – deciding what not to do as much as what to do – followed up with disciplined execution based on clear priorities and explicit measures.  (p. 171-2)

Clear priorities.  Explicit measures.  They may not guarantee success, but they will greatly increase its likelihood.

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In 100 Words: Capitalizing on Complexity

Wednesday, March 14th, 2012 by Troy Schrock

Business complexity continues to increase.  A challenge?  Certainly.  An opportunity?  Absolutely!  Here are four ways to capitalize on complexity:

  1. Prioritize.  Focus resources on the best few initiatives.
  2. “Procedurize.”  Simplify processes.  Create repeatable steps and/or integrate activities.
  3. Reorganize.  The structure that worked before may not fit the current reality.
  4. Monetize.  Share solutions to complexity issues with other businesses for a service fee.

Don’t shy away from complexity, and try not to just pass the costs to your customers.  With a little fortitude and creative energy, you can capitalize on complexity to benefit both you and your customers.

“The only legitimate form of discipline is self-discipline, having the inner will to do whatever it takes to create a great outcome, no matter how difficult.”  (Jim Collins)

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