bfbm(8-2016) good to great
TRANSCRIPT
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Prof.Dr.Aung Tun Thet
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Flywheel and Doom Loop
• Good-to-great transformations dramatic and revolutionary on outside • Organic, cumulative processes on inside• No single defining action• No grand program• No one lucky break or miracle moment
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Flywheel and Doom Loop
• Sustainable transformations follow predictable pattern of build-up and breakthrough• Pushing giant heavy flywheel• Average organizations follow “doom loop”
pattern• Try to skip build-up • Jump immediately to breakthrough
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Flywheel and Doom Loop
• Disappointing results• Lurch back and forth• Fail to maintain consistent direction
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Level 5 Executive Leadership
• Personal Humility • Professional Will• Workmanlike diligence – plow horse not show
horse • Ambitious for company not themselves
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“First Who, Then What”
• Get right people on bus• Wrong people off the bus• Get right people in right seats• Then decide where to drive
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“First Who, Then What “ • Getting right people on team • Before vision, strategy and tactics• Put best people on biggest opportunities• Not biggest problems
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Hedgehog Concept
• Organizations should only do what they: • Can be great at• Can make money • Have passion for doing
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Hedgehog Concept
• Set goals and strategies based on understanding• Iterative process• Hedgehog companies simple - know one big thing
and stick to it
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Stockdale Paradox
Retain faith that you will prevail in
the end,regardless of the
difficulties
Confront most brutal facts of current reality,whatever they
may beAt the same time
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Confront Brutal Facts (But Never Lose Faith in Potential
for Greatness) • Impossible to make good decisions without
honest confrontation of brutal facts • Create culture where truth heard • Lead with questions• Engage in dialogue not coercion
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Confront Brutal Facts (But Never Lose Faith in Potential
for Greatness) • Conduct autopsies without blame • Charisma liability - strong personality deters
people from presenting brutal facts • Don’t waste time trying to “motivate people”• Right people self-motivated • Can be de-motivated
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Culture of Discipline • Three forms1. Disciplined people – don’t need hierarchy2. Disciplined thought – don’t need bureaucracy3. Disciplined action – don’t need excessive controls• Combining with ethics of entrepreneurship results
in great performance
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BureaucraticOrganization
HierarchalOrganization
Start-upOrganization
Great Organization
Low
High
Low HighEthic of Entrepreneurship
Cul
ture
of
Dis
cipl
ine
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Culture of Discipline
• Culture of disciplined people take disciplined action within three circles of Hedgehog Concept• Disciplined people engage in disciplined
thought and take disciplined action• Fanatical adherence to Hedgehog Concept • Willingness to shun opportunities outside three
circles
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Culture of Discipline
• Budgeting not to decide how much each activity gets• Decide areas best fit Hedgehog Concept • “Stop doing” lists important than “to do” lists
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Technology Accelerators
• Avoid technology fads• Pioneers in applying carefully selected
technologies• Use technology as accelerator of momentum• Not creator
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BUILT TO LAST
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Best of The Best
• Clock Building not Time Telling • Great idea or charismatic visionary leader - “time
telling”• Prosper far beyond presence of any single leader
and through multiple product life cycles - “clock building”
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Best of The Best
• Two myths:1. Great idea 2. Great and charismatic leader
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Company Itself Ultimate Creation
• Not company as vehicle for products • Products as vehicle for company• Never, never, never give up company• Kill, revise or evolve idea
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Company Itself Ultimate Creation
• Transition • From • Designing products • To • Designing organization-creating environment -
conducive to creation of great products• Critical shift in thinking
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Architectural Approach: Clock Builders
• Key people • Not “leader” • “Architect” or “clock builder”
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Architectural Approach: Clock Builders
• Valued change• Experimentation• Constant improvement
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Most important steps
• Not action• Shift in perspective • Underlying processes • Fundamental dynamics embedded organization
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Most important steps
• Organizational visionary • Building visionary company• Shift from time telling to clock building
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More Than Profits
• High ideals• “Sony spirit”• Do both
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Profitability
• High ideals• “Sony spirit”• Do both
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Profitability
• Necessary condition for existence • Means not end• Oxygen, food, water and blood • Not life, but without them, there is no life
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Profitability
• “If we provide real satisfaction to the real customers-we will be profitable.” • Not go after cheap end • No opportunity for technical contribution
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“Right” Ideology
• Customers • Concern for employees • Products/Services • Audacious risk • Innovation
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Words or Deeds?
• Ideology pervasive • Transcend any individual leader• Indoctrinate employees • Nurture and select senior management • Consistent alignment with core ideology
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Visionary Companies
• Few core values (3 to 6)• Capture what authentically believed• No rational or external justification• Articulate both core values and purpose in core
ideology
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Preserve Core/Stimulate Progress
• “Scared cow” - basic philosophy of doing business• Visionary company preserve and protect core
ideology• Open for change and evolution
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Visionary Company
• Core ideology work hand in hand with relentless drive for progress • Deep, inner, compulsive drive• Not satisfied with status quo• Drive for progress internal
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Visionary Company
• Self-confidence combined with self-criticism• Self-criticism - self-induced change and
improvement • No ultimate finish line - never “we’ve arrived”
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Big Hairy Audacious Goal (BHAG)
• Committed to huge, daunting challenge• Big mountain to climb• Moon mission in 1960s
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Big Hairy Audacious Goal (BHAG)
• Engages people• Reaches out • Tangible, energizing, highly focused• Little or no explanation
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“Hubris Factor” • Overbearing pride, confidence or arrogance • Highly visionary companies self-confidence
bordering on hubris• “Taunting the gods”
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Thank You!