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Jim Collins

Strategic Concepts & Mechanics

Identity & CultureOut-Behave to Outperform
Operating PrincipleReflection Cycles Beat Relentless Execution
Implementation TacticBig Rocks Fill the Jar First
Decision FrameworkPulsing Captures Culture in Real Time
Structural VulnerabilityZombie OKRs Die Without Weekly Check-ins
Implementation TacticSubjective Self-Assessment Rescues Raw Scores
Implementation TacticThe OKR Shepherd Forces the Flock
Strategic ManeuverTwo Baskets: Committed vs. Moonshot
Mental ModelAll Green Means You Failed
Relationship LeverageSacred One-on-Ones as Culture Infrastructure
Implementation TacticSell Your Reds, Don't Hide Them
Capital StrategyInternal Turnover Beats External Attrition
Mental Model10x Reframes the Problem, 10% Optimizes It
Risk DoctrineManager-to-Leader Transition Blindspot
Strategic ManeuverDivorce Compensation from Goal Scores
Structural VulnerabilityStretch Snaps If Imposed from Above
Strategic ManeuverWatch Time Not Views: Pick the True Currency
Mental ModelLateral Linking Beats Cascading Down
Competitive AdvantageTransparency as Peer Accountability Engine
Mental ModelCFRs Are the Sinews, OKRs Are the Bones
Strategic PatternStretch OKRs Trigger Infrastructure Resets
Strategic PatternSixty Percent Black Psyche Merchandising
Signature MoveMeltdown Rankings to Override Buyer Cowardice
Cornerstone MoveVertical Calendar to Kill the Middleman
Signature MoveNaked Stunts and Guerrilla Community Pulls
Risk DoctrineFounder's IPO Governance Trap
Identity & CultureVision Alignment or Organizational Drift
Signature MoveNever Discount the Dollar or the Brand
Signature MovePay Factories First, Get Delivery First
Cornerstone MoveSolve the Body Problem Then Own the Category
Operating PrincipleDesigner Over Buyer as Control System
Competitive AdvantageOne Super-Designer Outweighs Twenty
Identity & CultureFunction Is the Fashion
Signature MoveStiritz: Poker-Player Odds on Back-of-Envelope LBOs
Operating PrincipleBlank Calendar as Competitive Edge
Cornerstone MoveOne-Page Analysis Then Pounce
Signature MoveMalone: Scale as Virtuous Cycle, Tax as Obsession
Cornerstone MoveAnarchic Decentralization, Dictatorial Capital Control
Risk DoctrineInstitutional Imperative as CEO Kryptonite
Decision FrameworkHurdle Rate as Supreme Filter
Signature MoveSingleton: Phone Booth Tender at All-Time-Low Multiples
Cornerstone MoveSuction Hose Buybacks at Maximum Pessimism
Cornerstone MoveCash Flow as True North, Not Reported Earnings
Signature MoveAnders: Sell Your Favorite Division Without Blinking
Identity & CultureEngineers Over MBAs at the Helm
Competitive AdvantageConcentrated Bets Over Diversified Dribbles
Signature MoveMurphy: Leave Something on the Table Then Lever Up
Capital StrategyTax Counsel Before Every Transaction
Operating PrinciplePer-Share Value Not Longest Train
Signature MoveBuffett: Float Flywheel from Insurance to Empire
Strategic PatternGreedy When Others Are Fearful
Identity & CultureDream Replaces Mission Statement
Cornerstone MoveTalent Factory as Acquisition Currency
Capital StrategyBonus Pool Tied to EVA, Not Revenue
Cornerstone MoveBuy Beloved Brands Run by Nobody
Signature MoveOwners Recruit, Not HR Drones
Signature MoveBottom 10% Shaved Every Year Forever
Risk DoctrineType IV Leader Purge Despite Results
Cornerstone MoveExit Banking, Enter Boring Forever
Signature MoveFire the Rebellious on Day One
Signature MoveOpen Floor, No Offices for Anyone
Strategic PatternHoshin Kanri Goal Cascade to Factory Floor
Cornerstone MoveLeak the Offer to Shame the Board
Signature MovePeople Chess Not Performance Reviews
Decision FrameworkFive Whys to Kill Surface Excuses
Operating PrincipleComfort-Zone Rotation as Growth Engine
Cornerstone MoveSystem-in-Play Over Standalone Toys
Relationship LeverageFans as Co-Developing Partners
Identity & CultureOwner as Idea Guardian Not Operator
Risk DoctrineCrisis of Belief Before Crisis of Cash
Competitive AdvantageQuality as Inherited Loyalty Engine
Operating PrincipleReinterpret the Idea—Never Replace It
Cornerstone MoveBurn the Wood, Bet the Brick
Strategic PatternDepth Before Breadth in a Single Idea
Signature MoveSell It Yourself or They'll Misunderstand It
Signature MoveSelf-Financing as Independence Doctrine
Signature MoveNo Orders—Figure It Out Yourself
Cornerstone MoveProgram the Brick Into the Computer Age
Cornerstone MoveAmputate the Empire to Save the Idea
Signature MoveGet On Your Knees to See Like a Child
Signature MoveNever Claim a Country of Origin

Primary Evidence

"Jim Collins’s memorable phrase in Good to Great—spark leaps to new levels: A BHAG is a huge and daunting goal—like a big mountain to climb. It is clear, compelling, and people “get it” right away. A BHAG serves as a unifying focal point of effort, galvanizing people and creating team spirit as people strive toward a finish line. Like the 1960s NASA moon mission, a BHAG captures the imagination and grabs people in the gut."

Source:Measure What Matters

"We borrowed from Jim Collins: “What can you be the best at in the world?” Once we figured that out, we laid the OKR system on top of it. We believed that everyone should have a healthy and productive life, and Bill and Melinda were passionate about the role of technology in creating change. That was in our DNA."

Source:Measure What Matters

"As Jim Collins observes in Good to Great, first you need to get “the right people on the bus, the wrong people off the bus, and the right people in the right seats.” Only then do you turn the wheel and step on the gas."

Source:Measure What Matters

"What is your essential reading / audio list for 2019? Good to Great, by Jim Collins The 7 Habits of Highly Effective People, by Dr. Stephen R. Covey The Goal, by Eliyahu Goldratt The Psychology of Achievement, by Brian Tracy Catch 22, by Joseph Heller Atlas Shrugged, by Ayn Rand The Tipping Point, by Malcolm Gladwell Shoe Dawg, by Phil Knight The Prince, by Machiavelli Black Box Thinking: The Surprising Truth about Success – And Why Some People Never Learn from Their Mistakes, by Matthew Syed 10% Happier: How I Tamed the Voice in My Head, Reduced Stress Without Losing My Edge, and Found Self-Help That Actually Works—A True Story, by Dan Harris After On: A Novel of Silicon Valley, by Rob Reid How I Built This, by Guy Raz (NPR podcast series) Middlesex, by Jeffrey Eugenides The Goldfinch, by Donna Tartt The Diamond Cutter: The Buddha on Managing Your Business and Your Life, by Geshe Michael Roach Guns, Germs, and Steel, by Jared Diamond Tinker Tailor Soldier Spy, by John le Carré The Lord of the Rings, by J. R. R. Tolkien The Fountainhead, by Ayn Rand"

Source:Little Black Stretchy Pants

"“In the end, it is impossible to have a great life unless it is a meaningful life. And it is very difficult to have a meaningful life without meaningful work. Perhaps, then, you might gain that rare tranquility that comes from knowing that you’ve had a hand in creating something of intrinsic excellence that makes a contribution. Indeed, you might even gain that deepest of all satisfactions: knowing that your short time here on this earth has been well spent, and that it mattered.” —Jim Collins, Good to Great: Why Some Companies Make the Leap…And Others Don’t"

Source:Little Black Stretchy Pants

"Charisma Is Overrated The outsider CEOs were also distinctly unpromotional and spent considerably less time on investor relations than their peers. They did not offer earnings guidance or participate in Wall Street conferences. As a group, they were not extroverted or overly charismatic. In this regard, they had the quality of humility that Jim Collins emphasized in his excellent Good to Great. They did not seek (or usually attract) the spotlight. Their returns, however, more than compensated for this introversion."

Source:The Outsiders_ Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

"The theme is also explored by Jim Collins, who coined the term Big, Hairy, Audacious Goals (BHAG), to suggest that companies that inspire their employees with a great, challenging goal, are the ones that succeed in the long run. With these lessons, the trio understood it had to attract people who are motivated by more than money: a big dream. With that in mind, Marcel Telles established Brahma’s first ever big dream: to become Brazil’s largest and best brewing company."

Source:The 3g Way

"LEGO and its leaders are not the first—nor likely the last—to discuss the water level at length while the ship sinks. American business researcher Jim Collins has analyzed the reasons behind companies’ rise and fall. In the book “How the Mighty Fall”—based on a total of 6,000 years of corporate history—he explains how the fall begins with success, because success breeds complacency, and complacency breeds blindness to reality, leading to a careless pursuit of more success, as one takes it for granted and ignores the facts, creating fertile ground for problems and threats until they grow large enough to trigger the fall. Exactly what was about to happen to LEGO."

Source:Lego - The Danish Management Canon, 3

Appears In Volumes