1. THRESHOLDThe limitlessness of LIMIT.Extract of Book Good to GreatMAJOR (RETD.) PRAVIN SINGH

2. THE CHALLENGE By defining the management studyof nineties, it has showed thatgreat companies triumph over timeand how long term sustainedperformance can be engineered intothe DNA of an enterprise from thebeginning. 3. NOT BORN WITH GREAT DNA??? How can good companies or enterpriseor mediocre companies and even badcompanies achieve enduringgreatness????? How do companies defy gravity andconvert long term mediocrity or worseinto long term superiority? What are universal distinguishingcharacteristics that cause a companyto Cross the THRESHOLD and take aleap while others cant. 4. GOOD IS THE ENEMY OF GREAT Thats the key reason why so less becomegreat. It is remarkable to note so manycompanies who have been utterlyunremarkable, seemingly out of no where- ----- BANG. they CLIMB ..CLIMB..CLIMB and Then CLIMB and just keep CLIMBING. 5. THRESHOLD160140120TRANSITION TIME100 80 60 40GREAT 20General marketDirect comparsion01st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 6. WALGREENS $1invested in Walgreens beattech superstar intel by nearly twotimes. It beat General Electric fivetimes, Coca Cola by eighttimes, and General stock marketby fifteen times. 7. COMPARED TO WHAT?? Theywere compared to directcomparisons and unsustainedcomparisons. Question is not what is common betweenthem, but what is that made thisdifference. Gold medal winners and loosers bothhave a coach, but what is that differencethat makes one a winner? 8. INSIDE THE BLACK BOX WHATS INSIDE THE BLACKBOX? 160 140 120 100806040 GREAT20 General market Direct comparsion 0 1st 2nd 3rd 4th5th 6th 7th 8th 9th 10th 11th 9. BASIS OF RESEARCH Strategy. Technology. Leadership. Interview of executives of transition period. Qualitative to quantitative anlyses looking atacquisition to executivecompensation, financial ratios tomanagement turnover. 10. DOGS THAT DID NOT BARK Special note of the unsustainedcomparison who started climbing butcould not sustain the climb. Dogs that didnot bark. The adventure of Silver BlazeSherlock Holmes. Dogs that did not bark turned out to be thebest clues. 11. WHAT WAS NOT FOUNDINSIDE THE BLACK BOX Larger than life celebrity leaders whocame from outside. All the leaders werefrom within the co. No systematic pattern linking specificforms of executive packages. Stategery per se. 12. WHAT WAS NOT FOUNDINSIDE THE BLACK BOX THEY DID NOT FOCUS ON WHAT TO DO INSTEADFOCUSED ON WHAT NOT TO DO AND WHAT TOSTOP DOING. TECH DID NOT IGNITE THE TRANSFORMATION, ITACCELERATED IT. THEY PAID SCANT ATTENTION TO MANAGINGCHANGE, MOTIVATING PEOPLE AND CREATINGALINGMENT. NO NAME, TAG LINE, LAUNCH EVENT ORPROGRAM SIGNIFIED THEIR TRANSFORMATION. 13. WHAT WAS NOT FOUNDINSIDE THE BLACK BOX MERGERS AND ACQUISITIONSPLAYED VIRTUALLY NO ROLE INIGNITING TRANSFORMATION. THEY WERE NEVER BY ANDLARGE IN GREAT INDUSTRIES.SOME WERE IN TERRIBLEINDUSTRIES. 14. CHAOS TO CONCEPT:FLYWHEEL CONCEPT 1 ST WHO.. CONFRONT CULTURELEVEL 5 THE BRUTAL HEDGEHOG OFTECHLEADERSHIP THEN WHATFACTS CONCEPT DISCIPLINE ACCELATORDISCIPLINED PEOPLEDISCIPLINED THOUGHT DISCIPLINED ACTIONFLYWHEEL 15. LEVEL 5 LEADERSHIP Self effacing, quiet, reserved, shy--- Paradoxicalblend of personal humility and professional will. Morelike Lincon and Socrates than Patton or Ceasor. 16. FIRST WHO.. THEN WHAT They do not begin by setting a new vision orstrategy. They begin with right people on the bus, wrongpeople off the bus, right people in right seat. And then they decide where to drive.People are your most imp asset? Wrong.Right people are your most imp asset. 17. CONFRONT THE BRUTAL FACTS(Yet never loose faith) Lesson from prisnor of war, what no corporatestrategy defined. Stockdale concept. Maintain unwavering faith that you can and willprevail in the end, regardless of difficulties, AND at the same time Have the discipline toconfront the most brutal facts of your currentrealities, whatever they might be. 18. HEDGEHOG CONCEPT(Simplicity within three circles) Greatness requires transcending the curse ofcompetence. Just because something is your core business--Just because you are doing it for years----oreven decadesdoes not necessarily mean youcan be best in world at it. And if you cannot be the best in the world atyour business, then your core businessabsolutely cannot form basis of a greatcompany. It must be replaced with a simple concept thatreflects deep understanding of threeintersecting circles. 19. CULTURE OF DISCIPLINE All companies have a culture, some companieshave discipline, but few companies have aCULTURE OF DISCIPLINE. When you have disciplined people you dontneed HIERARCHY. When you have disciplined thought youdont need BUREAUCRACY. When you have disciplined action you dontneed EXCESSIVE CONTROL. 20. CULTURE OF DISCIPLINEWhen we combineA CULTURE OF DISCIPLINE with AN ETHIC OFENTREPRENEURSHIP, we get theMAGICAL ALCHEMY OF GREATPERFORMANCE. 21. TECHNOLOGY ACCELERATORS Technever the primary meansof igniting a transformation. Yet they are pioneers inapplication of carefully selectedtechnology. Technology is never the rootcause of greatness or decline. 22. THE FLY WHEEL ANDDOOM LOOP Revolution,dramatic changes,restructuringfails to take a leap. There is no single defining action,grandprogram, no one killer innovation, nosolitary lucky break, no miracle moment. Rather the process resembled relentlesslypushing a giant heavy flywheel in onedirection, turn upon turn,buildingmomentum until a point ofbreakthrough, and beyond. 23. LEVEL 5 LEADERSHIP FIRST WHO.. THEN WHATCONFRONT THE BRUTAL FACTS (Yet never loose faith)HEDGEHOG CONCEPT(Simplicity within three circles) CULTURE OF DISCIPLINETECHNOLOGY ACCELERATORS THE FLY WHEEL AND DOOM LOOP