Good to Great

Good to Great: Why Some Companies Make the Leap and Others Don’t by Jim Collins

Good to Great is a business book that examines why some companies make the leap from being good to being great while others stay stuck in mediocrity. Collins and his team of researchers identified 11 companies that made this transition over 15 years, and they studied these companies to identify the factors that led to their success.


The book identifies five key factors that distinguish good-to-great companies from their mediocre counterparts:

  • Level 5 leadership: Good-to-great companies are led by Level 5 leaders who are humble and have a deep sense of purpose.
  • The flywheel effect: Good-to-great companies focus on building a flywheel effect, a self-reinforcing momentum cycle.
  • The Hedgehog Concept: Good-to-great companies clearly understand what they are best at and what they should focus on.
  • Confront the brutal facts: Good-to-great companies are willing to confront the brutal facts about their current reality, even if it is painful.
  • Fire bullets, then cannons: Good-to-great companies start with small experiments and then scale them up if they are successful.

Good to Great is a classic business book praised for its insights into what companies need to achieve greatness. It is a must-read for anyone who wants to understand how to build a great company.

Here are some of the key takeaways from the book:

  • Level 5 leadership is essential for building great companies.
  • The flywheel effect is a powerful force for creating momentum.
  • The Hedgehog Concept is a simple but powerful way to define your company’s purpose.
  • Confronting the brutal facts is essential for making progress.
  • Starting with small experiments is a smart way to scale up your success.