The good-to-great principles that Jim Collins and his research team discovered not only will help organizations move from good-to-great, but can also help you move your career from good-to-great. You need to study and understand the principles to 1) identify companies that will accept your good-to-great leadership and 2) implement the principles into your career so you stand out.
Today we explore how technology can accelerate growth or destroy the company. I should point out that Collins published his work in 2001. He witnessed the dot.com craze that thought they would rewrite the rules. He also saw the tip of the bubble burst, but not the complete melt down. His insights proved very accurate.
The Role of Technology in Great Companies
Collins wrote “Technology-induced change is nothing new. The real question is not, What is the role of technology? Rather, the real question is, How do good-to-great organizations think differently about technology?”
He continues “In every good-to-great case, we found technological sophistication. However, it was never technology per se, but the pioneering application of carefully selected technologies. Every good-to-great company became a pioneer in the application of technology, but the technologies themselves varied greatly”.
Collins shares several examples of how Walgreens, Kroger, Pitney Bowes and others used technology to accelerate the success of their Hedgehog Concept.
Accelerator, Not Creator of Momentum
“This bring us to the central point of the chapter.” Collins stated “When used right, technology becomes an accelerator of momentum, not a creator of it. The good-to-great companies never began their transitions with pioneering technology, for the simple reason that you cannot make good use of technology until you know which technologies are relevant. And which are those? Those—and only those—that link directly to the three intersecting circles of the Hedgehog Concept.”
“We could make a long list of companies that were technology leaders but that failed to prevail in the end as great companies. It would a fascinating list in itself, but all the examples would underscore a basic truth: Technology cannot turn a good enterprise into a great one, nor by itself prevent disaster.”
“Indeed, thoughtless reliance on technology is a liability, not an asset. Yes, when used right—when linked to a simple, clear, and coherent concept rooted in deep understanding—technology is an essential driver in accelerating forward momentum. But when used wrong—when grasped as an easy solution, without deep understanding of how it links to a clear and coherent concept—tehcnology simply accelerates your own self-created demise.”
Collins concludes the chapter by warning leaders to avoid grasping at technology from fear of falling behind.
I recognize the validity of this chapter in my career. I personally chased after technological solutions to my business and my career without that “single, clear and coherent concept”. I’ve been a member of a change team that turned the development of the technology to someone that still didn’t’ understand the business nor it’s Hedgehog Concept. In all circumstances, it led to disaster. I strongly suggest you read this chapter—especially if you think technology will change your business or your career.
Don’t miss Friday’s discussion of flywheels and doom loops. It can change your future.
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