Good To Great Quiz

It takes an average of four years for a company to develop its Hedgehog Concept.

True

Why are 'stop doing' lists important according to Collins?

The "stop doing" lists are vital because they help companies focus on their most important priorities and avoid distractions that can halt progress. The whole point of "stop doing" lists keeps companies' important priorities focused while avoiding distractions for the most successful outcomes throughout an organization.

Please list the three things that make up the Hedgehog Concept. Explain what implications it has for the P&L.

The three things that make up the Hedgehog Concept is: 1.What you are deeply passionate about, 2. What you can be the best in the world at, and 3. What drives your economic engine? The implications for the P&L, with regards to the Hedgehog Concept is that a company should focus their efforts and capital on those activities that are positioned with its core strengths and economic engine. By practicing this, the company can produce growth while avoiding the risk of chasing short-term gains.

Collins believes a strong religious belief might also nurture the development of Level 5 leadership.

True

Great companies home grow successors.

True

Great companies use acquisitions as the accelerator of flywheel momentum, not the creator of it.

True

Hiring from an outside, high profile negatively correlates to a company's sustained transformation.

True

In a ruthless corporate culture, even the highest performers are worried about their positions and not focused on the work at hand.

True

Packard's Law states that no company can grow faster than its ability to get enough of the right people to implement that growth and still execute the mission with excellence.

True

Collins suggests ways companies can be "rigorous." (Select all that apply)

d. Put your best people opposite your best opportunities, not your biggest problems.

Stanley Gault, Rubbermaid CEO, was a brilliant, charismatic leader. Why didn't Collins consider him a Level 5 leader?

Collins didn't recognize Stanley Gault, the former CEO of Rubbermaid as a Level 5 leader because he didn't display a level of humility as the other level 5 leaders did in Jim Collins research. Gault was more focused on his legacy, reputation, and being prideful rather than the characteristics of a Level 5 Leader which Collin describes throughout his book.

"Once in a lifetime" opportunities that fall outside the Hedgehog Concept must be accommodated and funded if the company is to survive.

False

Collins believes only a few people have what it takes to be a Level 5 leader.

False

Employees are primarily motivated by financial incentives.

False

The Stockdale Paradox accepts the brutal facts of reality and perpares to capitulate with the competition.

False

The difference between a Good company and a Great company is that Great companies had more information.

False

The most effective leaders to turn around troubled businesses are found outside the company.

False

When a company sells off its problem business, it should be sure to fire everyone associated with that business.

False

Whether someone is the right person has more to do with specific knowledge, background, or skills rather than character traits and innate capabilities.

False

To create a climate where truth can be heard includes: (cirlce all that apply)

b. Conduct autopsies without blame c. Senior managers lead with questions, not answers d. Build red flag mechanisms e. Senior managers engage in debate not coercion