63 pages • 2 hours read
Jim CollinsGood to Great
Nonfiction | Book | Adult | Published in 2001A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more. For select classroom titles, we also provide Teaching Guides with discussion and quiz questions to prompt student engagement.
Chapter 6Chapter Summaries & Analyses
Chapter 6 Summary: “A Culture of Discipline”
This chapter begins with the story of George Rathmann, cofounder and CEO of biotechnology company Amgen. Rathmann’s approach to company leadership was rooted in a culture of high expectations and rigorous standards, which Collins calls a “culture of discipline.” By downplaying and even discarding traditional company hierarchies, Rathmann was able to implement a style of leadership that he had observed and applied while working at Abbott, a good-to-great company that inspired him. In Rathmann’s mind, this was the most effective way to lead. This company culture promoted freedom within a framework, empowering employees to be creative problem-solvers while also clearly communicating company standards and processes.
Collins elaborates by explaining that a culture of discipline demonstrates not only output and tangible results, but also strategic, disciplined thought. Consequently, when the time to act arrives, these actions take place within a thriving and rigorous culture. A culture of discipline is different from a culture where a central figure doles out discipline to employees. None of the good-to-great companies had this kind of “tyrant.” As an example, Collins cites Lee Iacocca, whose time as CEO of Chrysler was marked by his own egocentrism and tyrannical leadership style.
Collins then connects cultivating a culture of discipline with the Hedgehog Concept, as the most important indicator of whether or not a company possesses this type of culture is whether or not the company makes decisions with strict adherence to its Hedgehog Concept. From budgets to strategic planning, if a good-to-great company can’t justify a decision or expense with its own Hedgehog Concept, it will not make that choice or act in that particular situation. Good-to-great companies actually make “stop-doing” lists instead of only making “to-do” lists. This habit of cutting all activities that don’t fit into the company’s Hedgehog Concept helps maintain a culture of discipline.
Chapter 6 Analysis
In this chapter, Collins once again emphasizes the theme of leadership versus authority. By contrasting George Rathmann and Lee Iacocca, for instance, Collins reminds the reader that not all authority figures are actually effective leaders. In Iacocca’s case, he had the CEO title, the prestige of an internationally-renowned brand, and even led the company to a period of temporary success. However, Iacocca did not lead with the humility and collaboration that characterize the practices of good-to-great companies’ leaders. In other words, Iacocca was not a Level 5 leader.
Rathmann on the other hand, represents Level 5 leadership because he focused all of his attention onto how his company could thrive, not onto his own celebrity or status. In times of great adversity, Level 5 leaders don’t look to massive layoffs as a solution. This chapter echoes the “first who, then what” principle from Chapter 3, as a rigorous company culture thrives when people who are already disciplined work together to uphold each other’s principles, instead of working to avoid discipline from a tyrannical leader.
This chapter also consolidates the Hedgehog Concept as the book’s “big idea.” A culture of discipline is ultimately only possible and viable when a company adheres to the Hedgehog Concept on everything from budgetary decisions to “stop-doing” lists. Even in the face of so-called “once-in-a-lifetime” opportunities, good-to-great companies maintain their focus solely on their core business, which allows them to maximize efficiency in an already functional company culture.
