Good to Great and the Social Sectors

What's "Good To Great And The Social Sectors" about?

• Purpose of the Monograph: The book is a companion piece to "Good to Great" by Jim Collins, focusing on how the principles of greatness apply to social sector organizations.
• Rejecting Business Norms: It argues against the notion that social sectors should emulate business practices, as many business norms correlate with mediocrity.
• Framework of Greatness: The book aims to build a framework of greatness applicable to both business and social sectors, emphasizing principles over practices.
• Research Methodology: It uses a matched-pair research method to compare organizations that became great with those that did not.

Why should I read "Good To Great And The Social Sectors"?

• Broadened Perspective: It offers insights into how principles of greatness can be applied beyond the business world, into social sectors like education, healthcare, and nonprofits.
• Unique Challenges: The book addresses specific challenges faced by social sector leaders, providing tailored strategies for overcoming them.
• Leadership Insights: It provides valuable lessons on leadership, particularly the concept of Level 5 Leadership, which is crucial for success in diffuse power structures.
• Practical Application: The monograph is based on real-world feedback and interviews with over 100 social sector leaders, making it highly applicable.

What are the key takeaways of "Good To Great And The Social Sectors"?

• Principles Over Practices: Greatness is defined by principles that transcend business practices, focusing on disciplined people, thought, and action.
• Level 5 Leadership: Effective leadership in social sectors often requires a blend of executive and legislative skills, emphasizing humility and professional will.
• Resource Engine: In social sectors, the economic engine is replaced by a resource engine, focusing on time, money, and brand.
• Flywheel Effect: Building momentum through consistent effort and results is crucial for achieving greatness in any organization.

How does Jim Collins define "greatness" in the social sectors?

• Mission-Driven Performance: Greatness is measured by how effectively an organization delivers on its mission, not by financial metrics.
• Outputs Over Inputs: The focus should be on achieving superior performance and making a distinctive impact, rather than merely managing resources.
• Qualitative and Quantitative Evidence: Organizations should rigorously track progress using both qualitative and quantitative evidence, even if outputs are hard to measure.
• Dynamic Process: Greatness is a continuous journey, not a destination, requiring relentless discipline and improvement.

What is the "Level 5 Leadership" concept in "Good To Great And The Social Sectors"?

• Leadership Hierarchy: Level 5 Leadership is at the top of a five-level hierarchy, characterized by a blend of personal humility and professional will.
• Legislative Leadership: In social sectors, leaders often operate within diffuse power structures, requiring skills in persuasion and coalition-building.
• Focus on Mission: Level 5 leaders prioritize the mission and cause over personal ambition, ensuring the right decisions are made for long-term success.
• Clever for the Greater Good: Leaders must be strategic and clever to navigate complex governance structures and achieve organizational goals.

How does the "Hedgehog Concept" apply to social sectors?

• Three Circles: The Hedgehog Concept involves understanding what you are passionate about, what you can be the best at, and what drives your resource engine.
• Resource Engine: In social sectors, the economic engine is replaced by a resource engine, focusing on time, money, and brand.
• Saying No: Organizations must have the discipline to say "No" to opportunities that do not align with their Hedgehog Concept.
• Sustainable Resources: The goal is to develop a sustainable resource engine that supports superior performance relative to the mission.

What is the "Flywheel Effect" in "Good To Great And The Social Sectors"?

• Building Momentum: The Flywheel Effect describes the process of building momentum through consistent effort and results, leading to a breakthrough.
• Success Breeds Support: As organizations achieve results, they attract more resources and commitment, which in turn leads to greater success.
• No Miracle Moment: Greatness is achieved through relentless effort and consistency, not through a single defining action or lucky break.
• Brand Reputation: In social sectors, brand reputation plays a crucial role in sustaining momentum and attracting support.

How does Jim Collins address the challenge of measuring success without business metrics?

• Outputs Over Inputs: Success should be measured by outputs, such as mission fulfillment and impact, rather than inputs like budget and resources.
• Qualitative Evidence: Organizations should assemble qualitative evidence, much like a trial lawyer, to track progress and assess performance.
• Consistent Assessment: The focus should be on developing a consistent and intelligent method of assessing output results, even if they defy precise measurement.
• Improvement Trajectory: Organizations should establish a baseline and rigorously track their trajectory toward audacious goals.

What are the differences between business and social sectors according to "Good To Great And The Social Sectors"?

• Economic vs. Resource Engine: In business, money is both an input and output, while in social sectors, it is only an input, with the focus on a resource engine.
• Leadership Dynamics: Social sector leaders often operate within diffuse power structures, requiring legislative leadership skills.
• Mission-Driven: Social sectors prioritize mission fulfillment over financial returns, requiring different metrics for success.
• Systemic Constraints: Social sectors face unique systemic constraints, but greatness is achieved through conscious choice and discipline.

What is the "First Who" principle in "Good To Great And The Social Sectors"?

• Right People First: Great organizations prioritize getting the right people on the bus and the wrong people off before deciding on direction.
• Early Assessment: In social sectors, early assessment mechanisms are crucial for ensuring the right people are in key positions.
• Selectivity and Passion: The process should be selective, tapping into individuals' passion for the mission, even if compensation is low.
• Talent Over Money: The right people can attract resources, but money alone cannot attract the right people.

How does Jim Collins suggest social sector organizations handle systemic constraints?

• Stockdale Paradox: Organizations must retain faith in achieving greatness while confronting the brutal facts of their current reality.
• Pockets of Greatness: Leaders should focus on creating pockets of greatness within their control, despite systemic challenges.
• Conscious Choice: Greatness is a matter of conscious choice and discipline, not a function of circumstance.
• Focus on What You Can Do: Leaders should focus on what they can do today to improve, rather than waiting for systemic changes.

What are the best quotes from "Good To Great And The Social Sectors" and what do they mean?

• "We need a new language." This quote emphasizes the need to distinguish between business and social sectors, focusing on greatness rather than business norms.
• "Greatness is not a function of circumstance." It highlights that greatness is achieved through conscious choice and discipline, not external conditions.
• "True leadership only exists if people follow when they have the freedom not to." This underscores the importance of genuine leadership, especially in social sectors with diffuse power structures.
• "The foundation for doing good is doing well." It stresses the importance of having a sustainable resource engine to effectively fulfill the mission.