SOME OF THE GOOD TO GREAT RESEARCH TEAM
Ratio of Cumulative Stock Returns
To General Market
8
Good to Great
Companies
7
6
5
4
3
2
Comparison
Companies
1
0
T-15
Transition Point
T+15
© Copyright Jim Collins, All Rights Reserved
RESULTS FROM TRANSITION POINT TO 15 YEARS
BEYOND TRANSITION POINT
Company
Results from T +15
T +15
Abbott
3.98 times the market
1974-1989
Circuit City
18.50 times the market
1982-1997
Fannie Mae
7.56 times the market
1984-1999
Gillette
7.39 times the market
1980-1995
Kimberly-Clark
3.42 times the market
1972-1987
Kroger
4.17 times the market
1973-1988
Nucor
5.16 times the market
1975-1990
Philip Morris
7.06 times the market
1964-1979
Pitney Bowes
7.16 times the market
1973-1988
Walgreens
7.34 times the market
1975-1990
Wells Fargo
3.99 times the market
1983-1998
THE THREE CIRCLES
of the Hedgehog Concept
Passionate
About
Can Be Best
In The World
Economic
Denominator
© Copyright Jim Collins, All Rights Reserved
THE GOOD-TO-GREAT COMPANIES AND THE “BEST IN THE WORLD”
CIRCLE OF THE HEDGEHOG CONCEPT
Company
Could become the best in the world at…
Abbott
Creating a product portfolio that lowers the cost of healthcare.
Circuit City
Implementing the "4-S" model (service, selection, savings, satisfaction)
applied to big-ticket consumer sales.
Fannie Mae
Being a capital markets player in anything that pertains to mortgages.
Gillette
Building premier global brands of daily necessities that require
sophisticated manufacturing technology.
Kimberly-Clark
Paper-based consumer products.
Kroger
Innovative super-combo stores.
Nucor
Harnessing culture and technology to produce low-cost steel.
Philip Morris
Building brand loyalty in cigarettes and, later, other consumables.
Pitney Bowes
Messaging that requires sophisticated back-office equipment.
Walgreens
Convenient drug-stores.
Wells Fargo
Running a bank like a business, focusing on the western U.S.
ECONOMIC DENOMINATOR
Company
Profit…
Abbott
per employee
Circuit City
per geographic region
Fannie Mae
per mortgage risk level
Gillette
per customer
Kimberly-Clark
per consumer brand
Kroger
per local population
Nucor
per ton of finished steel
Philip Morris
per global brand category
Pitney Bowes
per customer
Walgreens
per customer visit
Wells Fargo
per employee
LEVEL 5 LEADERSHIP
Level 5:
Level 5 Executive
Level 4:
Effective Leader
Level 3:
Competent Manager
Level 2:
Contributing Team-Member
Level 1:
Highly Capable Individual
© Copyright Jim Collins, All Rights Reserved