Good to Great

In Good to Great, Jim Collins investigates 11 large companies that displayed a significant long-term turnaround. Those companies had stock returns comparable to the general market before their transitions, but significantly outperformed the market for fifteen years after their transition. In each case, Collins and his research team examined comparison companies in the same industry that started in about the same place but were unable to take off. For example, Walgreens grew and became more profitable while Eckerd deteriorated.

The research team identified various similarities among the successful companies. They had exceptional leaders who hired a first-rate team. They faced the brutal facts while seeking out a path to greatness. They focused on an area that they cared about passionately, could be the best in the world at, and could drive their economic engine. They were disciplined about determining the correct course of action and carrying out the necessary tasks. They applied technology to accelerate their momentum, without viewing technology as a panacea.

The book is very well written and accessible, even to someone like me who doesn't follow financial news. Each chapter ends with a listing of key points and unexpected findings, which helps crystallize the main ideas. It's an above-average book in a subject area that doesn't interest me much. Anyone who is particularly interested in the business world would get a lot out of it.