Question

Explain Phase 4 Chaos to Concept in Good to Great by Jim Collins.

Answer 1

Phase 4 Chaos to Concept in Good to Great by Jim Collins is focused on the following – developing a framework of concepts, meeting rigorous standards before deeming it significant and the final framework and concepts are not the opinions of the research team.

Here every primary concept in the final framework showed up as a change in variable in 100 percent of the good-to-great companies and in less than 30 percent of the comparison companies during the pivotal years.

In this phase level 5 leadership is involved. As such good to great leaders are self-effacing besides being reserved and even shy as well. A paradoxical blend of personal humility as well as professional will is required. So good to great leaders will first try and get the right people on board and get rid of people who are not considered right. After this the right people are given optimal and strategic roles. This then helps in determining the strategic action plan and strategic sense of direction for the organization. As such there is a difference between right employees and employees. Employees cannot be said to be the most valuable asset of an organization, it is the right employees who are the most valuable assets of an organization.

Stockdale Paradox is an important aspect of Phase 4 Chaos to Concept. As per this paradox companies will have to maintain a relentless faith that they can prevail and will prevail despite all the difficulties that they encounter. These difficulties can be encountered by developing a discipline that will help them to confront the harsh realities of the world.

There is the presence of the Hedgehog Concept as well. As per this in order to go from good to great will require crossing the curse of competence. It is an absolute must for an organization to the absolute best in its core business.

A culture of discipline is must. When an organization has disciplined people then it does not need a hierarchy. Disciplined thoughts eliminate the need for bureaucracy. Disciplined action eliminates the need for excessive controls. Thus great performance is the end result and will be systematically achieved when culture of discipline is combined with an ethic of entrepreneurship.