Ep. 5 - Is The Book Good to Great Still Relevant?

Is Good to Great a relic of the past or the key to your future? In this episode, Marc and Diana discuss the classic book Good to Great by Jim Collins and examine the book’s relevance over twenty years after its publication. They consider arguments against the book, break down its key points, and explain how your firm could benefit from its principles. Dive into Good to Great’s best tips to move your business forward discover the importance of hiring the best of the best, and learn why you should care about hedgehogs. 

For detailed show notes, read below and use the timestamps to navigate the episode:

[1:02] Is Good to Great by Jim Collins still relevant, or is it a relic? This episode discusses whether or not the classic book is still required reading for entrepreneurs. Some of the twelve companies that the 2001 book covered no longer exist, it does not use a large sample size. Another criticism is the fact that Collins only used public companies. 

[3:57] Marc’s thesis for this episode is that in spite of all of these criticisms, the book is still relevant – especially to small firms. This is because smaller companies and firms do not have the ability to absorb big mistakes. 

[6:28] The principles in Good to Great are extremely relevant to small businesses in general and law firms in particular. The most important principle of the book to law firms is to confront the facts. Many firms focus on their services and let their data take a back seat. 

[8:30] Legal service is a service business, meaning that firms are people businesses. Because of this, the people you have on your team are essential to success. 

[10:50] Marc and Diana delve into the nuts and bolts of Good to Great. Diana highlights the Stockdale Paradox. The paradox says that successful people maintain faith that they will prevail in the end while confronting the harshest realities in front of them.  

[16:32] Growth is expensive. Marc Whitehead & Associates is spending on hiring, space, and new technologies. These investments are discouraging in the short-term, but they will pay off in the long-term. 

[18:05] A hedgehog is a small, simple animal that does one thing and does that well. The point Collins tried to make with the hedgehog is that the best companies are like hedgehogs: they do one thing well. Expanding outside of that core for the sake of expanding can have serious consequences. 

[20:11] Marc has violated the hedgehog concept by starting a separate mass torte section within the firm. Mass tortes do not fit into Marc Whitehead & Associates’ model straightforwardly. The implementation process involved lots of testing in the beginning so Marc could learn where to invest, and where investments were not worth it. 

[23:14] The culture of discipline is another favorite concept from Good to Great. Collins's theory is that disciplined people are necessary for disciplined thought and that disciplined thought is necessary for disciplined action. Where Marc Whitehead & Associates is, the firm cannot execute its growth plan without disciplined people. 

[25:05] The final principle Marc and Diana discuss is disciplined action. The best advice Marc ever got was that the quality of his life as a lawyer would be determined by the quality of people he let through the door. Marc has since become very picky about the people that he lets into his business, which he thinks of as his community. This community takes disciplined action.

[27:23] Marc interviewed Diana four or five times before he hired her. The hiring process involved multiple tests, a screening, and many hours of conversation. This interview process is extremely rigorous and designed to bring in the best people.

[29:30] The entrepreneurial operating system has also helped the firm take disciplined action, specifically through Level 10 meetings. Level 10 meetings have a set agenda that helps the team deliver on their goals. 

[31:40] The team is currently working on integrating a new client portal, which will be the primary way that the firm will communicate with clients. This change requires discipline to break old communication habits and practices. 

Listen to Good to Great by Jim Collins on Audible: https://www.audible.com/pd/Good-to-Great-Audiobook/B003UDDK7O 

Buy Good to Great on Amazon https://www.amazon.com/Good-Great-Some-Companies-Others/dp/0066620996 

Visit the Successful Barrister website: https://www.successfulbarrister.com/ 

Visit the Marc Whitehead & Associates website: https://disabilitydenials.com/