From Good to Great: The 3 Jim Collins Questions That Separate Great Companies from the Rest

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Ted Bonel 2. STRATEGY, BLOG

Every leader wants to build a “great” company—but what does great actually mean?

According to Jim Collins, the author of Good to Great and Great by Choice, greatness isn’t about size or speed. It’s about Superior Results, Distinctive Impact, and Lasting Endurance.

Let’s unpack these three tests of greatness—and three of Collins’ 12 questions that help leadership teams make the leap from good to great.

1. Facing the Brutal Facts—While Retaining Faith

This is known as the Stockdale Paradox, named after Admiral Jim Stockdale, who survived years of captivity by balancing two opposing truths:

“Retain faith that you will prevail in the end, regardless of the difficulties…and at the same time, confront the most brutal facts of your current reality.” Great companies do exactly that. They don’t hide from reality.They talk about the hard truths, name the risks, and prepare for turbulence—while holding an unwavering belief that they’ll prevail.

If you’re avoiding the brutal facts because you fearhow your team will react, the question isn’t about theirstrength—it’s about your expectations.

People rise to the standard you set.

2. Discovering Your Hedgehog Concept

Collins uses the metaphor of the hedgehog—an animal that succeeds by doing one thing exceptionally well.

Your Hedgehog Concept sits at the intersection of three things:

  • What you’re deeply passionate about.
  • What you can be the best in the world at (and what you can’t).
  • What drives your economic engine—your profit per X.

At Strategy & Execution Advisors, we use Scaling Up tools to help teams articulate these same principles through their Core Purpose, Brand Promise, and Profit per X.

When you find that intersection, your business becomes irreplaceable—the kind of company that, if it disappeared, would leave an unfillable hole in its market.

Greatness Is a Process, Not a Destination

Collins warns that the moment you start believing you’re great, your decline has already begun. Greatness is a dynamic discipline, not an end state.

That’s why the Scaling Up system aligns so well with Collins’ philosophy—it provides the tools, rhythms, andmetrics that keep companies moving forward with clarity and consistency.

So, where’s your company today—still good, or truly on the path to great?

Let’s explore howto apply these principles to your business

to breakthrough.

To Scale Up your business! Take our Scaling Up/Four Decisions Needs Assessment to discover how your business measures against other Scaled Up companies. We’ll contact you.

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Let’s explore how to apply these principles to your business. Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

 

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops.

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