How Do Lessons from ‘Good to Great’ by Jim Collins apply to us? (small and mid-sized businesses)

If you’ve ever felt that books like Good to Great are written for billion-dollar corporations rather than businesses like yours, you’re not alone. In our Scaling Up strategy sessions, I often hear the same concern: ‘But Ted, these are lessons from very big companies. How do they relate to a small or mid-market business like us?’ It’s a very valid question. The truth is, the same principles that propelled Fortune 500 companies to greatness can be just as transformative for businesses of any size—when applied the right way.

Collins’ research focuses on large, iconic organisations—corporate giants with deep resources and global reach. At first glance, their challenges might seem worlds apart from the realities of smaller businesses.

However, the essence of ‘Good to Great’—disciplined leadership, focused strategy, and a culture of excellence—is profoundly applicable to businesses of all sizes. This blog, enriched by the insights of Keith McFarland’s ‘The Breakthrough Company’, bridges the gap, showing how these principles can drive success for small and mid-market businesses.

Let’s explore how these lessons translate to organisations like yours and uncover strategies to achieve breakthrough growth, regardless of size.

Scaling Greatness: Lessons from Good to Great and The Breakthrough Company

The quest for enduring success has been a subject of fascination for businesses of all sizes. Jim Collins’ ‘Good to Great’ and Keith McFarland’s ‘The Breakthrough Company’ offer complementary insights into this journey. While Good to Great offers timeless principles for long-term success, The Breakthrough Company zooms in on businesses like yours—smaller, more agile, and facing different constraints. 

Together, they offer a blueprint that blends ambition with practicality. By understanding their findings and identifying overlapping principles, small and mid-market companies can unlock strategies to achieve extraordinary success.

Key Findings from ‘Good to Great’

Jim Collins’ ‘Good to Great’ is the result of exhaustive research into why some companies achieve sustained greatness while others plateau. Here are its core lessons:

1. Level 5 Leadership
   Transformative companies are led by leaders with a rare combination of humility and fierce resolve. They prioritise the organisation’s success over personal accolades. How do you balance humility and determination in your leadership style? Identify one action you can take this week to lead with both strength and self-awareness.
2. The Hedgehog Concept
   Great companies identify the intersection of three circles: what they can be the best at, what drives their economic engine, and what they are deeply passionate about. What’s the one thing your company could be the absolute best at? Take a moment to define it, because this clarity will shape your entire strategy.
3. Disciplined People, Thought, and Action
   Successful organisations foster a culture of discipline, aligning their teams and strategies around focused goals without distraction.
4. The Flywheel Effect
   Transformation happens over time, with consistent effort building momentum until a breakthrough is achieved. What small, consistent actions can you take today to build momentum in your business? Write down three habits that will compound over time.
5. Confronting the Brutal Facts
   Great companies do not shy away from harsh truths but use them as a foundation for making strategic decisions. What hard truths have you been avoiding in your business? List one challenge you need to face head-on and outline your first step toward addressing it.

Key Findings from ‘The Breakthrough Company’

Keith McFarland’s ‘The Breakthrough Company’ examines small and mid-sized companies that defy the odds to achieve market leadership. It highlights the unique challenges and opportunities faced by these businesses:

1. Breakthrough Leadership
   Leaders of breakthrough companies embrace a collaborative approach, leveraging their teams’ collective strengths to innovate and overcome challenges. Who in your team has the potential to lead at a higher level? Consider how you can empower them to take on more responsibility.
2. Organisational Focus
   These companies maintain a laser-sharp focus on their core competencies, scaling systems and processes to support growth. Are you spreading your resources too thin? Take a critical look at your priorities and identify one area to double down on.
3. Adaptive Strategies
   Mid-sized companies that achieve breakthroughs often anticipate market trends and pivot quickly to seize opportunities. How quickly does your company respond to market changes? Identify one process or mindset shift that could make your business more agile.
4. Culture as a Competitive Advantage
   Purpose-driven cultures foster alignment and engagement, enabling companies to attract top talent and build loyalty. What are the core values that define your company culture? If you had to explain them to a new hire in one sentence, what would you say?
5. Scalable Growth Models
   Breakthrough companies invest in systems that allow them to grow sustainably, ensuring they don’t outpace their operational capacity. How quickly does your company respond to market changes? Identify one process or mindset shift that could make your business more agile.

Correlations Between ‘Good to Great’ and ‘The Breakthrough Company’

Although these books examine businesses of vastly different scales, their lessons converge in critical areas:

1. Leadership Excellence
   Both highlight the importance of leadership that balances vision, humility, and determination. Whether steering a Fortune 500 company or a mid-market firm, effective leaders prioritise long-term organisational health.
2. Focus and Discipline
   Greatness stems from the disciplined pursuit of core objectives. Both large enterprises and mid-sized businesses achieve success by resisting the temptation to chase every opportunity.
3. The Importance of Culture
   Culture plays a pivotal role in sustaining greatness. From the boardroom of a multinational to the team huddle of a growing business, shared values and purpose are key drivers of success.
4. Adaptability
   Both books emphasize the need to confront challenges and adapt to market changes. Resilience and flexibility enable companies of all sizes to navigate uncertainty and seize new opportunities.
5. Momentum Matters
   Whether it’s the flywheel effect in Good to Great or scalable growth in The Breakthrough Company, building momentum through consistent actions is essential for sustained success.

How These Lessons Apply to Small and Mid-Market Businesses

For small and mid-market businesses, the insights from these books are not just applicable—they are transformative.

1. Cultivate Leadership at All Levels
   While mid-sized companies may lack the resources of corporate giants, they have the agility to nurture leaders who can inspire, innovate, and execute.
2. Define Your Core Strategy
   Focus on what your business can excel at, and align resources around this vision. Avoid spreading your efforts too thin.
3. Build a Winning Culture
   Even smaller organisations can build a purpose-driven culture that attracts talent and engages employees. Make culture a priority, not an afterthought.
4. Adopt a Long-Term Mindset
   Growth doesn’t happen overnight. Stay consistent, build momentum, and be patient with the process of scaling your business.
5. Leverage Adaptability
   Smaller organisations can pivot faster than large corporations. Use this advantage to respond to market changes and customer needs.
6. Systematise for Growth
   Invest in processes, technology, and infrastructure that allow for scalable and sustainable expansion.

Conclusion

The principles from ‘Good to Great’ and ‘The Breakthrough Company’ prove that greatness is not confined to large corporations. Small and mid-market businesses can achieve extraordinary success by embracing disciplined leadership, focusing on their core strengths, and cultivating a resilient, purpose-driven culture.

By leveraging their agility and scalability, these businesses can bridge the gap between “good” and “great”—and eventually break through to industry leadership.

Now it’s your turn. Identify one principle from this article that your business can start applying today. Will you refine your core strategy? Invest in leadership development? Strengthen your company culture? Whatever it is, commit to action—because that’s how you move from good to great.

At Strategy and Execution Business Advisors, we help businesses like yours bridge the gap between ambition and execution—turning great ideas into real, measurable results. If you’re ready to apply these insights and take your business from good to great, let’s start the conversation. Reach out today, and let’s build the foundation for breakthrough success together.

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 I can help your team achieve its objectives. 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.