Profit from Jim Collins' Powerful Business Ideas For Success
“Discover how to profit from Jim Collins’ powerful business ideas with practical insights on Level 5 Leadership, the Hedgehog Concept, BHAGs, and more. Learn how to build lasting success and a legacy in your business.”
Jim Collins’ books Good to Great and Built to Last offer powerful lessons on building successful, lasting companies. They reveal the secrets behind companies that don’t just perform well in the short term but grow to become timeless institutions. Collins’ insights aren’t just about profits or success—they’re about building organizations with soul, substance, and staying power. Throughout my career, I’ve seen these ideas come to life in surprising ways, and in this post, I’ll share how you can profit from Collins’ transformative concepts in your business journey.
1. Level 5 Leadership: Leading with Humility and Strength
In Good to Great, Collins describes “Level 5 Leadership” as a unique combination of humility and fierce determination. Unlike traditional top-down leaders, Level 5 Leaders put their ego aside and focus on the success of their team and company. They are driven, but not for personal glory—they want the organization to thrive and outlast them.
I discovered this idea's power in my work by changing how I approached meetings. Instead of seeing them as an opportunity to instruct or guide, I treated them as a chance to empower others. By prioritizing listening and asking questions that help others solve problems independently, I found I could create more trust and build a culture of collaboration. When team members know their contributions matter and feel supported, they’re more motivated, innovative, and ultimately more committed to the company’s success.
How You Can Profit from Level 5 Leadership:
• Approach leadership as service. Focus on helping your team members succeed rather than issuing orders.
• Cultivate a culture of humility where everyone is empowered to contribute, regardless of their title.
• Look beyond short-term wins and guide the team with long-term objectives that benefit everyone.
2. The Hedgehog Concept: Find Your Sweet Spot
The Hedgehog Concept centers around identifying the intersection of three things: what you’re deeply passionate about, what you can be the best in the world at, and what drives your economic engine. This “sweet spot” isn’t just about profitability; it’s about aligning your organization’s strengths with its purpose.
One of my greatest lessons is that underperformance often happens when people are “out of position.” As in sports, if someone plays the wrong role, they won’t perform to their full potential. My job as a leader is to put people in roles where they can excel—where their strengths, passions, and values align. This shift often transforms underperformers into high achievers.
How You Can Profit from the Hedgehog Concept:
• Identify your business's “sweet spot”: what you’re passionate about, where you excel, and what drives profitability.
• Help your team members find their sweet spots. Align roles with each person’s strengths and watch productivity soar.
• Focus on the long term, staying committed to what makes your organization unique.
Mike Parsons
3. First Who, Then What: Build the Right Team Before the Right Strategy
Collins emphasizes the importance of having the right people in place before setting the strategy. While it’s tempting to dive into plans and roadmaps, without a team you can trust, even the best strategy will falter. The right team, on the other hand, will bring ideas, adaptability, and resilience to any plan you set.
This idea came to life during my time with DDB Amsterdam and London. I learned that a strong team is the bedrock of any grand strategy. Rather than creating an airtight plan and finding people to execute it, I focused on recruiting talented, committed individuals. The strategy then emerged naturally from the collective vision and strengths of the team—a powerful reminder that great people lead to grand plans.
How You Can Profit from “First Who, Then What”:
• Invest in building a great team before crafting the perfect strategy. A strong team will make any plan more resilient and adaptable.
• Don’t rush the hiring process—prioritize people who share your values and can bring a unique perspective.
• Let your team’s talents and strengths shape the strategy rather than rigidly adhering to a pre-determined plan.
4. The Flywheel Effect: Build Momentum with Consistent Effort
The Flywheel Effect is about creating a “flywheel” of success by consistently pushing forward daily. Initially, it might feel like you’re making little progress, but small actions build unstoppable momentum over time.
In my journey, the Flywheel Effect has been one of the most challenging and rewarding concepts to implement. It requires showing up daily, even when the results aren’t visible. But as I’ve seen repeatedly, this long-haul commitment pays off. Whether building a new business or launching a major project, consistency is the secret to achieving compounding success.
How You Can Profit from the Flywheel Effect:
• Focus on small, consistent actions instead of expecting overnight results.
• Cultivate a long-term mindset that values persistence over immediate success.
• Celebrate small wins—they’re essential for building and maintaining momentum.
5. Preserve the Core, Stimulate Progress: Balancing Tradition and Innovation
In Built to Last, Collins emphasizes preserving a company’s core values while pushing for innovation. It’s about keeping what’s timeless while embracing what’s new and necessary for growth. I’ve seen clients become stuck in the comfort zone of what’s familiar, afraid to step into the unknown. By encouraging them to focus on a future grounded in their core values, I’ve helped them confidently break through and innovate.
How You Can Profit from “Preserve the Core, Stimulate Progress”:
• Identify your organization's core values and ensure they’re at the heart of every decision.
• Embrace change and progress, especially if it aligns with your values. Innovation thrives when rooted in a strong foundation.
• Use your core as a compass, helping you navigate new challenges and seize growth opportunities.
6. Big Hairy Audacious Goals (BHAGs): Rally Your Team Around a Bold Vision
BHAGs—Big Hairy Audacious Goals—are ambitious, long-term goals that stretch an organization beyond its comfort zone. With all my advisory clients, I’ve found that having a bold goal rallies the team and creates a shared purpose. It’s not about hitting “safe” targets; it’s about setting a vision that feels almost impossible yet inspires everyone to push their limits.
How You Can Profit from BHAGs:
• Set a bold, long-term goal that aligns with your core values and inspires the team.
• Use the BHAG to focus the organization’s efforts and create a shared excitement and purpose.
• Encourage everyone to contribute to the BHAG—every small effort helps bring the goal closer to reality.
7. Cult-like Cultures: Build a Team That Lives Shared Values
In a “cult-like culture,” values aren’t just words—they’re lived. I’ve found that when team members genuinely respect each other and live shared values, they create a culture of mutual commitment and accountability. Simple acts like showing up on time, following through on promises, and lending a hand build trust and unity. This is where solid and enduring cultures are born.
How You Can Profit from Cult-like Culture:
• Foster a culture where values are demonstrated daily, not just listed on a wall.
• Lead by example—respect, integrity, and collaboration are contagious when modeled from the top.
• Cultivate a sense of belonging and pride among team members; make them feel part of something bigger.
8. Clock Building, Not Time Telling: Build for Longevity
“Clock Building, Not Time Telling” is about creating an organization that lasts beyond the founder’s presence. This means helping founders transition from leading by telling to building structures and systems that empower others to lead. It’s a critical shift that allows a company to thrive independently, guided by values and culture rather than one person’s vision.
How You Can Profit from Clock Building:
• Focus on building systems, structures, and a culture that will outlast individuals.
• Develop your team to become leaders of leaders, fostering an organization that’s resilient and adaptable.
• Think long-term—build a legacy that can grow, adapt, and thrive over time.
Mike Parsons
Moving Forward: Apply Collins’ Ideas to Profit with Purpose
Collins’ insights are a roadmap for lasting success and a call to create something meaningful. Success isn’t just about the bottom line—it’s about building something enduring, with heart and purpose. Whether you’re a founder, a manager, or just starting, these principles can guide you to a business that not only profits but also leaves a positive mark.
So take a step forward: Lead with humility, build a team before a plan, set audacious goals, and show up every day. Profit will follow, but more importantly, so will a legacy you can be proud of.