Key Lessons from “Good to Great” by Jim Collins for Product Managers
“Good to Great” by Jim Collins is a book that outlines the principles that enable some companies to make the leap from being just “good” to truly “great” companies. While the book is geared towards business leaders and executives, the principles it presents can also be applied to product management. In this response, I will discuss some key lessons from “Good to Great” that are relevant for product managers, and provide an example to illustrate each lesson.
- Focus on what you can be the best in the world
In “Good to Great,” Collins argues that great companies are those that have a clear understanding of what they can excel at and then focus all their resources on doing that one thing better than anyone else. Similarly, product managers should focus on understanding the unique value proposition of their product and hone in on what they can be the best at. For example, if you are a product manager for a project management tool, you may identify that your product’s strength lies in its ability to integrate with other tools, and focus your efforts on creating the most seamless integrations in the market.
2. Hedgehog Concept
The Hedgehog Concept is another principle outlined in “Good to Great” that is relevant for product managers. The concept suggests that great companies have a deep understanding of three things: what they are passionate about, what they can be the best in the world at, and what drives their economic engine. Product managers should apply this concept to their products by identifying what they are passionate about, what their product excels at, and what drives their business success. For example, a product manager for a social media platform may identify that their passion is connecting people, their product’s strength lies in its ability to curate personalized content, and their economic engine is advertising revenue.
3. Discipline of Technology Accelerators
The Discipline of Technology Accelerators is the principle that great companies use technology as an accelerator of momentum, not a creator of it. Product managers should focus on using technology to enhance their product’s existing strengths, rather than relying on technology to create a new market or product category. For example, a product manager for a food delivery app may focus on using technology to improve their delivery times and enhance the user experience, rather than trying to create a completely new category of food delivery service.
4. Flywheel
The Flywheel concept suggests that great companies create a self-reinforcing loop of momentum that propels them forward. Product managers can apply this concept to their products by identifying the key actions that drive engagement and momentum, and then focusing on creating a seamless and intuitive user experience that encourages users to take those actions repeatedly. For example, a product manager for a meditation app may identify that the key action that drives engagement is completing a meditation session, and focus on creating a seamless and frictionless experience that encourages users to meditate consistently.
In conclusion, “Good to Great” provides a valuable framework for product managers looking to take their products from “good” to “great.” By focusing on what their products can be the best in the world at, applying the Hedgehog Concept, using technology as an accelerator of momentum, and creating a self-reinforcing loop of momentum, product managers can create products that truly excel in the market.
Thanks for reading! If you’ve got ideas to contribute to this conversation please comment. If you like what you read and want to see more, clap me some love! Follow me here, or connect with me on LinkedIn or Twitter.
Do check out exclusive Product Management resources 👇
- The Ultimate List of 100+ Product Management tools 🛠https://rohitverma.gumroad.com/l/PM-tools
- The Ultimate List of Product Management Frameworks ⚙️
https://rohitverma.gumroad.com/l/PM-frameworks - The most exhaustive OKRs notion template 📔https://rohitverma.gumroad.com/l/OKR-Template
