Welcome to our monthly series where we review books that offer the best advice for those new to the world of VC and startups! Our co-founder and managing partner, John Vrionis, is book-obsessed (and he’s not particularly subtle about it 🙂). If you visit our offices, you’ll find plenty of reading material to take home with you! 

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All jokes aside, we are a mission-driven team, and for plenty of us, this is our first foray into venture capital. We often look for advice from business experts, experienced founders, and startup operators to help us learn about building great companies. We’re eager to learn from the best and enthusiastic about passing on this knowledge to others!

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There’s no shortage of recommended books — and it can be overwhelming to know where to start; we’re kicking things off with Good to Great: Why Some Companies Make the Leap…And Others Don’t by Jim Collins, published in 2001. 

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John often asks our team: "What are you doing to make the boat go faster?" — it's inspired by another book we love, The Boys in the Boat by Daniel James Brown (mandatory reading for all new team members at Unusual!). Team members are empowered to do their best when aligned with their leadership, a sentiment echoed in Good to Great by Jim Collins.

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Good to Great delves into the principles that elevate an organization from good — and this will likely come as no surprise — to great. Collins argues that “good is the enemy of great,” emphasizing that this issue goes beyond the business world and is a fundamental human problem. Few people achieve greatness because it is so easy to settle for good. However, when people are passionate about their work, excellence becomes a natural pursuit.

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For Collins, the journey from good to great encompasses three main stages: disciplined people, disciplined thought, and disciplined action. We discuss the themes from each stage that resonated most with us below.

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Stage 1: Disciplined People‍

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At this stage, Collins focuses on “Level 5 leaders” — extraordinary and self-effacing leaders who channel their ambition toward the larger goal of building a great organization. They have a remarkable mix of professional will and personal humility, leaving a company even more successful for the next generation. It can be challenging to take the long-term view that being a level 5 leader requires, but it’s worth it to do so.

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Level 5 leaders first focus on finding the right people who are self-motivated and driven. When they bring these inspired individuals onto “the boat,” something phenomenal inevitably happens. Anyone who would accept the idea that good is good enough will not be a fit. Good to Great leaders establish a rigorous culture, not a ruthless one. While ruthless leaders might simply cut hardworking people without thoughtful consideration, rigorous leaders hold everyone to high standards, especially those at the top. This creates a stress-free environment where the team can focus on their work. Once you have the right people on board and a strong culture in place, the path to greatness becomes a lot clearer. ‍

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Stage 2: Disciplined Thought

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Good to Great organizations display two distinctive forms of disciplined thought: the “Stockdale Paradox” and the “Hedgehog Concept.” 

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The Stockdale Paradox teaches that when confronted with difficulties, “you must retain faith that you will prevail in the end, and at the same time, confront the most brutal facts of your current reality.” Great organizations can focus solely on the few most impactful denominators, in large part because they operate equally on both sides of the Stockdale Paradox. Studies show in the book that adopting this dual pattern dramatically increases the odds of making a series of good decisions, ultimately discovering a simple yet profoundly insightful concept for making essential choices. Collins says that “the essence of profound insight is simplicity.” 

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The Hedgehog Concept is a straightforward, clear strategy that includes a deep understanding of the following three elements: 

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1. What can you be the best in the world at?

2. What single denominator has the most significant impact on your economics?

3. What are you deeply passionate about?

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With time and effort, using the Hedgehog Concept becomes elegantly simple. ‍

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Stage 3: Disciplined Action

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The final stage is about fostering a culture of discipline. Good to Great companies stick to a simple mantra: If it doesn’t align with our Hedgehog Concept, we don’t pursue it. In the book, Collins proves that disciplined action without a clear understanding of the Hedgehog Concept won’t lead to lasting success.

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At Unusual, we not only support founders and startups but we have also adopted the startup spirit throughout our organization. This means making sure every move we make — whether it’s a new investment, a new piece of content, or a new program — is aligned with our central objective of helping founders meet their objectives and accelerate their growth.  

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Even though achieving greatness might be less common statistically, it doesn't mean it demands more struggle than settling for good. Finding comfort in clarity is essential—knowing what truly matters and what doesn't. As Collins says, instead of asking, "Why greatness?", the more crucial question is, "What work makes you feel compelled to try to create greatness?" When you're deeply passionate about what you're doing and strongly believe in its purpose, it becomes inconceivable not to aim for greatness. It's just a natural part of the process.‍

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If you want to give Good to Great a read in full, we encourage you to do so! You can check out Jim Collins’ website to find out where the book is sold. And, make sure you’re subscribed to our newsletter to ensure you don’t miss next month’s book review and plenty of other content from our team.