From Good to Great to Gone

Why the Principles Endure Even When the Companies Don’t

Ah, Good to Great—Jim Collins’ magnum opus that promised to reveal why some companies make the leap to greatness while others languish in mediocrity. Published in 2001, the book introduced us to concepts like Level 5 Leadership, the Hedgehog Concept, and the Flywheel Effect. Collins and his team identified 11 companies that had made the leap from good to great, outperforming the market by an average of seven times over 15 years.

As I was re-reading the book and re-checking the list of companies cited as Great, that list was much shorter now. Here’s the rub: many of those “great” companies have since stumbled, if not outright fallen. Circuit City? Bankrupt by 2008. Fannie Mae? Central to the 2008 financial crisis. Even Wells Fargo, once lauded, has faced significant scandals.

So, does this mean Collins’ principles are flawed? Not necessarily. The principles may still hold water; it’s the application—and perhaps the companies themselves—that faltered. He even acknowledged it in his book How The Mighty Fall: And Why Some Companies Never Give In.

The Icarus Paradox: Flying Too Close to the Sun

Danny Miller’s “Icarus Paradox” posits that the very traits that lead companies to success can also lead to their downfall. Success breeds overconfidence, leading companies to overextend or cling too tightly to past strategies.

As mentioned, Jim Collins himself explored this in How the Mighty Fall, outlining five stages of decline:

1. Hubris Born of Success

2. Undisciplined Pursuit of More

3. Denial of Risk and Peril

4. Grasping for Salvation

5. Capitulation to Irrelevance or Death

Many of the “great” companies from Collins’ study seem to have followed this trajectory.

Applying the Principles Today

Let’s not throw the baby out with the bathwater. The principles from Good to Great can still guide modern companies—if applied wisely. So I had to try seeing if these principles were reflected in some large tech companies who would have met the criteria set for Collin’s original book. The good news is I didn’t need a 50 people research team. With the help of AI, I could just plug-in the criteria and the name of the company and check the end-result. So here it is. And again, to take with a grain of salt as we are seeing an acceleration of many folds in business powered by AI which will change the landscape again in the next couple of years.

Google: The Reluctant Hedgehog

Google embodies innovation. But Good to Great wasn’t about speed—it was about focus. The Hedgehog Concept teaches companies to find what they can be best at, what drives their economic engine, and what they’re deeply passionate about.

Google’s core hedgehog used to be: “Organize the world’s information.” Today, it’s… well, everything? Search, ads, YouTube, cloud, phones, self-driving cars, quantum AI, biohealth, satellites, dinner recipes, time travel (probably).

Leadership? Level 5? Sundar Pichai demonstrates quiet discipline, but the sprawling product ecosystem sometimes clashes with Collins’ focus principle. The flywheel is spinning—but is it rolling in one direction, or wobbling?

Verdict: Principles applied, but spread thin.

Meta (née Facebook): Flywheel with Whiplash

Mark Zuckerberg might be the most polarizing Level 5 leader ever. Passionate? Absolutely. Disciplined? Sometimes. Humble? Jury’s still out.

Meta’s meteoric rise was pure Flywheel: Network effects drove user growth, which drove engagement, which attracted advertisers, which made revenue, which fueled product investment. Rinse, repeat.

But the disciplined thought part? That’s where Meta trips. The abrupt metaverse pivot felt more like grasping for salvation (Stage 4 of decline) than a calculated Hedgehog move. Meanwhile, Instagram and WhatsApp quietly do the real heavy lifting.

Verdict: Great flywheel, but the compass may need recalibrating.

Intuit: The Quiet Flywheel That Could

Intuit, the financial software company behind TurboTax and QuickBooks, exemplifies Level 5 Leadership. CEO Sasan Goodarzi emphasizes humility and a focus on customer-driven innovation. Intuit’s culture encourages employees to speak up, ensuring diverse perspectives are considered—a nod to confronting the brutal facts.

Intuit may not be a household name like Apple or Meta, but it has all the markers of sustained greatness. Focused, humble, adaptive—and spinning its flywheel with increasing precision.

Verdict: ✅ Quietly Great—Built to Endure

Apple: The Relentless Innovator

Apple’s journey from near-bankruptcy in the late ‘90s to becoming a trillion-dollar company is well-documented. Steve Jobs’ return brought a renewed focus on the company’s Hedgehog Concept: creating user-friendly, beautifully designed products. Even after Jobs, Apple has maintained its Flywheel by continuously innovating and expanding its ecosystem.

Apple exemplifies Collins’ principles, especially under Tim Cook. It adapted, stayed humble, maintained a crisp Hedgehog focus, and continues to build trust. Unlike some Good-to-Great alumni, Apple didn’t get high on its own supply—it scaled greatness with discipline.

Verdict: ✅ Still Great—And Evolving

Costco — The Unsung Champion

Let’s step away from silicon and servers for a moment. Enter: Costco. The warehouse giant doesn’t get flashy headlines, but it lives and breathes Good to Great principles.

• Hedgehog Concept: Relentless focus on value and efficiency.

• Level 5 Leadership: Jim Sinegal, founder and former CEO, famously took a modest salary and wore a Costco badge like any other employee.

• Confronting Brutal Facts: During recessions, Costco doubled down on bulk deals and essentials. No panicked pivots, just steady execution.

• Disciplined Culture: Their model is simple and repeated—no experimental luxury lines, no off-brand detours, just rock-solid logistics and employee loyalty.

Costco has outperformed flashier competitors and maintained both customer and employee trust. It may not trend on Twitter, but its stockholders are smiling.

Verdict: Textbook greatness. Quiet. Consistent. Legendary.

Principles Are Timeless, Companies Are Not

The downfall of some “great” companies doesn’t invalidate the principles that led them to success. Instead, it underscores the importance of vigilance, adaptability, and humility. In a rapidly changing business landscape, resting on laurels is a recipe for decline.

So, while the companies may fade, the principles endure—waiting for the next visionary leader to apply them wisely.