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Groundbreaking research intothe development of America's most enduring and successful corporations thatshatters myths, provides new insights, and gives practical guidance forcompanies that would like to follow in their footsteps.
Jim Collins and Jerry Porrass', faculty at Stanford'sGraduate School of Business, have discovered what makes visionary companies- ones that beat their competitors decade after decade, withstand the vagariesof the marketplace, make a significant impact on the world, and have outperformedthe stock market by 15 times since 1926.
They conclude that a visionary company is not contingent on one brilliantCEO, but on elements that transcend any individual leader. Companies suchas 3M, Walt Disney, Motorola, Merck, and General Electric share lastingcharacteristics that distinguish them from less visionary companies, suchas: preserving a fixed core ideology, yet having the ability to adapt; goingbeyond culture to embrace "cultism"; creating what the authorscall BHAGs (big, hairy, audacious goals); mimicking the biological evolutionof the species; and having a strong sense of purpose beyond making money.
Fundamentally altering the way the executives think about long-term success, Built to Last has become a bible among CEOs and managers at prestigious corporations the world over.
Built to Last...is one of the most eye-opening business studies since In Search of Excellence.
More Reviews and RecommendationsWith his bestselling business books Built to Last and Good to Great, Jim Collins uses his research and smart writing to bust management myths and offer important insights about what makes top companies tick.
More About the Author
Number of Reviews: 14
Average Rating:
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Reading it
A reviewer, A reviewer, 12/12/2007
I am reading this book and am finding it hard to get through. I think I just expected more from all the hype - but the ideas in the book are not something that are new to me.
Truly an inspirational read...
Mark Zito, Public Facility Manager/Consultant, 09/25/2007
After reading many business books, this one truly incorporates many common sense applications, and I would recommend it for several reasons: • Jim Collins identifies three critical factors to running a great business of any size. • He develops a strongly supported profile of what is necessary to be the leader of a great enterprise in the modern day. And it is most likely very different than what you may think. • He presents actual businesses that were built from, and resulting from, ethical behavior despite the perceived compromises ethical behavior brings. I found this to be the most relevant issue - in light of the current climate of corporate scandals.
Also recommended: Winning, The Paradox of Success, 7 Habits of Highly Successful People
More Customer Reviews
Name:
Jim Collins
Current Home:
Boulder, Colorado
Date of Birth:
January 25, 1958
Place of Birth:
Aurora, Colorado
Education:
B.S. in mathematical sciences, Stanford University, 1980; M.B.A., Stanford University, 1983
Awards:
Distinguished Teaching Award, Stanford University Graduate School of Business, 1992
Collins says he finds the writing process a difficult one. "I can average no more than a page a day of high quality output – and those are long days!" he said in our interview. "If I produce a 30 page chapter, it will take me 30 days of work. I like what Michener said: 'I am not a master writer. I am a master rewriter."'
Collins has been married to wife Joanne for 22 years; the pair got engaged four days after their first date. When I finished Good to Great, Joanne said, “It’s nice to have you back” -- even though I’d been sitting just 20 feet away in the Morris chair for all those months of writing. That’s just the nature of writing a book; it requires a degree of obsession and productive neurosis.
A passionate rock climber, Collins likes to work early in the morning and then take a break to go climbing on the cliffs of Boulder or Eldorado Canyon. "No matter how wrapped up I am in a piece of work," he says, "it all melts away when I’m focused on the next ten feet of rock. I like to return in the afternoon for a good nap of 30 minutes to two hours, followed by a late afternoon creative work session before spending the evening with Joanne."
What was the book that most influenced your life, and why?
If I had to pick one, it would be The Discoverers, by Daniel Boorstin. I read this book just as I was starting my academic research career, and I was deeply impressed by his central thesis: The primary barrier to progress is not ignorance, but the illusion of knowledge.
This has affected every aspect of my own approach to questions, research and answers. In fact, my research laboratory is literally in my old first grade classroom, which reflects the whole idea of fresh inquiry without the burden of carrying too much knowledge.
What are your ten favorite books, and why?
This is a very hard question to answer, as I am a voracious reader. In fact, you can find my recommended reading list at my web site (www.jimcollins.com), which shows the wide ranging types of reading that have infected my brain over the years.
I did write an article a number of years ago on my view on non-business books that should be read by business readers. Here are my picks and reasons, from that article:
Who are your favorite writers, and why?
I tend to go in streaks. If I find an author I really like, I tend to work through most or all of his or her writings. Here are a few of the writers whose work I’ve devoured, along with my favorite work by each:
In 1994, my life changed dramatically when Built to Last, the book I coauthored with Jerry Porras about what it takes to build enduring great companies, became a wholly unexpected bestseller. Oddly, I responded by going into a deep existential funk. After six years of immersion, I no longer had a big project to work on. It was like I'd returned from the Lewis and Clark expedition with no new outlet in which to channel my somewhat obsessive energies. I woke up every morning and wondered, What on earth am I going to do next? My anxiety only worsened as I felt pressure from all sides -- agents, publishers, pundits -- to "get on with the next one to capitalize on the first one."
Fortunately, my wife, Joanne, pulled me out of the muck. "Don't pick another question just to do another book," she admonished. "Wait until a question picks you."
It was great advice. And I began to wait...and wait...and wait. A month went by. Then six months. Then a year. Then nearly two years. I began to have a sinking feeling that I would never again have a worthy question that would capture my passion and imagination.
But then at a dinner with people gathered to discuss organizational change and performance, a McKinsey partner leaned over his salad and said, "You know Jim, we love Built to Last around here. But unfortunately, it's useless."
Useless? Six years of my life, useless?
"The companies you wrote about were, for the most part, always great," he said. "They never had to turn themselves from good companies into great companies. They had parents like David Packard and George Merck, who shaped the character of greatness from early on. But what about the vast majority of companies that wake up partway through life and realize that they're good, but not great?"
His observation proved to be an invaluable gift. It planted the seed of a question that became the basis of the next five years of my life, namely, Can a good company become a great company and, if so, how?
The question of good to great captured me on a deep level as not just a business question but a human question. For the truth is, good is the enemy of great. And that is one of the key reasons why we have so little that becomes great. We don't have great schools, principally because we have good schools. We don't have great government, principally because we have good government. Few people attain great lives, in large part because it is just so easy to settle for a good life. And the vast majority of companies never become great, precisely because the vast majority become quite good -- and that is their main problem.
Five years after that fateful dinner (and 20,000 hours of research time with my team), I can now say, without question, that good to great does happen, and we've learned much about the underlying variables that make it happen. Good to Great: Why Some Companies Make the Leap...and Others Don't is the culmination. And while I fully expect another bout with existential despair in the wake of publication, I wouldn't trade the journey for anything.
If we have cracked the code on good to great, then we might see good schools become great schools, good government become great government, good companies become great companies and perhaps even a number of good lives become great lives. And that has made the effort worth every minute.
The Barnes & Noble Review
Jim Collins and Jerry Porras begin their groundbreaking analysis of "visionary companies" with the following bold statement: "We believe every CEO, manager, and entrepreneur should read this book." Although their language may sound slightly hubristic, the authors actually deliver the promised goods: Written in eloquent and accessible language, Built to Last, the result of an extensive six-year research study conducted at Stanford University, is a classic business book that surely deserves the accolades critics, readers, and its creators have heaped upon it.
Collins and Porras begin by defining the type of organizations they intend to examine. American Express, Ford, GE, Nordstrom, and Walt Disney are some of the 18 visionary companies -- widely admired, crown-jewel institutions that were founded before 1950 and have left "an indelible imprint on the world in which we live" -- to fall into the purview of their study. The authors then proceed to offer 12 management myths shattered by their research into these companies. Perhaps the most significant of these debunked pieces of conventional wisdom is the idea that change is the sole constant in the business world. Instead, Collins and Porras argue, "a visionary company almost religiously preserves its core ideology -- changing it seldom, if ever." From this adherence to a fundamental set of beliefs or a deeply held sense of self-identity comes the discipline and drive that enables a company to succeed in rapidly changing, volatile environments.
One of the enjoyable things about reading Built to Last is that its authors consciously chose to avoid the trendy phrases that sometimes make business books seem no more weighty or enduring than magazine articles. Instead, Collins and Porras have written a book that is meaningful, passionate, based on careful study, and, in its own way, built to last. (Sunil Sharma)
Groundbreaking research intothe development of America's most enduring and successful corporations thatshatters myths, provides new insights, and gives practical guidance forcompanies that would like to follow in their footsteps.
Jim Collins and Jerry Porrass', faculty at Stanford'sGraduate School of Business, have discovered what makes visionary companies- ones that beat their competitors decade after decade, withstand the vagariesof the marketplace, make a significant impact on the world, and have outperformedthe stock market by 15 times since 1926.
They conclude that a visionary company is not contingent on one brilliantCEO, but on elements that transcend any individual leader. Companies suchas 3M, Walt Disney, Motorola, Merck, and General Electric share lastingcharacteristics that distinguish them from less visionary companies, suchas: preserving a fixed core ideology, yet having the ability to adapt; goingbeyond culture to embrace "cultism"; creating what the authorscall BHAGs (big, hairy, audacious goals); mimicking the biological evolutionof the species; and having a strong sense of purpose beyond making money.
Built to Last...is one of the most eye-opening business studies since In Search of Excellence.
A 'must read' for any CEO who aspires to create a great company.
What makes a visionary company? This book, written by a team from Stanford's Graduate School of Business, compares what the authors have identified as "visionary" companies with selected companies in the same industry.
The authors juxtapose Disney and Columbia Pictures, Ford and General Motors, Motorola and Zenith, and Hewlett-Packard and Texas Instruments, to name a few. The visionary companies, the authors found out, had a number of common characteristics; for instance, almost all had some type of core ideology that guided the company in times of upheaval and served as a constant bench mark. Not all the visionary companies were founded by visionary leaders, however.
On the whole, this is an intriguing book that occasionally provides rare and interesting glimpses into the inner workings and philosophical foundations of successful businesses. Recommended for all libraries.
-- Randy L. Abbott, University of Evansville Library, Indiana
Number of Reviews: 14
Average Rating:
![]()
Write a Review
Reading it
A reviewer, A reviewer, 12/12/2007
I am reading this book and am finding it hard to get through. I think I just expected more from all the hype - but the ideas in the book are not something that are new to me.
Truly an inspirational read...
Mark Zito, Public Facility Manager/Consultant, 09/25/2007
After reading many business books, this one truly incorporates many common sense applications, and I would recommend it for several reasons: • Jim Collins identifies three critical factors to running a great business of any size. • He develops a strongly supported profile of what is necessary to be the leader of a great enterprise in the modern day. And it is most likely very different than what you may think. • He presents actual businesses that were built from, and resulting from, ethical behavior despite the perceived compromises ethical behavior brings. I found this to be the most relevant issue - in light of the current climate of corporate scandals.
Also recommended: Winning, The Paradox of Success, 7 Habits of Highly Successful People
Excellent
A reviewer, A reviewer, 02/26/2006
This superbly researched book explains to the reader how companies achieve enduring success. I have been in a senior executive role for over 20 years, and I learned a great deal. This book is a classic.
Also recommended: Optimal Thinking: How to Be Your Best Self
A classic...
Shyamashree Rudra, HR consultant from India, 06/17/2005
This is a groundbreaking book that tells us how to build landmark companies that stand the test of time. The subject of Collins' and Porras' study was 'What makes the truly exceptional companies different from the other companies?' By answering such questions, Collins and Porras go beyond the incessant barrage of management buzzwords and newfound fads to discover timeless qualities that have consistently distinguished outstanding companies. They also provide inspiration to entrepreneurs by destroying the false but widely accepted idea that only charismatic visionary leaders can build visionary companies. This book is an academic treatise, and yet it is superbly written and an exciting read. You could fall asleep on most thesis but this one kept me turning the pages despite being sleepy from a long day's work. I would recommend it to anyone who is serious not about just making quick money, but intent on building sustainable businesses that last.
Easy to Read & Shattered Myths
A reviewer, Student team from UW Milwaukee, 07/01/2004
Overall, this is an excellent book about how to build a company that will stand the test of time. The authors present the information in a format that is easy to read for the senior executive or someone with no business experience. While the authors present detailed and informative examples of actions that businesses have taken to be successful, the number of examples can become cumbersome. If someone is looking for a quick reference of strategies to improve a company, this is probably not the book for them, but if an individual is looking for an in depth report on techniques used by companies, it would be a useful tool. This book's intent is to show you the cogs that matter and give you some framework by which to align them to drive a company constantly/relentlessly forward. Often managers get lost in the P&L of the day. While that is important, it may not be enough to keep the fiber of the organization together. This book can serve as a reminder to us all of what is important to maintain a business that is financially successful but more importantly keeps its employees and customers happy. This book's simple goal is to shatter two myths that many believe a visionary company is founded upon, the incredibly innovative product and the charismatic leader.
Showing 1-5 Next| Ch. 1 | The best of the best | 1 |
| Ch. 2 | Clock building, not time telling | 22 |
| Interlude : no "tyranny of the OR" | 43 | |
| Ch. 3 | More than profits | 46 |
| Ch. 4 | Preserve the core / stimulate progress | 80 |
| Ch. 5 | Big hairy audacious goals | 91 |
| Ch. 6 | Cult-like cultures | 115 |
| Ch. 7 | Try a lot of stuff and keep what works | 140 |
| Ch. 8 | Home-grown management | 169 |
| Ch. 9 | Good enough never is | 185 |
| Ch. 10 | The end of the beginning | 201 |
| Ch. 11 | Building the vision | 219 |
| Epilogue : frequently asked questions | 241 | |
| App | Founding roots of visionary companies and comparison companies | 256 |
An Introduction What distinguishes a successful company from the kind of company whose very name becomes a cultural icon, whose place is fixed in the public consciousness? An innovative and inspiring study of the culture and longevity of some of America's most successful organizations, Built to Last is a blueprint for building organizations that will endure long into the twenty-first century. In Built to Last, James C. Collins and Jerry I. Porras identify the unique characteristics of visionary companies and show how any business can cultivate them. From Merck to Philip Morris, from General Electric to Nordstrom, from Ford to Sony, visionary companies display an amazing resilience and an unshakable commitment to their core ideology that allows them to surpass even their more temporarily successful competitors and achieve a lasting place in the cultural landscape. By examining the founding and history of these companies, the ways in which they have handled both adversity and success, and their continued commitment to their corporate identity, Collins and Porras reveal the unique characteristics of these visionary companies and show what actions other companies may take to achieve the same level of long-lastingperformance. Questions for Discussion of Built to Last"In an ironic twist, I now see Good to Great not as a sequel to Built to Last, but more of a prequel. Good to Great is about how to turn a good organization into one that produces sustained great results. Built to Last is about how you take a company with great results and turn it into an enduring great company of iconic stature." --Jim Collins
This is not a book about charismatic visionary leaders. It is not about visionary product concepts or visionary market insights. Nor even is it about just having a corporate vision.
This is a book about something far more important, enduring, and substantial. This is a book about visionary companies.
What is a visionary company? Visionary companies are premier institutions-the crown jewels - in their industries, widely admired by their peers and having a long track record of making a significant impact on the world around them. The key point is that a visionary company is an organization - an institution. All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services-all "great ideas" - eventually become obsolete. Indeed, entire markets can become obsolete and disappear. Yet visionary companies prosper over long periods of time, through multiple product life cycles and multiple generations of active leaders.
Pause for a moment and compose your own mental list of visionary companies; try to think of five to ten organizations that meet the following criteria:
In a six-year research project, we set out to identify and systematically research the historical development of a set of visionary companies, to examine how they differed from a carefully selected control set of comparison companies, and to thereby discover the underlying factors that account for their extraordinary long-term position. This book presents the findings of our research project and their practical implications.
We wish to be clear right up front: The "comparison companies" in our study are not dog companies, nor are they entirely unvisionary. Indeed, they are good companies, having survived in most cases as long as the visionary companies and, as you'll see, having outperformed the general stock market. But they don't quite match up to the overall stature of the visionary com- panies in our study. In most cases, you can think of the visionary company as the gold medalist and the comparison company as the silver or bronze medalist. We chose the term "visionary" companies, rather than just "successful" or "enduring" companies, to reflect the fact that they have distinguished themselves as a very special and elite breed of institutions. They are morethan successful. They are more than enduring. In most cases, they are the best of the best in thdir industries, and have been that way for decades. Many of them have served as role models -icons, really - for the practice of management around the world. (Table 1. 1 shows the companies in our study. We wish to be clear that the companies in our study are not the only visionary companies in existence. We will explain in a few pages how we came up with these particular companies.)
Yet as extraordinary as they are, the visionary companies do not have perfect, unblemished records. (Examine your own list of visionary companies. We suspect that most if not all of them have taken a serious tumble at least once during their history, probably multiple times.) Walt Disney faced a serious cash flow crisis in 1939 which forced it to go public; later, in the early 1980s, the company nearly ceased to exist as an independent entity as corporate raiders eyed its depressed stock price. Boeing had serious diffi-culties in the,mid-1930s, the late 1940s, and again in the early 1970s when it laid off over sixty thousand employees. 3M began life as a failed mine and almost went out of business in the early 1900s. Hewlett-Packard faced severe cutbacks in 1945; in 1990, it watched its stock drop to a price below book value. Sony had repeated product failures during its first five years of life (1945-1950), and in the 1970s saw its Beta format lose to VHS in the battle for market dominance in VCRs. Ford posted one of the largest annual losses in American business history ($3.3 billion in three years) in the early 1980s before it began an impressive turnaround and long-needed revitalization. Citicorp (founded in 1812, the same year Napoleon marched to Moscow) languished in the late 1800s, during the 1930s Depression, and again in the late 1980s when it struggled with its global loan portfolio. IBM was nearly bankrupt in 1914, then again in 1921, and is having trouble again in the early 1990s.
| Visionary Company 3M | Comparision Company Norton |
This is not a book about charismatic visionary leaders. It is not about visionary product concepts or visionary market insights. Nor even is it about just having a corporate vision.
This is a book about something far more important, enduring, and substantial. This is a book about visionary companies.
What is a visionary company? Visionary companies are premier institutions -- the crown jewels -- in their industries, widely admired by their peers and having a long track record of making a significant impact on the world around them. The key point is that a visionary company is an organization -- an institution. All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services -- all "great ideas" -- eventually become obsolete. Indeed, entire markets can become obsolete and disappear. Yet visionary companies prosper over long periods of time, through multiple product life cycles and multiple generations of active leaders.
Pause for a moment and compose your own mental list of visionary companies; try to think of five to ten organizations that meet the following criteria:
In a six-year research project, we set out to identify and systematically research the historical development of a set of visionary companies, to examine how they differed from a carefully selected control set of comparison companies, and to thereby discover the underlying factors that account for their extraordinary long-term position. This book presents the findings of our research project and their practical implications.
We wish to be clear right up front: The "comparison companies" in our study are not dog companies, nor are they entirely unvisionary. Indeed, they are good companies, having survived in most cases as long as the visionary companies and, as you'll see, having outperformed the general stock market. But they don't quite match up to the overall stature of the visionary companies in our study. In most cases, you can think of the visionary company as the gold medalist and the comparison company as the silver or bronze medalist. We chose the term "visionary" companies, rather than just "successful" or "enduring" companies, to reflect the fact that they have distinguished themselves as a very special and elite breed of institutions. They are more than successful. They are more than enduring. In most cases, they are the best of the best in their industries, and have been that way for decades. Many of them have served as role models -- icons, really -- for the practice of management around the world. (Table 1. 1 shows the companies in our study. We wish to be clear that the companies in our study are not the only visionary companies in existence. We will explain in a few pages how we came up with these particular companies.)
Yet as extraordinary as they are, the visionary companies do not have perfect, unblemished records. (Examine your own list of visionary companies. We suspect that most if not all of them have taken a serious tumble at least once during their history, probably multiple times.) Walt Disney faced a serious cash flow crisis in 1939 which forced it to go public; later, in the early 1980s, the company nearly ceased to exist as an independent entity as corporate raiders eyed its depressed stock price. Boeing had serious difficulties in the mid-1930s, the late 1940s, and again in the early 1970s when it laid off over sixty thousand employees. 3M began life as a failed mine and almost went out of business in the early 1900s. Hewlett-Packard faced severe cutbacks in 1945; in 1990, it watched its stock drop to a price below book value. Sony had repeated product failures during its first five years of life (1945-1950), and in the 1970s saw its Beta format lose to VHS in the battle for market dominance in VCRs. Ford posted one of the largest annual losses in American business history ($3.3 billion in three years) in the early 1980s before it began an impressive turnaround and long-needed revitalization. Citicorp (founded in 1812, the same year Napoleon marched to Moscow) languished in the late 1800s, during the 1930s Depression, and again in the late 1980s when it struggled with its global loan portfolio. IBM was nearly bankrupt in 1914, then again in 1921, and is having trouble again in the early 1990s.
| Visionary Company 3M | Comparision Company Norton |
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