Built to Last: Successful Habits of Visionary Companies
Built to Last: Successful Habits of Visionary Companies
This is a report paper about the book written by James Collins and Jerry Porras entitled Built to Last. James Collins is a professor at the School of Business of Stanford University. He also engages in management research and teaches corporate leadership among executives like the Girl Scouts of America, the Marines, and John Hopkins Medical School. Collins is also the author of three other books namely Great by Choice, Good to Great, and How the Mighty Fall. Meanwhile, Jerry Porras is also a professor of organizational behavior behavior at the School of Business at Stanford University. He is an expert in interpersonal dynamics, organizational development and leadership and a consultant to several companies like Quaker Fabric and Start Farm Auto Insurance. Porras is the author of the book entitled Stream Analysis: A Powerful New Way to Diagnose and Manage Organizational Change.
The general idea that the authors conveyed in the book is that visionary companies are clock builders, not time tellers. That is to say, every visionary leader adapts to the changes that constantly occurs in the industry. And for each innovation that is prompted by such change, the visionary leader sees the products as the medium of the company. Likewise, visionary leaders build clock based on the core ideology of their organization.
As a student, I believe that the fundamentals that were uncovered by the authors in the book gave me useful insights which will be very useful if one day, I will put up my own company. Likewise, I will take the powerful findings of the research by the authors that were contained in the book as my guiding principle as I will become part of an organization in my future career. And the very remarkable idea that I have truly captured is that, maintaining a strong culture by preserving the core values of the organization enable the company to endure the challenges and thrive.
Summary of Built to Last
The book Built to Last was a scientifically research on Leadership and Management written by Collins and Porras and was published in 1994. The authors analyzed the origin, growth and development of visionary companies, namely Sony, Wal-Mart, Walt Disnet, Procter and Gamble, Philip Morris, Nordstrom, Motorola, Merck, Marriott, Johnson & Johnson, IBM, Hawlett-Packard, General Electric, Ford, Citicorp, Boeing, American Express, and 3M. They determined the characteristics of visionary companies which they considered as special and elite breeds of institutions. The characteristics include: premier institutions in the industry which they belong, highly admired and respected by experienced businessmen, have created enduring mark to the world, had been through several product or service life cycles, had several generations of chief executives and were founded before 1950.
The book is written with 11 chapters. In the first chapter, Collins and Porras shared their criteria in identifying and studying their so-called visionary companies, hence the best of the best. According to them, visionary companies are institutions that are considered as the crown jewels in their industries, have thrived for almost a hundred year through several generations of chief executives/leaders and several product/service life cycles, have been through serious stumble, and have created a lasting imprint all over the world.
In the second chapter, the idea of clock building, not time telling was presented and the authors emphasized that visionary companies are clock builders and not time tellers. The authors maintained that true visionary companies’ main focus is the establishment of the organization and not just penetrating the market and optimizing the product life cycle. As clock builders, visionary leaders focus on making the organization stronger that it will be able to surpass any challenges. They concentrate their efforts on the design of an enduring organization rather than making a high-profile name in the industry. The authors are telling us that we have to make the company itself the ultimate product.
The third chapter is about the sense of purpose of the clock builders which drives the visionary companies. It is emphasized that building the institution is more than just making profits. Visionary leaders embrace the core values and that the purpose of the companies’ existence is aligned to that core. The authors mentioned that the core ideology marks the lasting character of an organization. They maintained that the ideology of the organization serves as the bonding element that keep its constituents intact as the company matures, expands, and diversity.
The emphasis in the fourth chapter is to preserve the core/stimulate progress. Accordingly, visionary companies continuously develop strategies to adapt to changes while preserving the core and stimulating progress not only within the organization but also with the community that it is serving.
The fifth chapter relays the idea that visionary companies utilize B.H.A.Gs or big hairy audacious goals in setting the mood of the organization (i.e., people working for the attainment of goals of the company). Challenges and motivations that come along with the B.H.A.Gs stimulate a competitively healthy work environment. B.H.A.Gs are the set of goals that the visionary companies wanted to achieve. Moreover, a company can adopt several B.H.A.Gs at different levels of the organization at the same time. Achieving the set of B.H.A.Gs inspires people to work more for the success of the company. That is to say, having B.H.A.Gs is the key to increase workers morale.
The sixth chapter involves the discussion on cult-like culture that is possessed by visionary companies. The visionary companies may not be the great place to work for everybody especially if someone’s personal views do not fit with the values of the organization. Visionary companies are characterized as institutions that set high expectations from the people working for them and requires the adherence of each constituents to the core values of the organization. Likewise, these companies are like cults and they share the following features: fervently held ideologies, indoctrinated procedures, acceptance of the core values, and elitism.
In the seventh chapter, the authors gave emphasis on the idea that visionary companies do try a lot of stuff and keep what works. Visionary companies believe in both revolutionary and evolutionary progresses. Collins and Porras have found in their study that visionary companies are less likely to stick to knitting; and knitting is the core ideology.
Home grown management is the focus in the eighth chapter. In their study, Collins and Porras found that it not always true that companies should hire outsiders to stimulate change and progress. According to the authors, the management, tenure, and succession in visionary companies are defined by continuity and order. This presence of continuity and order enables the insiders to preserve the core ideology of the organization. At the same time, insiders also act as change agents – moving the company forward and in new exciting directions while preserving the core values of the company.
This chapter that is themed “good enough never is” gives the insight that there should always be a constant innovation.
The chapter on “the end of the beginning” the authors shared that to become a visionary company, one must align the objectives, strategies, policies and mechanisms to the core ideologies of the organization.
All in all, the most vital idea of the book Built to Last is the importance of preserving the core ideologies of the organization while stimulating progress within. As the company continuously adapts to the changing trend in the industry, such change should always be anchored to the core ideologies of the organization. Likewise, the visionary company progresses and stimulates progress through setting of B.H.A.Gs, creating and promoting cult-like culture in the organization, trying many things and keeping what works, and relying on home-grown management.
Pros and Cons of the Book
The very good thing about the book Built to Last is that it provided me ideas of what should be the characteristics of an organization that aims to lead in the industry and be able to survive for over a hundred years. The findings of the scientifically driven effort of the authors can in fact help individuals and groups to build organizations that last for over a century and can weave themselves in the fabric of the society. Generally speaking, the book would be very useful for individuals who possess the attitudes of a visionary leader. Moreover, the book a classic strategy book with no expiration date, none of the principles presented is obsolete, they can – and should – be easily applied to business today, no matter of its size, position or market. At the same time, the book presents a different approach of the management theory, it destroyed business acclaimed myths bringing timeless, invincible arguments.
On the contrary, the book is lore likely a not-for-read for individuals who believe that a company exists mainly for profit.
I found the book inspiring but in an academic point of view, it lack the so-called academic rigor.
What the Book has Thought Me
The very main lesson that I’ve learnt after reading the book is that an organization that is considered as visionary is not dependent to a charismatic leader or is founded on one great idea. To endure the challenges and thrive in the industry visionary companies concentrate on preserving and strengthening the organization. Likewise, it is important for visionary companies to make a statement about its core ideologies which are comprised of the companies’ core values and purpose. The statement of the organizations’ core ideologies have to be accompanied with a plan of action to attain their goals.
The important principles that I have gained are: (1) we should be clock builders, and just not time tellers; (2) we have to reject the OR and we should embrace the AND; (3) visionary companies are more than a profit; (4) visionary companies walk the talk; (5) preserve the core ideologies while stimulating progress; (6) recognize that being a visionary company is a never-ending process; and (7) build the vision.
In relation to my career in the future, the principles that were revealed to me by the authors would serve as my guide on how I should perceive my work, my co-employees and my organization. The book also taught me that it in choosing a career, it is not enough that I am capable of doing my work/task/responsibilities. It is very important that my ideologies and belief coincides or complements with that of the company of which I want to work. Having similar values and vision with the organization ensures a healthy working environment where I could grow personally and professionally.
Conclusion
The very essential resources that visionary companies have are their intact and well-preserved core ideologies couples with great vision of the future. To become a visionary company requires a clear vision for the organization that is supported by well organized strategic plans that are aligned to the core ideology – the core purpose and core values - of the organization and directed towards stimulating progress. The company’s core values are the organizations guiding principle, while core purpose is the organization's fundamental reason for its existence above and beyond making profits.
As a conclusion, the book is a good read.
Works Cited
Collins, James, and Jerry Porras. Built to Last. (1994). E-book
Collins, Jim. “Building Companies to Last”. The State of Small Business: Inc. Special Issue. Accessed from http://www.jimcollins.com/article_topics/articles/building-companies.html on April 21, 2013.
