In his book "Built to Last," Jim Collins examines the practices of visionary companies or those that have endured and had a substantial impact on society.Â
The book is the result of a six-year research project that looked at 18 innovative businesses side by side with less successful competitors.
The authors identified a number of characteristics that set visionary firms apart from others, and they offer examples and guidance on how to implement these characteristics in any organization.
The Principles of Visionary Companies
The book presents the following principles that visionary companies share:
Clock Building, Not Time Telling
Instead of relying just on a charismatic CEO or a game-changing idea, visionary companies concentrate on creating a robust and long-lasting organization. They design tools and processes that can adjust to shifting conditions and deliver reliable outcomes over time.
No "Tyranny of the Or"
Visionary companies embrace the "genius of the AND," which means they seek both ends of a spectrum concurrently rather than choose one over the other. They are, for instance, both idealistic and practical, conservative and daring, profitable and purposeful.
More Than Profits
Visionary companies are motivated by a core philosophy that consists of a core goal and a set of fundamental principles. Beyond making money, the organization's basic purpose is what gives it life. The tenets of an organization's core values serve as the standards by which its culture and behavior are to be interpreted. The organization's fundamental principles serve as the binding agent and give its members purpose and direction.
Preserve the Core / Stimulate Progress
Visionary companies advance other areas while maintaining their core values. They strike a balance between tradition and innovation, stability and change, and stability and renewal. They devise difficult objectives, try out novel concepts, absorb failures, and acknowledge successes.
Big Hairy Audacious Goals (BHAGs)
Visionary companies develop BHAGs, or big hairy audacious goals, which push the corporation beyond its current limits and comfort zone. BHAGs act as a source of inspiration, a focus for alignment, and a catalyst for change.
Cult-like Cultures
Visionary companies have strong cultures that are shaped by their core ideology. They draw in, hold on to, and motivate those who share their vision and ideals while shunning those who do not. In addition to encouraging excellence, innovation, and teamwork, they help its members develop a sense of loyalty, dedication, and belonging.
Try a Lot of Stuff and Keep What Works
To innovate and improve, visionary companies use a trial-and-error methodology. They experiment with many things, keep what works, throw away what doesn't, and gain knowledge from their mistakes. They rely more on experimentation and user feedback than on precise planning or forecasts.
Homegrown Management
Rather than bringing in outside talent, visionary companies build their own leaders from the inside. They support people who exemplify their basic ideologies and exhibit promise by investing in their training, mentoring, and succession planning. As a result, the company develops a leadership pipeline that provides stability and continuity.
Good Enough Never Is
The pursuit of quality and development is relentless in visionary companies. They constantly strive to improve and are never content with their work or accomplishments as they stand. They have high expectations for both themselves and other people, monitor their development, get criticism, and remedy their mistakes.
"Built to Last" by Jim Collins is a valuable resource for anyone who wants to learn from the best practices of visionary companies and build an organization that can stand the test of time.
FAQ
The main premise of "Built to Last" is that visionary companies are premier institutions in their industries, having a long track record of making a significant impact on the world around them.
A visionary company, as defined in "Built to Last", is a premier institution in its industry, having a long track record of making a significant impact on the world around them.
The "Clock Building, Not Time Telling" concept in "Built to Last" explains the difference between visionary companies and just successful ones. If there was a person who could tell the right time just by looking at the sun or stars, that would be a time teller. But if there was a person who could build a magic clock - a clock that would tell the time forever, he would be even more revered - because he’d create something that would last after his death.
"Built to Last" promotes the idea that visionary companies are ideology-driven. Money is one factor, but not the most important.
The authors advise that companies should preserve their core ideologies while stimulating progress by trying new things and setting audacious goals.
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