Built to Last: Successful Habits of Visionary Companies (Harper Business Essentials)

By:  James C. Collins, Jerry I. Porras, Jim Collins Publisher:   Media:  Paperback Availability:  Limited availability

List Price:  £8.69 Amazon Price:   Avg. Review:

Description

Built to Last identifies 18 "visionary" companies and sets out to determine what's special about them. To get on the list, a company had to be world famous, have a stellar brand image, and be at least 50 years old. We're talking about companies that even a layperson knows to be, well, different: the Disneys, the Wal-Marts, the Mercks.

Whatever the key to the success of these companies, the key to the success of this book is that the authors don't waste time comparing them to business failures. Instead, they use a control group of "successful-but-second-rank" companies to highlight what's special about their 18 "visionary" picks. Thus Disney is compared to Columbia Pictures, Ford to GM, Hewlett Packard to Texas Instruments, and so on. The core myth, according to the authors, is that visionary companies must start with a great product and be pushed into the future by charismatic leaders. There are examples of that pattern, they admit: Johnson & Johnson, for one. But there are also just too many counter-examples--in fact, the majority of the "visionary" companies, including giants such as 3M, Sony, and TI, don't fit the model. They were characterised by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. Collins and Porras are much more impressed with something else they shared: an almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideologically commitment" to the company.

The comparison with the business "B" team does tend to raise a significant methodological problem: which companies are to be counted as "visionary" in the first place? There's an air of circularity here, as if you achieve "visionary" status by ... achieving visionary status. So many roads lead to Rome that the book is less practical than it might appear. But that's exactly the point of an eloquent chapter on 3M. This wildly successful company had no master plan, little structure, and no prima donnas. Instead it had an atmosphere in which bright people were both keen to see the company succeed and unafraid to "try a lot of stuff and keep what works." --Richard Farr

Amazon Customer Reviews

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting notes I took:

Though many visionary companies have had high-profile leaders like Henry Ford or Sam Walton, charismatic leadership is not necessary for success. 3M, for example, has never had a charismatic CEO.

The firm is not a vehicle for products or personalities; products are a vehicle for the company. Looked at in that light, Walt Disney's greatest creation wasn't Snow White or Disneyland, it's the Disney Company and its ability to make people happy.

Purposes are your organization's fundamental reasons for existing beyond making money. They are broad and enduring. For example, Robert W. Johnson founded Johnson & Johnson "to alleviate pain and suffering." Purposes are not about specific products or services. The Disney Company doesn't exist to "make cartoons for kids," for example. It exists to "use our imaginations to bring happiness to millions." Asked whether he started Marriott Corporation to create an empire, J. Willard Marriott, Sr., said no. He wanted to give friendly service to guests, provide good food at a fair price, and work hard to make a profit to create more jobs.

Merck has long used its values to guide its actions. For example, it once developed a drug called Mectizan to cure a Third World disease known as "river blindness." While it hoped to sell the drug to government and relief agencies, the return on investment would be small. When it came time to sell Mectizan, however, no one bought it. So Merck gave the drug away to the millions who needed it. This was good public relations that could pay off down the road. But it was also because the company has never forgotten George Merck's words: "We try never to forget that medicine is for people. It's not for the profits. The profits follow . . ."

To come up with a purpose, ask: What is our reason for being? What would be lost if we ceased to be?

Boeing's core value, "being in the leading edge of aviation; being pioneers" is permanent. Whatever your business, strategy and tactics, operations, culture, and products are they must change over time. The only thing that shouldn't change is core ideology. When Eastern Airlines said it needed a jet with precise specifications, Boeing took on the challenge. The plane had to land on runway 4-22 at La Guardia Airport in New York, a notoriously short runway. This jet also had to be able to fly non-stop to Miami without refueling, seat six abreast, and hold 131 passengers. Most agreed this was an impossible task. Boeing met the challenge with its 727. It succeeded because, once it got going, it had no other choice. Such goals are always aligned with a Boeing core value: to be on the leading edge of aviation.

Minnesota Mining and Manufacturing's initial idea, to mine corundum, failed, and the company searched desperately for something to do. 3M settled on sandpaper and grinding wheels, which kept it afloat. Such troubles led CEO William McKnight to insist on diversifying. But rather than chart the course himself, he built an organization that would continually change based on the initiative of employees. McKnight hired good people, let them alone to do their work, and encouraged experimentation. The result was many unplanned, successful products. For example, 3M employee Dick Drew was visiting an auto paint shop when he saw a problem to solve. Two-toned paint jobs had become popular, but shops had trouble separating the two colors. Drew went to work and came up with a solution: masking tape. Five years later, he used his experience to develop Scotch tape. Note that 3M hadn't planned to get into tape, now a huge part of its business. It was an outgrowth of the organization McKnight created.

Visionary companies don't ask, "How well are we doing?" They ask, "How can we do better tomorrow than we did today?" This question requires constant self-criticism and investment in the future for a race with no finish line.

Motorola has used an "innovate or die" technique. It has been known to cut off mature product lines that still account for significant sales volume in order to keep innovating.

Boeing uses a process called "eyes of the enemy." It assigns managers the task of developing strategy as though they worked for a competitor and wanted to wipe Boeing off the map. What weaknesses would they exploit? What markets could they invade? Boeing then figures out how it would respond to each threat.

A visionary company is like a great work of art--magnificent in detail, with all elements working together in concert.

Built to Last will Last forever

Briefly, Although this book was written some years back;yet it is still strongly valid and valuable for today's business cases.

A Classic
"Built to Last" is an enlightening and interesting classic on business strategic management. The authors, Jim Collins and Jerry Porras spent six years in research and compared the practices of 18 visionary companies in the USA to those of a matched set of good, though not great, companies. Their fundamental observation is that average companies are driven by the power of "or:" You can have either short term profits OR long term growth, either stability OR progress. Visionary companies, in contrast, embrace the power of "and:" You preserve the core AND stimulate progress.

The authors then methodically, step-by-step proceed to explain how great companies erect structures that embrace these seemingly contradictory goals. The great companies the authors studied, contrary to conventional wisdom, are not profit focused at their core but rather, they are `value' focused. These values are a sort of nucleus, around which leaders in visionary companies grow the company. This was the case in such great companies as Disney, Wal-Mart, Merck, Ford, Hewlett Packard, 3M, Johnson and Johnson and others.

Among the core myths that Collins and Porras shattered are that visionary companies must start with a great product and be pushed into the future by charismatic leaders. Instead the great visionary companies they studied were characterized by total lack of an initial business plan or key idea and by remarkably self-effacing leaders. The authors are much more impressed with the great companies' almost cult-like devotion to a "core ideology" or identity, and active indoctrination of employees into "ideological commitment" to the company.

The book is interesting to read, is humorous, is among the best, easiest to follow guide to strategic management. The book also provides guidelines to help managers at all levels to apply the concepts. It is well written with compelling case studies. I highly recommend the book to those looking for a practical down-to-earth book that is readable and useful.

Stick to your core values!
The authors spent six years studying visionary companies to see what accounts for their success. Their goal: to uncover the underlying factors that helped the visionary companies outperform the competition.

The authors chose eighteen visionary companies for their book: 3M; American Express; Boeing; Citicorp; Ford; General Electric; Hewlett-Packard; IBM; Johnson & Johnson; Marriott; Merck; Motorola; Nordstrom; Philip Morris; Procter & Gamble; Sony; Wal-Mart; and Walt Disney. These are the premier organizations in their field; firms that have a long record of having an impact on the world. They have distinguished themselves as a special and elite breed of institution. And, with an average founding date of 1897, and stock-return performance of fifteen times the general market since 1926, they are companies that have stood the test of time.

Some of the main factors for success were: To preserve the values that set your company apart from others; to set audacious goals; and to experiment freely.

The authors use the following analogy: Suppose you read of a person who could tell the exact time just by looking at the position of the sun or stars. "It's April 23, 1996, 2:36 A.M." Wow, you'd think. What a remarkable person. Yet wouldn't it be more remarkable--and useful for the world--if that person built a clock that anyone could refer to, even after the clockmaker had died? Having a great idea, or being a charismatic, visionary leader is like "time telling." Building a company that's healthy long after the visionary leader is gone, or after the great product is passé, is "clock building."

Visionary company founders concentrate first on the organization's systems and values, then on products. In fact, you don't need a great product idea to begin. William Hewlett and David Packard of Hewlett- Packard, for instance, had no product in mind when they got together in 1937. They just wanted to start a company together. Early products included a bowling foul-line indicator, a clock drive for a telescope, and a device to make a urinal flush automatically. They persisted until they figured out how to build a firm that could pump out great products. Likewise, Masaru Ibuka didn't have a single product in mind when he launched Sony in 1945. The company survived selling heating pads. Paul Galvin, Motorola's founder, didn't dream about making battery eliminators for radios, its first product. He dreamed foremost about building a great and lasting company. He did that by developing people. He encouraged dissent, discussion, and disagreement, and he gave people freedom to make contributions. He set challenges and gave people responsibility to achieve them.

Here are some interesting no