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Leadership Think Tank 2005 1
Built to Last
Jim Collins/Jerry Porras
Harper Business Essentials (Paperback Edition)
368 Pages
ISBN: 0060516402
Chapter ONE
On the basis of substantial research, Jim Collins and Jerry Porras observe the distinctive habits of companies of enduring greatness. In the words of the authors, “Visionary companies are premier institutions – the crown jewels – in their industries, widely admired by their peers, and having a long track record of making a significant impact on the world around them.” Visionary leaders and breakthrough ideas come and go, but visionary companies survive the transitions.
The “successful habits” of the visionary companies were observed in comparison to “silver medalist” companies in the same industry. Both the visionary and comparison companies outperformed the market, but the visionary companies demonstrated extraordinary long-term results. The tandems most frequently referenced in the book are GE/Westinghouse, HP/Texas Instruments,
Motorola/Zenith, P&G/Colgate, Merck/Pfizer, and Wal-Mart/Ames.
These comparisons dispelled commonly held myths regarding the nature of exceptional companies.
Myth Reality
1
It takes a great idea to start a great company Visionary companies did not demonstrate early success 2
Visionary companies require great and charismatic visionary leaders
Leaders of visionary companies were focused on building great institutions as opposed to building their individual reputations
3
The most successful companies exist first and foremost to maximize profits
Visionary companies are characterized by the pursuit of multiple priorities only one of which is making money.
4
Visionary companies share a common subset of “correct” core values
Visionary companies are ruthless stewards of their actual values
5 The only constant is change
As noted above, visionary

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