The sound of profits sucking out of the balance sheet is a common one and the temptation is to go wild trying to build a better business. Hold on. Some of your ideas may be drastically wrong. So, I thought it would be a great time for a book summary from my favourite management philosophers, James C. Collins and Jerry I. Porras.
They did a six-year research study, and examined what it takes to "create and achieve long-lasting greatness as a visionary corporation". The findings were summarized in their early and more text like book Built To Last. The research produced surprising results for the authors, exposing at least twelve commonly held businesses myths:
Few visionary companies started with a great idea. Many companies started without any specific ideas (HP and Sony) and others were outright failures (3M). In fact, a great idea may lead to road of not being able to adapt.
MYTH 2. Visionary companies require great and charismatic visionary leaders.
A charismatic leader in not required and, in fact, can be detrimental to a company's long-term prospects.
MYTH 3. The most successful companies exist primarily to maximize profits.
Not true. Profit counts, but is usually not at the top of the list.
MYTH 4. Blueprint for Core Values
Visionary companies share a common subset of "correct" core values.
They all have core values, but each is unique to a company and it's culture.
MYTH 5. The only constant is change.
The core values can and often do last more then 100 years.
MYTH 6. Blue-chip companies play it safe.
They take significant ‘bet the company’ risks.
MYTH 7. Visionary companies are great places to work, for everyone.
These companies are only great places to work if you fit the vision and culture.
MYTH 8. Highly successful companies make some of their best moves by brilliant and complex strategic planning.
They actually try a bunch of stuff and keep what works.
MYTH 9. Companies should hire outside CEOs to stimulate fundamental change.
Most successful organisations have had their change agents come from within the system.
MYTH 10. The most successful companies focus primarily on beating the competition.
They focus on beating themselves.
MYTH 11. You cannot have your cake and eat it too.
Decisions do not have to either or, but can be both.
MYTH 12. Companies become visionary primarily through "vision statements".
Vision is not a statement it is the way you do business.
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