Tuesday, February 9, 2010

How the mightly fall

is the latest book by Jim Collins:  http://www.jimcollins.com/books.html

The book is a study of successful companies that had some significant failure, often resulting in terminal collapse.  The five stages he identifies are:
  • Stage 1: Hubris Born of Success 
  • Stage 2: Undisciplined Pursuit of More
  • Stage 3: Denial of Risk and Peril
  • Stage 4: Grasping for Salvation
  • Stage 5: Capitulation to Irrelevance or Death
In some ways the second stage seemed most characteristic.  It seemed that the companies lost focus on doing a good job, and began to measure themselves by external markers of success that were not relevant to the job they were doing - such as growth, or stock-market price.

This reminded me of the feature of the successful companies that Collins calls 'the hedgehog concept' : "having a simple, extremely clear concept of what their business is".  

1 comment:

  1. MIGHTLY...so close to MERCE, it really hurts.
    And to think I knew that David as so kind.
    And to think that he was even my first lover ...I certainly " believed".
    It's where we rented a Victorian room in the now ritzy part of YORKVILLE.
    What were our plans?
    Practically everything.
    But he never said one word about OSIRIS- PETWOOD- HYDRA.
    He's into explosives now?
    He once told me he was into an " INDEPENDENT CANADA".
    So, he was saying he was helping pedophile dens even then?
    David, I don't put your last name.
    But I will if you don't give them everything.
    My first lovel