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Built to Last : Successful Habits of Visionary Companies by James C. Collins, Jerry I. Porras

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Paperback - 368 pages (January 1997)
Harperbusiness; ISBN: 0887307396 ; Dimensions (in inches): 0.86 x 8.03 x 5.32

Reviews

From Booklist , 11/01/94
No tables, charts, or obfuscatory language interfere with the presentation and development of consultants Collins and Porras' premise that visionary companies withstand tests of time and fads. On the basis of five years of research, they pinpoint six characteristics of the best American institutions: (1) premier in their industry, (2) widespread admiration from businesspeople, (3) multiple generations of CEOs, (4) an indelible imprint on society, (5) multiproduct (or multiservice) cycles, and (6) pre-1950 roots. The authors' findings confirm a few management theories but contest many others. More important, they demonstrate the hows of good management in detail, with readable case histories (IBM, Merck, Motorola, Walt Disney, among others) and studies of contrasting corporations, and they include guidelines for those striving for long-lasting success. Barbara Jacobs
Copyright© 1994, American Library Association. All rights reserved --This text refers to the hardcover edition of this title

From the Publisher
An innovative and inspiring study of the culture and longevity of some of America's most successful organizations, the original hardcover edition of Built to Last: Successful Habits of Visionary Companies was hailed by USA Today as "one of the most eye-opening business studies since In Search of Excellence." It was selected as "Book of the Year" in Industry Week magazine, has appeared on the New York Times business bestseller list, and has been on the Business Week bestseller list for over twenty consecutive months-longer than any other hardcover title. Built to Last, which has been translated into thirteen languages with over 40 printings worldwide, has become the blueprint for CEOs who are trying to build great companies.

This new paperback edition features a new introduction by the authors, in which they describe the tremendous positive response to the hardcover edition-a response that was, they feel, driven by the inspiring examples of enduring companies; by the desire for time-tested fundamentals rather than management fads; and by the book's usefulness as a guide for companies seeking to become visionary or as a confirmation for those that have already achieved this level. In addition, the authors have added a new chapter, "Building the Vision," in which they offer further insights into the process by which a company can identify its core values and beliefs in order to achieve visionary status.

CEOs, scholars, and lay people alike recognize a qualitative difference between merely successful companies and "visionary" ones-between a McDonnell-Douglas and a Boeing, between a Columbia Pictures and a Walt Disney, between a Zenith and a Motorola. But what distinguishes a successful company from the kind of company whose very name becomes a cultural icon, whose place is fixed in the public consciousness? In Built to Last, James C. Collins and Jerry I. Porras, two business scholars, identify for the first time the unique characteristics of visionary companies and show how any business can cultivate them.

Collins and Porras are the first to apply rigorous, historical, comparative study methods to identify the distinguishing characteristics of visionary companies. To identify a set of such companies to study, they polled CEOs nationwide and distilled the results into a list of companies that met the following criteria:

Premier institutions in their industry
Widely admired by their peers
Have made an indelible impact on the world
Have experienced multiple generations of chief executives
Founded prior to 1950

The resulting study group, which included such companies as 3M, Wal-Mart, Procter & Gamble, Johnson & Johnson, Hewlett-Packard, and Marriott, outperformed the general stock market by over 15 times since 1926.

With this group as the basis of their study, the authors present a remarkable series of case studies contrasting these visionary companies with a group of their direct competitors. Their results demolish some long-standing myths about the nature and operation of such extraordinarily successful enterprises:

The myth of leadership: a charismatic leader is not required to produce a visionary company and in fact is often detrimental to a company's long term performance

The myth of hiring talent from the outside: visionary companies find their CEOs from within-Jack Welch of GE is a prime example of "home-grown management"

The myth of conservative approach: visionary companies rely more on what the authors call "Big Hairy Audacious Goals" than on conservative practices

The myth of reliance on tight internal controls: visionary companies experience some of their most important changes as a result of trial-and-error, experimentation, and luck-"try a lot of stuff and keep what works"

The myth of focus on profits: visionary companies do not exist primarily to maximize profits or shareholder wealth-they're guided by a sense of purpose beyond just making money

The myth of universal values: visionary companies develop strong values, but they are not necessarily the same from company to company; it is the fact that these values exist, not their specific manifestation, that distinguishes these companies

The myth of having a "great idea": starting a company with a "Great Idea" might be a bad idea-few visionary companies begin life with a great idea, and some begin with outright failures

From Merck to Philip Morris, from General Electric to Nordstrom, from Ford to Sony, "visionary" companies display an amazing resilience and an unshakable commitment to their core ideology that allows them to surpass even their more temporarily successful competitors and achieve a lasting place in the cultural landscape. By examining the founding and history of these companies, the ways in which they have handled both adversity and success, and their continued commitment to their corporate identity, Collins and Porras reveal the unique characteristics of visionary companies and show what actions other companies may take to achieve the same level of long lasting performance. This new paperback edition offers still more insight into the visionary company and will inspire many new readers with its examples.

About the Authors:

James C. Collins is a management educator and author based in Boulder, Colorado, where he operates a management laboratory. He is coauthor of Beyond Entrepreneurship and Managing the Small to Mid-Sized Company. Previously, he worked at McKinsey & Company and Hewlett-Packard, and for seven years taught at Stanford University Graduate School of Business, where he received the Distinguished Teaching Award.

Jerry I. Porras is the Lane Professor of Organizational Behavior and Change at the Stanford University Graduate School of Business where he also directs the school's Executive Program in Leading and Managing Change. He is the author of Stream Analysis and the co-developer of stream analysis computer software, used for organizational change diagnosis. Previously, he worked at Lockheed Missiles & Space and General Electric.

Amazon Customer Comments

hrbrgr@erols.com from Washington DC, 07/10/98
A MUST READ FOR PEOPLE UNHAPPY WITH THEIR CURRENT EMPLOYMENT
This book eloquently articulates how the culture of a company is its underlying strength. It also anecdotes how important it is for an employee's value set to closely resemble that of the company they work for. Collins and Porras should be given a medal for the outstanding quanitative work that they presented!!

ayc@xtra.co.nz from New Zealand, 04/16/98
A truly visionary book
I am the owner of a medium size consultancy - still in its early years. I consult to many large corporations often on issues of long term structure and community significance. I found Built to Last an exceptional book to assist with both my consulting work, and also with the development of my own company. The depth of research and research techniques themselves are commendable. Credibility is the result. The idea that companies contributing in great measure to civilisation underlies much of this book. Why they contribute so much, and how they do it are fascinating in themselves. But it is the very concept of "built to last" that I found of greatest interest. The idea that we can build great companies, as well as great nations, and great organisations, and great families is quite inspiring. I thank the authors for their contribution to our understanding of business and increasing the sum total of wisdom in the world.

A reader, 03/31/98
A good book but a 9 or 10 rating??
I didn't run out of ink in my hi-lighter reading this one. It was ok.

Kurt Mueller (muellassoc@earthlink.net) from Santa Clarita, California, 03/25/98
A must for anyone interested in human performance mgmt.
An instant classic for those of us who consult with organizations that seek to improve performance. Universal principles that have stood the test of time have been presented in a concrete and interesting fashion. Only three notes of caution are advised. First, the selection and head-to-head comparsions of the companies presented represents a relatively small sample from which broad and important generalizaions are drawn. Second, what would the implications be of a "fall from grace" of a company honored with the title of "visionary company?" Finally what if your company,(like a few of my clients)is short term focused toward becoming an attractive take-over target? Do these habits have short term value? This is a book you will refer to again and again.

dukesunflo@aol.com from Kentucky, 01/02/98
Common Sense
This book is an excellent study of the fundamental ingredients that go into visionary companies. These companies first and foremost are concerned with core values that sway every business decision they make. It is interesting to read this book and wonder what companies will succeed in the long term. Will Microsoft? Will your company? It looks doubtful for me.

kikuchi@worldnet.att.net, 12/24/97
One of the Best Business Books I've Read This Year
As an expatriate from Japan, I truly believe that if this book is read by Japanese executives of all companies on Nikkei 225, the currently battered Japanese economy will change.

jruth@afsnet.com from Oklahoma City, OK, 10/29/97
Worth every minute you invest in reading it!
Many times the latest management fad is what gets the press. That is a symptom of our society, wishing immediate grativication for everything. However, this book points clearly to those companies who have mastered the process it takes to becoming an "enduring, great company." And surprisely enough the answers are not all similar across the companies studied.

We should not be amazed at the success of these companies, it is not like we haven't known the principles on which they stand. Mr. Collins and Mr. Porras have researched a very compelling study to help us all understand how we do have control and can impact the companies for which we are employed. Take the information to heart, get out of reading the "fad" books and put the facts you learn from "Built to Last" to work for you right now!

Daniel Seltzer (dseltzer@arcus.net) from New York City, 10/18/97
Very reassuring for those growing against the grain
I didn't expect this book to be so exciting, so informative, or to pound home the conclusions it does. I find it tremendously reassuring that the key factors of enduring success have to do with human beings, relationships, and hard work. Far from the bull hype and wet paint spins, this book is about companies with an average starting date of 1890-something. Let's wait a few more CEOs to see how Microsoft measures up. I just want to add my voice to those who feel it's a valuable text to study. As someone creating a company of human beings, particulary in a high-tech industry, this is great material to learn from.

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