Summary: Built to Last

Review and Analysis of Collins and Porras' Book

BusinessNews Publishing

• Verlag: Must Read Summaries
• Jahr: 2016
• ISBN:
  9782806238610
• Thema: Volkswirtschaftslehre
• Thema: Nachhaltige Entwicklung

The must-read summary of James Collins and Jerry Porras' book: `Built to Last: Successful Habits of Visionary Companies`.

This complete summary of the ideas from James Collins and Jerry Porras' book `Built to Last: Successful Habits of Visionary Companies` shows that the most impressive achievement in the world of business is the creation of a viable and successful company. But what makes a company successful? To answer this question, the authors have studied world-class companies, from Sony to Walt Disney, and provided you with the keys to their success that can be used by almost any business.

Added-value of this summary: 
• Save time 
• Understand the keys to success
• Expand your business knowledge

To learn more, read `Built to Last` and see how you can create a visionary company that will guarantee world-class success.

Summary of Built To Last (James Collins & Jerry Porras)

1. VISIONARY COMPANIES

Main Idea

In the final analysis, the creation of a viable and successful company organization which grows and prospers is the most impressive achievement in the business world. The best companies in history are the visionary companies.

Visionary companies are the premier companies operating in any business field. These companies have a worldwide reputation for excellence in their chosen field. Visionary companies prosper over a long time period, through multiple product life cycles and multiple generations of active leaders.

Supporting Ideas

Creating and building a visionary company does not require a great product idea or a charismatic leader. In fact, most companies that start on the strength of a great product or a strong leader struggle to ever fully reach their potential. Most of the highly successful companies actually started with rather vague concepts about what the company would do.

In fact, rather than seeing a visionary company as a vehicle for a new product, it is in fact more accurate to see the products as a vehicle for the company. From this perspective, the company persists beyond any one specific idea - good or bad.

Most successful visionary company builders are highly persistent. They might be willing to revise or improve any idea that has not worked out in practice, but they never give up on the company and its future. If the success of a company depends on the success of the first product alone, there will be problems. If the product fails, people may give up on the company. Conversely, if the product succeeds, the company may be tempted to stick with that product too long even after the company should move on to other projects.

A continual stream of great products and services flow from visionary companies as a direct result of these companies being outstanding organizations, not the other way around. Visionary companies have an uncanny ability to continually change and evolve across numerous product life cycles.

Visionary companies also have the organizational strength to transcend and outlast any individual founder or leader and remain energetically committed to success over a number of generations.

Being dynamic and charismatic as a business founder is not a disadvantage, neither is it a prerequisite. Some of the most successful visionary companies have been founded by people who are strong willed but low key in their personalities.

Examples of Early Start-Up Stories of Visionary Companies

Most of the companies that are now accepted as world-class within their own business field struggled to get up and operating. Yet, despite slow beginnings, these companies have risen above their competitors and developed into the powerhouses of today.

Some examples:

• 3M
  Founded in 1902 to operate a mine which failed after selling only one ton of material. Moved into sandpaper manufacture in 1905 and gradually added more products. Today, one of the most dynamic and innovative companies in history.
• AMERICAN EXPRESS
  Founded in 1850 as a freight company which entered the travelers cheque business when the company president had trouble cashing a personal cheque while overseas.
• BOEING
  Founded in 1915 to manufacture airplanes, preferably using wood (since William Boeing was an ex-lumber merchant). His first airplane failed and the company was so desperate for business in the early days that it manufactured furniture.
• GENERAL ELECTRIC
  Started in 1892 by Thomas Edison, GE developed direct current systems while the competitors concentrated on alternating current technology which eventually prevailed in the U.S. GE struggled until it moved to A.C. technology.
• HEWLETT PACKARD
  Commenced business in 1937 in the electronics field, struggled through early days with contract engineering jobs. In 1939, the company sold a few oscilloscopes and 17 employees by 1941.
• MARRIOTT
  Started in 1927 with an A&W root beer stand which later began offering Mexican food. Within three years, the Marriotts had three outlets running 24-hours a day and decided to expand further afield.
• MOTOROLA
  Commenced operating in 1928 building battery eliminators and handling service work. Began manufacturing car radios in 1930 and after a long struggle finally turned profitable and then moved on to other products.
• PROCTOR & GAMBLE
  Proctor, a candlemaker and Gamble, a soapmaker decided to pool their efforts to sell soap and candles in 1837. (About 18 companies were...