“Built to Last: Successful Habits of Visionary Companies” is a book written by Jim Collins and Jerry Porras, first published in 1994. The book examines what sets truly exceptional and enduring companies apart from others. It outlines a set of principles and characteristics that define these visionary companies. Here are the key principles from the book:
- Core Ideology:
- Core Values: Visionary companies have a set of core values that guide their actions and decisions. These values are deeply ingrained and not subject to change, even in the face of external pressures.
- Core Purpose: These companies have a fundamental reason for being beyond just making money. They have a higher purpose that inspires and motivates their employees and customers.
- Long-Term Vision:
- Clock Building, Not Time Telling: Visionary companies focus on building an enduring institution rather than just solving short-term problems. They think in terms of decades and centuries, not just years.
- BHAGs (Big Hairy Audacious Goals): These companies set ambitious long-term goals that are inspiring and challenging. BHAGs act as a unifying force and drive innovation and progress.
- Cult-Like Culture:
- The Cult-Like Culture: These companies often have a strong, unique culture that binds employees together and is based on their core values. This culture creates a sense of belonging and commitment.
- Preserve the Core/Stimulate Progress: While the core values and purpose remain consistent, these companies encourage innovation and change to adapt to evolving external conditions.
- Try a Lot of Stuff and Keep What Works:
- Experimentation: Visionary companies are not afraid to try new things, innovate, and experiment. They embrace a culture of continuous improvement.
- “Fire Bullets, Then Cannonballs”: They test new ideas with small, low-risk “bullets” before committing significant resources, and only fire “cannonballs” (major initiatives) when they have evidence of success.
- Home-Grown Management:
- Building from Within: These companies often prioritize developing and promoting leaders from within the organization rather than relying on external hires.
- Good to Great Leadership: They focus on getting the right people in key leadership roles, and leadership transitions are carefully managed.
- Good Enough Never Is:
- Never Settle: Visionary companies do not rest on their laurels. They continually push for excellence and improvement, seeking to exceed their own standards.
- Productive Paranoia: They maintain a level of vigilance and concern about potential threats and weaknesses, even when they are successful.
- Built to Flip vs. Built to Last:
- Long-Term Orientation: Visionary companies are built with the intention of lasting for generations. They are not focused on short-term gains or selling out quickly.
These principles emphasize the importance of a strong, enduring core that is aligned with a compelling vision, as well as a culture of innovation and adaptability. “Built to Last” suggests that these characteristics are common among companies that have stood the test of time and achieved sustained success.
