In the world of business books, Jim Collins seems to have the Midas touch. His first two books, Good to Great and Built to Last, were bestsellers millions times over and became ubiquitous sources of quotation and insight for leaders of all kinds.
After a five year break, Collins is back with a new (abliet much shorter) book, How the Mighty Fall. I am familiar with his first two books, but have not read either entirely. The genesis of this book came out of a question that Collins was confronted at a forum he was invited to speak at. He became intrigued with the question of, “Are America’s greatest days in front of or behind her?” As a student of businesses and their lives historically, Collins and his research consortium began studying companies that they had discovered through the Good to Great and Built to Last study.
Collins’ conclusion – why is it that companies wake up one day and find their greatest days behind them? or more simply – why do great companies fall? And is it possible for them to recover their greatness? Collins made a stunning discovery – the greatest destruction to companies that fall is largely self-inflicted. Their fall is not primarily a result of market shifts or “perfect storm” moments. These companies and their leaders sabotage themselves. “Whether you prevail or fail, endure or die, depends more on what you do to yourself than what the world does to you”
Collins marks out this process in a five stage process.
1 – Hubris Born of Success
2 – Undisciplined Pursuit of More
3 – Denial of Risk and Peril
4 – Grasping for Salvation
5 – Capitulation to Irrelevance and Death
Collins also describes “well-founded hope” – the fact that some companies do recover and are able to restore what was almost lost. Collins give direction about how companies in these stages can respond in ways that have enabled others to avoid death and irrelevance.
The book has large amounts of documented research and footnotes (that I didn’t read because I was hungry and ready to eat lunch at the end of the book). If you are involved in leading or influencing any collective body – whether for profit or for other purposes – I think this book is worth your time.
Scott,
This is a subject that is in my back yard. Entering into aerospace in 1986 I’ve watched Phoenix, the once giant of aerospace; sell out. A recent example is another prime (aerospace manufacture) shutting down a local division putting again another large mass of people into the unemployment line right before the holidays (Merry Christmas). These jobs are mostly directed to Mexico where labor and government is cheaper.
Standing in the middle of the finger pointing is the local economy with an overwhelming surge of social economic ramifications. Someone knocked over the first domino and all we can do is watch the falling affect. As America, more importantly Phoenix, watches American jobs transition to different countries it reminds me of what an economics professor once told me, “America is destine to become the world’s largest Walt Disney.”
Before you purchase another item please look at the label. Does it say, “Made in USA?”
Michael
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