August 11th 2009

How the Mighty Fall. And why some companies never give in. Jim Collins

Cover of "Good to Great"
Cover of Good to Great

How the Mighty Fall. And why some companies never give in Jim Collins. 2009.ISBN 9780977326419. The Good to Great author has done it again  He explains that this was a much harder task than finding the commonalities for Good to Great.  He has done a good job.  He shows there are five stages of decline,

  1. Hubris born of success.
  2. Undisciplined pursuit of more
  3. Denial of risk and peril
  4. Grasping for salvation
  5. Capitulation to  irrelevance or death

He illustrates how  the basics of Good to Great still apply and indicates that many of the fallen (A&P , Zenith, Circuit City, Merck….) were unable to do what the ones who came back ( Nordstrom, Xerox) , which was were they fell away from their basic strategy that helped them to grow in the first place.  From our practise we see that companies who fail to work a scenario strategy al a Schwartz (what is the best, worst that can happen  and what indicators will show you the trends)  are the ones who often make the wrong bets.  Check l out last months Wired magazine article on scenarios. It really works. This prevents the search for the silver bullet.

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