Jim Collins' Latest Book
We've been enamored of Jim Collins books for some time, as they give solid advice that is actionable. His new book, How the Mighty Fall, at first blush seems like just another book to extent the line of hits. Haven't read it yet, so we'll see. He does reinterate some things we've seen before, like how to get the right people in the right seats (Collins, 38): Choose people that fit the company's core values; don't tightly manage them; the right people realize they don't have jobs, they have responsibilities; the right people fulfill their commitments; the right people are passionalte about the company and its work; the right people display window and mirror maturity (if it is going well, it's the team; if it's not going well, it's their responsibility). We all know that when you watch a company for a long time, decline is inevitable. Collins is trying to figure out why, and, then, prescribe what to do about it. It seems that the prescription isn't what matters, it's the realization that something can be done. The real task is doing it, especially in the instance when things seem like they are going just fine. About three years ago we began working with a Fortune 500 home builder. Their plans included growth with nary a mention of the possibility that the market could turn against them. We pointed out that their growth plans (they envisioned growth of one hundred per cent a year) weren't realistic in a cyclic business. When we asked to see their lay-off plans, they thought we were nuts. Well, someone got that on wrong. And that's the point. Hubris born of success isn't a good determinate of future success. In fact, according to Collins, it is the first signal of decline. He got that one right, for sure.
Collins, Jim. How the Mighty Fall and Why Some Companies Never Give In. BusinessWeek. 25 May 2009. 27.