I just finished reading Jim Collins latest book with this title.
Jim's books always have great insight about business fundamentals that are applicable to big and small firms.
In this book he says great companies can fail if they go through these 5 stages.
- Stage 1: Hubris Born of Success
- Stage 2: Undisciplined Pursuit of More
- Stage 3: Denial of Risk and Peril
- Stage 4: Grasping for Salvation
- Stage 5: Capitulation of Irrelevance of Death
If you recognize that you are in one of these stages you need to take immediate action and address. In the book he provides numerous examples of companies from IBM to Fannie Mae.
He also summarizes his basic business philosophy of a Good to Great Company:
- Stage 1: Disciplined People
- Level 5 Leadership
- First Who, Then What
- Stage 2: Disciplined Thought
- Confront the Brutal Facts - The Stockdale Paradox
- The Hedgehog Concept
- What are you best in the world at
- What are you deeply passionate about
- What drives your economic and resource engine
- Stage 3: Disciplined Action
- Culture of Discipline - Freedom within a framework
- The Flywheel
- Stage 4: Building Greatness to Last
- Clock Building, not Time Telling - multiple generations
- Preserve the Core/ Stimulate Progress -