Built to Last: Successful Habits of Visionary Companies

Rachel Zhang, March 27, 2016, 16-SP-MANA-6310-N2

Additional Book Assignment

Introduction

During the past few weeks, the writer read a book called Built to Last: Successful Habits of Visionary Companies. The book outlines a six-year research project based on a total of eighteen successful companies such as Boeing, IBM, 3M, Walmart, etc. These companies have decades of history. Although many of them experienced various difficulties and setbacks, they always could turn bad luck into good fortune and develop into a multi-national organization. This book does not focus on describing the great leadership of a specific person. Nor does it mention the famous product or their management methods. Nevertheless, it concentrates on discovering the secret of their long life cycles. The cases are often supported with detail research and data analysis, which has relatively stronger objectivity and persuasiveness.

The authors Collins and Porras define these companies as “visionary companies”. A visionary company is the one that acts as a pioneer in its industry and is often admired by other business people. This company could have a profound influence on the world. The Chief Executive Officers change over generations and the company was found before 1950. Based on what they defined, they picked up eighteen companies and started their research. The authors stand at a company’s perspective to analyze the reasons why these companies could gain advantages of long-term development and how to use these advantages. They emphasize the importance of company’s vision, which could have an impact on directing in reality. This core idea guides company as well as stimulates people during decades of years. Many people, even the writer think that the success of a company relies on an outstanding CEO and his/her operation. Nevertheless, the authors mention that having a group of smart people who are fearless to try new attempts is more important than having an excellent leader.

Enlightenment

1. Set up vision

Every company should have two goals, a long-term goal which encourages everyone to work together. This goal could motive people’s power and enthusiasm. Employees could get the point and understand even with less explanation. Another goal is a detailed, short-term goal which the organization aims to achieve within few years. This short-term goal acts as a direction and leads employees to set up daily plan and complete the plan with actions. For example, in the case of Ford, the company’s visionary goal was to let vehicles change people’s life. When looking at today’s world, Ford has realized their goal. This made the writer understand the importance of setting up those two goals. Once a company has a visionary goal, everyone would like to spare no effort to accomplish.