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Relevant and informative, I can't say enough good things. This book is a great example of a useful business book. As a business owner, it is so refreshing to see a book that realizes the value of a stable team of executives and the importance of strong business-wide values. The authors back up all of their findings with solid data and they write it in such a way that it can be read in one sitting. Along with Good to Great, by James Collins, this book is one of the premier business books of the new century. Please buy this book and create value with your business.
This is a wonderful book. I used this book for my staff training. How people will buy into the company's philosophy is a key to grow the business as by-product.
Built To Last was published more than ten years ago, and some of its examples of "enduring companies" may seem a bit out of place when you think about how the companies are doing today [Citibank being perhaps the worst example]. But the lessons are still potent, and maybe even help explain the fall form grace of companies like Citi, they lost touch with their core ideology and enduring values; they chased profits without real purpose, and it cost them their legacy.
They use a compelling example with Merck, who gave away millions of doses of Mectizan in the third world, a drug that cures "river blindness." It brought them no profits at all - in fact, it was by itself a giant net loss. That never happens - someone's always waiting to take your place in a competitive market.How do I keep trying to work harder. They did the same exact thing in Japan after World War II - they sold streptomycin there at cost because the Japanese couldn't afford expensive medicine. This even includes the ones that are obviously people trying to grind an axe that is unrelated to me.
Built to Last uses IBM as an example here, showing their three core principles (give full consideration to the individual employee, spend a lot of time making customers happy, and go the last mile to do things right), the success IBM had when they followed them (up until the mid-1980s or so), and the failures after they started adhering to secondary principles, like corporate culture and such.Big Hairy Audacious GoalsHere, Built to Last uses Boeing as the primary example, talking about how time and time again the company bet its entire future on what they saw as the next evolutionary step in the airplane. But, if I don't find the right person, I'll just stop the whole thing - I want someone who is intimately involved with my work to take it over and I want that person to believe in the same things.Good Enough Never IsBuilt to Last believes the biggest enemy of all is complacency. What mattered was defining a process that worked regardless of the product, the idea, or the personnel.More Than ProfitsAnother interesting piece of the pie is that these companies all have goals in mind that don't mention profits. Think of Bob Nardelli at Home Depot, for example - he came into a company with some core principles, basically chucked them out the door, and installed a version of what worked at GE.
Great ideas and great leaders might have helped in some cases, but neither one of those is absolutely necessary. Where can you go from here. Merck became the dominant American pharmaceutical company there because they didn't just talk the talk about healing the world, they walked it, too.Preserve the Core/Stimulate ProgressA successful company usually has three or four core principles - outside of those principles, the company should be willing to change anything. Their mission doesn't directly involve making money - money just comes in as a result of successfully completing the mission. Let's dig in together and see what there is to learn.The Best of the BestThe book opens by seeking to identify visionary companies - best of breed companies within their respective areas that have endured over time. You'll probably come up with a long list of answers, but they all made one thing in common: an organization that could survive any personnel change, product change, or market change.
The challenge, though, is to make sure that these big goals are in line with your core principles - it wouldn't make sense, for example, for Ford in 1909 to revolutionize the railroad industry.Cult-Like CulturesAnother element of long-term success is that people in the organization believe in the principles in the organization. For example, Jack Welch came from within GE and Lee Iacocca (at Chrysler) came from Ford and both saw great success, but Bob Nardelli came from GE to Home Depot and it was a big mistake.I truly hope to find a mentor like this someday. Some companies peak and then fall off (like, uh, Enron) and others stay around for a long time but never stay on top of any area (like Colgate, for instance). "Built to Last," in a nutshell, tries to extract the reason for success behind some of the greatest corporate success stories in American history. If you have all of the tools in place, you can usually find the answer to that question. A lot of the Home Depot folks didn't like that much at all, and it created a long period of internal strife there.In other words, everybody involved needs to believe in the same principles. I would like to transition my life's work to the right person when the time comes (though that's a long way off). Complacency is the point where you let competitors overtake you because you believe you've earned your spot.
A lot of innovative companies do the same - Google comes immediately to mind.Home-Grown ManagementThe book also encourages companies to look for management from within, something I strongly agree with. This isn't buzzwords or "mission statements," but the actual realization of the path you have left to travel and the tools you have to get there.Buy or Don't Buy.Every person who does any sort of side business or is involved in running anything should read this book. What happened after that in Japan. The book winds up identifying a list of eighteen companies - Citicorp, Procter and Gamble, Philip Morris, American Express, Johnson and Johnson, Merck, General Electric, Nordstrom, 3M Ford, IBM, Boeing, Walt Disney, Marriott, Motorola, Hewlett-Packard, Sony, and Wal-Mart - that have persisted at or near the top of their respective areas for a long time, surviving leadership changes and drastic changes in the marketplace. Almost every large company that brings in a new management team from the outside - particularly from another industry - winds up with some significant problems.
For instance, I read it for ideas on how to make The Simple Dollar a long-term thing. I read the negative comments and rarely look at the positive ones. Companies get into trouble when they start holding onto ideas and "rules" that are less important and refusing to change when the market changes. It made me think about The Simple Dollar and my other side businesses in a very deep and careful way and it made me realize that the core values I've adopted really are the most important thing of all.I really just scratched the surface of this book here, trying to point out a few of the principles that relate to my own life. It's merely the start of it, because now you have to live up to that success. What do companies like 3M, Boeing, Sony, and Hewlett-Packard have in common, and what made them rise above the pack and keep enduring.The idea that this subject could extract principles that apply to any organization, from Exxon-Mobil down to an individual person running a small, self-employed business, and that this book is so highly respected in the business community says that there might be something compelling for all of us between the covers.
And that's dangerous.The End of the BeginningThe last principle is that success isn't the end of the road. The negative comments usually point me to where I need to improve - the positive ones, while reaffirming, usually carry the message that I don't need to improve. This book is far deeper than that and not only relates to things done within an organization, but with how you choose to live your life as well. From my perspective, this is even greater encouragement to throw out the things that don't work.Try a Lot of Stuff and Keep What WorksContinuing this same thread, Built to Last also encourages trying a lot of different things, seeing which ones work, and sticking with the ones that do work. Thus, most successful organizations (like 3M) encourage people to spend a percentage of their time simply trying out new things instead of doing the same old same old. While I can think of a few companies that could be added to this list (Microsoft immediately comes to mind), I do have to say that all of the companies here did reinvent themselves and manage to stay relevant for a very long time (even if a few are having troubles right at the moment).Clock Building, Not Time TellingWhen you look at that list of companies, what do they make. It's a powerful question to always think about, even if you believe that you really are the best - how can you get better.Building a VisionThis chapter largely concludes the book by stating that all of these pieces do in fact intersect and come together, showing you a true vision for your organization.
This is how often companies with great success bring in new management that doesn't believe in the company's principles - and then proceed to derail everything. When that fails to happen, then the organization begins to waste a lot of effort working against itself instead of working towards those goals. It's an eternal question that some companies can answer and some cannot. It brought me to some serious realizations about my principles and what I'm doing - you've already seen some of this in the last few months, and I think you'll start to see more of them.Read this book - it's really worth it.
Built ot last is the copy of in search of excellence.I do not know why he copied it and get away with it.Thanks
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