Summary of Built to Last Frist Five Chapters

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The Best of the Best
The book basically talks about visionary companies deviating from most books which are written on charismatic leadership and visionary products. Visionary companies are institutions in industry having a separate standing in terms of admiration and impact on world around them. All visionary products as well as visionary charismatic leaders have to die, it is actually company that last long through multiple products and leaders. In six year of research Jim Collins and Jerry I. Porras have identified historical development of visionary companies. Along with they have selected control set of comparison companies. The visionary companies are different from enduring or successful companies. These are of the best have been best for decades. The Comparison in Research Study

Visionary companies| Comparison companies|
3M| Norton|
American Express| Wells Fargo|
Boeing| McDonnell Douglas|
Citi Corp| Chase Manhattan|
Ford| GM|
General Electric| Westinghouse|
Hewlett Packard| Texas Instrument|
IBM| Burroughs|
Johnson & Johnson| Bristol-Myers Squibb|
Marriott| Howard Johnson|
Merck| Pfizer|
Motorola| Zenith|
Nordstrom| Melville|
Philip Morris| RJR Nabisco|
Procter & Gamble| Colgate|
Sony| Kenwood|
Wal- Mart| Ames|
Walt Disney| Columbia|
Almost all of the visionary companies were in financial crisis from the start. But later they have returned more than financial by attaching themselves in the society. In this research they have tried to identity underlying characteristics and dynamic s of visionary companies and tried to communicate its findings and concepts. The companies for research study were selected on the bases of survey filled by CEOs of various companies. Selecting Comparison Company was a difficult job and they selected companies of similar start in life, similar funding products and markets and not a dog company. Historic analysis was preferred because it provided an insight, explained evolutionary perspective and made comparison strong from a historic perspective. Organizational stream analysis was used for collecting and sorting information. Find repeating patterns and tried to find the concepts behind them. The finding concepts were shared with consulting engagements and board of director’s responsibility for a reality test. The twelve shattered myths are

1. It takes a great idea to start a great company.
2. Visionary companies require great and charismatic visionary leaders. 3. The most successful companies exist first and foremost to maximize profits. 4. Visionary companies share a common subset of “correct” core values. 5. The only constant is change.

6. Blue-chip companies play it safe.
7. Visionary countries are great places to work for every one. 8. Highly successful companies make their best moves by brilliant and complex strategic planning. 9. Companies should hire outside CEOs to stimulate fundamental change. 10. The nost successful companies focus primarily on beating competition. 11. You can’t have your cake and eat it too.

12. Company become visionary primarily through “ vision statements”. Clock building not time telling
A person who could build a clock is more amazing then a person who can just tell the time by looking at watch. Most charismatic leaders are time teller, but if a company is build whose growth or its products have many lives larger than its leader is “clock building”. The builders of visionary company concentrate mainly on establishing company itself overlooking product idea, growth curve, or accumulation of wealth. The myth of great idea and charismatic leadership ever since believed to play a very important role, but through research it’s concluded that a visionary company doesn’t need any of them. Shockingly charismatic leadership is negatively related to building a visionary leadership.

The myth of the “great idea”
The two engineers...
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