How the Mighty Falland why some companies never give in                                  Jun 15, 2012                     ...
Background…..• Jim Collins and team researched and published  the first two books –  • Built to Last: Successful Habits of...
Silent Creep of Impending doomFall of the Mighty•Bank of America•Motorola•Addressograph•Ames                How would you ...
Five Stages of Decline                         2
Hubris Born of Success       •Success entitlement, Arrogance       •Neglect of Primary Flywheel       •“What” replaces “Wh...
Undisciplined Pursuit of More            •Unsustainable quest for growth            •Undisciplined discontinuous leaps    ...
Denial of Risk and Peril             •Amplify positive, deny negative             •Big bets/bold goals lacking validations...
Grasping for Salvation             •Series of Silver Bullets             •Grasping for a Leader-as-savior             •Pan...
Capitulation to Irrelevance or Death                   •Run out of cash                   •Debt Mounts to unmanageable lev...
Well Founded Hope          •Ability to comeback          •Most important – Great team needed          •Level 5 leadership ...
Questions?             4
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Book review howthemightyfall

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I recommend reading all three books of the series. This presentation covers only "How the Mighty Fall..."

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Book review howthemightyfall

  1. 1. How the Mighty Falland why some companies never give in Jun 15, 2012 1
  2. 2. Background…..• Jim Collins and team researched and published the first two books – • Built to Last: Successful Habits of Visionary Companies • Good to Great: Why Some Companies Make the Leap... and Others Dont• Some of the companies cited in Good to Great went bankrupt• Started a research paper on cause for that – which became the third book – “How the Mighty Fall….” 2
  3. 3. Silent Creep of Impending doomFall of the Mighty•Bank of America•Motorola•Addressograph•Ames How would you know?•Circuit City•Merck•Rubbermaid•Scott Paper•Zenith 2
  4. 4. Five Stages of Decline 2
  5. 5. Hubris Born of Success •Success entitlement, Arrogance •Neglect of Primary Flywheel •“What” replaces “Why” •Decline in Learning Orientation •Discounting the role of Luck 2
  6. 6. Undisciplined Pursuit of More •Unsustainable quest for growth •Undisciplined discontinuous leaps •Missing “Right” People •Cash Erosion •Bureaucracy •Problematich Succession to Power •Personal Interest above Org interest Augustus Ceasar 2
  7. 7. Denial of Risk and Peril •Amplify positive, deny negative •Big bets/bold goals lacking validations •Huge downside risk on ambiguous data •Erosion of healthy confrontation •Externalize Blame •Obsessive reorganizations •Imperious Detachment 2
  8. 8. Grasping for Salvation •Series of Silver Bullets •Grasping for a Leader-as-savior •Panic and Haste •Radical Change •“Revolution” with Fanfare •Hype Precedes Results •Initial upswings followed by failures •Confusion and Cynicism •Chronic Restructuring •Erosion of Financial Strength 2
  9. 9. Capitulation to Irrelevance or Death •Run out of cash •Debt Mounts to unmanageable level •Bankruptcy/Sale/Close down 2
  10. 10. Well Founded Hope •Ability to comeback •Most important – Great team needed •Level 5 leadership 2
  11. 11. Questions? 4

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