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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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