THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Monday, April 3, 1995 TAG: 9504010150
SECTION: BUSINESS WEEKLY PAGE: 04 EDITION: FINAL
TYPE: Book Review
SOURCE: BY BENJAMIN I. TROUTMAN
LENGTH: Medium: 73 lines
Built to Last: Successful Habits of Visionary Companies, by James C. Collins and Jerry I. Porras; 1994 Harper Business, New York; $25.
Tom Peters and Bob Waterman in their seminal work, In Search of Excellence, presented exemplars of excellence and a set of principles to follow for those companies ``in search of excellence.''
Interestingly, many of the companies cited by Peters and Waterman lost a sense of direction shortly after the book was published in 1982.
This prompted Peters to posit that excellence is a journey, not a destination. Two Stanford University professors participating in this tradition of analyzing models of excellence, have produced a compelling treatise on great companies from a different tact.
Built to Last, by James C. Collins and Jerry L. Porras, is an attempt ``to discover the timeless management principles that have consistently distinguished outstanding companies.''
They compare 18 companies with a competitor across a multitude of factors to show how visionary companies display certain habits that lead to success.
The average founding date of the 18 companies was 1897, with the earliest being Citicorp in 1812, and Sony and Wal-Mart the most recent vintage, 1945. Longevity, a key factor for Collins and Porras, was not an explicit criteria for Peters and Waterman. Collins and Porras debunk several standard assumptions, including the idea that one needs to have an inspiring leader for corporate greatness.
The authors reveal that many of their successful companies do not have an unbroken series of triumphs; but they do display a remarkable resiliency across time.
Although there is nothing startling or shattering in their conclusions, I believe their work is a strong and solid study worth reading.
The writing is crisp, compelling, and cogent and there is enough detail to give a rich sense of the path to lasting achievement without overwhelming the reader.
Collins and Porras make many valuable observations. Visionary companies, for example, conceptualize the world in ways that are more accepting of ``seemingly contradictory forces or ideas'' and do not ``oppress themselves with the Tyranny of the OR.''
Perhaps the most revealing comparison between the visionary companies and their competitor was the way in which each responded to a major crisis. The authors note that Johnson and Johnson responded to the 1982 Tylenol crisis triggered by the deaths of seven people in the Chicago area by withdrawing Tylenol throughout the country and launching a major campaign to alert consumers.
There was a clear and compelling set of tight values held by Johnson and Johnson that placed the health and welfare of its clients above all else.
The authors believe that there is no single key idea that makes for greatness, but rather the unique ``architecture'' of a total program that unites form and function in a perfect fit to achieve desired ends. Each company featured, from IBM and Merck to Boeing and Wal-Mart, has a unique blend of key factors. These include big goals, home-grown management, constant commitment to people and improvement, and a central focus on ``building.''
We live in an age of quick fixes, instant success and virtual reality. Noted essayist Pico Iyer has observed that in such an age it is frequently difficult to tell depth from surface. Built to Last presents a powerful picture of 18 visionary companies that have achieved success over time. This book should help leaders move their organizations to new levels of performance. MEMO: Benjamin I. Troutman, an associate professor of educational leadership
at Old Dominion University, directs the Principals' Center of Hampton
Roads. by CNB