LiveTweeting: Jim Collins: “How the Mighty Fall”
May 15, 2009 1 Comment
Last night, BusinessWeek hosted an interview with management guru Jim Collins by BusinessWeek Executive Editor John A. Byrne on the eve of the release of Collins’ newest book, “How the Mighty Fall” which reviews companies that have fallen, and those who never gave up.
His approach seems to meld Elisabeth Kübler-Ross’ ‘Five Stages of Death’ with medical staging terminology denoting the recoverability from serious diseases like cancer, to come up with five stages of a company’s decline. Below are the tweets I published from the site during the interview:
- Live tweeting from the BusinessWeek Jim Collins event in NYC. Jim’s new book ‘How the Mighty Fall’Jim Collins: You can fall a very long way… a very long way… and recover.
- 5 stages of decling companies:
- Hubris borne of success
- Undisciplined pursuit of more
- Denial of risk and peril
- Grasping for salvation
- Capitulation to irrelevance or death
- Note: you can recover from all but #5
- Jim Collins: Danger: Inflicting arrogant neglect on your core business in pursuit of the next thing. Ex: Circuit City letting Best Buy eclipse them
- Jim Collins: Focusing on growth as the goal leads to a fall. Reason: lack of right people on board to handle it
- Jim Collins: a wrong leader vested with power can bring a company down.
- Jim Collins: One indicator of pending failure: frequent reorganizations (false sense you’re doing something)
- Jim Collins: hoping for the one savior or acquisition to save the company is a sign of grasping for salvation
- Jim Collins: Carly Fiorina at HP. HP got what it wanted a charismatic dynamic leader. But then tried to recover with the one big move Compaq
- Jim Collins: you can never recover from Stage 5 capitulation to irrelevance or death
- Jim Collins: determine “water line risk”. Risks below the water line sink the ship if they blow up
- Jim Collins: End quote:
“Whether you prevail or fail, endure or die, depends more on what you do to yourself than what the world does to you”