Dollinger index

Creating the Organization 353

identity that transcends product or market life cycles, technological breakthroughs,

management fads, and individual leaders. This core ideology is made up of two parts:

the core values and the core purpose. Core values are a small set of general guiding

principles. They should not be confused with specific cultural or operating practices and

should not be compromised for financial gain or short-term expediency. Core purpose

Myths and Misinformation

That management capability is the most
important ingredient in the visionary company
mix is not an obvious conclusion, and Collins
and Porras identify many myths that entre-
preneurs and managers believe. For exam-
ple:

• It takes a great idea to start a company. No
  idea by itself is going to get the work done.
  A product that downloads the content of a
  newspaper and reads it to you while you
  drive to work is a definite winner, but until
  someone actually starts a company to pro-
  duce, market, and distribute the product, it
  is just an idea.


• Visionary companies require great and
  charismatic visionary leaders. There are
  not enough of these people to go around.
  And when they are available their egos
  sometimes get in the way of successful
  management.


• The most successful companies exist first
  and foremost to maximize profits. If the firm
  exists only for money, it will be satisfied
  when it becomes profitable. Visionary com-
  panies are never satisfied.


• The only constant in a visionary company
  is change. The core must be preserved, or
  the venture loses its identity and reason for
  existing.


• Visionary companies are great places to
  work, for everyone. Not everyone fits
  in. People who accept the challenge and
  vision adapt to the culture. Those who
  don’t must leave.
  
  
  • Highly successful companies make their
    best moves by brilliant and complex strate-
    gic planning. If this was possible, everyone
    would do it.
  
  
  • Visionary companies share a common sub-
    set of “correct” core values. There is no
    one set of “correct” values. What counts
    are commitment and action.
  
  
  • Blue-chip companies play it safe. If they
    do, they die.
  
  
  • The most successful companies focus pri-
    marily on beating the competition.
    Competition is important, but not as impor-
    tant as focusing on core values and
    exploiting unique resources and capabili-
    ties. Otherwise, the company becomes a
    “me-too” organization.
  
  
  • Companies should hire outside CEOs to
    stimulate fundamental change. Companies
    should do this only if the outsider also
    understands how to preserve the essen-
    tials of the business.
  
  
  • You can’t have your cake and eat it, too—
    i.e., a company can’t have homegrown
    managers and fundamental change. Yo u
    have to have both.
  
  
  • Companies become visionary primarily
    through “vision statements.” Great compa-
    nies deliver great products, not great vision
    statements.
    SOURCE: J. Collins and J. Porras, Built to Last (New
    York: Harper Business, 1997).
  
  
  
  

STREET STORY 9.2