352 ENTREPRENEURSHIP
Hewlett-Packard remain healthy and vibrant after Bill Hewlett and Dave Packard
stepped aside? Texas Instruments—once a high-flying darling of Wall Street—nearly self-
destructed after Pat Haggarty moved on. What explains how the Walt Disney Company
became an American icon, surviving and prospering through hostile takeover attempts,
while Columbia Pictures lost ground and eventually sold out to a Japanese company?
In their research, Collins and Porras found that the visionary companies they identi-
fied:- Are premier institutions in their respective industries
- Are widely admired by knowledgeable businesspeople
- Make an indelible imprint on the world in which we live
- Have multiple generations of chief executives
- Have been through multiple product (or service) life cycles
- Were founded before 1950
This distinguished list includes such icons as Sony, Merck, American Express, 3M,
Boeing, General Electric, Ford, and IBM. The Built to Lastresearchers also reviewed the
historical record to correct the misunderstandings and misinformation about great com-
panies that had become conventional wisdom. They compiled a list of myths that guid-
ed management practice for decades. These are presented in Street Story 9.2.
Collins and Porras sought to understand why these companies were more enduring,
more visionary, better organized, and better managed than their counterparts. Their
answer is easy to state but harder to do:
The continual stream of great products and services from highly successful companies stems
from them being outstanding organizations... not the other way around.
In other words, it is the organization—its processes, systems, routines, leadership, and
culture—that makes the difference. No amount of great science or product development
can overcome a poorly designed and administered organization. Management capabili-
ty and skill are paramount.
The Venture’s Vision
How can you tell the difference between a vision and a vision statement? A vision is lived
through the everyday experience of the people who work in and with the organization.
A vision statement is writen words. It makes sense that an organization’s development
starts with the founder’s or founding TMT’s vision. The vision determines two essential
elements—what core to preserve and what future to strive for. The core is the reason the
organization exists and the values and beliefs that it embodies. It is necessary topreserve
the coreor the organization will lose its essential character and become a “nothing spe-
cial” company. Still, no company can survive for long by simply sticking to its founding
principles: It must change and adapt, so the vision must include a commitment to change
and progress. The vision must guide the venture’s participants to keep the products and
services fresh and worthwhile, but must not deviate from the founding principles.
The ideal vision preserves the core and stimulates progress.
Therefore, the vision must have two components. The first is the core ideology. The
core ideology defines the enduring character of an organization, giving it a consistent