We have all witnessed good, if not great, companies that have failed to see the future. They are in denial and don’t change their business model before it is too late. On the other hand we have seen companies that not only adapt but change their entire industry, and seemingly overnight. What is the difference between these two types of companies? What can it tell us about our businesses?
Jim Collins strikes pay-dirt with How the Mighty Fall. He examines how and why good companies decline and ultimately fail. He examines the five stages of decline: Hubris Born of Success; Undisciplined Pursuit of More; Denial of Risk and Peril; Grasping for Salvation and; Capitulation to Irrelevance or Death. I love this kind of writing. He follows a familiar formula that is as poignant as it is effective. He provides a simple premise (his five stages of decline) illustrated by well researched real company examples of each stage. Each stage is relatable by the illustrations. The illustrations give us that aha moment, the moment of revelation, and once we have that we can take action. More importantly he offers solutions to get a business back on track no matter the stage they are in. As long as the business is still operating, it can survive and thrive!