Built to Last
1. Visionary Companies:
Visionary companies are organisations that have outperformed their competitors over the long term and have a significant impact on the world.
These companies are driven by a core ideology, consisting of core values and a sense of purpose that goes beyond making money.
The core ideology acts as a guiding force, providing stability and coherence amidst changing market conditions.
2. Clock Building vs. Time Telling:
Visionary companies focus on "clock building" rather than "time telling."
Clock building refers to the creation of a durable institution that can thrive beyond the tenure of its leaders.
Time telling, on the other hand, involves short-term, charismatic leadership that relies heavily on a specific leader's personal qualities.
3. BHAGs:
BHAG stands for "Big Hairy Audacious Goal," which represents a clear and compelling long-term objective for the organisation.
BHAGs provide a unifying focal point that guides decision-making and energises employees.
These goals should be challenging, yet achievable, and help create a sense of excitement and commitment within the company.
4. Cult-like Cultures:
Visionary companies often have strong cultures that foster a sense of belonging and dedication among employees.
These cultures emphasise shared values, beliefs, and norms that align with the company's core ideology.
Cult-like cultures attract and retain like-minded individuals who are passionate about the company's vision.
5. Embrace the "Genius of the AND":
Instead of choosing between two seemingly conflicting options (e.g., stability vs. change), visionary companies find ways to embrace both.
They avoid "tyranny of the OR" thinking, recognising that it's possible to have both elements simultaneously.
This approach allows for creative solutions and adaptability without compromising the core values and purpose of the company.
6. Preserve the Core, Stimulate Progress:
Visionary companies maintain a consistent core ideology while encouraging progress and innovation in other areas.
They preserve their core values, purpose, and fundamental practices that define their identity.
However, they continuously stimulate progress by encouraging experimentation and embracing change.
7. Building a Visionary Company:
Building a visionary company requires a deliberate and systematic approach.
Key steps include developing a core ideology, setting BHAGs, establishing a cult-like culture, fostering disciplined people and processes, and creating mechanisms for change and innovation.
The journey to becoming a visionary company is ongoing, requiring constant adaptation and a long-term perspective.