Sometimes it is nice to take a break from just taking tech and look at the bigger picture: SureFire IT Solutions is a growing company in Edmonton that just happens to specialize in IT. So once in a while we like to discuss business.
I just finished reading Jim Collins’ book How The Mighty Fall. It is the published results of the multi-year, multi-company study he and his colleagues did on large corporations who were very prosperous but completely bottomed-out. Some may have been bought by other companies while others just do not exist at all anymore. In their conclusions, they see 5 stages that lead to the destruction.
5 Stages to Destruction
- Hubris Born of Success: This can also be summed as “Pride comes before the fall”; the company takes much pride from the success they have had. This leads to decisions that are not wise.
- Undisciplined Pursuit of More: Growth of a company is necessary, but when the growth moves too far away from the roots, pieces of the strong foundation start to chip away. A good example of this in action is when you look at the results of hastily planting the wrong people in the key jobs instead of waiting. This sucks precious time and resources.
- Denial of Risk and Peril: Rather than regrouping and getting back to the basics, companies continuing their descent ignore what is really going on.
- Grasping for Salvation: When times get desperate, those falling will cling to anything, like the next big invention.
- Capitulation to Irrelevance or Death: Surrendering to the company’s demise.
Some companies make it as far as stage 4 and make a grand return, but like most things, wouldn’t it just be easier to start right from the beginning.
Thomas Meron sums it up when he said “Pride makes us artificial and humility makes us real.” Sam Walton’s Wal-Mart illustrates that for a great company to prosper, it must be humble. No matter how big or small your company is. Wal-Mart has had direct competitors, but none have overcome the giant’s humility. Read a quick story about Wal-Mart’s greatness here. I think that it really has to come from the top. A humble leader can pave the way to great things.
So, how are you going to keep your company humble?
Leave a comment about what you think about humble companies. Do you have business practices to keep your company and leaders humble?
Other books by Jim Collins include Good to Great and Built to Last.
Tags: Business, How the Mighty Fall, Jim Collins, Success
