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Everybody knows that the transformations facing us—social, political, technological, economic—render obsolete the lessons of the past. The real question is, what is the proper response to change? We certainly need new and improved business practices and organizational forms, but in a turbulent era like ours, attention to timeless fundamentals is even more important than it is in stable times.
To identify those timeless fundamentals, Jerry Porras and I embarked upon the intensive six-year research project that led to our book Built to Last. For example, their stock has performed 15 times better than the overall stock market has since By studying companies that have prospered over the long term, we were able to uncover timeless fundamentals that enable organizations to endure and thrive.
We studied those visionary companies not only as big business but also as start-ups and growth companies. By paying attention to the six timeless fundamentals that follow, you can learn from what those organizations did right and build your own visionary company.
Make the company itself the ultimate product—be a clock builder, not a time teller Imagine that you met a remarkable person who could look at the sun or the stars and, amazingly, state the exact time and date. Their primary accomplishment is not the implementation of a Thesis fundamentals idea, the expression of a charismatic personality, or the accumulation of wealth.
It is the company itself and what it stands for. Take for example, T. Rodgers came to Jerry and me several years ago. I disagreed with him. David Packard was clearly a clock-building leader. Rodgers is asked about the most important product he is working on, he answers firmly, "Cypress Semiconductor Corporation.
Achieving that transformation requires turning the world upside down and inside out, seeing products and market opportunities as vehicles for building a great company, not the other way around.
In fact, only 3 of our 18 visionary companies began life with a "great idea. Build your company around a core ideology In 17 of the 18 pairs of companies in our research, we found the visionary company was guided more by a core ideology—core values and a sense of purpose beyond just making money—than the comparison company was.
A deeply held core ideology gives a company both a strong sense of identity and a thread of continuity that holds the organization together in the face of change. We chose the word ideology because we found an almost religious fervor in the visionary companies as they grew up that we did not see to the same degree in the comparison companies.
Walt Disney created an entire language to reinforce his company's ideology. No matter how much business you might bring in. Homegrow your management In more than 1, years of combined history, we found only four cases in our visionary companies in which an outsider was hired as chief executive—and that in only 2 of the 18 companies!
In contrast, our less successful comparison companies were six times more likely to go outside for a CEO. Our findings simply do not support the widely held belief that companies should hire outsiders to stimulate change and progress.
Indeed, as great companies grow up, we see continuity and order in management tenure and succession. Insiders preserve the core valuesunderstanding them on a gut level in a way that outsiders usually cannot.
Yet insiders can also be change agents, building on the core values while moving the company in exciting new directions. At the very moment he began that revolution, by moving the company out of television sets and into solid-state electronics, integrated circuits, and cellular communications, Bob Galvin also began succession planning for the next generation of leadership—a full quarter of a century before he would pass the reins—to maintain a lineage of homegrown leaders to preserve Motorola's core values.
At our comparison companies we frequently saw management gaps—often due to egocentric leaders who simply could not conceive of the organization without themselves at the helm. Since his death in the late s, Zenith has been plagued by spotty leadership—at times from the outside—that allowed the company to drift from its founding values.
Motorola, however, has sailed on into exciting new arenas for the past 30 years, guided by an unbroken string of capable, long-tenured, homegrown leaders. What has Zenith done? They were founder-entrepreneur types and manager-builder types.
Not only that, their immediate successors—all homegrown insiders—remained in offsice for 24 years on average. Stimulate progress through BHAGsexperimentation, and continuous improvement To build a visionary company, you need to counterbalance its fixed core ideology with a relentless drive for progress.
While core ideology provides continuity, stability, and cohesion, the drive for progress promotes change, improvement, innovation, and renewal.
A second way to simulate the drive for progress is to create an environment that encourages people to experiment and learn—to try a lot of stuff and keep what works. Yet it grew into one of the most innovative companies in history, eventually branching into more than 60, new products. Yet Norton became a stodgy old-line company, with no reputation for sustained innovation.
In a visionary company, continuous improvement is a way of life, not a management fad. Clock build your company so that it preserves a passionately held core ideology and simultaneously stimulates progress in everything but that ideology. Preserve the core and stimulate progress.
A truly visionary company embraces both ends of a continuum:How to Write a Thesis Statement Whether you are writing a short essay or a doctoral dissertation, your thesis statement will arguably be the most difficult sentence to formulate.
An effective thesis statement states the purpose of the paper and, therefore, functions to control, assert and structure your entire argument. Fundamentals of Digital Image and Video Processing from Northwestern University. In this class you will learn the basic principles and tools used to process images and videos, and how to apply them in solving practical problems of commercial and.
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In a world of constant change, the fundamentals are more important than ever In this era of dramatic change, we’re hit from all sides with lopsided perspectives that urge us to hold nothing sacred, to “re-engineer” and dynamite everything, to fight chaos with chaos, .
Apr 13, · With WTI at multi-year highs, the real oil bull thesis is just getting started. IEA reported that OECD storage was a draw instead of a build in Q1, and exactly in line with our variant perception.