Just finished listening to the audio version of “How the Mighty Fall”. Another interesting study by Jim Collins. The main idea behind the book is that decline can be avoided, detected and reversed.
In this book Jim Collins illustrates how big companies fall; which happens through 5 stages of decline:
- Stage 1: Hubris Born of Success: We’re different! we can turn soil into gold!
- Stage 2: Undisciplined Pursuit of More: Let’s do 100 things side by side! try it big, it will work!
- Stage 3: Denial of Risk and Peril: Nothing wrong is going! it’s just a temporary situation!
- Stage 4: Grasping for Salvation: changing the culture! restricted the company!
- Stage 5: Capitulation to Irrelevance or Death: is that it! or we should keep trying to survive
The book illustrates each stage in details providing real life examples, as well as, marker to decided if a company is passing through this stage or not.
The most interesting point in the book is that decline is reversible regardless of the stage you’re in, if you face it the right way.
I found the book very interesting. I have finished it into sessions. I never lost interest in the book starting from the beginning till the end.
I highly recommend this bo.