Visionary firms create success
Big Hairy Audacious Goals (bee-hags), according to authors James Collins and Jerry Porras in their book. "Built to Last," is one way visionary companies differ.
In a six-year study of successful, and less successful, companies, the authors identified ways that visionary (the more successful) companies differed.
- Goals: Bee-hags, although not always "realistic," inspire people. Bee-hags focus and compel; people commit.
John Kennedy's "a man on the moon by this decade" was a high-flying bee-hag. So was Wal-Mart's "$1 billion company in four years."
- Cultist cultures: Employees either love or hate visionary companies. And, "If you don't sing our gospels, you are out of here!"
For example:
- "Prove yourself at every level or leave" - Nordstrom.
- "Wholesomeness," "magic," "clean-cut zealots" - Disneyland.
- New attempts: Strategic planning is OK; opportunistic trial and error is better. Keep the successes, cut the failures, "branching and pruning," as Johnson & Johnson calls it.
Marriott got into prepackaged boxed lunches for airlines because customers kept buying snacks on the way to their planes and stuffing them in their pockets.
When two-tone paint jobs on automobiles became
popular, the available tapes allowed (colors to run. ln response, 3M invented masking tape. Later, because of requests for waterproofing tapes, 3M created Scotch tape.
- In-house promotions: Powerhouse companies promote from within so they can provide a colIlpass (core values) to the next generations. Continuity of leadership excels.
From 1806 to 1992, according to the research of Collins and Porras, only two visionary companies (115 of their sample) hired CEOs from the outside. However 725 of the comparison companies hired from outside.
- Relentless improvement: Bench marking? Quarterly comparisons? Annual growth? Finally. success! Nah! Rather, "Always, how can we be better tomorrow?" "Resting on laurels?" "Comfort?" Never! Not in the truly, visionary companies.
Management Quiz
Check all of the following that describe your organization or department.
- Big, inspiring goals.
- Relentless effort toward goals.
- Clear-cut employee characteristics.
- Evangelistic employees.
- Responsiveness to opportunities.
- Freedom to fail.
- Promotion from within.
- Never satisfied.
- Continuous improvement.
- A stable set of core values.
Seven or more checks may suggest similiarities to visionary companies.
(source: GEROLD GRAHAM of Knight-Ridder Newspapers )
