Built to Last
Insights into what makes visionary companies outlast and outperform peers.
Summary of 7 Key Points
Key Points
- Visionary companies are guided by a core ideology
- They preserve core values while stimulating progress
- Visionary companies set Big Hairy Audacious Goals (BHAGs)
- Try a lot of stuff and keep what works
- Home-grown management and promotion from within
- The cult-like cultures of visionary companies
- Good enough never is: the mantra for continuous improvement
key point 1 of 7
Visionary companies are guided by a core ideology
Visionary companies, as described, are distinguished by their adherence to a core ideology. This core ideology is the essential character of the organization, a set of timeless guiding principles that require no external justification. It is deeply ingrained and remains fixed while business strategies and practices endlessly adapt to a changing world. The ideology acts as a guiding star, a fixed point of reference for decision-making and actions that go beyond economic considerations or current management fads…Read&Listen More
key point 2 of 7
They preserve core values while stimulating progress
The authors of ‘Built to Last’ present a well-articulated perspective on how visionary companies are able to maintain a balance between preserving their core values and stimulating progress. They argue that these companies have a strong set of core ideologies that define their character and serve as a guiding beacon. These ideologies are not easily swayed by market trends or management fads; they are deeply ingrained and protected. At the same time, visionary companies understand that being wedded to the status quo is detrimental. They actively push for continuous improvement, innovation, and forward motion to remain relevant and competitive…Read&Listen More
key point 3 of 7
Visionary companies set Big Hairy Audacious Goals (BHAGs)
Visionary companies distinguish themselves by setting Big Hairy Audacious Goals, which are known as BHAGs. These are not just mere targets; they are clear, compelling, and often seen as unachievable goals that serve to galvanize the entire organization. A BHAG is strategic and emotion-driven, rather than a financial goal or a business objective. It’s supposed to be so bold that it feels slightly unattainable, pushing the company to reach beyond the bounds of what’s considered feasible…Read&Listen More
key point 4 of 7
Try a lot of stuff and keep what works
The principle of ‘Try a lot of stuff and keep what works’ is a core concept that advocates for the cultivation of experimentation and innovation within an organization. It postulates that companies should encourage the generation of diverse ideas, fostering a culture where trial and error are not just tolerated, but actively promoted. By doing so, organizations create a rich soil where successful initiatives can take root and grow, while those that do not meet the desired outcomes can be discarded without fear of reprimand or failure…Read&Listen More
key point 5 of 7
Home-grown management and promotion from within
Home-grown management and promotion from within are central themes in ‘Built to Last’, where the authors emphasize the importance of cultivating leadership from within an organization. They argue that companies that consistently develop and promote their employees into higher positions tend to have stronger corporate cultures and a deeper commitment to their core ideologies. This approach to management fosters a sense of continuity and stability, as leaders rise through the ranks understanding the company’s values and operational strategies firsthand…Read&Listen More
key point 6 of 7
The cult-like cultures of visionary companies
Visionary companies cultivate a unique culture that is akin to a cult in its fervor and commitment, often characterized by a distinct ideology and a strong sense of identity. This culture becomes deeply embedded within the organization, shaping not only the way employees think and behave, but also how the company operates and interacts with the external environment. The shared values and norms act as a guiding force, aligning employees’ actions with the company’s long-term objectives and principles. These cultures are typically resilient, withstanding managerial turnovers and market fluctuations, thereby contributing to the company’s long-term success and stability…Read&Listen More
key point 7 of 7
Good enough never is: the mantra for continuous improvement
Good enough never is’ represents a core philosophy that drives companies towards enduring greatness. This concept suggests that complacency is the enemy of excellence. Companies that subscribe to this mantra believe that their work is never truly finished and that there is always room for improvement, no matter how successful they may appear. As a result, these companies foster a culture of continuous innovation and are relentless in their pursuit of perfection. They do not settle for what is considered the industry standard but instead aim to redefine excellence on their own terms…Read&Listen More