Book description
This work offers a summary of the book "HOW THE MIGHTY FALL: And
Why Some Companies Never Give In" by Jim Collins. No successful
business is immune from failure, regardless of previous performance.
External circumstances are often blamed, but Jim Collins suggests that
"whether you prevail or fail, endure or die, depends more on what
you do to yourself than on what the world does to you." In other
words, there are always warning signs that your business is in trouble:
if you identify them early enough, you can change the situation. Collins
believes there are 5 stages of company's failure lifecycle: hubris of
success, pursuit of more, denial of risk, grasping at straws, and
capitulation. Each of these stages contains pitfalls and signals of
what's to come. For example, companies often get caught up in their own
product hype, believing all praise and dismissing all criticism. Another
common mistake is to expand too quickly into a new product, which
diverts attention and resources. Collins provides the reader with a
checklist at every stage, so that the reader can identify possible
problems in their own business: what proportion of your senior
management are in the right seats? Do you confuse big with great? How
the Mighty Fall is an eminently sensible book that's very practical.
Every self-aware business should own a copy.
