"Built to Last" by Jim Collins & Jerry Porras

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Dear Founders,

This week, I’ve been exploring "Built to Last" by Jim Collins and Jerry Porras - the seminal work on building visionary companies that stand the test of time. In the next 5 minutes, you'll learn what truly separates companies that endure for generations from those that fade into obscurity.

Ready to build something that lasts?

Who Are Jim Collins & Jerry Porras?

Jim Collins: Business researcher and former Stanford professor

Jerry Porras: Stanford professor and organizational behaviour expert

Together, they studied 18 visionary companies over six years.

Their research spans companies founded as far back as 1812 through the modern era.

Building a Visionary Company

Clock Building vs. Time Telling

Focus on building an organization (clock building) rather than coming up with a great idea (time telling). Someone who tells the time helps you once, but someone who builds a clock creates a lasting system that helps people forever.

5-Minute Action: List three ways you're currently building systems and culture that will outlast any single product or leader.

The Genius of “AND‘

Great companies embrace apparent contradictions - they are both idealistic AND pragmatic, stable AND revolutionary.

5-Minute Action: Identify one "either/or" decision you're facing. How could you transform it into an "and" solution?

Preserve the Core/Stimulate Progress

Maintain unwavering core values while constantly adapting practices and strategies.

5-Minute Action: Write down your company's core values and one business practice you're willing to change to better serve those values.

BHAGs (Big Hairy Audacious Goals)

Set bold, clear, compelling goals that unite and motivate the organization.

5-Minute Action: Draft a big, hairy, audacious goal for your company that's 10-30 years out. Make it specific and emotionally compelling.

Try a Lot of Stuff and Keep What Works

Success comes from trying many things and building upon what works.

5-Minute Action: List three experiments you could run in your business this quarter. How will you measure success?

The Bottom Line

Building an enduring company isn't about one great product, charismatic leader, or brilliant strategy. It's about creating an organization that can adapt and thrive long after its founders are gone.

Should I Buy This Book?

"Built to Last" is a must-read if:

• You're building for long-term impact, not a quick exit

• You want to create a strong organizational culture

• You're interested in how great companies maintain success across generations

• You need to balance stability with innovation

Consider skipping if:

• You're focused on short-term growth or exit strategies

• You're looking for tactical, day-to-day management advice

• You prefer more recent case studies

My take

While some examples may feel dated, the principles in "Built to Last" are timeless. It's a longer read, but the insights on building enduring organizations are invaluable for any founder thinking beyond the next funding round.

(New) Expert's Corner: Understanding BHAGs

The concept of BHAGs (Big Hairy Audacious Goals) deserves special attention. Unlike regular long-term goals, BHAGs have specific characteristics:

• They typically take 10-30 years to achieve

• They're clear, compelling, and easy to understand

• They connect directly to the core purpose of the organization

• They may seem impossible to outsiders but feel achievable to insiders

For example, in 1952, Boeing set the BHAG of becoming the dominant player in commercial aviation when they were primarily a military contractor. The goal seemed almost impossible but was clear and compelling. It gave the entire organization a unifying focus that transcended any single project or product.

Remember, this is just a tiny glimpse into the wealth of insights in "Built to Last." For the full experience, grab your copy here: [Amazon Link]

Next week I’m reading "The E-Myth Revisited" by Michael E. Gerber. I’m hoping to learn why most small businesses fail.

In case I don’t see ya, good afternoon, good evening and good night.

Daniel

Founder, 5-Minute Founders

P.S. Found these insights on building lasting companies valuable? Share this email with a fellow founder who's thinking long-term. And if you're not yet subscribed, join now to get these weekly doses of distilled startup wisdom!