Built to Last: Successful Habits of Visionary Companies

The Introduction challenges the notion that visionary companies result from charismatic leaders or specific industry dynamics. The key to long-term success, the authors argue, lies in establishing a visionary and enduring core ideology beyond mere goals or strategies. This ideology should encompass fundamental principles that guide an organization’s decisions and actions. The authors then stress the importance that a company is able to manage continuity and change, claiming that if it can do so while steadfastly preserving its core ideology, it will be set up for success.

In 1988, Jim Collins and Jerry Porras embarked on a six-year research venture to unravel the behaviors and attributes of visionary companies, ultimately presenting their findings in the seminal work Built to Last. The opening chapter serves as a comprehensive exploration, defining visionary companies, introducing scrutinized companies, dispelling prevalent myths, and elucidating research methodologies.

Visionary companies, according to Collins and Porras, are “premier institutions in their industries, widely admired, and possessing a lasting impact despite changes in leadership and products” (1). The authors set six criteria for identifying such companies, including leadership in their fields, admiration from professionals, a lasting impact on the world, endurance through leadership changes, survival through various product life cycles, and establishment before 1950.