Built to Last: Successful Habits of Visionary Companies

With the introduction of the paperback edition, Collins and Porras extend their exploration of visionary companies by adding an 11th chapter focused on constructing company visions. Emphasizing the critical balance between “preserving a cherished core ideology while simultaneously stimulating progress” (220), the authors refine their earlier concepts, replacing the original elements of their yin/yang symbol (Preserve the Core / Stimulate Progress) with “Core Ideology” and “Envisioned Future” (220). Core Ideology, comprising a company’s enduring values and purpose beyond profit, is an unwavering guide through environmental shifts. The authors stress the importance of authenticity in these core values, recommending at most five or six per company. The core purpose, more significant than profit, should withstand time and market changes, exemplified by Merck’s commitment to preserving and improving human life. The authors introduce the “5 Whys” experiment to elucidate this purpose, urging companies to delve deeper into their mission by questioning why their companies are important. The authors caution against defining a company solely by profitability, proposing a thought experiment challenging companies to consider an offer that assures fair prices and continued employment for all but eliminates all operations, forcing companies to evaluate the elements of their company that are worth preserving.