What causes a highly successful business, that outperforms the stock market by 6.9 times for over a decade, to all of a sudden become irrelevant and fail?
Jim Collins’ book, “How the Mighty Fall” takes a detailed look at companies that were great companies as defined by Collins’ previous book “Good to Great” but fell to irrelevance. Collins defines a great company as one that had to significantly outperform the market for at least 15 years in a row. On average, the companies that Collins studied as great companies outperformed the general stock market by at least 6.9 times.
. . . And then, they failed!
There were quite a list of companies that were studied for this book but some of the more dramatic failures include:
Over the last few posts, I introduced my Ebook 12 Steps to Business Transformation and I defined Vision and Mission, the first 2 steps of the 12 transformational steps. This week we are going to talk about Values.
Defining the Values for your business is step 3 in my new Ebook “12 Steps to Business Transformation.”
Values describe the behaviors that will get you from where you are now to achieving your Mission and ultimately attaining the Vision.
Where Vision defines WHY your organization exists and Mission defines WHAT the organization does, Values are the driving behaviors that govern HOW the organization drives toward successful outcomes.
Values are the foundation of any organization.
“The goal, then, is to uncouple fear and failure – to create an environment in which making mistakes doesn’t strike terror into your employees’ hearts.” Ed Catmull
Organizations that value growth and success encourage their employees to innovate, try new things and stretch the boundaries of the business. These organizations embrace failure because they realize without failure an organization cannot grow and reach new levels of success. They also know that if an organization is not growing then it is stagnating . . . and stagnating businesses fail.
My son and a few of his friends started a landscape and lawn care company this summer. They built a website, flyers, posters and brochures. They knocked on doors, distributed flyers and sold their services to as many people as they could. Once they landed enough customers, they went and rented an aerator and power rake and worked their tails off. At the end of the first day they had lost $15! Talk about a disappointing failure!
Last week I wrote about the importance of setting up your Advisors Network and I listed a number of my Advisors Council members that have really helped me over my career. This weeks post will list some of the books or references from these icons that I have leveraged over the years. In many cases I have multiple books from each of these authors but I will limit the list to the one source from that individual that made the biggest difference in my professional development.
We have all heard a lot about networking over the years and how it is important for each of us to get out into the marketplace and build our network. Although I agree that building this personal network is important, it is what you do with the network you create that will determine your future success.
The focus of this post is not on leveraging your network for business or sales but rather working with your network to set up what I call an Advisors Network. No one knows everything that is needed to be successful in life and business in every circumstance. We all need help in many areas over the course of our lifetime. This is where the Advisors Network comes in. It allows you to leverage the expertise of many people when you need this specific expertise. Each of these people brings something to the table that you may not have as a strength or as a skill.