Ever wonder why some businesses just... keep going? Not just for a decade, but for a century? Back in 1994, Jim Collins and Jerry Porras released a book that tried to crack that code. It was called Built to Last. Honestly, it changed how an entire generation of CEOs thought about their jobs. But here’s the thing. A lot of people got it wrong. They thought the book was a list of "safe" stocks to buy. It wasn't. It was a study of the "visionary company."
Built to Last: What Most People Get Wrong
The biggest misconception is that visionary companies are led by charismatic, larger-than-life "time tellers." You know the type. The leader who has a brilliant idea and drags everyone toward it.
Collins argues the opposite.
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He calls it Clock Building, Not Time Telling. Basically, if you’re a great leader who tells the time, the company dies when you do. If you build a clock, it keeps ticking long after you’re gone. It’s a shift from "I have a great idea" to "I am building a great organization."
Another thing? People think these companies are obsessed with profit. Well, they are, but not just profit. It's the Genius of the AND. They want profits AND purpose. They want a cult-like culture AND individual autonomy. It sounds like a contradiction. It kind of is. But the best ones manage to hold both ideas at the same time without their heads exploding.
The Companies That Didn't Actually Last
We have to be real here. If you look at the original 18 "visionary" companies today, some look a bit... tired.
Take Motorola.
Or Citicorp.
Or Ford.
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They haven't exactly been the world-beating titans they were in the early 90s. Critics like Phil Rosenzweig, author of The Halo Effect, point out that Collins might have fallen for "survivor bias." Essentially, he looked at who won and worked backward to find reasons why.
If you invested $10,000 in the "visionary" companies the day the book came out, and $10,000 in the "comparison" companies (the ones Collins said weren't as good), the comparison companies often did better. CVS (the comparison) ended up outperforming Nordstrom (the visionary) in the stock market over the long haul.
Does that mean the book is trash? No. But it means "visionary" doesn't mean "invincible." Even a clock needs maintenance.
The Core Concept: BHAGs and Cults
You’ve probably heard the term BHAG (Big Hairy Audacious Goal). That came from this book. A BHAG isn't just a goal; it's a mountain.
- Boeing betting the entire company on the 747.
- Sony (in its early days) deciding to change the worldwide image of Japanese products.
These goals are supposed to be "daunting" but "doable." But there’s a darker side Collins describes: Cult-Like Cultures.
Visionary companies aren't "fun" places to work for everyone. They have a very specific "vibe." If you don't fit the core ideology, the company will basically spit you out. It's binary. You’re either a Disney person or you aren't. You’re either a Nordstrom person or you’re gone. This "tightness of fit" is what keeps the culture from diluting as the company grows.
Why 3M is the Ultimate Example
If you want to see Built to Last Jim Collins principles in action, look at 3M. They didn't start with a "vision" for Post-it notes. They started as a failed corundum mine.
Seriously. They were trying to mine stuff for grinding wheels and it was a total disaster.
But because they were "clock builders," they didn't give up on the company. They pivoted to sandpaper. Then tape. Then a million other things. They have a rule called the "15% Rule" where employees can spend time on their own projects. It’s the Try a Lot of Stuff and Keep What Works philosophy. It’s evolutionary. It’s messy. It’s why they’re still around.
How to Apply This Today
If you're running a business or even just a team, you can't just copy-paste the 1994 version of Merck. The world is too fast now. But the fundamental "habits" still hold water if you use them correctly.
1. Define your "Non-Negotiables"
What are the values you would keep even if they became a competitive disadvantage? If you don't have those, you don't have a core ideology. You just have a marketing slogan.
2. Separate the "Core" from "Practices"
This is where most companies fail. They think their process is their core. No. The core is the why. Everything else—the tech, the office, the specific products—should be on the table for destruction. Preserve the core, but stimulate progress.
3. Set a Goal that Scares You
If your 10-year goal doesn't make your stomach drop a little bit, it’s not a BHAG. It’s just a forecast.
4. Stop Being the "Genius with a Thousand Helpers"
If everything depends on your "vision" and your daily input, you've built a fragile system. Focus on the hiring process. Focus on the culture. Build the clock.
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The reality of Built to Last is that it's a blueprint for resilience, not a guarantee of stock market returns. Success is often a mix of these principles and a massive amount of luck. But if you want to be more than a "flash in the pan," you have to stop looking at the product and start looking at the machine that makes the product.
Start by auditing your current team culture. Is it "cult-like" in its dedication to a specific way of doing things, or is it just a collection of people collecting a paycheck? If it's the latter, you aren't building a visionary company; you're just telling the time.