How mighty fall By Jim Collins

JIM described the five stages of decline from which company passes before its dead. 1. Hubris born of success- hubris means pride associated with a hero or outrageous arrogance that inflicts suffering upon innocent. This stage kicks when people become arrogant regarding success virtually as an entitlement, they lose the sight of true underlying factors that created success. Over estimating their own merits & capabilities. 2 Undisciplined pursuit of more- more of everything that those in power see as success. More growth, more scale, etc, Growth in Ist place creativity is in second place, takes leaps in those area where they cannot be great. 3 Denial of risk or peril- by this stage internal signs begin to mount, yet external results remains strong enough to explain away the disturbing data. 4 GRASPING FOR SALVATION- IN THIS STAGE company goes into sharp decline visible to all question is how leadership respond 5 CAPITULATION TO IRRELEVANCE OR DEATH the more the company is in stage 4 more chances to go down to stage 5 erode financial strength & individual spirit that leaders lose all hopes.

In late 1950s a small , unknown company had a very big idea to bring discount retailing to rural & small towns. This company adopted a new strategy of everyday low price of everything. Those who invested in its stock in 1970 & held through 1985 it grew 6000% Company is ames department stores it is started with the same idea that made walmart popular 4 years before walmart in 1958. From 1973 to1986 their stocks tracked each other closely but after 1986 ames go down around 1992 filed for bankruptcy Employees must not see themselves as jobbers but as they are having responsibilities Packard law by david Packard of HP that no company can consistently grow revenues faster than its ability to get enough of the right people to implement that growth & still became a great company. To reverse decline first think what not to do? when you are few people & there is enemy all around you , the best is you take this section from here to here, you take this section from here to here do not fire on automatic , fire one by one means when you are in the phase of decline do not start all the the things at the same time but one by one. Mantras against the decline 1 Disciplined people first who then what those who made great organization make sure that they have right people on the bus. 2 DISCIPLINED THOUGHT- the hedgehog concept it contain 3 intersecting circles i. what you can be the best in the world, ii. What

you are passionate about ,iii. What best drive your economic or resource engine. 3 DISPLINED ACTION- flywheel- there no miracle, no killer innovation, no lucky breaks but moving a giant flywheel like company turn by turn until a point of breakthrough. 4 BUILDING GREATNESS TO LAST- preserve core & stimulate progress what is your core it is be with you over the long period of time on the other hand they drive for change or progress. Books by jim Collins are build to last, good to great,& how the mighty fall. These also can be call as research.