Archive for December, 2011

In search of the best run companies, but once that you find them are they the next dinosaurs ?

December 1, 2011

Picture: Courtesy to Creative Comens.

The dinosaur as probably every kid by now knows were once the most mighty animals on the planet. Clearly when the conditions were right, they had the right strength. Once the conditions changed drastically they were not able to adapt.

In the 1980s, Tom Peters and Robert Watermann identified best performing companies but a decade later after the book was published 50% of these companies struggled which was way above the average rates of companies with performance problems.  (Reference: Edward Lawler, Christopher Worley: Built to Change, Page Preface XIV)

In the 1990s James Collins and Jerry Porras came up with a list of best performing companies in their book “Built to last”. Well guess what, a decade later 50% of those companies were struggling. Again way above market average. (Reference: Edward Lawler, Christopher Worley: Built to Change, Page Preface XIV)

You do not have to be a clairvoyant to predict what happened to the list of outperforming companies in the book “Good to Great” authored by Jim Collins and published at the beginning of 2001. Here as well over 50% of those companies struggled a decade later while market average was 30% of companies underperforming.

So what is the list for 2011  ?

Conclusion: If you take the three lists and look which companies are left and additionally list all the performance attributes that were revealed in these books you will have the list of dinosauric behaviour, the list of unsustainable performance.

It almost seems a rule of thumb. Each time the new role models of best run business emerge

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