The paper "Building Your Company’ s Vision by Collins and Porras" is an outstanding example of a business article. The article by Collins and Porras (1996) provides an explanation of the two major components of a successful company’ s vision as inferred from their study of successful companies such as Nordstrom, Merck, Hewlett Packard, 3M, Sony, Ford, Motorola, Procter and Gamble, Johnson and Johnson and Boeing. Collins and Porras attempt to demonstrate how these companies’ PROGRESS, long-term successes and superior performance can be attributed to their ability to adapt to a changing business environment (or world) while maintaining their core ideology in terms of core values or principles and core purpose.
Therefore, the underlying implication for managing business growth according to Collins and Porras (1996) is that the dynamic of visionary companies is preserving the core while simultaneously stimulating progress. Summary of Key Points The article has several key points that contain important lessons for entrepreneurs or aspiring entrepreneurs who are contemplating how to identify and articulate their companies’ long-term vision which would, in turn, shape their strategies towards achieving long-term goals. Core Ideology A company’ s core ideology essentially consists of its core values and core purpose.
The core ideology transcends time in terms of changing business environments, changes in technology and even product and economic cycles and articulates the principle on which the company is formed that will guide its vision even when the leaders who articulated the vision are no longer there. Core Values Every successful company has its own core values- timeless, unchanging guiding principles or tenets which are determined independent of the business environment and which precede formulation and implementation of business strategy and preclude core competencies.
A company should never change its core values in response to the market but change its market to maintain its core values. Core Purpose A company’ s core purpose is its reason for existence (raison d’ ê tre), not a goal or a business strategy or a simple mission statement. Essentially, a core purpose can never be achieved like a goal and should be framed in a way that will remain relevant despite changing circumstances.
ReferencesCollins, J & Porras, J 1996, ‘Building Your Company’s Vision’, Harvard Business Review, September-October, pp 65-77.