A Presentable Summary of the book

1. Five Stages Of Decline

2. From the book
HOW THE MIGHTY FALL AND WHY SOME
COMPANIES NEVER GIVE IN - JIM COLLINS

3. About The Book

4. About The Book
• Previous research “Good to Great” and “Built to
last”
• 60 falling corporations
• 11 cases of rise-and fall
• Criteria and pattern
• Research dimensions

5. Main Research Question
• What happened leading up to the point at which
decline became visible and what did the company
do once it began to fall?

6. Stage 1:Hubris
Born of Success
Stage 2: Undisciplined
Pursuit of More
Stage 3: Denial of Risk
and Peril
Stage 4: Grasping
for Salvation
Stage 5: Capitulation to
Irrelevance or Death

7. The Book
• Depressing not inspiring
• Guide to the way out
• Markers

8. Markers Of Each Stage

9. Stage 1: Hubris Born Of success
• SUCCESS ENTITLEMENT, ARROGANCE
• NEGLECT OF A PRIMARY FLYWHEEL
• "WHAT" REPLACES "WHY”
• DECLINE IN LEARNING ORIENTATION
• DISCOUNTING THE ROLE OF LUCK

10. Stage 2: Undisciplined Pursuit of More
• UNSUSTAINABLE QUEST FOR GROWTH,
CONFUSING BIG WITH GREAT
• UNDISCIPLINED DISCONTINUOUS LEAPS
• DECLINING PROPORTION OF RIGHT
PEOPLE IN KEY SEATS

11. Stage 2: Undisciplined Pursuit of More cont’d
• EASY CASH ERODES COST DISCIPLINE
• BUREAUCRACY SUBVERTS DISCIPLINE
• PROBLEMATIC SUCCESSION OF POWER
• PERSONAL INTERESTS PLACED ABOVE
ORGANIZATIONAL INTER- ESTS

12. Stage 3: Denial of Risk and Peril
• AMPLIFY THE POSITIVE, DISCOUNT THE
NEGATIVE
• BIG BETS AND BOLO GOALS WITHOUT
EMPIRICAL VALIDATION
• INCURRING HUGE DOWNSIDE RISK BASED ON
AMBIGUOUS DATA

13. Stage 3: Denial of Risk and Peril cont’d
• EROSION OF HEALTHY TEAM DYNAMICS
• EXTERNALIZING BLAME
• OBSESSIVE REORGANIZATIONS
• IMPERIOUS DETACHMENT

14. Stage 4: Grasping for Salvation
• A SERIES OF SILVER BULLETS
• GRASPING FOR A LEADER·AS·SAVIOR
• PANIC AND HASTE
• RADICAL CHANGE AND "REVOLUTION" WITH
FANFARE

15. Stage 4: Grasping for Salvation cont’d
• HYPE PRECEDES RESULTS
• INITIAL UPSWING FOLLOWEO BY
DISAPPOINTMENTS
• CONFUSION AND CYNICISM
• CHRONIC RESTRUCTURING AND EROSION OF
FINANCIAL STRENGTH

16. Stage 5: Capitulation to Irrelevance or Death
No options
Time

17. Well-founded Hope
Focusing
The Way Out

18. Thank You