Collins & Porras

Question 1

Collins and Porras

Answer 1

Recipe for successful companies
- Have core values and a core purpose that are fixed in time (these should never change)
- Stimulate progress, re-evaluate business strategies and adapt processes
Vision is needed because it provides guidance about what core values need to be preserved and what future to stimulate progress towards

Question 2

Components of vision

Answer 2

Core ideology
- What we stand for and why we exist
- Doesn’t change
- Source of inspiration and guidance
- 2 main parts: Core Value and Core Purpose
An Envisioned Future
- What the company is going and what we aspire to become
- Requires change and progress
- Consists of 2 parts: 10-30 year BHAG (big hairy audacious goal). Vivid description of what it will be like to achieve this goal

Question 3

BHAG

Answer 3

Bold missions or tangible, highly focused goals used to stimulate progress and instill passion.
Clear and compelling goal. Unified effort and catalyst for team spirit.
Clear finish line
Forces the company to be visionary

Question 4

Core Values

Answer 4

Guiding and fundamental principles of a company
- Must stand the test of time.
- Show only have 3-5 of them.
Require no external justification
Manifested in the companies members
Core values don’t change in response to market changes.

Question 5

Core Purpose

Answer 5

The company’s most fundamental reason for existing
Company’s main motivation (aside from money)
Purpose can never be fully achieved, it inspires change and progress.
- Inspiration for the company’s work
To determine what the purpose is, ask the five whys (why is what we do important - ask it 5 times - will bring you to your purpose)

Question 6

Types of BHAG

Answer 6

Target BHAG
Common Enemy BHAG
Role Model BHAG
Internal Transformation BHAG