How the Mighty Fall And Why Some Companies Never Give In

The core of Collin's findings is that companies in decline go through five stages- hubris, undisciplined growth, denial of risks, grasping for salvation and the final one of capitulation.

Many companies went through some of these stages, but as long as they have not entered the final stage, recovery is still possible.

With a lot of direct and insightful points, Collins manages to explain how companies went through these stages and what can be done to avoid this fate. Among his most striking points, which are ably backed up by his methodical research findings, are that to understand success, the 'why' is often more vital than the 'what'- success does not come from what you are doing but from the circumstances that enable what you're doing to work. Unfortunately, there is not too much about why some companies 'never give in' as the subtitle says, but the appendix offers some cases of corporate recoveries from declines.

Several of Collin's points seemingly contradict conventional business management practices. For instance, he dismisses the popular notion that companies often fail due to complacency. Case in point: the lingering financial crisis which was caused not by the lack of ambition, but rather the overzealous and undisciplined dealings of financial institutions. Many troubled companies such as Rubbermaid often hastened their decline by focusing on growth in undisciplined ways. The urge to radically change corporate strategies or culture is a classic example of grasping for salvation when a better course of action is to stay calm, focused and disciplined.

After portraying in stark terms how nothing is immune from decline and failure, Collins

gives an optimistic opinion in the last chapter. Regardless of how dire circumstances may be, none of us are fully imprisoned by this as long as we make the right choices.

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