MarketWatch: Mighty America's 5 stages of rapid decline

April 6, 2010, 12:01 a.m. EDT ·

Mighty America's 5 stages of rapid decline
Jim Collins' danger signals: But can we halt the collapse of capitalism?

By Paul B. Farrell, MarketWatch


ARROYO GRANDE, Calif. (MarketWatch) -- Imagine you're legendary business guru Jim Collins. Decade ago "Good to Great" and "Built to Last" made him the new Peter Drucker. He's a guy USA Today says would rather be rock climbing than helping companies learn the secrets of making "the leap to greatness."

But that was nine years (and two brutal recessions) ago. Then, shortly after the Iraq War started, he was forced back to the drawing boards, and wrote "How the Mighty Fall." Why? His summary in BusinessWeek explains: "Some of the great companies we'd profiled ... had subsequently lost their positions of prominence," including the Bank of America.

Why do The Mighty fall? "If some of the greatest companies in history can go from iconic to irrelevant, what might we learn by studying their demise, and how can others avoid their fate?" Then fate did intervene, a call came that got his adrenaline flowing faster than hanging high on arocky cliff:

"Would like you to come to West Point to lead a discussion with some great students?" A seminar for cadets? No, "12 generals, 12 CEOs, and 12 social sector leaders ... and they'll really want to dialogue about the topic."

What topic? "America!" America? "What could I possibly teach this esteemed group about America?" A lot. The core issue became clear when the CEO of one of America's top companies pulled him aside: "We've had tremendous success in recent years," but "when you are at the top of the world ... the most powerful nation on Earth ... the most successful company in your industry ... the best player in your game ... your very power and success might cover up the fact that you're already on the path of decline?" ........(more)

The complete piece is at: http://www.marketwatch.com/story/mighty-americas-5-stages-of-rapid-decline-2010-04-06

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