Clock Builders, Bad Ideas and Winning Companies
Thomaz Srougi
Issue date: 5/27/04 Section: Perspectives
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"CEOs eventually retire or die. But not winning companies for they have the organizational strength to transcend any individual leader..."
Most of us with entrepreneurial desires believe the idea precedes the company. We also believe we need a very good idea, not just a simple one to get there. We firmly see the company as the means to reach our idea, product. Yet, research from James Collins and Jerry Porras arrive at the opposite conclusion. They found that most successful companies were built before its founders had an idea, that most of them had actually poor ideas and that these companies were created by a type of entrepreneur denominated "clock builder." Mainly, they concluded that the best entrepreneurs first saw their product as the means for the company, and their success was related to success of their companies, not ideas and products.
Collins and Porras took six years to do their research and find its conclusions. They chose 18 winning companies in 18 industries before they started their research. They have analyzed what factors differentiated these companies from their competitors. Both researchers tried to identify the types of entrepreneurs involved in the foundation of such companies. They have divided entrepreneurs in two groups, the "time -tellers" and the "clock builders". Understanding their differences is key if you want to be an entrepreneur. Some companies elected were Citicorp, Merck, Nordstrom and Proctor & Gamble among others.
The time-teller is a remarkable person that has the ability to look to the sun and tell the precise time of the day at any moment, in hours, minutes and seconds. The time-teller has a wonderful and unique gift, and she would be revered for her ability to tell time. Yet, the problem with this time-telling aptitude is that it cannot be perpetuated. When the time-teller dies, his ability disappears with him.
The clock builder assembles clocks that also can precisely provide the hour, minutes and seconds at any time of the day. In contrast with the time-teller, the clock builder will perpetuate his ability to tell time by building the clock.
Most of us with entrepreneurial desires believe the idea precedes the company. We also believe we need a very good idea, not just a simple one to get there. We firmly see the company as the means to reach our idea, product. Yet, research from James Collins and Jerry Porras arrive at the opposite conclusion. They found that most successful companies were built before its founders had an idea, that most of them had actually poor ideas and that these companies were created by a type of entrepreneur denominated "clock builder." Mainly, they concluded that the best entrepreneurs first saw their product as the means for the company, and their success was related to success of their companies, not ideas and products.
Collins and Porras took six years to do their research and find its conclusions. They chose 18 winning companies in 18 industries before they started their research. They have analyzed what factors differentiated these companies from their competitors. Both researchers tried to identify the types of entrepreneurs involved in the foundation of such companies. They have divided entrepreneurs in two groups, the "time -tellers" and the "clock builders". Understanding their differences is key if you want to be an entrepreneur. Some companies elected were Citicorp, Merck, Nordstrom and Proctor & Gamble among others.
The time-teller is a remarkable person that has the ability to look to the sun and tell the precise time of the day at any moment, in hours, minutes and seconds. The time-teller has a wonderful and unique gift, and she would be revered for her ability to tell time. Yet, the problem with this time-telling aptitude is that it cannot be perpetuated. When the time-teller dies, his ability disappears with him.
The clock builder assembles clocks that also can precisely provide the hour, minutes and seconds at any time of the day. In contrast with the time-teller, the clock builder will perpetuate his ability to tell time by building the clock.