Jim Collins 5th Level Manager

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Category: Business and Industry

Date Submitted: 11/29/2012 04:54 PM

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What characteristics of top organization?

This is a very wide ranged question. I will answer it according to Jim Collins' point of view and I will try to fit it in one page. So, all this time until now, I've been taught that most successful organizations are those that respond to change in the environment. It can be political, economical changes or changes in the sector like technology, changes according to competitors successful moves etc. And I thought and still continue to think that this makes sense. Because in a changing environment , where everyone is changing you've got to fit to it or you will fall. There are many examples that show this fact, but Mr. Collins' made me think. It made me question this. He explains in his interviews that he took two same airline companies (exactly with the same management models, cultures and etc) and studied their response to changes and success in the sector. I was amazed by his facts, so I checked them. I found that  if you'd invested $10,000 in Southwest Airlines on Dec. 31, 1972 (when it was just a tiny little company with several airplanes and there were several airline giants in the industry), your $10,000 would have grown to nearly $12 million by the end of 2002, a return 63 times better than the general stock market. PSA on the other hand declared bankrupt several times and got over by USair. So, two companies , two exact same models , one made it , another failed. As Mr. Collins explains the stubbornness, the passion for the old model of the leader of the Southwest held company from failure. The passion to hold the old model or the passion for the work he is doing. A very interesting point. It is something more than passion for money, cause he also talks about non-profits and cultural leaders. So , what are the characteristics for top organizations, according to Mr. Collins? First, I think it is passion of the leader. The way leader exposes that passion to his employees. The way he motivates them. For example...