How the Mighty Fall by Jim Collins Part 2 of 6: Hubris (Stage 1)
September 1, 2009 by dr. lam
The first stage that Jim Collins identifies that leads ultimately to a fall is hubris, or unmitigated arrogance borne from success. Ultimately, this stage 1 problem pushes individuals into stage 2 (unbridled pursuit of more) to a company’s demise in stage 5, or death/capitulation.
He tells the story of Ames stores founded in 1957 four years before Wal-Mart began its ascent with the same business model that predated Wal-Mart’s. As of 2008, the writing of How the Mighty Fall, Ames is now gone, whereas Wal-Mart is thriving and growing. What was the difference if they had the exact same business model and with Ames’ holding a several year head start over its rival?
The answer lies in Sam Walton who practiced humility and inquisitiveness and pushed those characteristics into the culture of Wal-Mart that continues to this day. A story of some Brazilian investors who in the late 1980s were looking to learn from corporate American success is indicative of Walton’s character. The Brazilians sent out a letter to 10 U.S. CEOS asking them for a meeting to learn from their business practices. They only got one response: Sam Walton’s. When Walton picked up the CEOs himself from the airport and took them to his old pickup truck, the Brazilians were wondering when they would meet Mr. Walton. To their surprise, they were already in his presence. When Walton was cleaning up the dishes that night after dinner, he was filled with more questions for the Brazilians than dissertative lectures about his own success. He was trying to learn anything he could from the Brazilians. In short, he wanted to learn rather than pontificate.
Walton chose his successor, David Glass, very carefully. The fact that you don’t know David Glass is a testament to the spirit that Walton created at Wal-Mart. Glass carried forward Walton’s vision of humility and inquisitiveness. In juxtaposition to Walton, the CEO for Ames, Herb Gilman, put in place a brash and loud outsider that pushed Ames hard but veered away from core values. The lesson of Walton is a wonderful one that we all can learn from, especially me. I have written in the past on radical humility, and I love Walton’s embodiment of that spirit.
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5 Responses to “How the Mighty Fall by Jim Collins Part 2 of 6: Hubris (Stage 1)”
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Wow, Dr. Lam…that was a very good blog post with a great lesson! Thanks!
thanks heather!!!
hey MA, get a fun gravatar now that you have joined our blog community again!
Yes, that would be cool!
They love the gravatars around here. They won’t stop. :p