Drew Buscareno runs a homeless shelter in South Bend, Ind., that takes
care of 200 people a day. John Hess is chief executive of Amerada Hess Co., an energy
company with $13 billion a year in sales. When either of them needs a quick
pick-me-up, they turn to the same source: the writings of corporate
strategist Jim Collins.
In a cynical, scandal-ridden age, Mr. Collins has become the business
elite's version of Norman Rockwell or Mister Rogers. He makes everything
safe and simple again. In his books and speeches, Mr. Collins champions
such old-fashioned virtues as humility, patience and perseverance. Instead
of saluting well-known billionaires in New York or Silicon Valley, he makes
heroes out of little-known people who built Middle America companies in the
1970s and 1980s. "They will sell the mills or fire their brother if that's
what it takes to make the company great," Mr. Collins declares.
A few years ago, Mr. Collins might have seemed hopelessly out of step
with a go-go economy. For today's beleaguered bosses, though, a bedtime
dose of Jim Collins has become irresistible. Mr. Collins's two most recent
books, "Built to Last" and "Good to Great," each have sold more than one
million copies. Years after their launch, they keep marching ahead on
bestseller lists.
Strikingly, the 45-year-old Mr. Collins hasn't amounted to much as a
company man himself. He worked briefly at Hewlett-Packard Co. in the 1980s
but by his own account irritated his bosses. He made brief stabs at running
a start-up business and being a sports agent, to no avail. He lasted a
little longer as a junior faculty member at Stanford business school in the
early 1990s, only to be told his contract wouldn't be renewed. Now he has
set up shop by himself in Boulder, Colo., in an overhauled old school
building that once housed his first-grade classroom.
Yet Mr. Collins's stubbornness and quirky career just add to his appeal.
"I was captivated by him," Mr. Hess says. "He really gets you excited about
your potential to achieve greatness." The Amerada Hess CEO has given copies
of Mr. Collins's books to 150 of his company's top managers and has urged
them to attend Mr. Collins's speeches -- a sign of the evangelical
enthusiasm that is making "Good to Great" a much-envied blockbuster in
business publishing.
For many CEOs, Mr. Collins's books don't just make them feel good. They
also provide step-by-step advice for leaders who want to be recognized as
humble, dedicated champions of progress. Bitterly defensive about the
deteriorating public image of big business, bosses frequently embrace the
homespun phrases and jargon of the Collins books as ways to regain their
good standing.
At VeriSign Corp., a Silicon Valley
Internet-services company, CEO Stratton Sclavos urges employees to "push
the flywheel," a bit of Collins imagery that evokes mill workers' diligence
a century ago. Similarly, Mr. Sclavos champions BHAGs, or "big hairy
audacious goals," another Collins phrase that is meant to shake middle
managers out of their complacency.
"I've read maybe five management books in my 21-year career," Mr.
Sclavos says, "and the other four left me uninspired. But I was completely
enthralled with the amount of data that Jim gathered for 'Good to Great,'
and with the differences between the companies that made it -- and the ones
that didn't." VeriSign's own stock performance has been choppy the past two
years, but Mr. Sclavos says he feels his company is on the right track.
The grandson of a test pilot and the son of an artist, Mr. Collins grew
up in Colorado. As a teenage rock climber in the 1970s, he made daredevil
ascents in the Rockies and kept quiet about knot-tying blunders that nearly
killed him. Later he decided that wild goals must be paired with fastidious
planning and focus. "You can't understand me if you don't understand rock
climbing," says Mr. Collins, who still climbs.
Business didn't interest him until after he graduated from Stanford
University in 1980 and was hired at McKinsey & Co. to help gather data
for "In Search of Excellence," which became a best-selling strategy book.
Assigned to study Boeing Co., he became spellbound
by the men who built the first 707s. "I was so excited," he recalls. "I
used to point out Boeing jets to my friends any time one flew by."
After a stint in computer marketing at Hewlett-Packard, Mr. Collins
created a software company to help athletes monitor workouts. It didn't
last. He also tried his luck as a sports agent representing his wife,
Joanne Ernst. She was the fastest woman in Hawaii's Ironman triathlon in
1985, attracting sponsorships from Nike, Bud Light and Speedo. When she
later wrecked her knee, Mr. Collins needed a new gig.
In 1988, he joined the Stanford business-school faculty as a lecturer,
earning about $30,000 a year. He co-wrote "Built to Last" with Stanford
Prof. Jerry Porras and connected well with students, winning several
teaching awards. Tenured professors were chillier, especially when Mr.
Collins publicly criticized the way finance was being taught.
In 1995, Mr. Collins returned to Boulder to restart his career. He hired
local business students to study why some companies with decades of
listless stock-market performance later raced ahead, while others never
improved. Mr. Collins says he spent $500,000 of his money on the project
before seeking a publisher. Friends say he wanted to show he could surpass
anything Stanford's professors were doing in terms of academic rigor. He
doesn't dispute that.
"None of us knew exactly what we were doing," recalls Lane Hornung, one
of the researchers. Mr. Collins added to the weirdness by urging his
researchers to be as inquisitive as one of his favorite childhood
characters, Curious George. He periodically called his aides chimps.
Briefings were called "chimposiums." Researchers sometimes threw plastic
bananas at one another in the midst of arguments.
Mr. Collins and his aides culled data on 1,435 companies and decided 11
epitomized the transformations that intrigued them. They also found their
most memorable character: the late Darwin Smith, who headed Kimberly-Clark
from 1971 to 1991. Mr. Smith embodied the blend of humility and fierce
resolve that Mr. Collins decided to call Level 5 Leadership.
It didn't matter that Mr. Smith's career was lost in obscurity, or that
this Neenah, Wis., CEO had been a shy fellow with thick glasses and
ill-fitting suits. Those apparent shortcomings made him all the more
appealing. Mr. Smith was positioned as an Abe Lincoln-like hero whose life
showed that success was within anyone's grasp.
In the months after Sept. 11, 2001, Mr. Collins's book became balm for
many prominent people. On Oct. 26, 2001, the book debuted at No. 3 on The
Wall Street Journal's list of best-selling business books, and it has been
on the list ever since.
Critics note that some of the book's lionized companies, such as Fannie
Mae and Circuit City Stores Inc. aren't
doing well now. Mr. Collins responds: "What would you say about the UCLA
basketball teams under John Wooden? They put together a nine-year winning
record that will probably never be equaled. You can learn a lot about
sports coaching from those teams. How they're doing today doesn't negate
that. It's the same with the companies we study."
Right now, Mr. Collins is studying young companies that go public. He
wants to know what distinguishes the likes of Intel Corp., though he isn't sure
the answers will be worth a book.
He has higher hopes for a different project: analyzing why some social
institutions go on to greatness, while others don't. That will be much
harder than assessing companies, he acknowledges, because there is nothing
as simple as stock-market performance to follow. It can be maddeningly
difficult to define the success of a hospital, summer camp or city by any
measurable standards. But he says those obstacles just add to the new
project's allure.
"I remember going for a walk with Jim in downtown San Francisco one
time," says William Lazier, a Stanford lecturer. "Jim was so busy talking
that he nearly got run over by a bus while he was crossing the street. His
wife and I had to grab him and pull him away from traffic. 'I told him:
'Jim, we don't want you to get hit.'
"He replied: 'Oh, Bill, I won't get hit. I've got so much to
do!' "