
Jim Collins' "How the Mighty Fall" reveals the five-stage decline of once-great companies through rigorous research spanning 6,000 years of corporate history. A wake-up call for leaders everywhere - can you spot the early warning signs before it's too late?
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Ever wonder why seemingly invincible companies suddenly crumble? Jim Collins did. When a successful CEO pulled him aside at West Point with a haunting question - "How would you know you're declining when you're at the top?" - Collins embarked on a journey that would produce one of the most influential business books of the decade. What makes his research particularly striking is that he began studying corporate decline years before the 2008 financial crisis, creating a framework that transcends economic cycles. The most hopeful discovery? Decline isn't inevitable. It's largely self-inflicted - which means it can often be prevented or even reversed. Corporate decline resembles a progressive disease - harder to detect but easier to cure in early stages; easier to spot but harder to reverse in later phases. Consider Bank of America: In 1980, it stood as the world's largest bank with nearly 1,100 branches across 100+ countries. Yet within eight years, it posted massive losses, saw its stock plummet 80%, faced takeover threats, and ousted its CEO. What's remarkable is that this collapse happened despite appointing a dynamic 41-year-old CEO who initiated bold changes. His efforts couldn't prevent the bank's spectacular fall because the disease had already progressed too far.
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