Building a Clock vs. Telling Time

I've recently begun reading the book Built to Last by Jim Collins and Jerry Porras. Having only read a few chapters, I honestly feel this is a book after my own heart. This book is all about branding, yet it doesn't mention branding once. It does however talk about the importance of having a core ideology (purpose + core values), and ensuring that the entire organization is focused on living up to its ideology. It also discusses how visionary companies aim for both profits and purpose, but profit maximization isn't the primary focus. I particularly like this quote from the book:

"Profitability is a necessary condition for existence and a means to more important ends, but it is not the end in itself for many of the visionary companies. Profit is like oxygen, food, water, and blood for the body; they are not the point of life, but without them, there is no life."

This quote reminds me of what I often say - Organizations make money to stay in business, but it's not why they are in business.

Another aspect of the book I enjoy is their analogy for Clock Building versus Time Telling. Jim & Jerry mention how leaders in organizations should be focused on building a clock versus telling time. What they are referring to is the idea that business leaders shouldn't be too focused on creating the latest and greatest thing (telling time). Rather, those leaders should be focused on architecting the organization so that after he/she leaves, the organization will still be able to uphold its core ideology (building a clock) so that it can tell time over time.  

One of the examples used in the book was Wal-Mart vs. Ames. They discussed how Sam Walton had a passion for change, experimentation & continual improvement, so he built in mechanisms that enabled the entire organization to create change and constant improvement. This way every employee is able to contribute to the organization and uphold the core values that Walton built into the company. Where as Ames dictated change from above disabling employees from being able to take initiative. Walton believed in future Wal-Mart leaders and staff to improve and change the company, whereas Ames only believed in market share - the right now. Ames did not build a clock - Wal-Mart did!

Another example was Disney vs. Columbia Pictures. Walt Disney told time and built a clock! Walt told time buy personally creating many of Disney's masterpieces himself, but he also developed many processes that would ensure his company created happiness for long after his days at the company. He established art classes for all the animators, instituted the "You Make Happiness" training program for all Disney employees, etc. which helped him build the Disney clock. Whereas, Harry Cohn, at Columbia Pictures, was too busy creating a name for himself. As mentioned in the book, "He became the first person in Hollywood to assume the titles of president and producer". Yet he did little to prepare Columbia for the days when he would no longer be around, and sadly the company went into disarray after he passed away.

So, this book has got me thinking about Apple computers - an incredible brand with an incredible leader. But has Steve Jobs been only telling time, or has he been building a clock in the background for when he's no longer around? 

The first time Jobs left the company in the 80's, he had, clearly, only been telling time. There couldn't have been any processes in place to uphold Apple's purpose to change the world by developing tools for the mind that advance human kind, because John Sculley, Jobs successor, began creating computers that looked like everything else on the market. There was no more one-box design or focus on the user - the purpose was gone! 

As an Apple fan myself, I hope Jobs has not only been telling fantastic time with products that are truly changing the world (who would have thought that a computer company would beat out Bertelsmann in music distribution 15 years ago?), but has, also, been building a clock so his organization can continue striving towards accomplishing its crazy and exciting purpose!

In the mean time, I can't wait to finish this book, Built to Last! I'm sure I will have more to report on it! 

If you haven't read this book yet, I would highly recommend it!