This is a bookie I made about the book Great by Choice by Jim Collins and Morten T. Hansen. It's a (no-pun-intended) great book! Hopefully its lessons inspire you the same way they inspired me.
2. Why do some companies thrive in uncertainty, even chaos,
and others do not?
3. It's all about understanding the principles that distinguish
great organizations from good ones
4. The Principles
Having 10x Leadership
Executing 20 Mile Marches
Firing Bullets, then Cannonballs
Leading Above the Death Line
Having a SMaC Recipe
Maximizing Return on Luck (ROL)
5. Beware of Myths
g visionaries
e bold, risk seekin
essful leaders ar
Myth 1: Succ
s 10x companies
tion distinguishe
Myth 2: Innova
and fast action
es fast decisions
fast world requir
Myth 3: A
hange in your
c
requires radical
ge in the world
4: A radical chan
Myth
business
ore good luck
erprises have m
yth 5: Great ent
M
6. 10X Leadership
10X Leaders have purpose, long-term goals, severe
performance standards and... the Fanatic Discipline to adhere
to them
7. What 10X Leaders are NOT
They're not more creative
They're not more visionary
They're not more charismatic
They're not more ambitious
They're not more blessed by luck
They're not more risk seeking
They're not more heroic
They're not more prone to making big, bold moves
9. 1. Fanatic DISCIPLINE
•
Extreme consistency of action, values and goals. Mental
independence and an ability to remain consistent in the face of herd
instinct and social pressures
2. Empirical CREATIVITY
•
Relying on direct observation, conducting practical experiments
and/or engaging directly with evidence. Making bold, creative moves
from a sound empirical base
3. Productive PARANOIA
•
Maintaining hyper vigilance in good times as well as in bad.
Channeling fear into action, developing contingency plans, building
buffers and maintaining large margins of safety
10. Underlying the three core 10Xer behaviors is a
motivating force called
LEVEL 5 Ambition
12. LEVEL 5 Ambition
•
10X Leaders channel their ego and intensity into
something larger than themselves
•
They're passionately driven for a cause beyond
themselves
•
•
Such as: Building a great company, changing the world or
achieving a great objective that's not about themselves
They reject the idea that luck, chaos or any other
external factor determines their success or failure
13. 20 Mile March
Having concrete, clear, intelligent and rigorously pursued
performance mechanisms
14. 20 Mile Marching helps to
•
Build confidence in your ability to perform well in adverse circumstances
•
Reduces the likelihood of catastrophe when you're hit by turbulent
disruption
•
Helps you exert self-control in an out-of-control environment
Keep to the march! Failure to stay on course can be catastrophic
15. Elements of a 20 Mile March
Clear performance markers for minimum performance that create productive
discomfort
Self-imposed constraints for maximum performance
Tailored to your specific enterprise
Within the company's control to achieve. You shouldn't need luck
A Goldilocks Timeframe - not too long, not too short but just right to be
effective
Designed by your company for your company
Must be achieved with great consistency. Good intentions don't count
17. What is a Bullet?
A bullet is an empirical test or experiment aimed at learning what works and
that meets three criteria
1. Low cost
2. Low risk
3. Low distraction
18. The Process
1. Fire bullets to figure out what will work
2. Obtain empirical confidence in your bullet
3. Concentrate your resources. Build a cannonball
4. Fire a cannonball. After the cannonball hits...
5. Keep 20 Mile Marching to make the most of your
big success
19. Creativity + Discipline = Scale
The combination of creativity and discipline translate into the
ability to scale innovation with great consistency
21. Practice Productive Paranoia
•
Build cash reserves and buffers. Prepare for unexpected
events and bad luck before they happen
•
Actively bound and manage risk
•
Zoom Out, then Zoom In
22. Zoom Out, then Zoom In
zoom out
1. Sense a change in conditions
2. Assess the time frame
3. How long before the risk profile changes?
4. Assess with rigor
5. Decide! Do we disrupt our plans? If so, how?
ZOOM IN
•
Focus on supreme execution of plans and
objective
24. What is a SMaC Recipe?
•
A written document. Your Manifesto
•
A durable set of operating practices
•
A consistent success formula that's replicable
•
If absolutely needed, only change one item at a time
27. Getting Great RoL
•
Keep pushing, driving for your overall goal or cause. Luck, good and
bad will happen
•
Build a culture that can achieve results with or without luck
•
Firing bullets can present you with new opportunities. Don't wait for
luck
•
Manage risk to combat bad luck
•
Practice Zoom Out/Zoom In to recognize luck and see if it merits
disrupting your plans
•
Have a SMaC Recipe that guides you during a luck event