Great By Choice (by Jim Collins)
Premise: Some people and companies (termed 10Xers) thrive in uncertainty, even chaos and others do not. Why?
Factors for Success
Fanatic Discipline - The most successful people (and organizations) demonstrate a consistency of action, values, long-term goals, performance standards and methods, over time. Often a LONG period of time.
Empirical Creativity - Their innovation is based on data; not blind hope and optimism. They often forego conventional wisdom, unless the data supports it. They rely on direct observation and practical experimentation.
Productive Paranoia - They are always scanning the environment for what could go wrong. They are hyper-vigilant in good times as well as bad. AND they prepare for those “what-ifs” by storing away strong reserves to buffer adverse conditions.
Level 5 Ambition - They are leaders with inspiring standards as opposed to inspiring personality. They have a deeply inspiring form of ambition: 10xers channel their ego and intensity into something larger and more enduring than themselves.
Key Themes
20 Mile March - Story of two men racing to South Pole with very different approaches. Consistency is crucial regardless the environment (internal or external). It requires hitting specified performance markers with great consistency over a long period of time. It requires two distinct types of discomfort, delivering high performance in difficult times and holding back in good times.
Fire Bullets, then Cannonballs - 10X companies, though innovative, often are not the most innovative in their industry. Their goal is to be "innovative enough" by making calibrated risks. They take lots of little risks at a low cost (bullets). If they show promise, they calibrate by firing more targeted bullets. If sufficient empirical evidence for success exists, they then fire cannonballs by making the big investment.
Productive Paranoia; Leading above the Death Line - To thrive, you must maintain a productive paranoia about what could go wrong and prepare for those possibilities by ensuring that you have reserves and buffers to overcome unexpected events and back luck, before they happen. Manage your risk, 10Xers took less risk than comparison organizations. You must also "zoom out" to the big picture (changing environment), then "zoom in" with incredible focus on execution. Finally, you must understand time-based risk: how much time do you have? Be hyper-vigilant to recognize risks early. Fast decisions are not necessarily best decisions. Use the time you have to make a deliberate fact-based decision. (Go slow when you can, fast when you must).
SMaC (Specific, Methodical, and Consistent recipe for success) - This is the operating code for turning strategic concepts into reality; a set of practices that successful people and companies consistently follow. It forces order amidst chaos. However, it’s not the existence the recipe that is most important, it is the fanatic discipline to follow it. The signature of mediocrity is chronic inconsistency.
Return on Luck - All organizations face both positive and negative “luck.” The key differentiator to success is not the amount of one type or the other. The key differentiator is the response to luck; rather the degree to which we leverage the good or mitigate the bad. (Return on Luck – ROL) .
For more reading, check out the longer, more details book summary: Book Summary - Good to Great
Recommendation: This is a great book to own - here is the link to it on Amazon: http://ow.ly/BmobW
