When AMD squandered “good luck”

AMD gave Intel a run for its money when in the mid 1990’s AMD’s K5 processor had all features of Intel’s Pentium processor and was sure to grab a lot of Intel’s market share. The opportunity AMD had got with its K5 chip to topple Intel’s market leader position was squandered when the K5 chipsContinue reading “When AMD squandered “good luck””

What is “Return on Luck”

Adopted from Jim Collins’s book titled Great By Choice High performers or 10X performers make the most of an opportunity.Luck for them is “preparation meeting an opportunity” These are high performers who make the most use of luck to get high ROL or Return on Luck to leave competitors by the wayside. Think of BillContinue reading “What is “Return on Luck””

“Luck” in the context of business

Luck in the context of business meets the following three tests 1) Some significant aspect of the event occurs largely or entirely independent of the actionsof the key actors in the enterprise 2) The event has a potentially significant consequence 3) The event has some element of unpredictability Adopted from Jim Collins’s Great By Choice

7 characteristics of “The 20 Mile March” of high performers

A good steady 20 Mile March is characterized by : 1) Clear performance markers 2) Self imposed constraints 3) Specific to an enterprise 4) Largely within company’s control to achieve 5) Needs a proper timeframe to achieve 6) Imposed by the company upon itself 7) Achieved with high consistency else this is not sustainable AdoptedContinue reading “7 characteristics of “The 20 Mile March” of high performers”

Adhering to a “20 Mile March” strategy needs character

This is a specific performance marker that 10X companies adopt consistently over a period of time Adhering to this metric needs true character and requires two distinct types of discomfort: 1) Showing self restraint and holding back in good times without being greedy so that 2) High performance is delivered during difficult times Think ofContinue reading “Adhering to a “20 Mile March” strategy needs character”

Doing a “20 Mile March” consistently over time

The “20 Mile March” is a steady performance marker adopted by high performing organizations that help them survive the test of time This steady march requires hitting specified performance markers consistently over a period of time. This kind of a strategy needs exercise of self restraint during good times to not be greedy and abideContinue reading “Doing a “20 Mile March” consistently over time”

How “Productive Paranoia” helps keep high performing organizations afloat?

The three main dimensions of “Productive Paranoia” exhibited by high performing or 10X companies , as mentioned by Jim Collins in “Great By Choice” are as follows: Build cash reserves and buffers is like having sufficient oxygen cannisters to help climb Mount Everest.It is the reserve that bails a company out of crisis situations andContinue reading “How “Productive Paranoia” helps keep high performing organizations afloat?”

Why any business must understand these three risks?

Any business big or small must understand the following three risks and adopt necessary means to mitigate the same: Death Line Risk – This if not properly mitigated can kill or severely damage an enterprise Asymmetric Risk – The downside of such risks dwarfs the upside. Uncontrollable Risk – This cannot be controlled or managedContinue reading “Why any business must understand these three risks?”

Why is “Productive Paranoia” needed for high performance?

High performers referred to as 10X performers in Jim Collins’s book titled “Great By Choice” , maintain hypervigilance ,staying highly tuned to threats and changes in environment even when everything is going well. These high performers use “Productive Paranoia” to turn their fear and worry into action , preparing and developing contingency plans , buildingContinue reading “Why is “Productive Paranoia” needed for high performance?”

Why is “Empirical Creativity” needed for high performance?

This skill relates to relying on direct observation , practical experimentation and direct engagement with direct evidence.This helps high performers make bold moves from a sound empirical base. Thus when faced with uncertainty , high performers or 10X performers do not look up to other people or peers for direction they primarily look up toContinue reading “Why is “Empirical Creativity” needed for high performance?”