The 5 stages of decline of great companies

Adopted from Jim Collins’s book titled “How the Mighty Fall” The 5 stages of decline of great companies are: Stage 1 – Hubris born of the success Stage 2 – Undisciplined pursuit of more Stage 3 – Denial of Risk and Peril Stage 4 – Grasping for salvation Stage 5 – Capitulation to irrelevance orContinue reading “The 5 stages of decline of great companies”

Creating huge margins of safety to keep playing the infinite game

The infinite game of business is where the players are unknown , time in unlimited and the rules are unknown. The goal of players in an infinite game is to keep playing the game. 10X companies or high performing companies in the infinite game of business , exercise productive paranoia , empirical creativity and fanaticContinue reading “Creating huge margins of safety to keep playing the infinite game”

Asymmetry between good luck and bad luck

The interesting asymmetry between good luck and bad luck is that: A single stroke of good luck , no matter how big the break , cannot by itself make a great company. But a single stroke of extremely bad luck that slams you on the Death Line , or an extended sequence of bad luckContinue reading “Asymmetry between good luck and bad luck”

How high performers turn bad luck into good results?

High performers shine when clobbered by setbacks and misfortune. These are ones who use difficulty as a catalyst to deepen purpose . recommit to values . increase discipline and respond with creativity. They heighten productive paranoia and use resilience to overcome all obstacles to reach greatness. Adopted from Jim Collins’s book titled “Great By Choice”

How Gary Kildall’s Digital Research missed the bus?

Gary Kildall and his company Digital Research had come up with an advanced operating system DR DOS for shipping to IBM PC’s. Due to a glitch in Microsoft’s operating system , IBM had become eager to sign a contract with Digital Research for shipping it’s OS in all IBM PC’s. But due to lack inContinue reading “How Gary Kildall’s Digital Research missed the bus?”

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”