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Category: Leadership

  • What happens when the aggressive growth strategy is not sustainable?

    Let us a look at the following 10X high performance organizations(highlighted in bold)vs their competitors who were outclassed in the long run

    1. Stryker vs USSC
    2. Southwest Airlines vs PSA
    3. Progressive Insurance vs Safeco
    4. Intel vs AMD
    5. Amgen vs Genetech

    Be it AMD , USSC or the other players one common link which made all these companies go out of market was their lack of discipline when it came to framing their growth strategies.When the ride was smooth they aimed for non sustainable levels of growth which eventually led to their downfall when the environment started getting unfavorable for e.g. recession , slowdown etc.

    The disciplined “20 Mile March” approach during thick and thin not only enabled the 10X companies survive but be profitable as well during the hard times.For e.g. immediately after 9/11 in 2001 all airline companies reported huge losses barring SWA which reported profits in 2002 as well.

    Truly “Fanatic Discipline” when ingrained in the mannerism of an organization and the “20 Mile March” approach works consistently year on year nothing can stop the company from leaving behind a legacy.

    Adopted from Jim Collins’s book titled “Great By Choice”.

  • Seven characteristics of a good “20 Mile March”

    A balanced year on year growth strategy which is born out of fanatic discipline of 10X companies has been termed as the “20 Mile March” in the book titled “Great by Choice” by Jim Collins.

    Such a strategy takes into account the fact that we need to respect “unforgiving environment” when the tide is rough for e.g. recession , slowdown etc. and hence pegs the growth figures to an achievable mark fully mindful of the fact that in the infinite game of business not always  the environment will be friendly.

    Seven characteristics of a good “20 Mile March” are as follows:

    1. Clear performance markers
    2. Self imposed constraints esp. to settle for lower growth rates when the tide is smooth
    3. Appropriate to the specific enterprise
    4. Largely within the company’s control to achieve
    5. A proper time frame
    6. Imposed by company on itself
    7. Achieved with high consistency

  • Three Reasons why “The 20 Mile Marchers” always beat competition

    Adopted from Jim Collins’s book titled “Great By Choice”

    “20 Mile March” is a term coined in his book to explain why 10X companies have won over their competitors by being slow and steady , in the infinite game of business.

    The three reasons why such a strategy helps to fight against all odds during difficult times has been mentioned below:

    1. Builds confidence in ability to perform during adverse conditions
    2. Reduces likelihood of catastrophe when hit by turbulent disruption
    3. Helps to exert self control in an out of control environment

  • How do “high performing” companies overcome uncertainty?

    “The 20 mile march” or the disciplined and consistent year on year growth plans of high performing companies , impose order amidst disorder , consistency amidst uncertain environment.

    This sense of “fanatic discipline” manifested in the form of the well thought out growth plans sacrifice the enticement of aiming for greater growth when the tide is smooth.

    Better known competitors of these 10X companies have fallen by the wayside because of  a lack of discipline.These are companies who have aimed for higher and higher growth when the tide has been smooth.As a result of such unplanned growth attempts they have failed to survive during difficult times for e.g. slowdown , recessions etc.

    These are times when the sense of discipline of these 10X companies have enabled them not only to survive but be profitable as well.

    Think of 9/11 attacks in 2001 , outclassing all competitors , South West Airlines still managed to be profitable in 2002

    Adopted from Jim Collin’s book titled “Great By Choice”

  • What is meant by “The 20 Mile March”?

    Adopted from Jim Collins’s book titled “Great By Choice”.

    10X companies meaning high performing companies have a common pattern of following “The 20 Mile March” growth approach.

    By this is meant an approach wherein the leaders in such companies define a growth rate which is ethical , reasonable and not too aggressive.This would mean defining a ceiling and floor in terms of the growth rate.

    “Fanatic discipline” is required to be able to peg the growth rate to a ceiling when the times are good.By not falling prey to such enticement would ensure that when the tide is rough e.g. recession the company would be able to be profitable and meet targets when lesser companies would fall apart by the wayside.

    “The 20 Mile March” has been a common pattern noticed in great companies which have survived the test of time for e.g. South West Airlines , Intel , Amgen , Stryker etc.

  • The funny part about a “plan”

    “Always plan for the fact that no plan ever goes according to plan.” – Simon Sinek

    Adopted from Simon Sinek’s book titled “Together is Better”

  • Idea vs Action

    Adopted from Simon Sinek’s book titled “Together is Better”

    “Genius is in the idea.Impact comes from the action.” – Simon Sinek

  • The destination is never “fuzzy” to a great leader

    A great leader is one who has a clear vision that helps in showing followers the proper destination.

    A weak leader or a micro manager is one who is not sure of the destination himself.As a result of this the followers never have a clear sense of vision.

    The human brain is oriented in a manner that it feels relaxed when provided a clear sense of direction.The moment the direction is crystal clear the human brain is able to devise innovative means to reach the destination irrespective of obstacles on the way.

    Thus a clear sense of direction keeps the followers engaged towards the vision.

  • Reason our “WHY” should be for service to others

    The concept of WHY was introduced by Simon Sinek in his iconic book titled “Start With Why”.

    A WHY is another name for finding a deep filled purpose in our lives.This has to be in sync with our own personality traits as well.

    When we run after short term benefits , hit a goal , get a promotion we do find moments of happiness which is short lived.This is like a “dopamine hit” which is bound to die after some time.

    Hence our sense of purpose has to be long term.When we delve deep and find our purpose or WHY , more often it is part of a futuristic vision which is bigger than ourselves.

    When we work towards attainment of the WHY , we sense the flow of “oxytocin” or the fulfillment chemical that enriches us.

    Adopted from Simon Sinek’s book titled “Start With Why” and “Find Your Why”

  • Great quote of the day

    “There is only one way to avoid criticism : do nothing , say nothing , and be nothing.” – Aristotle

    Adopted from Simon Sinek’s “Together is Better”