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
All top performers are guided by a good & steady 20 Mile March approach has the following seven key aspects :
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
Adopted from Jim Collins’s book titled “Great By Choice”
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 of SWA and profit delivered immediately post 9/11
Adopted from Jim Collins’s book Great By Choice
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 abide by the set targets
Adopted from Jim Collins’s book titled “Great By Choice” , this is one of the unique defining characteristics that separates 10X companies from competitors
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:
Thus “Productive Paranoia” when exercised with the right intention can help to keep a company afloat and make profit and growth during difficult times.
The best example that comes to mind is how SouthWest Airlines made profits without any job cuts post 9/11 by demonstrating this quality to the best extent possible.
Any business big or small must understand the following three risks and adopt necessary means to mitigate the same:
It has been observed that all high performing or 10X companies have demonstrated better ability in mitigating these risks than their competitors.This is what has made companies like SouthWest Airlines , Apple to where they are today
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 , building buffers and maintaining high margins of safety.
Adopted from Jim Collins’s book titled “Great By Choice”
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 to empirical evidence.
Adopted from Jim Collins’s book titled “Great By Choice”
In his book Great by Choice Jim Collins illuminates us on the need for leaders to exhibit fanatic discipline for high performance of their teams.
Such Discipline helps in displaying extreme consistency of action in terms of values , goals , performance standards & methods.
With a sense of “Fanatic Discipline” , high performers are utterly relentless , unbending in their focus on their quests.
The following snapshot mentions the 5 elements which are the key ingredients of Fanatic Discipline.
For another such wonderful insight from the same book, please read below:
https://viewpointsunplugged.com/10x-organizations-and-their-fanatic-discipline/
To know more about the author Jim Collins and his work please read the link:
SMaC stands for Specific , Methodical and Consistent operating practices adopted by 10X companies as a recipe for long term success
Though this is a checklist , depending on the changing environment it needs to be dynamic without altering the basic essence
10X compaies use “empirical creativity” to develop the checklist , “fanatic discipline” to stick to it and “productive paranoia” to sense necessary changes
Adopted from Jim Collins’s book titled “Great By Choice”