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Tag: Great By Choice

  • 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.

  • “Slow and steady” in business as well wins the race

    10X or high performing companies as analyzed by Jim Collins in “Great By Choice” exhibit one very surprising pattern

    They have pegged their targets to a ceiling while at the same time earmarking a level beyond which it should never fall down.

    It is like playing an infinite game of business with discipline to fight the ofds when the chips are down while at the same time showing restraint of not being too greedy when the times are good.

    The comparison between Stryker and USSC has been cited as a reference wherein Stryker’s sustainable targets helped it stay afloat while USSC greed of aggressive targets eventually led to its acquisition by Tyco.

    Thus in the game of business as well , slow and steady wins the race

  • Comparison between Amundsen’s and Scott’s South Pole expeditions

    Adopted from the book titled “Great By Choice” by Jim Collins.

    Roald Amundsen and Rober Falcon Scott had contrasting approaches in their march towards South Pole.

    In the end it was the better prepared and ferociously competitive Amundsen who not only reached South Pole earlier but returned home safely.

    The following link from wikipedia.com highlights the contrasting approaches adopted by the two and also mentions how Amundsen with his better preparedness and  leadership traits was able to reach South Pole and return back safely.This little story highlights the fact that there is no shortcut for better preparedness and “Productive Paranoia” when it comes to overcoming an “unforgiving environment”.

    https://en.wikipedia.org/wiki/Comparison_of_the_Amundsen_and_Scott_expeditions

     

  • “Ambition” for self vs a “Just cause”

    All high performing leaders are incredibly ambitious.

    What makes their ambition different and in turn helps them rally followers and supporters around them is that their ambition is for a “just cause” not for self.

    When followers are shown a futuristic “just cause” for achieving something larger than themselves it can lead to a big impact.This is when followers get viscerally involved to realize something in order to achieve fulfillment in their lives.

    Thus when ambition is directly towards the betterment of a company , a just cause it has far reaching impact.

    Adopted from Jim Collins’s “Great By Choice” and Simon Sinek’s “The Infinite Game”

  • How to succeed in an “unforgiving environment”?

    Look at the behavior patterns of the following 10X high performing leaders:

    1. Herb Kelleher of South West Airlines – Predicting 11 of the last 3 recessions
    2. Andy Grove of Intel –  “Always looking for the black cloud in the silver lining”
    3. Bill Gates – Issuing nightmare memos in Microsoft

    By embracing the myriad of possible dangers , they put themselves in a superior position to overcome danger due to an “unforgiving environment”.

    These are leaders who succeeded in uncertain , unforgiving environment through deliberate , methodical and systematic practice.

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

  • Is “Productive Paranoia” good for high performing organizations?

    The high performing 10X companies are ones who maintain hypervigilance in good times as well as bad.

    They are always on their toes wary of disruption and hence competing with themselves to be a better version everyday.

    These companies constantly consider the possibility that events could turn against them at any moment and hence to counter such unpredictability they are always better prepared.

    Such “Productive Paranoia” thus keeps a high performing 10X organization afloat to be better prepared in the “Infinite Game” of business.

    Adopted from Jim Collins’s book “Great By Choice” and Simon Sinek’s book “The Infinite Game”