Pile On Motivation

Join 21K other subscribers

Tag: Jim Collins

  • Three dimensions of “Productive Paranoia”

    10X or high performing companies over the last 30 to 40 years exhibit an unique quality of “Productive Paranoia”.

    This quality helps them remain afloat through thick and thin when others around them fall by the wayside.

    The three dimensions of “Productive Paranoia” are:

    1. Accumulate cash reserves and balances to be better prepared for rough times.
    2. Bound all kinds of risks e.g. Death line , asymmetric , uncontrolled as well as time bound risks
    3. Zoom in and zoom out and remain hyper vigilant all the time to be wary of the competition.

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

  • The role of “empirical validation” in the success of iPod

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

    The iPod story illustrated a point that though a big successful venture can look like a single step creative breakthrough but in reality it is a multi step iterative process based on empirical validation than visionary genius.

    Apple’s revival via the iPod bears testimony to the combination of “fanatic disciple” & “empirical creativity”.

  • When South West Airlines fired “un-calibrated cannonballs”

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

    “Fire Bullets” Then “Cannonballs” approach mentioned in his book needs firing cannonballs when the bullets hit the incremental innovation targets.

    10X companies for e.g. SWA ideally fire calibrated cannonballs out of empirical validation and hence have achieved unparalleled  success.

    But history is witness to the fact that even SWA have fired “un-calibrated cannonballs” for e.g. acquisition of Muse Air in 1980’s.The only difference is that these companies have the needed discipline to learn from their mistakes and hence have been able to turn around from failures.

  • “Business innovation” and use of a cannonball approach

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

    In the “Fire Bullets” Then “Cannonballs” approach lets try to understand about cannonballs.

    Once the incremental innovations are tested by firing “bullets” and they hit their targets , the “cannonballs” need to be fired.

    Cannonballs can be 1) Calibrated and 2) Un-Calibrated

    A calibrated cannonball has confirmation based on empirical validation and are more likely to be successful.

    An un-calibrated cannonball can lead to calamity because they are fired without any experience based confirmation.

    Think of Pacific SouthWest Airlines’s demise and their FLy-Drive-Sleep was an un-calibrated cannonball that eventually led to the demise of PSA.

  • In the context of “Business Innovation” what is a bullet?

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

    Innovative high performing companies adopt a “Fire Bullets” then “cannonball” approach to outwit their rivals in the infinite game of business.In such an approach starting from firing bullets to test out the incremental innovation is imperative to scale up and later fire cannonballs.

    The following are the three components of a “bullet”

    1. Low Cost – Should not jeopardize the business model
    2. Low risk
    3. Low distraction

    Once these steps are validated and “bullets” fired hit their targets it should give a fair enough indication to scale up and fire “cannonballs”

  • “Fire Bullets” Then “CannonBalls”

    After reaching an “innovation threshold” this is the approach that explains the success of 10X or high performing companies rather than big leap innovations and predictive genius.

    “Fire Bullets” Then “CannonBalls” implying gradually scaling up innovations starting from a small scale(bullets).When these innovations hit their targets then only plan on launching the cannonballs.

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

    Watch out this space for more on this approach.

  • What happens when “operational excellence” marries “innovation”?

    When we marry operating excellence with innovation it multiplies the value of creativity and it turn amplifies growth of a 10x high performing organization

    Thus the greatest challenge is to blend creative intensity with relentless discipline

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

  • What is significant about the motto “Intel delivers”?

    Early 1973 Intel adopted the motto “Intel delivers” not “Intel innovates”

    This bears ample testimony to the fact that in any industry beyond an “innovation threshold” what matters is fanatical discipline to keep playing the infinite game

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

  • What is an “innovation threshold”

    Every business environment be it biotechnology , medical devices , airlines , insurance etc. has an “innovation threshold”

    For airlines it is low & biotechnology driven by patents is high

    To compete in an industry all big players have to operate beyond this threshold.The top performing ones are those who innovate judiciously without getting burnt out

    Adopted from Jim Collins’s book “Great by choice”

  • Whose business model did South West Airlines follow?

    South West Airlines(SWA) is a modern day classic example of an iconic company which did not start with a unique business model of its own.

    Pacific Southwest Airlines(PSA) started early as a low cost carrier.SWA followed the low cost model & even the entertainment aspect from PSA.The employees of SWA were encouraged to go on visits to PSA to study and understand their work culture and experience handed out to the customers.

    The difference is that SWA exhibited the right kind of discipline to take the organization to the next level whereas PSA lost its way.

    This comparison goes a long way to prove that to be an iconic brand it is not necessary to be a “first mover”.

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