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CHOICEGREAT BY
by Jim Collins and Morten T. Hansen
Why do some companies
in uncertainty, even chaos, and others do
not?
THRIVE
It's all about understanding the
PRINCIPLESthat distinguish great organizations from
good ones.
HavingExecuting 20 Mile Marches
10x Leadership
Firing Bullets, then Cannonballs
Leading above the Death Line
Having a SMaC Recipe
MaximizingReturn on Luck (ROL)
The Principles
10x LEADERSHIP10X Leaders have purpose, long-term goals, severe
performance standards and... the FanaticDiscipline to adhere to them
They're not more creative
They're not more visionary
They're not more heroic
They're not more charismatic
They're not more ambitious
They're not more blessed by luck
They're not more risk taking
They're not more prone to making big, bold moves
What 10x Leaders are NOT
10X LEADERS HAVE
CORE BEHAVIORS
three
Fanatic Discipline
Relying on direct observation, conductingpractical experiments and/or engaging directlywith evidence. Making bold, creative moves froma sound empirical base.
Extreme consistency of action, valuesand goals. Mental independence and anability to remain consistent in the faceof herd instinct and social pressures.
Empirical Creativity
Maintaining hyper vigilance in good times as wellas in bad. Channeling fear into action, developingcontingency plans, building buffers andmaintaining large margins of safety.
Productive Paranoia
10X LEADERS DEFINE THEMSELVES BY
IMPACT
CONTRIBUTIONPURPOSE
Underlying the three core 10Xer behaviorsis a motivating force called
LEVEL 5 AMBITION
LEVEL 5 AMBITION
10X Leaders channel their ego and intensity intosomething larger than themselves.
They're passionately driven for a cause beyondthemselves.Such as: Building a great company, changing the world or achieving a greatobjective that's not about themselves
They reject the idea that luck, chaos or any otherexternal factor determines their success or failure.
20 Mile Marchhaving concrete, clear, intelligent and rigorously pursued performance
mechanisms
20 Mile March helps to:Build confidence in your ability to perform wellin adverse circumstances.
Reduces the likelihood of catastrophe whenyou're hit by turbulent disruption.
Helps you exert self-control in an out-of-control environment.
Elements of a 20 Mile MarchClear performance markers for minimum performance that createproductive discomfort.
Self-imposed constraints for maximum performance.
Tailored to your specific enterprise.
Within the company's control to achieve. You shouldn't need luck.
A Goldilocks Timeframe - not too long, not too short but just right to beeffective.
Designed by your company for your company.
Must be achieved with great consistency. Good intentions don't count.
Bullets,Fire
then
CannonballsOnly 9% of innovators ever dominate market share
WHAT IS Abullet?
A bullet is an empirical test or experiment aimed at learningwhat works and that meets three criteria:
1
2
3
LOW COST
LOW RISK
LOW DISTRACTION
THE PROCESS
1. Fire bullets to figureout what will work
2. Obtain empiricalconfidence in your
bullet
3. Concentrate yourresources, build a
cannonball
4. Fire a cannonball.After the cannonball
hits...
5. Keep 20 MileMarching to make the
most of your bigsuccess
CREATIVITIY+DISCIPLINE
= ScaleThe combination of creativity and discipline translate into the ability to
scale innovation with great consistency
LEADING ABOVETHE DEATH LINE
PRACTICING PRODUCTIVE PARANOIA
PRACTICE
PRODUCTIVE
PARANOIA
Buildcash reserves andbuffers.
Preparefor unexpected eventsand bad luck before theyhappen.
Actively boundand
risk Zoom Outthen zoom in
manage
Zoom Out1. Sense a change in conditions 2. Assess the time frame 3. How long before the risk profile changes? 4. Assess with rigor 5. Decide! Do we disrupt our plans? If so, how?
Zoom InFocus on supreme execution of plans andobjective
SMaC Recipe
SpecificMETHODICAL
& CONSISTENT
Recipe
WHAT IS A SMaC RECIPE?
• A written document. Your Manifesto • A durable set of operating practices • A consistent success formula that's replicable • If absolutely needed, only change one item at atime
Return on Luck is NOT THE
SAME as luck
Getting Great RoL
• Keep pushing, driving for your overall goal or cause. Luck, good and bad willhappen
• Build a culture that can achieve results with or without luck
• Firing bullets can present you with new opportunities. Don't wait for luck
• Manage risk to combat bad luck
• Practice Zoom Out/Zoom In to recognize luck and see if it meritsdisrupting your plans
• Have a SMaC Recipe that guides you during a luck event
CHOOSE
GREATNESS