The one-sentence summary
Great companies thrive despite uncertainty, chaos and luck by deploying fanatic discipline, empirical creativity, and productive paranoia.
- Some companies thrive despite uncertainty, chaos and luck. This nine-year study from the Good To Great man explains how.
- 10Xers (pronounced Ten Exers) are companies that have beaten their industry by a minimum of ten times over 15 years. Their fortunes are compared with paired companies in the same sector who failed.
- The best leaders were not more risk taking, more visionary, nor more creative – they were actually more disciplined, more empirical and more paranoid.
- The great companies changed less than you would think in reaction to a changing world – in fact fast decisions often lead to poor outcomes. The best question is: “How much time before the risk profile changes?”
- Being more innovative doesn’t always help – 1 successful idea is more productive than 99 unfertile ones.
- 10X companies did not necessarily have better luck. The critical question is what you do with the luck you get, whether good or bad.
- Choosing to be great involves:
- These three characteristics form the 10X triad.
- Fanatic discipline – considered decisions with clear constraints
- Empirical creativity – as opposed to uncalibrated cannonballs
- Productive paranoia – this is not the same as being paranoid (see next)
- Productive paranoia requires hypervigilance – constantly zooming out to the big picture, and zooming in to the detail. Never be too conceptual, nor too stuck in the weeds.
WHAT’S GOOD ABOUT IT
- The 20 Mile March is a good concept. Amundsen beat Scott to the pole by consistently marching 20 miles a day. In bad weather he did it anyway, and in good he stopped at 20 to save energy for the next day. Scott either stayed in his tent or overshot and wore himself out. Companies should go for similar consistency (fanatic discipline).
- Fire bullets, then cannonballs is good too. Instead of blowing all your resources on one initiative, try a small (low cost, low risk, low distraction) bullet shot at something first, make adjustments from learning, and save ammunition for a better-informed attack (empirical creativity).
- Leading above the death line. This involves building cash reserves (oxygen canisters) and remaining hypervigilant by constantly zooming in and out (detail v. big picture). This level of attention reduces surprises and the impact of unhelpful developments (productive paranoia).
WHAT YOU HAVE TO WATCH
- The book is only half as long as it looks. This is good because you can grasp it fast, but a swizz if you expected 300 pages of content for your £25.