Great by Choice

Great by Choice is Jim Collins’ latest book in which he searches to find what it is that makes some of the top companies great.

The main similarity of great companies that Collins identifies in this book are “10X Leaders”, and the traits that they consistently portray. Some of the traits that he identifies which I found most interesting are:

• 10X leaders figure out when to go fast, and when not to
• In an uncertain and unforgiving environment, following the madness of crowds is a good way for a company to get killed
• They don’t favour analysis over action, they favour empiricism as the foundation for decisive action
• These leaders consistently consider the possibility that events could turn against them at any moment
• They are incredibly ambitious, but their ambition is first and foremost for the cause, for the company and for the work, not for themselves
• 10X’ers consistently do a 20 Mile March (see below) in order to stay on course
• They always test new ideas by “firing bullets” (doing tests) before “firing canon balls” (taking a big bet on something new), allowing them to know when a need idea will be more likely to succeed
• These leaders prepare ahead of time for what they cannot predict, and build up reserves that act as a buffer
• They have the ability to “zoom out” and take a look at the whole issue and the macro environments that affect their world, before “zooming in” and addressing the problem at hand

The 20 Mile March

The 20 Mile March that Collins talks about is essentially about setting targets for yourself (or your business) to reach, and they must be reached in both good times and bad times. This means that if times are great, that you don’t over deliver, which could be setting your business up for failure in the years to come as you have set an unsustainable precedent. And in tough years, it is important to have a target that is obtainable, yet will still challenge your business to grown and be stretched.

Collins uses the example of Roald Amundsen who led the first team to the South Pole and his insistence to cover 20 miles and no more when there was good weather, and try to get as close to 20 miles covered on days of back weather as well.

A Good Easy Read

Although it is not the only characteristic that he identifies, for me, the 20 Mile March was the most important aspect that Collins identifies in the book. It is an easy read, so give it a go and see which aspects you find to be the most important.