How do some companies rise to greatness, especially in a time of upheaval and economic disruption? Jim Collins’ newest book, Great by Choice, studies leadership in turbulent times. If you enjoyed Built to Last (1994) or Good to Great (2001), this is another excellent read. Starting with 20,400 companies, Collins and his coauthor cut to only seven that they could label with the moniker “10X”. These 7 were not just successful: they thrived, beating their industry indexes by at least 10 times.
My favorite of the 10Xers is Southwest Airlines, which like other carriers, faced fuel shocks, labor strife, recessions, the 9-11 terrorist attacks, and more. Generating a profit every year for 30 years while the industry lost billions and furloughed over 100,000 employees, Southwest kept an unwavering commitment to high performance, and it knew to control expansion in good years. When the company started to grow, it didn’t leave Texas for its first 8 years, and by 1996, when more than 100 cities clamored for its service, Southwest opened only 4 new locations.
What did Collins find out about 10Xers, compared to less successful peers? First, they were not more creative or visionary or charismatic or ambitious or lucky or risk-seeking or heroic. But they did have 4 core behaviors: fanatic discipline, empirical creativity, high productivity, and a surprising amount of self-control, as illustrated by Southwest’s expansion approach.
The theme of Great by Choice is “the 20-mile march”. Imagine making a 3,000 mile walk from San Diego to Maine. On the 1st day you march 20 miles and make it out-of-town. On the 2nd and 3rd days, you march 20 miles. Now you reach the edge of the desert, with its 100 degree heat and would like to rest in your tent. But you keep the pace–always–regardless of snow, wind, freezing or scalding temperatures, never pushing for a 50 mile day under even the best of conditions. Your competitor starts the same day, but logs 40 miles in his excitement. He slows down on really bad days and may even hunker down in his tent for a week. Who gets to Maine first? It’s these 7 steady trekkers: Amgen, Biomet, Intel, Microsoft, Progressive Insurance, Southwest, and Stryker.
I loved the last paragraph.
Why do some posts just “hit home”? I am not sure, but I can tell you sincerely that this post was incredibly moving and inspirational to me. Not only is this new book fantastic, but you did a great job synthesizing it. There are three aspects of your analysis that stood out for me. First, the term “10x’ers” is easy to remember, and to the point. Imagine being ten times better than your competition!
Second, the four characteristics of these top level companies are simple, and attainable to every business – and more importantly for your readers, for every individual. Third, I love the concrete example of the 20-mile/day journey. What great symbolism this has. Comparing the steady, disciplined march to the more erratic, up-and-down style of most companies (and individuals) is certainly a memorable summary.