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All 16 learnings · one per slide
Great by
Choice
Jim Collins and Morten T. Hansen, in bytes
16 key learnings on why some companies thrive in chaos and uncertainty.
16 learnings · ~40 sec eachSwipe →
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Great by Choice, in bytes
16 key learnings from Jim Collins and Morten Hansen's study of '10X' companies that beat their industries in turbulent times. Each takes about 40 seconds to read. Swipe, use the arrows, or your keyboard.
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Learning 1
10X Companies
The idea
Collins and Hansen studied companies that beat their industry index by at least ten times in uncertain environments.
Example
Pairs like Southwest vs Pacific Southwest Airlines, Intel vs AMD and Microsoft vs Apple.
Takeaway
Greatness is possible in chaos.
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Learning 2
Fanatic Discipline
The idea
10X leaders stick to consistent standards regardless of conditions.
Example
Southwest Airlines stayed profitable through many years of airline turmoil.
Takeaway
Consistency beats bursts.
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Learning 3
10X Leaders
The idea
Leaders combined fanatic discipline, empirical creativity and productive paranoia.
Example
Leaders like Southwest's Herb Kelleher and Intel's Andy Grove.
Takeaway
Three behaviours drive 10X results.
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Learning 4
Amundsen vs Scott
The story
Roald Amundsen prepared meticulously and moved steadily; Robert Falcon Scott's team suffered from inconsistent pace and less preparation.
The outcome
Amundsen reached the South Pole first and returned safely; Scott's team died on the way back.
Takeaway
Preparation and consistency matter.
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Learning 5
The 20-Mile March
The idea
Hit a consistent performance target in good and bad times: not too much in good years, never too little in bad.
Example
The book contrasts Amundsen's steady daily distances with Scott's erratic ones in the race to the South Pole.
Takeaway
Set a steady pace you can keep.
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Learning 6
Progressive Insurance
Example
Progressive aimed for consistent underwriting profit year after year.
Why
Turning down growth that would break the target kept the company safe.
Takeaway
Set lower and upper bounds.
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Learning 7
Fire Bullets, Then Cannonballs
The idea
Test ideas with small, cheap 'bullets' before committing big 'cannonballs'.
Example
Testing a new product in one market before a national rollout.
Try this
Run a small pilot before a big launch.
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Learning 8
Calibrated Cannonballs
The idea
Only commit big resources once evidence shows the idea works.
Example
Uncalibrated cannonballs, big bets without evidence, often caused disaster in comparison companies.
Takeaway
Evidence before scale.
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Learning 9
Productive Paranoia
The idea
10X companies keep cash reserves and prepare for bad events.
Example
10X companies kept much larger cash reserves than their comparisons.
Takeaway
Build buffers before you need them.
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Learning 10
Zoom Out, Zoom In
The idea
Zoom out to sense changing conditions, then zoom in to execute plans.
Example
Mountaineers on Everest watch the weather while focusing on each step.
Takeaway
Balance big picture and detail.
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Learning 11
Leading Above the Death Line
The idea
Avoid risks that could destroy the company; 10X firms managed downside carefully.
Example
The 1996 Everest disaster showed what happens when climbers ignore turnaround times.
Takeaway
Survive first.
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Learning 12
Empirical Creativity
The idea
They base decisions on evidence rather than conventional wisdom or guesses.
Example
Amgen tested many ideas before scaling the promising ones.
Takeaway
Test before you trust.
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Learning 13
SMaC Recipe
The idea
Specific, Methodical and Consistent operating practices, changed rarely.
Example
Southwest Airlines kept a simple, consistent operating recipe for years.
Takeaway
A clear recipe builds consistency.
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Learning 14
Change the Recipe Rarely
The idea
10X companies amended their recipes only occasionally, after careful thought.
Example
Southwest's recipe changed only a few times over decades.
Takeaway
Consistency with rare, deliberate change.
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Learning 15
Return on Luck
The idea
Luck, good and bad, hits everyone. What matters is how you use it.
Example
Bill Gates was lucky to be in the right place, but he made the most of it.
Takeaway
Prepare to make the most of luck.
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Learning 16
Luck Events
The idea
10X companies didn't get more luck; they made more of it.
Example
Comparison companies got as much good luck but squandered it.
Takeaway
Luck isn't the explanation.
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All 16 learnings complete
That’s all 16 learnings.
Discipline beats luck in chaos. What's your 20-mile march?
Abhay Kumar JaiswalFCA · PMP® · Workday Financeabhayjaiswal.com
Summaries in my own words. Read the book for the full stories.
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Summaries are written in my own words for learning. Read Great by Choice by Jim Collins and Morten T. Hansen (2011) for the full stories. More Books in Bytes