Great by Choice

Greatness is not a matter of circumstance; greatness is largely a matter of conscious choice and discipline.

1. The Power of Preparation

Preparation can be the deciding factor between success and failure. Amundsen and Scott's race to the South Pole illustrates this principle vividly. Amundsen studied survival techniques from Eskimos, rigorously tested various foods, and brought ample supplies. Scott, in contrast, was underprepared, relying on untested technologies like motor sledges that failed him and his team.

Preparation isn't just about material readiness but also about gathering knowledge. Businesses that invest time and effort in understanding their environment are better equipped to adapt and succeed. Learning from proven strategies and applying them effectively minimizes the impact of uncertainties.

Proactive preparation reduces reliance on chance. Like Amundsen's meticulous planning, thriving companies align their efforts with long-term, reliable strategies that help them weather storms rather than being overwhelmed by unexpected challenges.

Examples

• Roald Amundsen's use of Eskimo techniques to ensure his expedition's survival.
• Amundsen's decision to mark his supply depots with black flags for easy visibility.
• Companies conducting scenario planning to anticipate market changes before they occur.

2. Discipline Equals Consistency

Successful companies thrive by adhering to consistent strategies, dubbed the Twenty-Mile March. This principle emphasizes maintaining regular progress rather than exhausting resources when times are good or panicking when times are bad. It's about steady, reliable advancement.

Amundsen's team embodied this by marching 15.5 miles daily, regardless of favorable or unfavorable conditions. Similarly, businesses following this method set specific, measurable goals (e.g., growth percentages) and stick to them year after year.

When discipline falters, companies may overextend, leading to failure during hard times. For instance, AMD pursued aggressive growth and over-borrowed, damaging its long-term viability, while Intel's gradual, consistent growth helped it thrive.

Examples

• Amundsen's team marching the same distance daily to conserve energy.
• Companies setting steady market share increases rather than explosive one-time gains.
• Intel's measured growth strategy in contrast to AMD's overreach.

3. Innovation With Evidence

Bold ideas need a solid foundation of evidence to succeed. 10X companies adopt a "fire bullets, then cannonballs" approach. They first test low-risk innovations (bullets) to gather evidence about what works. Once validated, these ideas are scaled massively (cannonballs).

Apple exemplifies this by launching a Mac-exclusive iPod to test market demand. Following its success, Apple widened access with a version for non-Mac users, coupled with the iTunes store. Their measured steps supported innovation while minimizing risk.

Innovation backed by evidence creates balance. Blind risk-taking wastes resources, while measured and data-driven strategies create breakthroughs that resonate with market needs.

Examples

• Apple's small-scale release of the first iPod.
• Apple's extension of iTunes and iPod to a broader audience after initial validation.
• Businesses introducing beta versions of products before full-fledged launches.

4. Innovation Must Be Balanced

While innovation is important, over-prioritizing it can weaken a company's foundation. Businesses must meet industry-specific innovation thresholds but shouldn't channel all resources into it at the cost of other vital operations.

For instance, Intel managed to surpass AMS not by out-innovating but by ensuring efficient manufacturing and on-time deliveries. AMS, despite its superior lab innovation, lost out in the marketplace because it lacked balanced focus.

The lesson is clear: innovation is a tool, not a goal. It should complement other areas like manufacturing, marketing, and customer relations to build a well-rounded, efficient organization.

Examples

• Intel outmaneuvering AMS by focusing on operational efficiency.
• Airlines focusing on reliable services over creating new technologies monthly.
• Businesses prioritizing customer service alongside innovative product development.

5. Productive Paranoia: Worry to Win

Constant vigilance is a hallmark of top-performing companies. CEOs and leaders of 10Xers worry about potential threats and prepare exhaustively to face them. This paranoia isn't debilitating; it's productive and leads to proactive measures.

Southwest Airlines survived the turmoil of 9/11 by maintaining massive cash reserves and scouting the environment for opportunities amidst chaos. Their readiness ensured growth when others faltered.

Companies must harness fear constructively, using it as a tool to predict challenges and fortify their strategies. They don't hope for smooth sailing; they brace for storms.

Examples

• Southwest Airlines’ financial preparations shielding it during the 9/11 airline industry crisis.
• Leaders keeping tabs on changing legislation or new competitors.
• Cash reserves acting as safety cushions for businesses during economic downturns.

6. SMaC Procedures: Specific, Methodical, Consistent

Durable and highly specific operating procedures breed success. Southwest Airlines' "commandments" exemplify this. Their list of tenets remained largely unchanged for decades, offering clarity and consistency despite a volatile industry.

SMaC procedures rely on evidence and are adhered to strictly. Changing them is rare and only happens when absolutely necessary. In doing so, companies create enduring frameworks that provide stability even in turbulent times.

This strategy roots companies in core values and tested processes, ensuring they don't waver or crumble under external pressures.

Examples

• Southwest Airlines' ten commandments guiding operations through deregulation.
• Manufacturing firms adhering to quality-control protocols to ensure steady outputs.
• Retail chains standardizing store layouts to enhance customer familiarity.

7. Hard Work Beats Luck

Success is less about getting lucky and more about capitalizing on opportunities. Bill Gates had access to education and computers early, but it was his relentless pursuit of creating software that turned his good fortune into lasting success.

10X companies leverage luck by responding proactively. They maximize their returns on opportunities with hard work and ambition, distinguishing themselves from competitors who squander similar chances.

The key takeaway: while luck can pave the way, only relentless effort can build the road. Successful people and companies earn their achievements by pushing beyond the bare minimum.

Examples

• Bill Gates dropping out of college to devote himself to software development.
• Companies pivoting operations quickly in response to unexpected market trends.
• Entrepreneurs doubling down on serendipitous encounters by seizing opportunities.

8. Thrive Amid Uncertainty

The book establishes that uncertain environments aren't barriers to success but opportunities for the prepared. Companies like Southwest Airlines and Intel excel despite storms because they invest in preparation, maintain discipline, and embrace evidence-based decision-making.

These businesses don't rely on predictions; they plan to succeed regardless of external conditions. Preparedness becomes a cornerstone of resilience and growth.

This principle empowers leaders to face the unknown with confidence and capability, knowing their good preparation will pave the way.

Examples

• Amundsen's meticulous planning for his Antarctic expedition.
• Intel's growth during industry cycles by sticking to grounded strategies.
• Southwest Airlines’ steady performance during economic and security crises.

9. The Importance of Consistency

Through consistent actions and frameworks, companies assure long-term results. Instead of swinging wildly between extremes or reacting solely to external pressures, they focus on measured, goal-oriented growth.

Consistency isn't rigidity; it adapts to external developments without abandoning proven principles. This rhythm ensures sustainability and builds trust with stakeholders.

Such companies don't chase trends aimlessly – instead, they keep their eye on the bigger picture while steadily marching forward.

Examples

• Amundsen’s team stopping after achieving a set distance daily, regardless of favorable weather.
• Businesses maintaining annual growth rates regardless of market booms or busts.
• Apple consistently focusing on enhancing user experience in each new product iteration.

Takeaways

1. Build habits of discipline in your organization by identifying measurable goals and consistently working towards them.
2. Always base decisions on evidence, validating ideas through small experiments before committing significant resources.
3. Don’t depend on luck – prepare for uncertainties, maintain reserves, and ensure a balanced focus on all business areas.