One of my 2012 goals is to read at least one insightful business book each month and share what I learn with you, gentle reader.
For February, my book selection is Great by Choice by Jim Collins and Morten Hansen. They studied more than 20,000 companies to find the truly exceptional performers – the 10Xers – a term they coined because these companies beat their industry index by at least 10 times!
They engaged me from their first salvo, which read - We cannot predict the future. But we can create it. Their premise is that volatility, chaos, uncertainty and instability are “givens.” And trying to predict them is futile. The goal of their research was to uncover why some companies thrive in uncertainty, even chaos, and others do not.
Their findings will surprise you. The best leaders in the world:
- Don’t have a visionary ability to predict the future
- Aren’t bold risk-takers
- Aren’t more innovative than less successful companies
- Don’t embrace the ethos of “Fast!Fast!Fast!”
- Don’t change radically in response to external factors
- Don’t have better luck than the companies that don’t do as well.
They weren’t saying the 10Xers lacked creativity, ambition or the courage to bet big – they displayed all those traits – but these things were not what distinguished them or made them great.
Ok so what did make these leaders, and their companies, great? It came down to three core behaviors:
- Fanatic discipline – manifested as extreme consistency of action, which isn’t the same as regimentation or adherence to bureaucratic rules. It means staying with a program long enough to generate sustained results – not chasing every new shiny object that comes into your path.
- Empirical creativity – using empirical evidence as the foundation for decisive action, allowing them to simultaneously make bold moves and bound their risk.
- Productive paranoia - presuming worst-case scenarios and preparing for them, channeling fear and worry into action, developing contingency plans, building buffers and maintaining margins of safety.
In addition, they channel their ego and intensity into something larger and more enduring than themselves. They define themselves by impact and contribution and purpose.
They don’t make excuses and believe it’s up to them to correct for failure, period. They know that confidence is built from actual achievement, not motivational speeches, charisma or hope. And when they do get lucky, they have the ability to get a high return on luck that has a huge multiplicative effect.
The one overarching message from across all their research is this: greatness is not primarily a matter of circumstance; greatness is first and foremost a matter of conscious choice and discipline.
Discipline isn’t easy. It’s human nature to react – to thrive on chaos rather than thriving in it. Particularly now, when chaos is all around us. But the research clearly shows that’s not what makes a leader, or a company, great.
There are so many insightful leadership concepts in this book, I couldn’t do justice to all of them in the space of this blog. I encourage you to read it for yourself and learn about the 20 Mile March, firing bullets then cannonballs, leading above the Death Line and creating a SMaC Recipe just to name a few.
And in case you missed it, you can find my January review of the book Futurework here.
Kristi Erickson is a partner at PeopleResults. Follow her on Twitter @KMErickson.