Great By ChoiceAn Overview Team 3: Andrew West, Andrea Lapotaire, Andrew Stack, Jessica Sharpless, Taylor Carroll
Clear Performance Markers • Set pace towards goal • Hard, but manageable
Self-Imposed Constraints • Safe guards to stay on track • Prevent straying from main goal
Appropriate to the Enterprise • Do not copy others • Create march according to own personality/environment
Largely Within Your Control • Be your own architect • Creating your own “20 Mile March” will: • Give a sense of autonomy • Craft to own specific needs
A Proper Timeframe • Long enough to accommodate unforeseen setbacks • Short enough to not lose motivation
Designed and Self-Imposed by the Enterprise • Do not set goals that can be out of your control • Set goals that you can achieve through your actions
Achieved with High Consistency • Success relies on consistency • “Be the consistent tortoise”
Fire Bullets, Then Cannonballs What are Bullets? • an empirical test aimed at learning what works and that meets 3 criteria: • low cost: the size of the bullet grows as the enterprise grows; a cannonball for a million dollar enterprise might be a bullet for a billion enterprise. • Low risk: does not mean high probability of success; low risk means that there are minimal consequences if the bullet goes awry or hits nothing. • Low distraction: low distraction from the overall enterprise; it might be very high distraction for one or a few individuals.
Embrace the “fire bullets, then cannonballs” • Fire bullets • Assess: Did the bullets hit anything? • Consider: Do any of your successful bullets merit conversion to a big cannonball? • Convert: Concentrate resources and fire a cannonball once calibrated. • Don’t fire uncalibrated cannonball • Terminate bullets that show no evidence of eventual success
Wal-Mart • Wal-Mart opened it’s first supercenter in 1988 in Washington, Missouri • This would be considered the bullet to see if this supercenter would be successful • Was successful, so started to slowly expand into other areas • By 1995, there were 239 supercenters • Cannonball
Learning From Bullet’s Mistakes • If a bullet is a miss, do not fire the cannonball and learn from the mistake • http://www.youtube.com/watch?v=6dhRotIbQgU
Return on Luck • Luck is defined by meeting these three test: • Some significant aspect of the event occurs largely or entirely independent of the actions of the key actors in the enterprise • The event has a potentially significant consequence • The event has some element of unpredictability • Are 10X companies luckier?
Return on Luck • Four possible return on luck scenarios • Great return on good luck • Poor return on good luck • Great return on bad luck • Poor return on bad luck • 10Xers assume they’ll get a spate of bad luck and prepare ahead of time
Productive Paranoia • Hope for the best, plan for the worst • “As soon as there is life, there is danger”- Ralph Waldo Emerson • Be prepared
Productive Paranoia • Build cash reserves and buffers • Bound Risk • Zoom out, Zoom in
SMaC • SMaC stands for Specific, Methodical, and consistent. • The more uncertain, fast-changing, and forgiving your environment, the more SMaC you need.
SMaC Recipe • A set of durable operating practices that create a replicable and consistent success formula • It is clear and concrete • Gives clear guidance on what to do and what not to do • Reflects empirical validation and insight about what actually works and why
SMaC Recipe • Developing a SMaC recipe, adhering to it, and amending it correlate with 10X success • Requires the three 10X behaviors: • Empirical creativity (for developing and evolving it) • Fanatic discipline (for sticking to it) • Productive paranoia (for sensing necessary change)
Amending a SMaC Recipe • Amendments can be made to one element or ingredient while leaving the rest of the recipe intact. • Two approaches: • Exercising empirical creativity-internally driven (fire bullets, then cannonballs) • Exercising productive paranoia-externally focused (zoom out, then zoom in)
Walmart’sSMaC Recipe • Low Prices, Anytime, Anywhere • Convenient Shopping-only have to make one shop for everything you need