A reading club with a view to the future

135 Jim Collins, Morten T. Hansen: Great by Choice

Successful companies are not just lucky, they have specific behaviors and strategies that allow them to thrive in uncertain environments.

Jim Collins, Morten T. Hansen: Great by Choice

Summary

In "Great by Choice," Jim Collins and Morten T. Hansen analyze why some companies succeed in uncertain and chaotic environments, while others fail. They use a rigorous empirical approach to compare companies that have performed well over a long period of time with those that have not. They find that successful companies do not rely on luck, but rather on specific behaviors and strategies that allow them to thrive in uncertain environments. These behaviors include fanatic discipline, empirical creativity, productive paranoia, and a level 5 leadership style. The authors also explore the role of luck, showing that successful companies are not just lucky, but they have built systems and structures that allow them to take advantage of lucky opportunities when they arise. "Great by Choice" is a compelling and insightful book that offers practical lessons for anyone seeking to succeed in an uncertain and chaotic world.

About

Title: Great by Choice: Uncertainty, Chaos, and Luck - Why Some Thrive Despite Them All

Authors: Jim Collins and Morten T. Hansen

Publishing Year: 2011

Publisher: HarperBusiness

Length in hours: 8 hours and 45 minutes

5 main ideas

  1. Successful companies are not just lucky, they have specific behaviors and strategies that allow them to thrive in uncertain environments.
  2. Fanatic discipline, empirical creativity, productive paranoia, and level 5 leadership are key behaviors that successful companies exhibit.
  3. Successful companies build systems and structures that allow them to take advantage of lucky opportunities when they arise.
  4. Luck plays a role in success, but it is not the only factor.
  5. The principles of success identified in the book can be applied by anyone seeking to succeed in an uncertain and chaotic world.
Jim Collins, Morten T. Hansen: Great by Choice

5 funny quotes

  1. "If you're not a little confused by what's going on, you're not paying attention."
  2. "You cannot predict the future, but you can prepare for it."
  3. "We cannot control the wind, but we can adjust our sails."
  4. "What's luck got to do with it? Everything."
  5. "It's not the destination, it's the journey that counts."

5 thought-provoking quotes​

  1. "10Xers (the companies that outperformed their industry by a factor of 10) do not primarily react to what happens, they create what happens."
  2. "We cannot predict the future. But we can create it."
  3. "The best leaders we studied did not have a visionary ability to predict the future. They observed what worked, figured out why it worked, and built upon proven foundations."
  4. "The only mistakes you can learn from are the ones you survive."
  5. "The signature of mediocrity is not an unwillingness to change; the signature of mediocrity is chronic inconsistency."

5 dilemmas

  1. The tension between innovation and discipline: Companies need to be innovative to survive in a rapidly changing world, but they also need discipline to execute their ideas effectively.
  2. The balance between risk and caution: Successful companies take risks, but they also need to be cautious and manage their risks effectively.
  3. The role of luck vs. skill: Successful companies are often lucky, but they also need to have the skills and strategies in place to take advantage of lucky opportunities when they arise.
  4. The tension between short-term and long-term goals: Companies need to balance the need for short-term results with the need to invest in long-term growth.
  5. The trade-off between efficiency and innovation: Companies need to be efficient to be profitable, but they also need to be innovative to stay ahead of their competitors. Finding the right balance between these two priorities can be a challenge.

5 examples

  1. Southwest Airlines: The company's focus on low costs and high efficiency allowed it to weather the fuel crisis of the 1970s and emerge as a dominant player in the industry.
  2. Amundsen vs. Scott: Amundsen's focus on preparation and discipline allowed him to be the first to reach the South Pole, while Scott's lack of preparation led to his tragic failure.
  3. Intel: The company's relentless focus on innovation and investment in research and development allowed it to outpace its competitors and dominate the industry.
  4. Apple: Steve Jobs' focus on simplicity and design allowed the company to revolutionize the personal computer and music industries.
  5. Southwest Airlines (again): The company's focus on fun and humor in its marketing and customer service helped it to differentiate itself from its competitors and build a loyal following.

Referenced books

  1. "Endurance: Shackleton's Incredible Voyage" by Alfred Lansing
  2. "Inextinguishable Symphony: A True Story of Music and Love in Nazi Germany" by Martin Goldsmith
  3. "The Black Swan: The Impact of the Highly Improbable" by Nassim Nicholas Taleb
  4. "The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail" by Clayton M. Christensen
  5. "The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses" by Eric Ries

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"You cannot predict the future, but you can prepare for it."

Jim Collins, Morten T. Hansen: Great by Choice
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