10Xers John Beddingfield Scott Bearden Patrick Lewis Lauren Frick Trevor McDonald

Relative to the stock market and the industry 10X companies An enterprise that sustained outstanding growth for an era of 15+ years Relative to the stock market and the industry Achieved results in particularly turbulent environment Enterprises started era of growth in a vulnerable state; either young or small Amgen Biomet Intel Southwest Airlines Stryker Microsoft Progressive Insurance

Race to the south pole roald amundsen vs. robert falcon scott Biked nearly 2000 miles from Norway to Spain Ate raw dolphin meat Traveled to apprentice with Eskimos Systematically built enormous buffers for unseen events Robert Falcon Scott Less preparation than Amundsen Disregarded training before the race, underestimated the harsh conditions he would face Ran everything dangerously close to calculations Supplies 1 Thermometer (that broke) Eskimo teachings: dog sledding, moving slowly to avoid excessive sweat, and what clothing to wear “You don’t wait till you’re in an unexpected storm to discover that you need more strength and endurance.” Amundsen

Triad of core behaviors

Fanatic discipline Peter Lewis CEO of Progressive Insurance Stock price was fluctuating radically Became first SEC-listed company to publish monthly financial statements Fixed the problem of random moving of stock price “They didn’t let external pressures, or even social norms, knock them off course” (C 23)

Empirical creativity Andy Grove CEO of Intel Blood tests revealed sugar-cube sized tumor in his prostate Maintained CEO schedule by day and prostate research regiment by night Multiple options for treatment Empirical: “relying upon direct observation, conducting practical experiments, and/or engaging directly with evidence rather than relying upon opinion, conventional wisdom, authority, or untested ideas” (C 26) “having an empirical foundation enables 10Xers to make bold, creative moves, and bound their risk” (C26) “Andy Grove’s approach to his cancer treatment was unusual, even creative, yet deeply grounded in evidence and rigor” (C 26)

Productive Paranoia Bill Gates Founder and CEO of Microsoft “nightmare memo” Sent memo to employees about everything that could go wrong with Microsoft Always lived in fear, always felt vulnerable “Even in calm, clear, positive conditions, 10Xers constantly consider the possibility that events could turn against them at any moment…at some unpredictable point in time, at some highly inconvenient moment. And they better be prepared.” (C 29)

Level 5 ambition What are you in it for? 10Xer’s ambition is first and foremost for the cause, for the company, for the work, not for themselves. (C32)

Takeaways “You prepare with intensity, all of the time, so that when conditions turn against you, you can draw from a deep reservoir of strength. And equally, you prepare so that when conditions turn in your favor you can strike hard.” (C 15) Fanatic Discipline Extreme consistency Empirical Creativity Make own bold creative moves Productive Paranoia Channel fear and worry into action