Great By Choice Chapter 6: SmAC Team #1 Andrew McDaniel Brad Schaefer Brandon Christian Robert Pace Ryan Schafer

SMaC & Southwest Southwest Airline Decided to use same recipe over and over for what they already do well Putnam Specified every detail for the airlines success Remained consistent over time while steadily evolving.

SMaC Recipe Specific Methodical and Consistent A set of durable operating practices that create a replicable and consistent formula for success Also includes points on what not to do 10xers use SMaC to gain as much control as they can

Adhering to Smac With Fanatic Discipline 10X companies kept their Smac Recipe in place on average about 20 years. Comparison companies would change their plan about 4 different times within their comparison competing companies implementation of their Smac Recipe. In addition, the comparison companies best years were when they displayed a Smac Recipe.

Adhering to Smac With Fanatic Discipline (cont.) Southwest became a dominant airline by copying PSA proven Smac Recipe The irony with PSA is they moved away from their proven Smac Recipe to follow Unite Airlins in reaction to a deregulation set in place. Had PSA stayed with their proven recipe they very well could have become the most successful airline today.

Adhering to Smac With Fanatic Discipline (cont.) Microsoft flourished while Apple crumbled. Why? Because, Microsoft stuck with unwavering consistency in leadership, purpose, strategy, and recipe. While apple was constantly switching direction. From CEO to target market of their computer’s. How did apple turn around? By brining Steve Jobs back in 1997 and returning the company to its original principal’s.

Adhering to Smac With Fanatic Discipline (cont.) John Wooden produced 10 NCAA championships in 12 years. How? By not changing his proven recipe of success.

Amending the SMaC Recipe: Paranoid, Creativity Consistency Paranoid, creative consistency” Changes in the: Economy Markets Fashion trends Technology Political landscape Laws & regulations Societal norms Line of work

Amending the SMaC Recipe Intel Memory chip business (DRAMS) Intel switched focus to processors but upheld its recipe They zoomed out to see gain clarity in their logical decision making Changed one ingredient in their recipe but kept the recipe the same

Amending the SMaC Recipe AMD AMD was not able to experience long-term momentum Switching their recipe numerous times This change interfered with their wholesales

Amending the SMaC Recipe When is it time for a 10xer company to make a change? Explicitely consider the recipe’s ingredients in relation to changes in the environment Examine the facts Zoom out

Amending the SMaC Recipe Approaches: 1. exercise empirical creativity: Internally driven Fire bullets to test practices before making it a part of the recipe 2. Exercise Productive Paranoia Externally focused Zoom out to assess a change in conditions Zoom in to implement the change as needed “10xers accept consistency & change at the same time”

Consistency and Change: The Great Human Tension Amendment mechanism: allowed for the Constitution to evolve as America evolved. High hurdles for change, making it stable through time. Constitution only amended 17 times between 1791 and 2011.

Consistency and Change: The Great Human Tension Amendment mechanism: allowed for the Constitution to evolve as America evolved. High hurdles for change, making it stable through time. Constitution only amended 17 times between 1791 and 2011.

Brief Overview Stick to your SMaC in all environments Change only what is necessary Exercise empirical creativity and productive paranoia

SMaC in our personal lives How can we create Specific, Methodical, and Consistent live styles? Goal setting Interviews Relationships What is your SMaC Recipe and does it need amending?