Team 3: Andrew West, Andrea Lapotaire, Andrew Stack, Jessica Sharpless, Taylor Carroll GREAT BY CHOICE AN OVERVIEW
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”
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. 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 EMBRACE THE “FIRE BULLETS, THEN CANNONBALLS”
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 WAL-MART
If a bullet is a miss, do not fire the cannonball and learn from the mistake LEARNING FROM BULLET’S MISTAKES
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 RETURN ON LUCK
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 PRODUCTIVE PARANOIA
SMaC stands for Specific, Methodical, and consistent. The more uncertain, fast-changing, and forgiving your environment, the more SMaC you need. SMAC
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) 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) AMENDING A SMAC RECIPE
Low Prices, Anytime, Anywhere Convenient Shopping-only have to make one shop for everything you need WALMART’S SMAC RECIPE