The document outlines the principles that differentiate great organizations from good ones, emphasizing the importance of 10x leadership, which is characterized by purpose-driven ambition, fanatic discipline, and a focus on empirical evidence. Key strategies include the '20 Mile March' for consistent performance and the approach of 'firing bullets then cannonballs' to innovate with lower risk before committing resources. Additionally, it stresses the importance of productive paranoia, proactive preparation for disruptions, and maintaining a clear, methodical framework for success.

1. CHOICE
GREAT BY
by Jim Collins and Morten T. Hansen

2. Why do some companies
in uncertainty, even chaos, and others do
not?
THRIVE

3. It's all about understanding the
PRINCIPLESthat distinguish great organizations from
good ones.

4. Having
Executing 20 Mile Marches
10x Leadership
Firing Bullets, then Cannonballs
Leading above the Death Line
Having a SMaC Recipe
MaximizingReturn on Luck (ROL)
The Principles

5. 10x LEADERSHIP
10X Leaders have purpose, long-term goals, severe
performance standards and... the Fanatic
Discipline to adhere to them

6. They're not more creative
They're not more visionary
They're not more heroic
They're not more charismatic
They're not more ambitious
They're not more blessed by luck
They're not more risk taking
They're not more prone to making big, bold moves
What 10x Leaders are NOT

7. 10X LEADERS HAVE
CORE BEHAVIORS
three

8. Fanatic Discipline
Relying on direct observation, conducting
practical experiments and/or engaging directly
with evidence. Making bold, creative moves from
a sound empirical base.
Extreme consistency of action, values
and goals. Mental independence and an
ability to remain consistent in the face
of herd instinct and social pressures.
Empirical Creativity
Maintaining hyper vigilance in good times as well
as in bad. Channeling fear into action, developing
contingency plans, building buffers and
maintaining large margins of safety.
Productive Paranoia

9. 10X LEADERS DEFINE THEMSELVES BY
IMPACT
CONTRIBUTIONPURPOSE

10. Underlying the three core 10Xer behaviors
is a motivating force called
LEVEL 5 AMBITION

11. LEVEL 5 AMBITION
10X Leaders channel their ego and intensity into
something larger than themselves.
They're passionately driven for a cause beyond
themselves.
Such as: Building a great company, changing the world or achieving a great
objective that's not about themselves
They reject the idea that luck, chaos or any other
external factor determines their success or failure.

12. 20 Mile Marchhaving concrete, clear, intelligent and rigorously pursued performance
mechanisms

13. 20 Mile March helps to:
Build confidence in your ability to perform well
in adverse circumstances.
Reduces the likelihood of catastrophe when
you're hit by turbulent disruption.
Helps you exert self-control in an out-of-
control environment.

14. Elements of a 20 Mile March
Clear performance markers for minimum performance that create
productive discomfort.
Self-imposed constraints for maximum performance.
Tailored to your specific enterprise.
Within the company's control to achieve. You shouldn't need luck.
A Goldilocks Timeframe - not too long, not too short but just right to be
effective.
Designed by your company for your company.
Must be achieved with great consistency. Good intentions don't count.

15. Bullets,
Fire
then
CannonballsOnly 9% of innovators ever dominate market share

16. WHAT IS A
bullet?
A bullet is an empirical test or experiment aimed at learning
what works and that meets three criteria:
1
2
3
LOW COST
LOW RISK
LOW DISTRACTION

17. THE PROCESS
1. Fire bullets to figure
out what will work
2. Obtain empirical
confidence in your
bullet
3. Concentrate your
resources, build a
cannonball
4. Fire a cannonball.
After the cannonball
hits...
5. Keep 20 Mile
Marching to make the
most of your big
success

18. CREATIVITIY
+DISCIPLINE
= Scale
The combination of creativity and discipline translate into the ability to
scale innovation with great consistency

19. LEADING ABOVE
THE DEATH LINE
PRACTICING PRODUCTIVE PARANOIA

20. PRACTICE
PRODUCTIVE
PARANOIA
Buildcash reserves and
buffers.
Prepare
for unexpected events
and bad luck before they
happen.
Actively bound
and
risk Zoom Outthen zoom in
manage

21. Zoom Out
1. Sense a change in conditions
2. Assess the time frame
3. How long before the risk profile changes?
4. Assess with rigor
5. Decide! Do we disrupt our plans? If so, how?
Zoom In
Focus on supreme execution of plans and
objective

22. SMaC Recipe
Specific
METHODICAL
& CONSISTENT
Recipe

23. WHAT IS A
SMaC RECIPE?
• A written document. Your Manifesto
• A durable set of operating practices
• A consistent success formula that's replicable
• If absolutely needed, only change one item at a
time

24. Return on Luck is NOT THE
SAME as luck

25. Getting Great RoL
• Keep pushing, driving for your overall goal or cause. Luck, good and bad will
happen
• Build a culture that can achieve results with or without luck
• Firing bullets can present you with new opportunities. Don't wait for luck
• Manage risk to combat bad luck
• Practice Zoom Out/Zoom In to recognize luck and see if it merits
disrupting your plans
• Have a SMaC Recipe that guides you during a luck event

26. CHOOSE
GREATNESS