In unpredictable market conditions, the most trained companies win
In 1911, two teams entered the polar race for the right to be called the discoverers of the South Pole. Roald Amundsen's team first reached the goal, planted the Norwegian flag on the plateau and returned home safely. Robert Falcon Scott's team arrived there 34 days late. The defeat in the race was a tragedy, but the situation worsened on the way back. Scott's expedition never returned home; they all died of cold and hunger.
Why did the teams suffer such a different fate?
One of the main differences is preparation for the expedition. Amundsen was obsessed with preparations for the upcoming Antarctic campaign. For several years he traveled around the world, collecting useful knowledge and experience. He learned from the Eskimos to survive in polar conditions, tried all possible food sources, including raw dolphin meat. Amundsen's team had taken with them a large supply of provisions in case of delays along the way. They carefully marked all their supply depots with black flags, clearly visible in the white snow. Amundsen could not foresee what awaits him in Antarctica, but he did everything to prepare his group as much as possible. He tried to keep randomness to a minimum.
Scott took with him several times less provisions than Amundsen, and in the event of an unexpected delay, the British team was threatened with starvation. Scott opted for untested technology, including snowmobiles, which quickly failed in extreme conditions. Insufficient preparation, lack of knowledge, experience and food supplies led to a lag behind the schedule, the failure of the expedition and, as a result, to the death of the participants.
Amundsen and Scott were forced to operate in uncertain polar conditions. Likewise, modern companies are forced to exist in an unstable, constantly changing business environment. Do not let your success depend on external circumstances. Prepare yourself for a variety of situations to survive and achieve remarkable results in any environment. The secret to success is to be prepared for any accident.
Companies that succeed in the face of uncertainty are characterized by self-discipline, informed innovation and paranoid safety net
Nobody can predict exactly what will happen in the coming months, years. In these uncertain conditions, some companies manage not only to survive, but also to achieve outstanding results. It is enough to analyze the behavioral features of the companies of the 10X group ("tenfolds"), extremely successful enterprises. Their performance has long and consistently exceeded the industry average by at least ten times.
They are actively accumulating knowledge and strengthening their material base. Ensure preparedness for any unexpected events and circumstances.
Key features of tenfold leaders:
Companies in the 10X group set goals and accomplish them regardless of external conditions
Roald Amundsen moved to the South Pole, observing the most severe discipline and maintaining the same rhythm. Every day he covered the same distance, about 25 km, regardless of external conditions. If he saw that the weather and terrain were favorable, he walked the set distance, and then stopped to rest, even if the team was ready to move on. This saved energy, so that even in bad weather and in difficult terrain, the team was able to continue the journey and cover the intended distance. Such self-control allowed the members of the expedition to maintain an even pace of transitions.
This approach to achieving the goal is the 20 Mile March concept that helps the 10X companies succeed in an era of uncertainty. It is necessary to define the performance parameters against which the achievement will be measured (annual growth rate or the level of innovation). By setting a benchmark, companies move towards their goal by sticking to the plan and staying true to it in good times and bad.
A company that has voluntarily assumed such obligations cannot relax: goals must be achieved, no matter how difficult it may be. The established threshold of achievement cannot be crossed even in the most favorable conditions. Such an arrangement is necessary and requires self-discipline, otherwise the company risks upsetting the balance and losing the ability to adapt to changing circumstances.
Example. Electronics maker AMD nearly killed itself in the 1980s in its pursuit of rapid success. Trying to achieve a growth rate of 60%, it got stuck in debt and found itself in a situation of a shortage of funds when the industry was hit by a crisis. AMD lagged behind its competitors, including 10X group company Intel, which maintained more moderate but steady growth during the same period.
10X companies only drive groundbreaking innovation when empirically proven to be worthwhile.
Exercise independence in decision making and creativity in your business. Some tenfolds (like Apple) have become famous for their constant innovation. Revolutionary innovation is a major factor in the success of these companies.
Companies in the 10X group are innovating, but for them it is not an end in itself. They don't take the reckless risk of launching revolutionary new products without first testing their market potential. First, you need to collect all possible empirical data and conduct an in-depth analysis of the market. Then adjust the direction of your innovation and take full advantage of the available opportunities.
The principle of "bullets first, balls later." Companies in the 10X group are first targeting the market by introducing a range of low-cost and low-risk innovations. Once a promising target is established, they focus all their efforts on it.
Example. In 2001, Apple developed a small MP3 player that is only compatible with Mac computers. The first iPod was low-cost, low-risk, and did not divert company resources or employee attention away from its core product, the Mac. Early sales figures were encouraging, and Apple created an online music store called iTunes, also for Mac computers. Users loved the iPod and appreciated the ability to download music legally and for little money. Apple has amassed enough empirical evidence to release iTunes and iPods for other computer owners.
Innovation must combine with business discipline
Innovation doesn't guarantee success. The company must innovate. Each industry has its own minimum required level of innovation that businesses must maintain in order to keep up with the competition.
Example: In information technology, the threshold for innovation is high. Products quickly become obsolete, and firms are constantly investing in innovation. In the air travel industry, the threshold for innovation is low: there is no need to come up with new flight formats every month.
Exceeding the level of innovation brings little benefit. An enterprise that focuses too much on innovation loses control of the situation. By investing too many resources in revolutionary technological breakthroughs, you are neglecting key aspects of your business. The pursuit of innovation must be complemented by discipline. The company can be sure that all areas of business (production, marketing, finance) are given due attention.
Example. Intel has overtaken its rival Advanced Memory Systems (AMS), which has proven itself to be a pioneer in innovation. Intel diligently engaged in all areas of the business - from innovation to manufacturing and distribution - fanatically controlled costs and fine-tuned technological processes, ensuring that customers receive products on time at the agreed price. AMS outperformed Intel in lab development, but Intel prevailed in the market.
10X companies are characterized by “productive paranoia”: they fear the worst and prepare for it maniacally.
10X companies are always worried about the future. Even in good times, they ask questions: “What if the situation in the industry changes? What action will we take? Where will our new competitor come from? " This paranoia prompts them to carefully prepare for any unforeseen situations.
Accumulating liquidity reserves is a way to prepare for difficult times. The share of cash in the assets of these enterprises exceeds the average by 3-10 times.
Paranoia forces tenfolds to be extremely vigilant. They constantly look at the environment in search of potentially dangerous events:
Example. In the aftermath of the September 11, 2001 terrorist attack, the airline industry experienced a sharp decline. Southwest Airlines was able not only to survive this chaos, but also to maintain profitability. The company even managed to expand its business by opening additional routes and offering new services to customers. Southwest Airlines executives could not have foreseen the tragedy of 9/11, but they prepared in advance for a possible crisis - they created a solid financial reserve that saved the company. With their deep knowledge of the market, they saw new opportunities in the midst of a disaster.
10X Group Companies Develop Durable, Specific Work Rules - A Sustainable Formula For Success
In 1979, after the passage of the law on the deregulation of airlines in the United States, many new airlines appeared in the industry. The CEO of Southwest Airlines (10X Group) has compiled a list of ten operating principles to ensure success in a rapidly changing environment. The list contained simple and specific precepts: "Fly only on Boeing 737 aircraft" and "Do not serve food on board."
Most of the list has not changed in 25 years. These rules have formed a clear and stable formula for long-term success. Having passed the crisis, the company abandoned this scheme, knowing that it really works.
These principles are specific, methodical and consistent, and meet the SMaC (specific, methodical and consistent) criteria. The rules cover a range of issues, can be used over time, and work in a wide variety of situations.
Tenfolds masterfully devise SMaC procedures and adjust them only if absolutely necessary. This consistency is the key to dedication and confidence in success.
10X Group Companies Gain Greatness Through Hard Work and Ambition
Don't attribute success to an act of luck or fluke. Great leaders have no less and no more luck than everyone else. They are hardworking and ambitious. Tenfold leaders know how to get the best out of luck by making the most of every opportunity.
Example. While studying at a private school, Bill Gates had a rare opportunity for those times to work on a computer. He came across Popular Electronics magazine with an article that inspired him to develop his first product. Gates dropped out of university and moved to a remote state, where he could develop a revolutionary new software product. He worked almost around the clock, forgetting about food and rest. Hard work and ambition helped him make the most of his luck.
The most important thing
The most successful companies don't allow chance to rule their fortunes. They prepare carefully, make decisions based on solid empirical evidence, and adhere to a plan with discipline in good times and bad. It is through the combination of consistency in action with empirical analysis that some companies have shown consistent success in today's chaotic world.
Neither luck nor fluke explains why some companies become great. All businesses have the same amount of luck; the only difference is how they manage their chance.
How do some companies succeed in the face of uncertainty?
How do the 10X companies stay ahead of the competition?
How do 10X companies get the most out of luck?
10X companies grow great through hard work and ambition.
In 1911, two teams entered the polar race for the right to be called the discoverers of the South Pole. Roald Amundsen's team first reached the goal, planted the Norwegian flag on the plateau and returned home safely. Robert Falcon Scott's team arrived there 34 days late. The defeat in the race was a tragedy, but the situation worsened on the way back. Scott's expedition never returned home; they all died of cold and hunger.
Why did the teams suffer such a different fate?
One of the main differences is preparation for the expedition. Amundsen was obsessed with preparations for the upcoming Antarctic campaign. For several years he traveled around the world, collecting useful knowledge and experience. He learned from the Eskimos to survive in polar conditions, tried all possible food sources, including raw dolphin meat. Amundsen's team had taken with them a large supply of provisions in case of delays along the way. They carefully marked all their supply depots with black flags, clearly visible in the white snow. Amundsen could not foresee what awaits him in Antarctica, but he did everything to prepare his group as much as possible. He tried to keep randomness to a minimum.
Scott took with him several times less provisions than Amundsen, and in the event of an unexpected delay, the British team was threatened with starvation. Scott opted for untested technology, including snowmobiles, which quickly failed in extreme conditions. Insufficient preparation, lack of knowledge, experience and food supplies led to a lag behind the schedule, the failure of the expedition and, as a result, to the death of the participants.
Amundsen and Scott were forced to operate in uncertain polar conditions. Likewise, modern companies are forced to exist in an unstable, constantly changing business environment. Do not let your success depend on external circumstances. Prepare yourself for a variety of situations to survive and achieve remarkable results in any environment. The secret to success is to be prepared for any accident.
Companies that succeed in the face of uncertainty are characterized by self-discipline, informed innovation and paranoid safety net
Nobody can predict exactly what will happen in the coming months, years. In these uncertain conditions, some companies manage not only to survive, but also to achieve outstanding results. It is enough to analyze the behavioral features of the companies of the 10X group ("tenfolds"), extremely successful enterprises. Their performance has long and consistently exceeded the industry average by at least ten times.
They are actively accumulating knowledge and strengthening their material base. Ensure preparedness for any unexpected events and circumstances.
Key features of tenfold leaders:
- Fanatical discipline, consistency in actions and dedication: having outlined goals and methods of achieving them, they stubbornly adhere to the chosen path.
- Empirical creativity in decision making. Instead of looking at other people's opinions and conventional wisdom, they look for solutions that work, determine when and in what areas to innovate, and build on a solid empirical foundation.
- Productive paranoia prepares well for changes in a competitive environment. They are extremely alert, never relaxed and always remember that circumstances can turn against them. They channel their fears productively by building reserves and making plans to help the company prepare for difficult times.
Companies in the 10X group set goals and accomplish them regardless of external conditions
Roald Amundsen moved to the South Pole, observing the most severe discipline and maintaining the same rhythm. Every day he covered the same distance, about 25 km, regardless of external conditions. If he saw that the weather and terrain were favorable, he walked the set distance, and then stopped to rest, even if the team was ready to move on. This saved energy, so that even in bad weather and in difficult terrain, the team was able to continue the journey and cover the intended distance. Such self-control allowed the members of the expedition to maintain an even pace of transitions.
This approach to achieving the goal is the 20 Mile March concept that helps the 10X companies succeed in an era of uncertainty. It is necessary to define the performance parameters against which the achievement will be measured (annual growth rate or the level of innovation). By setting a benchmark, companies move towards their goal by sticking to the plan and staying true to it in good times and bad.
A company that has voluntarily assumed such obligations cannot relax: goals must be achieved, no matter how difficult it may be. The established threshold of achievement cannot be crossed even in the most favorable conditions. Such an arrangement is necessary and requires self-discipline, otherwise the company risks upsetting the balance and losing the ability to adapt to changing circumstances.
Example. Electronics maker AMD nearly killed itself in the 1980s in its pursuit of rapid success. Trying to achieve a growth rate of 60%, it got stuck in debt and found itself in a situation of a shortage of funds when the industry was hit by a crisis. AMD lagged behind its competitors, including 10X group company Intel, which maintained more moderate but steady growth during the same period.
10X companies only drive groundbreaking innovation when empirically proven to be worthwhile.
Exercise independence in decision making and creativity in your business. Some tenfolds (like Apple) have become famous for their constant innovation. Revolutionary innovation is a major factor in the success of these companies.
Companies in the 10X group are innovating, but for them it is not an end in itself. They don't take the reckless risk of launching revolutionary new products without first testing their market potential. First, you need to collect all possible empirical data and conduct an in-depth analysis of the market. Then adjust the direction of your innovation and take full advantage of the available opportunities.
The principle of "bullets first, balls later." Companies in the 10X group are first targeting the market by introducing a range of low-cost and low-risk innovations. Once a promising target is established, they focus all their efforts on it.
Example. In 2001, Apple developed a small MP3 player that is only compatible with Mac computers. The first iPod was low-cost, low-risk, and did not divert company resources or employee attention away from its core product, the Mac. Early sales figures were encouraging, and Apple created an online music store called iTunes, also for Mac computers. Users loved the iPod and appreciated the ability to download music legally and for little money. Apple has amassed enough empirical evidence to release iTunes and iPods for other computer owners.
Innovation must combine with business discipline
Innovation doesn't guarantee success. The company must innovate. Each industry has its own minimum required level of innovation that businesses must maintain in order to keep up with the competition.
Example: In information technology, the threshold for innovation is high. Products quickly become obsolete, and firms are constantly investing in innovation. In the air travel industry, the threshold for innovation is low: there is no need to come up with new flight formats every month.
Exceeding the level of innovation brings little benefit. An enterprise that focuses too much on innovation loses control of the situation. By investing too many resources in revolutionary technological breakthroughs, you are neglecting key aspects of your business. The pursuit of innovation must be complemented by discipline. The company can be sure that all areas of business (production, marketing, finance) are given due attention.
Example. Intel has overtaken its rival Advanced Memory Systems (AMS), which has proven itself to be a pioneer in innovation. Intel diligently engaged in all areas of the business - from innovation to manufacturing and distribution - fanatically controlled costs and fine-tuned technological processes, ensuring that customers receive products on time at the agreed price. AMS outperformed Intel in lab development, but Intel prevailed in the market.
10X companies are characterized by “productive paranoia”: they fear the worst and prepare for it maniacally.
10X companies are always worried about the future. Even in good times, they ask questions: “What if the situation in the industry changes? What action will we take? Where will our new competitor come from? " This paranoia prompts them to carefully prepare for any unforeseen situations.
Accumulating liquidity reserves is a way to prepare for difficult times. The share of cash in the assets of these enterprises exceeds the average by 3-10 times.
Paranoia forces tenfolds to be extremely vigilant. They constantly look at the environment in search of potentially dangerous events:
- The emergence of new competitors
- Introduction of new legislation
- Changes in financial conditions.
Example. In the aftermath of the September 11, 2001 terrorist attack, the airline industry experienced a sharp decline. Southwest Airlines was able not only to survive this chaos, but also to maintain profitability. The company even managed to expand its business by opening additional routes and offering new services to customers. Southwest Airlines executives could not have foreseen the tragedy of 9/11, but they prepared in advance for a possible crisis - they created a solid financial reserve that saved the company. With their deep knowledge of the market, they saw new opportunities in the midst of a disaster.
10X Group Companies Develop Durable, Specific Work Rules - A Sustainable Formula For Success
In 1979, after the passage of the law on the deregulation of airlines in the United States, many new airlines appeared in the industry. The CEO of Southwest Airlines (10X Group) has compiled a list of ten operating principles to ensure success in a rapidly changing environment. The list contained simple and specific precepts: "Fly only on Boeing 737 aircraft" and "Do not serve food on board."
Most of the list has not changed in 25 years. These rules have formed a clear and stable formula for long-term success. Having passed the crisis, the company abandoned this scheme, knowing that it really works.
These principles are specific, methodical and consistent, and meet the SMaC (specific, methodical and consistent) criteria. The rules cover a range of issues, can be used over time, and work in a wide variety of situations.
Tenfolds masterfully devise SMaC procedures and adjust them only if absolutely necessary. This consistency is the key to dedication and confidence in success.
10X Group Companies Gain Greatness Through Hard Work and Ambition
Don't attribute success to an act of luck or fluke. Great leaders have no less and no more luck than everyone else. They are hardworking and ambitious. Tenfold leaders know how to get the best out of luck by making the most of every opportunity.
Example. While studying at a private school, Bill Gates had a rare opportunity for those times to work on a computer. He came across Popular Electronics magazine with an article that inspired him to develop his first product. Gates dropped out of university and moved to a remote state, where he could develop a revolutionary new software product. He worked almost around the clock, forgetting about food and rest. Hard work and ambition helped him make the most of his luck.
The most important thing
The most successful companies don't allow chance to rule their fortunes. They prepare carefully, make decisions based on solid empirical evidence, and adhere to a plan with discipline in good times and bad. It is through the combination of consistency in action with empirical analysis that some companies have shown consistent success in today's chaotic world.
Neither luck nor fluke explains why some companies become great. All businesses have the same amount of luck; the only difference is how they manage their chance.
How do some companies succeed in the face of uncertainty?
- In unpredictable market conditions, companies with the most rigorous training wins.
- Companies that succeed in the face of uncertainty are characterized by self-discipline, informed innovation and paranoid safety net.
How do the 10X companies stay ahead of the competition?
- Companies in the 10X Group set goals for themselves and deliver them with discipline year after year, regardless of external conditions.
- Companies in the 10X Group will only innovate if they are empirically proven to be worthwhile.
- Innovation must be matched with business discipline.
- Companies in the 10X group are characterized by “productive paranoia”: they fear the worst and prepare for it maniacally.
- Companies in the 10X group develop durable and concrete work rules - a stable formula for success.
How do 10X companies get the most out of luck?
10X companies grow great through hard work and ambition.
