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Great by Choice: Uncertainty, Chaos, and Luck-Why Some Thrive Despite Them All by Jim Collins

• Published: October 2011
• ISBN-10: 0062120999
• EP Rating: 5 out of 5 (must read for business leaders)

EP Main Takeaway: Great leaders reject the idea that forces outside their control or chance events will determine their results. They accept full responsibility and maintain fanatic discipline, empirical creativity, and productive paranoia. They attract others by having a goal that is bigger than any one individual.

Our notes:

Great by Choice - best leaders (10X) didn't predict the future

• They observed what worked, figure out why it worked and built their company around these proven foundations
  • Not more risk-taking, bold, or visionary
  • More disciplined, empirical and paranoid
• Need to be able to scale innovation, not just be innovative
• Figure out when to go fast and when not to; not all about going super fast
• Change on the outside doesn't necessarily mean change on the inside

Race to the South Pole - 1911

Roald Amundsen vs Robert Falcon Scott - Roald wins because he prepares properly by:

• learning from practical experience what works (apprenticed with Eskimos)
• preparing with intensity all the time so he was ready if he and his team needed to dig deep
• setting buffers for unseen events
• presuming bad events will happen and having contingency plans

Qualities of a 10X leader

1. Fanatic discipline: shows consistency of action; rejects pressure to conform in ways incompatible with values, performance standards, and long-term aspirations

• 20-Mile March: set both lower and upper bound on growth;
  • Two discomforts: unwavering commitment to high performance and holding back in good conditions;
  • Designed and self-imposed by the enterprise; performance marker must be achieved with consistency ***
• Helps build confidence to perform well in adverse circumstances;
• Reduces likelihood of catastrophe and helps you exert self-control;
  • Don't blame circumstance or environment; don't overextend yourself
• Never too late to start the march

2. Empirical creativity: during times of uncertainty, look at empirical evidence, not to other people; rely on direct observation and practical experimentation and build deeper empirical foundation for decisions and actions**

• 10X companies are not always more innovative but they always deliver (Intel delivers)
• Blend creative intensity with relentless discipline
• Fire bullets, then fire cannonballs - figure out what works then pile on
  • Bullets are low risk, low cost, and low distraction
  • Convert to cannonballs with successful ideas
  • Beware of uncalibrated cannonballs with good outcomes because it encourages the use of bad processes
• You will only know if something works through empirical validation, not pure analysis
• Don't let discipline inhibit creativity or creativity to erode discipline

3. Productive Paranoia: "fear should guide you but it should be latent" (Bill Gates);

• Don't believe your hype or in your invincibility; Believe 100% that conditions will turn against you without warning and prepare for it; channel paranoia into productive action
• Build cash reserves and buffers to prepare for the unexpected: start and keep this from the beginning
• Bound risk and know where your death line is - important to stay in for the long haul
• Ask: how much time do I have before my risk profile changes?
  • Minutes, days, weeks, years?
  • Faster is not always better - take time to see how an uncertain situation unfolds but be ready to act fast
• Zoom out then zoom into remain hyper-vigilant to changing conditions
  • Are there new conditions? Does it change our plans?
  • "Think first even when you need to think fast"
  • What is the worst case scenario? What are the consequences and our contingencies?
• Create and use a SMaC recipe to execute your strategy: Specific, Methodical and Consistent
  • Operating instructions - includes both Dos and Don'ts
  • Be stoic about what you cannot control but exert extreme control when you can - be SMaC!**
  • Try not to change your SMaC often (like Constitution - ok to question and challenge but rarely change)
• Figure out what works, understand why it works and use that info to understand when to change and when not to change
  • "Is our recipe not working because we lost discipline or has our circumstances fundamentally change?"
  • "The Signature of mediocrity is not an unwillingness to change; the signature of mediocrity is chronic inconsistency."
• Embrace consistency and change, both at the same time

The role of luck: 

• 10xers get a higher return from luck than others
  • Getting a high return on luck requires throwing yourself at the luck event with ferocious intensity, disrupting your life and not letting up**
  • When bad luck happens, "10Xers use difficulty as a catalyst to deepen purpose, recommit to values, increase discipline, respond with creativity and heighten productive paranoia"
  • Don't count on luck to win

Level 5 ambition: channel ego and intensity into something larger and more enduring than yourself - focus on your cause, your company, your work; Choose goals by impact, contribution, and purpose if you want to attract others to help.

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How can I be more disciplined?

What was the answer?

Was it something vague like “You just have to force yourself to do it”?

Self-discipline is one of those overused words that people have a hard time explaining. It’s filed under the category “easy to recognize but hard to do”.

I’m not going to waste time telling you about the benefits of self-discipline because if you’re reading this, you already have enough reasons of your own. To make sure we’re on the same page, here is my definition of self-discipline:

Self-discipline is the ability to do what you are “supposed to” do despite how you feel about doing it.

What you are “supposed to” do should only be determined by you and no one else. If you let others decide what you are supposed to do, you’re no longer building self-discipline, you’re building obedience.

Most people don’t have problems doing things they feel like doing. The real issue is doing the things they’re supposed to do when they don’t feel like doing it. Examples that come to mind: going to the gym after a long day of work, not eating your favorite dessert because you’re trying to lose weight or waking up early to always be on time.

As you know, doing things we don't feel like doing is tough. It doesn't matter how good it is for us. The good news is we all have self-discipline. Some just have more of it than others. If you floss at least once a month (even year), you have some self-discipline. It's not much but it's a start.

So how can you be more disciplined?

Know Why and Remember It

Do you know why you are supposed to lose weight?

Do you know why eating dessert will not help your diet?

Do you know why you want to be on time?

If you don’t, that’s a good place to start.

When I was working in China, I learned an effective method for finding the root cause of a problem. It’s called the 5 Why’s and the technique is to keep asking why until you drill down to the real cause of the problem.  For our purposes, we’ll be using this technique to get down to the real desire behind your action.

Example:

Your desired action: I want to go to the gym.

Why do you want to go to the gym?

I want to lose weight.

Why do you want to lose weight?

I want to be healthier.

Why do you want to be healthier?

I want to live longer.

Why do you want to live longer?

I want to be in the Guinness Book of World Records.

Ok. You get the point.

A key to remember is that you don’t need permission or approval to do what you want. Whatever reason you come up with is legitimate as long as that’s what you really want. Some people might believe that being in the Guinness Book of World Records is a great reason for being healthy and others may think it’s a stupid reason.

No one can tell you if your why is valid. As long as you want it, that’s all that matters.  Don’t let anyone tell you how to live your life.

Self-discipline is really about doing what you ultimately want. Many people associate discipline with sacrifice but you're not really sacrificing anything. When you're disciplined, the only thing you sacrifice are things that are not as important to you as the task at hand. The reason we struggle with being disciplined is because we lose sight of what we really want and take action for a lesser want instead.

Example:

You know you should go to the gym but you feel tired after a long day at work and you don’t want to go. You decide to go home instead because at that moment you want to go home and relax. You’ve let that want overshadow your ultimate desire to be in the Guinness book of World Records. It’s not because you think that’s bigger, it’s because you forgot that’s what you really want.

Remember: You’re not going to the gym to work out. You’re going to the gym to fulfill your dream.

The best time to do this: You definitely want to know why before you decide to take action or else you're going to have a tough time sticking with it. If you need discipline to do something in particular right now, ask yourself why at least 5 times? Be clear on what you ultimately want and remember it when lesser wants tempt you.

Create a Temptation-Free Environment

Most people are lazy. I have a theory that the entire productivity movement was developed by lazy people who want to do more work in less time so they can go back to being lazy. If given the choice between two paths that lead to the same outcome, we’ll usually choose what’s convenient.

When my clients find it hard to stay disciplined, I usually find their environment filled with temptations that make it easier to be undisciplined than to be disciplined. Make life easier on yourself by creating an environment that will help you do what you're supposed to do. This will help you tremendously when you don't feel like doing something.

Two Examples:

1. If you're a writer and you want to work on your book, remove all distractions. Prepare all your notes before you start writing so you don’t have to be distracted to do research or to look up anything. Clean up your office so your work space is not cluttered and you won’t have the temptation to clean it up instead of writing your book. Turn off your internet connection, email alerts and phone so no one can interrupt you without your permission.
2. Eating healthy is extremely difficult if you have junk food and soda in your home. If you want to stay disciplined, make it easier to do so by stocking your home and office with only healthy foods and snacks. Use your laziness to your advantage. I’ve never left the house to buy food just because I had a craving. Usually I just grab whatever is in the pantry or in the fridge (I am also lazier than most people so I find this method especially effective). For those wanting to cut down on their meal portions, buy smaller bowls and plates. Set yourself up to win. It works.

The best time to do this: Right at the beginning when you have a lot of motivation and you’re excited about making a change. Most people jump right into doing the activity. I recommend using that energy to create the best environment for staying disciplined. Motivation is fleeting but a well-designed environment can keep you on track for a long time. Make it as easy and convenient as possible to do what you’re supposed to do.

Exercise It Daily

Self-discipline is like a muscle. The more you exercise it, the stronger it becomes. Don’t kick yourself if you feel that you’re not disciplined enough. You may have committed to something that is beyond your current discipline level. What’s great about self-discipline is that it can be developed so what may seem hard now will become easier later.

Find ways every day to exercise your self-discipline. It can be just waking up 5 minutes earlier than you usually do for a week or limiting yourself to 1 soda per week. Whatever you decide, make sure you stick to it no matter what. In the beginning, you may not see any immediate benefits but when being disciplined becomes a habit, you’ll find it is easier and easier to do what you're supposed to do. You'll also find that you’re achieving all the things you want to achieve.

This was certainly the case when I decided to go 3-day/week vegetarian. In the beginning, I was struggling to do 1-day/week but now 3-day/week is easy. When I first started, if it was my vegetarian day, I would choose the vegetarian option no matter how bad it was. This was important because I got into the habit of sticking to my rules no matter how dumb the decision may seem. I’m all for being flexible but if you are looking to build self-discipline, it’s better to make no exceptions. (Side Note: The vegetarian options at many restaurants are pretty bad. It’s usually their regular dish minus the meat for the same price. If you plan to go vegetarian, make sure you map out a few vegetarian friendly restaurants.)

The best time to do this: Every day. It doesn’t matter how big or small the action. Find ways to exercise your self-discipline by committing to something and sticking with it. As you build your self-discipline, remember to increase the difficulty. Make bigger commitments and stick to them. If you find that you’re consistently failing to stay disciplined, reduce the commitment. You always want to be just outside your comfort zone.

"Self-discipline is an act of cultivation. It require you to connect today's actions to tomorrow's results. There's a season for sowing a season for reaping. Self-discipline helps you know which is which."  

– Gary Ryan Blair

Self-discipline boils down to empowering yourself and taking control of your life. It’s really about committing to what you want. Don’t fall into the trap of justifying yourself or making excuses when you slip up. Take responsibility and get right back on track.

In the words of Plato, "The first and best victory is to conquer self."

Do you do what you're supposed to do even when you don't feel like it?

What are some ways you use to stay disciplined?

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