Book Review: Great by Choice: Uncertainty, Chaos, and Luck—Why Some Thrive Despite Them All by Jim Collins and Morten T. Hansen
Collins and his team conducted a rigorous study of companies that navigated periods of extreme uncertainty, chaos, and luck to achieve extraordinary success.
Great by Choice is another thought-provoking exploration of success and leadership by Jim Collins, co-authored with Morten T. Hansen. Known for his previous works like Good to Great and Built to Last, Collins focuses this time on a burning question: why do some companies thrive in unpredictable, turbulent environments while others fail?
Core Themes
The book dives into the concept of thriving in uncertainty, presenting research that challenges the belief that luck or unpredictable external factors determine success. Collins and Hansen argue that discipline, consistency, and strategic planning are what differentiate exceptional companies from the rest, even in chaotic conditions.
Key Concepts
10Xers: The book highlights companies and leaders Collins calls "10Xers" — those who outperform their industry peers by a factor of ten or more. These leaders possess qualities like fanatic discipline, empirical creativity, and productive paranoia, traits which enable them to excel despite external volatility.
Fanatic Discipline: This is a recurring theme throughout the book, emphasizing that companies that thrive in chaos are led by leaders who maintain discipline and focus, resisting the urge to make impulsive or erratic decisions in the face of uncertainty.
Empirical Creativity: The authors argue that the most successful leaders are those who take calculated risks based on evidence and experimentation, rather than relying on gut instincts or trends.
Productive Paranoia: This refers to the preparedness and vigilance exhibited by great companies. Rather than becoming complacent, successful organizations remain wary of potential risks and proactively safeguard against potential threats.
The 20 Mile March
One of the central concepts introduced is the "20 Mile March" principle, which encourages consistent progress toward goals, regardless of external conditions. Companies that adhere to a steady pace of progress, neither pushing too hard in good times nor retreating too much during tough periods, tend to survive and thrive over the long term. This disciplined approach ensures sustainability.
The Role of Luck
While luck often plays a role in business success, Collins and Hansen show through their research that it’s not how much luck you get, but what you do with it that matters. Great companies maximize opportunities and mitigate the impact of bad luck through preparation, discipline, and effective decision-making.
Research-Driven Insights
The book’s strength lies in its rigorous research. Collins and Hansen studied companies over a span of years, comparing those that outperformed their peers in extreme environments to those that did not. The data-driven approach lends credibility to their conclusions, making the book a valuable resource for business leaders, entrepreneurs, and anyone looking to understand what it takes to succeed in unpredictable circumstances.
Criticisms
Some readers might find the book’s focus on discipline and control to be somewhat limiting, especially in an era where innovation and adaptability are celebrated. The idea of adhering to the "20 Mile March" may feel overly cautious for risk-takers who prefer rapid scaling and bold moves. Additionally, the book’s lessons, while compelling, may not resonate equally in all industries, particularly those undergoing rapid technological disruption.
Conclusion
Great by Choice is an inspiring read for those looking to understand how companies can navigate chaos and uncertainty while achieving exceptional results. The lessons on discipline, creativity, and proactive leadership are timeless and applicable across various industries. Collins and Hansen make a strong case that success is not about avoiding uncertainty, but rather thriving within it through deliberate, calculated action.
Whether you're an executive, an entrepreneur, or someone interested in organizational success, this book offers valuable insights on how to achieve greatness, even in the most volatile conditions.