Jim Collins is a legend in the business world, and for good reason. His latest book – Great by Choice: Uncertainty, Chaos, and Luck–Why Some Thrive Despite Them All – takes a look at some remarkable companies who were able to outperform their industry index by over 10 times over a lengthy span of time. Do you want to know how you can do the same for your company? Get a free 30 day subscription today and watch the summary.
When Jim Collins wrote his best-selling book, Good to Great: Why Some Companies Make the Leap… and Others Don’t, he became an instant business hero. Executives from around the world aspired to be Level 5 leaders and focused intently on finding their hedgehog concepts. But there was a question that remained unanswered: in a world that is increasingly in financial turmoil and constant change, how do you succeed?
In a methodology similar to Good to Great, Collins and his team studied companies that were in industries where there was a constant state of change, and found that there were some companies that outperformed the marketplace by a significant margin.
He called these the 10x companies, because they all had outperformed their “industry index” by more than 10 times over the span of the study. In fact, on average, the 1 0 x companies outperformed the marketplace as a whole by 32 times. If it sounds to you like these would be some good companies to learn from, you’d be right. What Collins and his team concluded was that there were 4 main attributes of a 10x company:
- Fanatical Discipline
- Empirical Creativity
- Productive Paranoia
- Level 5 ambition