Great By Choice

Welcome, Fellow Travelers

Todays Book

Great by Choice
by Jim Collins

Summary Snapshot

"Great by Choice" looks at why some companies succeed in uncertain and chaotic times while others do not. After nine years of research, Collins and Hansen found "10X companies" that did at least 10 times better than their competitors. These companies didn't rely on luck or big innovations. Instead, they used strict discipline, creative thinking based on evidence, and careful planning for potential problems. Their steady and organized methods offer guidance for leaders to handle unpredictability and achieve lasting success.

📰 In case you missed it...

Books Paradise was recently featured in CEO Times as “The Best Book Insight Resource for Smarter Readers in Pakistan – 2025.” 🎉

It’s a big milestone, and I couldn’t have done it without your support.

To celebrate, I’m sending a free book of your choice to 50 of you.

👉 Just hit reply to this email and tell me the name of a book you love. I’ll be choosing 50 winners throughout the month!

📖 Read the feature here:
https://ceotimes.com/books-paradise-helping-readers-make-smarter-choices

• Uncertainty is constant, but success is not random
  The business world is filled with surprises, economic crashes, disruptive technologies, crises, and unexpected competitors. Some companies collapse, while others thrive. Collins and Hansen show that success is not about predicting the unpredictable but about how leaders prepare, behave, and respond to chaos. Choice, not chance, drives greatness.

• 10X companies outperformed peers by tenfold
  The study identified seven companies that consistently beat their industry peers by at least ten times over 15+ years. These “10X companies” faced the same challenges, environments, and luck as others but still thrived. Their advantage was rooted in behaviors and disciplines that set them apart, not in circumstances.

• Fanatic discipline ensures steady progress
  10X leaders commit to clear goals and stick to them relentlessly, even when tempted to chase short-term wins. Discipline is not blind obedience but consistency with values, standards, and long-term objectives. They resist pressure to grow too fast in good times and maintain progress during downturns.

• The 20 Mile March principle builds resilience
  10X companies set performance goals that act like a steady march, neither too aggressive nor too cautious. By consistently hitting these targets in both good times and bad, they built strength, reserves, and credibility. This steady rhythm gave them the stamina to survive storms and thrive in chaos.

• Upper and lower bounds prevent extremes
  A good 20 Mile March sets both a minimum target to achieve even in tough times and a maximum cap to prevent overextension in good times. This balance creates discipline, conserves resources, and avoids burnout. Companies that ignore bounds often collapse when conditions change suddenly.

• Empirical creativity reduces blind risk
  10X leaders do not gamble on hunches. They experiment, test ideas, and collect data before making bold moves. This approach allows creativity to flourish without reckless risk-taking. They combine imagination with evidence, ensuring innovations are grounded in reality and more likely to succeed when scaled.

• Bullets before cannonballs strategy
  Before committing major resources, 10X companies fire “bullets” that are small, low-cost experiments to test ideas. When evidence shows success, they fire “cannonballs” which are large, focused investments. This method avoids wasting resources on unproven strategies and ensures that big bets are well-aimed and more likely to hit their target.

• Comparison companies fired uncalibrated cannonballs
  While 10X companies tested carefully before scaling, their weaker peers often made large, reckless bets without evidence. These uncalibrated cannonballs drained resources and exposed them to greater risk. Some succeeded briefly but collapsed when conditions changed. Careless boldness proved more dangerous than steady discipline.

• Productive paranoia prepares for the worst
  10X leaders constantly ask “What if?” even in good times. They anticipate disasters, build contingency plans, and maintain buffers such as cash reserves. By preparing for worst-case scenarios, they reduce vulnerability to shocks and increase the odds of survival when unpredictable challenges arrive.

• Southwest Airlines showed resilience after 9/11
  When the airline industry collapsed after the terrorist attacks of 9/11, Southwest Airlines had reserves of $1 billion in cash and clear contingency plans. Unlike competitors who cut staff and routes, Southwest operated normally and remained profitable. Their preparation turned crisis into a demonstration of strength.

• Discipline, creativity, and paranoia reinforce each other
  Fanatic discipline ensures consistent progress, empirical creativity drives innovation with evidence, and productive paranoia keeps risks in check. Together, these behaviors form a cycle of strength. Companies that balance these three are far more likely to survive and thrive in uncertain environments.

• Level 5 ambition drives purpose beyond ego
  10X leaders are not motivated by personal fame or wealth. Their ambition is directed toward building enduring companies and making a difference. They combine humility with fierce determination. This organizational focus inspires teams, attracts talent, and sustains success beyond individual leaders.

• Innovation alone is not enough
  Contrary to popular belief, the most innovative companies were not always the most successful. Some competitors actually innovated more but failed to execute. What matters is innovating with discipline, scaling the right ideas, and integrating them into the company’s strategy. Innovation plus execution beats creativity alone.

• Timing matters more than speed
  10X companies did not always respond first to challenges but responded best. They carefully assessed threats, gathered evidence, and acted decisively when ready. Their peers often rushed decisions or ignored risks, leading to failure. In uncertain times, thoughtful timing is more valuable than constant speed.

• Risk management keeps companies alive
  10X companies avoided risks that could destroy them, such as excessive debt or dependence on one product. They limited exposure to uncontrollable factors and built protective buffers. By managing risk intelligently, they gave themselves time and options to recover when conditions turned against them.

Find out why 1M+ professionals read Superhuman AI daily.

In 2 years you will be working for AI

Or an AI will be working for you

Here's how you can future-proof yourself:

1. Join the Superhuman AI newsletter – read by 1M+ people at top companies

2. Master AI tools, tutorials, and news in just 3 minutes a day

3. Become 10X more productive using AI

Join 1,000,000+ pros at companies like Google, Meta, and Amazon that are using AI to get ahead.

Sign up and start learning AI

• Simplicity in operating practices creates strength
  10X companies used what Collins calls “SMaC recipes” that is, Specific, Methodical, and Consistent rules. These were clear operating practices that rarely changed. They created stability in chaotic environments and guided teams even when leaders were absent. Simplicity and consistency proved more powerful than constant reinvention.

• Change cautiously, not constantly
  10X companies changed their operating practices only 10–20% of the time over decades. In contrast, comparison companies changed 55–70%. Excessive change eroded focus and momentum. Great companies resisted the pressure to constantly reinvent themselves, keeping what worked while adjusting only when necessary.

• Luck is not the main factor
  Both 10X companies and their peers experienced similar amounts of good and bad luck. Success came not from having more luck but from making better use of it. Great companies achieved a high “return on luck” by turning opportunities into sustained advantage and setbacks into resilience.

• Return on luck defines outcomes
  There are four types of return on luck: great return on good luck, poor return on good luck, great return on bad luck, and poor return on bad luck. 10X companies excelled at maximizing good luck and turning bad luck into learning and progress, while peers often wasted opportunities.

• Progressive Insurance turned bad luck into growth
  When California voters passed a law slashing auto insurance prices, Progressive faced disaster. Instead of panicking, they improved their claims process, addressing customer frustrations. This move turned a threat into a competitive advantage, propelling them from 13th place in the market to 4th over time.

• Southwest Airlines’ simple rules beat complexity
  Southwest’s SMaC recipe included rules like “use only 737 aircraft” and “do not serve meals.” These simple, clear practices created efficiency and resilience. Even in turbulent times, Southwest stuck to its recipe, which gave them consistency while competitors made chaotic, unsustainable changes.

• Intel’s disciplined shift saved the company
  Intel once relied heavily on memory chips but faced intense competition from Japanese manufacturers. Instead of clinging to the past, Intel shifted focus to microprocessors after years of preparation and experimentation. Their disciplined approach preserved stability while positioning them for long-term dominance in the industry.

• Great leaders prepare before crises hit
  10X leaders do not wait for disasters to react. They accumulate reserves, test strategies, and anticipate challenges long before they happen. Preparation is their insurance policy. When chaos strikes, they execute with confidence, while less prepared competitors scramble and collapse.

• Consistency beats aggressiveness
  Companies that grew aggressively in good times often depleted themselves, leaving no strength for downturns. In contrast, 10X companies paced themselves with discipline, staying within bounds. They looked slow compared to rivals during booms but always emerged stronger during crises, creating long-term superiority.

• Leadership style varies, behaviors do not
  10X leaders were not all charismatic visionaries. Some were quiet and reserved, others more outspoken. What mattered was not personality but the shared behaviors of discipline, creativity, and paranoia. Great leadership is defined by what leaders consistently do, not how they look or sound.

• Confidence comes from preparation, not inspiration
  Motivational speeches cannot replace results. 10X companies built confidence through steady achievements in difficult conditions. Each win, earned through discipline and persistence, reinforced belief in their methods. Confidence rooted in evidence, not hype, helped them endure and thrive through long stretches of uncertainty.

• Comparison companies lacked consistency
  The companies studied alongside the 10Xers often innovated aggressively, took bold risks, or changed direction frequently. They enjoyed short bursts of success but lacked the discipline to sustain it. Their inconsistency made them fragile, while 10X companies built enduring strength through consistency.

• Greatness is a choice, not luck
  The title Great by Choice emphasizes that companies become exceptional through deliberate behavior, not random luck. Leaders cannot control external chaos, but they can control discipline, preparation, and decision-making. By choosing these behaviors daily, organizations increase their odds of long-term success dramatically.

• Prepare for both micro and macro threats
  10X leaders balance attention between small details and the larger environment. They zoom in to execute flawlessly and zoom out to spot threats early. This dual perspective allows them to act with precision while never losing sight of the bigger picture.

• Enduring greatness requires humility and will
  At the core of the 10X companies was ambition directed at the organization, not the individual. Leaders combined humility with relentless determination to build something greater than themselves. This rare mix of personal modesty and fierce willpower ensured their companies thrived long after crises passed.

What’s Next?

Choose one principle from Great by Choice to apply this quarter. It could be setting your own 20 Mile March, preparing for worst-case scenarios, or testing ideas with small bullets before scaling. Commit to it for 90 days, track results, and review progress. Greatness begins with consistent, disciplined choices.