Great by Choice

by Jim Collins & Morten T. Hansen · 2011

In a nutshell

Great by Choice, by Jim Collins and Morten T. Hansen, analyzes why some high-growth companies outperform others in environments of uncertainty and chaos. Based on rigorous research, it introduces concepts like the “20 Mile March” and “SMaC recipe,” offering startup founders evidence-based principles for disciplined growth and resilience.

#Growth #Decision Making #Management #Scaling

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Great by Choice

Type: Book
Authors: Jim Collins, Morten T. Hansen
Category: Growth & Scaling
Topics: growth, decision-making, risk management

Description

Great by Choice investigates why some companies significantly outperform others in environments defined by uncertainty, chaos, and rapid change. Drawing on a multi-year research project, the authors compare “10X” companies—those that beat their industry index by at least 10x—to similar firms that did not achieve such performance, extracting practical principles for disciplined growth and resilience.

Features

Research-driven approach
- Nine-year empirical study beginning in the early 2000s.
- Initial universe of ~20,400 companies, filtered through 11 stages.
- Final selection of 7 “10X” companies that started from vulnerability and achieved exceptional, sustained performance in unstable environments.
- Use of matched comparison companies operating in the same turbulent conditions to isolate distinguishing factors.
Focus on thriving in uncertainty and chaos
- Explores why some companies prevail amid destabilizing events such as market crashes, geopolitical shocks, technological disruption, and intense global competition.
- Emphasizes that organizations do not thrive on chaos but can learn to thrive in chaotic, unpredictable contexts.
- Analyzes how certain leaders and firms move beyond mere survival to build enduring enterprises.
Key concepts and principles
- 10X companies: Firms that outperform their industry index by at least 10 times over a sustained period despite operating in highly volatile, risky environments.
- 20 Mile March (from item brief): A principle of consistent, disciplined progress—setting clear performance markers and hitting them reliably regardless of external conditions, avoiding overextension in good times and underperformance in bad times.
- SMaC recipe (from item brief): A set of Specific, Methodical, and Consistent operating practices that guide decision-making and execution, providing stability and clarity even when the external world is unstable.
- Evidence-based rules for disciplined growth, risk management, and resilience that can be applied by founders and leaders.
Case examples
- Analysis of Southwest Airlines as a 10X case:
  - Operated from 1972–2002 in an industry repeatedly hit by fuel shocks, deregulation, labor conflicts, recessions, interest rate spikes, hijackings, bankruptcies, and the impact of Sept. 11, 2001.
  - Demonstrates how a company can deliver extraordinary returns relative to the general market despite chronic industry turbulence.

Ideal For

Startup and scale-up founders seeking disciplined-growth frameworks.
Executives and managers operating in volatile or rapidly changing markets.
Investors, board members, and advisors evaluating resilience and strategy.
Students and practitioners of strategy, leadership, and organizational behavior.

Pricing

Not specified on the source page; pricing varies by retailer, format (hardcover, paperback, ebook, audiobook), and region.

More Info

Official page:

Metadata

Brand / Publisher: harperbusiness
Slug: great-by-choice
Tags: growth, decision-making, risk-management
Category: growth-scaling

Reference

Great by Choice — publisher / official page. Summary adapted from the Awesome Startup Books collection.

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