The book jacket of Great by Choice, the recent best-seller by Jim Collins and his co-author Morten Hansen, features four bullet points highlighting their latest surprising provocative findings. Their research findings, which are from a nine year study comparing a sample of great companies with not-so-successful companies, showed that companies become great as a result of the choices they make.
Speaking of choices, as you may know, the phrase “Strategic Choices for Successful Business Growth” appears on the banner of all my non-blog web pages and has been there now for almost five years. That’s because in my 25+ years researching business success and failure patterns in the moves made by companies, I have found that the right strategic choices lead to Winning Moves. And, as those of you who have been following my website for some time may know, many of Collins’ latest Great by Choice findings are what I have been discussing and advocating here on my website over the last several years. Thus, Collins’ research appears to confirm some of mine, though our methodology differs.
Not Too Much Risk, Less Innovation, Not Too Fast, and Not Too Much Change
In fact, as I explain below, Collins’ book jacket’s four surprising provocative findings bullet points parallel what I have been saying here on my website as a result of my research. His four bullet points cover risk, innovation, not acting too fast, and not changing too much–all of which have been major topics here on my website. So, if you want to better understand the provocative surprises in Jim Collins’ Great by Choice research, my material may help you.
Collins’ First Provocative Surprises Bullet Point–Risk
According to the first provocative surprises bullet point on Collins’ book jacket, the most successful companies are not the biggest risk takers. Again, if you have been following my material, you know that I’ve written a great deal about risk in my Winning Moves® reports and newsletter articles over the last several years. Based upon my research, my material emphasizes that success is associated with reducing risk down to more prudent levels, not with taking bigger risks.
My material on risk includes my January 2009 newsletter, which points out that high risk does not lead to high reward, and explains how even the greatest successes commonly attributed to high risk actually are not as risky as generally thought. For example, I point out that Richard Branson, known for his risk taking, reduces risk by always looking for ways to protect against the downside. This is essentially the kind of productive paranoia that Collins talks about.
In my July 2008 newsletter, I use my research about risk to explain how to interpret a University of Virginia corporate growth study’s finding that less risk was associated with greater success. Also, since my research finds risk reduction so important for business success, my November 2008 newsletter refutes the common wisdom that stagnating companies suffer from too little risk taking. My position is that these companies don’t need more risks, but merely need to stop stagnating and start evolving again.
Collins’ Second Provocative Surprises Bullet Point–Innovation
Another provocative surprises bullet point on Collins’ book jacket tells us that innovation is not the trump card. My report titled Evolution, Not Revolution: How to Innovate Without Destroying Your Company, which was on my website since early 2007, has a pull quote saying, “Innovation is not necessarily the key to growth that common wisdom often thinks it is.” My report also discusses how a so called revolutionary innovation only looks revolutionary to those who have not previously experienced it (this can include eventually disrupted companies specializing in older, pre-innovation technology). But, for those who actually work on developing the innovation, it entails several smaller evolutionary steps, not the revolutionary breakthrough that others may see. My discussion of this resembles what’s in Collins’ book, when he discusses Apple and points out that what looks like a big breakthrough is really a series of iterative steps.
Collins’ Third Provocative Surprises Bullet Point–Not Too Fast
Collins’ third provocative surprises bullet point, tells how moving too fast can kill success. Again, this parallels the position I have been emphasizing on my website as a result of my research, which finds that a more gradual, evolutionary approach leads to success. Yet additionally, my January 2011 newsletter points out that, while most successful evolutionary growth is slower, there are some rarer instances when relatively fast growth can be evolutionary and successful.
Collins’ Fourth Provocative Surprises Bullet Point–Not Too Much Change
Finally, Collins’ last provocative surprises bullet point says that successful companies change less in response to a radically changing world. Again, this reflects the evolutionary growth framework that I have been advocating as a result of my research. Throughout my website, I encourage gradual change and discourage huge leaps into new areas. Among the places I do this are my Evolution, Not Revolution special report and my July 2011 newsletter, which discusses Southwest Airlines. Yet, regarding Collins’ bullet point about changing less: it is important not to confuse the changing less that makes companies great with the barely changing stagnation that occurs when companies fail to evolve.
In summary, the provocative surprises bullet points on Jim Collins’ Great by Choice book jacket encompass what I’ve been pointing out for some time, based on my 25+ years researching business success and failure patterns. Since many of you will find Collins book of interest, I encourage you to read it. But, over the years, my material has been discussing these kinds of findings, along with their explanations and ramifications, as well as related areas. So, stay tuned to this Winning Moves® Blog for more of that to come.
Note: Phyllis Ezop, Ezop and Associates, this Winning Moves® website and blog, and the Winning Moves® reports and newsletters are not affiliated with Jim Collins.
