The 20 Mile March

Great by Choice is the latest work of Jim Collins and is well worth the read because its implications extend not only to business but to our personal lives.  The book is based on comparisons and contrasts and he uses the race to the South Pole by Ronald Amundsen (the winner) Robert Scott (the loser) in 1911 as an example.  While both made the first goal, reaching the South Pole (Amundsen got there first, a full month ahead of Scott) they both did not make the second goal, getting safely home.  Amundsen’s team made it back while Scott’s team all perished.  So what can we learn from this?  Why was one team so successful while the other failed?

The successful team exhibited a number of traits that are critical to success in building any business.  They are:

• Have a clear goal
• Have a plan to achieve the goal
• Have enough reserves to get you through
• Have contingency plans
• Have discipline
• Have self-imposed constraints
• Have clear performance markers (metrics)

Collins uses the concept of a 20 mile per day march.  In Amundsen’s case he proceeded to march about 20 miles every day whether the weather was good or bad.  On the bad days they barely made it or came a little short but they still tried.  On the good days it was easy, but instead of wearing themselves out by pushing forward beyond 20 miles they achieved their metric, stopped and rested; thus keeping themselves  fresh and ready for the next day’s march.  Are you moving your business forward at a steady pace or breakneck speed?

Collins used another example from warfare that is applicable and one I have seen in action with a number of my clients.  He relates capital resources of the business to gun powder on a ship, both of which are in short supply.  If you are trying to hit a target and sink it, you can use cannons or bullets.  If you fire the cannon you may have only one or two chance to hit the ship.  However if you fire bullets and use this to calibrate the trajectory, when you have it you can bring out the cannon and complete the task.  Wise companies use this approach with innovation and new products.  Invest a little, develop the product, test market it, refine it, test it again and when you have it go into full production or product rollout.  Collins book shows example after example where initially very successful companies fire their cannons far too often and ended up out of business or underperforming the market.  Taking the conservative approach seems like a logical thing to do but yet in the heat of the moment emotional decisions are often made.  You need more than analytics to make wise decisions, you need experience.

What type of a company do you wish to be?  One that tracks along year by year in their 20 mile a day disciplined march to success or the company that bets the farm on a sure thing and runs out of powder?  As a partner with B2B CFO® I am well positioned to help your company plan and execute your 20 mile march.