Great by Choice Summary: Proven Strategies for Success

Great by Choice is a compelling business book authored by Jim Collins and Morten T. Hansen. Known for their exceptional research and profound insights into business strategy, Collins and Hansen explore the critical factors that enable some companies to achieve extraordinary success in unpredictable and chaotic environments.

The purpose of Great by Choice is to dissect and understand how certain companies not only survive but thrive amid uncertainty. The book is grounded in nine years of rigorous research, examining over 20,000 companies to identify those that significantly outperformed their peers.

By delving into the principles and traits that characterise these highly successful companies, Great by Choice provides valuable strategies for business leaders. Through detailed case studies and empirical analysis, Collins and Hansen reveal that achieving great performance is not just about creativity or vision; it’s about disciplined execution, empirical decision-making, productive paranoia, and leveraging opportunities effectively.

For anyone seeking practical insights into navigating business success amidst volatility, Great by Choice offers proven strategies and a roadmap for enduring achievement. The insights from this book align with the principles of success as outlined by Jim Collins, which emphasise disciplined execution and empirical decision-making.

Moreover, just like certain resilient businesses, some natural elements such as specific mushrooms known for their brain health benefits also thrive under specific conditions. This analogy underscores the importance of understanding one’s environment—be it in business or nature.

In addition to these insights, the book also serves as a reminder of the beauty and inspiration found in our surroundings. It encourages readers to draw strength from inspiring stories of resilience found in the great outdoors, much like the businesses that thrive against all odds.

Understanding 10X Companies

10X companies are organisations that outperform their industry index by at least ten times over a significant period, often during periods of rapid change and instability. This label is not about small improvements or short-term gains—it identifies businesses that have achieved extraordinary, sustained success while navigating environments where unpredictability is the norm.

What Sets 10X Companies Apart

10X companies distinguish themselves through consistent outperformance, not merely by luck or bursts of innovation. These businesses demonstrate resilience and adaptability in times when most competitors struggle or fail. Their significance lies in their ability to set new standards for what’s possible in turbulent markets—changing how leaders think about strategy, risk management, and growth.

The Research Behind 10X Companies

Jim Collins and Morten T. Hansen conducted an extensive study on business success:

20,400 companies analysed over a 15-year period.
From this vast data set, only seven companies met the strict criteria to be called “10Xers.”
The research compared each 10X company directly with similar peers facing the same market forces, regulatory shifts, technological disruptions, and economic upheavals.

This rigorous approach provided clarity on what truly sets these organisations apart—not just who they are but how they operate under pressure.

Why Studying 10X Companies Matters

Success stories from stable markets rarely offer lessons for today’s unpredictable world. The real test for any business comes from how it faces chaos: economic downturns, disruptive technologies, sudden regulatory changes.

“Great by Choice” explores why some companies thrive while most falter under identical conditions.

Key reasons to focus on 10X companies include:

Learning how deliberate strategy beats reactionary tactics.
Understanding which behaviours—not circumstances—drive outsized results.
Gaining practical insights into sustaining growth even as external pressures mount.

These findings challenge conventional wisdom about leadership during rapid change and provide a blueprint for building lasting advantage despite uncertainty.

In addition to these insights, it’s essential to understand that adopting transitional business models can also play a critical role in helping businesses navigate through disruptions effectively.

Core Principles of Success in “Great by Choice”

1. Fanatic Discipline: Consistency Amid Chaos

In “Great by Choice,” fanatic discipline is defined as an unwavering adherence to core values and long-term goals, regardless of external circumstances. This principle emphasises the importance of maintaining a consistent course of action even when faced with chaos and unpredictability.

Discipline for successful companies means sticking to their strategic plans and not veering off course due to short-term pressures or market volatility. This steadfastness ensures that they can achieve steady progress, avoiding the pitfalls of reactionary decision-making.

How Discipline Helps Companies Maintain Focus Despite External Uncertainty

Fanatic discipline allows organisations to:

Set Clear Goals: Companies set specific, measurable, achievable, relevant, and time-bound (SMART) goals that guide their actions.
Establish Routines: By adhering to established routines and processes, companies can maintain business consistency despite external changes.
Avoid Distractions: Disciplined companies resist the temptation to chase every new opportunity or trend, focusing instead on what aligns with their core mission.
Build Resilience: Consistency in action builds organisational resilience, enabling companies to withstand market fluctuations and economic downturns.

Historical examples illustrate this principle well. Roald Amundsen’s disciplined approach to reaching the South Pole exemplifies how unwavering commitment to a plan can lead to success even in harsh conditions.

In a business context, the principle of fanatic discipline can be seen in companies like Southwest Airlines, which maintained low-cost operations through strict adherence to its business model. This focus allowed Southwest to thrive even during periods of industry turbulence.

Another example is Stryker Corporation, which consistently followed a disciplined acquisition strategy aligned with its long-term growth goals. This approach helped Stryker achieve sustained success over decades.

Fanatic discipline is not about rigidity; it’s about being steadfast in pursuing core objectives while being flexible enough to adapt tactics as needed without losing sight of those objectives. Businesses that master this principle are better positioned to navigate uncertainty and emerge stronger from challenges.

2. Empirical Creativity: Innovation Grounded in Evidence

Empirical creativity is crucial for thriving in uncertain environments. This principle emphasises the importance of data-driven experimentation over reckless innovation. Collins and Hansen introduce the concept of “fire bullets, then cannonballs” to illustrate this approach.

Fire Bullets, Then Cannonballs

Fire Bullets: Begin with small-scale tests or experiments. These “bullets” are low-cost, low-risk attempts to validate ideas and gather evidence on their effectiveness.
Then Cannonballs: Once a bullet hits its target—proving successful through empirical data—scale up the investment significantly, akin to firing a “cannonball.”

This methodology helps avoid the pitfalls of aggressive, untested leaps into new initiatives. Instead, it advocates for incremental innovation that is firmly grounded in evidence and minimises risk.

Avoiding Reckless Innovation

Reckless innovation can lead to substantial losses and setbacks. Companies that practice empirical creativity mitigate these risks by:

Rigorously testing ideas before large-scale implementation.
Analysing data to understand what works and what doesn’t.
Learning from each small experiment to refine subsequent efforts.

By adopting this disciplined approach to innovation, organisations ensure that their creative efforts are both effective and sustainable.

Empirical creativity works hand in hand with fanatic discipline, productive paranoia, Level 5 ambition, and the SMaC recipe. Together, these principles provide a framework for business consistency and steady progress amid chaos. The insights from “Great by Choice” reveal that successful companies prioritise evidence-based decision-making as a key strategy for navigating uncertainty.

3. Productive Paranoia: Vigilance and Risk Preparedness

Productive paranoia is a critical principle in “Great by Choice” that underlines the importance of maintaining heightened awareness of potential threats. Successful companies are those that constantly scan their environments, anticipating changes and challenges before they arise. This vigilance allows them to stay ahead of the curve and prepare accordingly.

These companies prepare for worst-case scenarios to survive adversity. They build buffers and contingency plans to ensure they can weather unexpected storms. For instance, maintaining cash reserves or diversifying their supply chains can provide a cushion against economic downturns or disruptions.

Key practices of productive paranoia include:

Constant Scanning: Regularly monitoring market trends, competitor actions, and economic indicators to detect early warning signs.
Scenario Planning: Developing detailed plans for various potential threats, ensuring the company is ready to act swiftly.
Buffer Creation: Allocating resources for unforeseen situations, such as financial reserves or extra inventory.
Contingency Plans: Establishing backup strategies for critical operations to minimise disruption during crises.

An example from the book highlights how Intel’s former CEO Andy Grove famously embodied productive paranoia with his mantra, “Only the paranoid survive.” Under his leadership, Intel maintained a vigilant approach to competition and technological shifts, enabling it to navigate industry challenges successfully.

By embracing productive paranoia, companies can transform uncertainty into an advantage. This principle complements other key strategies like fanatic discipline and empirical creativity, creating a holistic approach to thriving in chaotic environments. Through consistent vigilance and robust preparedness, organisations not only survive but also position themselves for steady progress amidst volatility.

4. Level 5 Ambition: Enduring Purpose Beyond Short-Term Gains

Level 5 Ambition is a key part of the strategies discussed in “Great by Choice.” This idea refers to a leadership drive that goes beyond personal success and immediate rewards, focusing instead on a bigger, lasting goal. Leaders with Level 5 Ambition show a rare combination of humility and determination, directing their efforts towards the long-term vision of their organisation.

Key Traits of Level 5 Ambition:

Humility: Level 5 leaders are modest and rarely seek attention for themselves. They prioritise the company’s success over personal accolades.
Unwavering Determination: These leaders show an intense commitment to achieving their goals, regardless of obstacles.

This deep-rooted ambition is crucial for keeping company efforts going over time. It makes sure that organisations stay focused on their core values and long-term goals, even during tough times. For example, under Steve Jobs’ leadership, Apple’s commitment to innovation and quality never wavered, helping the company get through various market challenges.

Connection to Other Principles:

Fanatic Discipline: Level 5 leaders include fanatic discipline in their daily operations, keeping consistent actions towards long-term goals.
Empirical Creativity: They promote innovation based on evidence, making sure new ideas fit with the company’s enduring purpose.
Productive Paranoia: Being vigilant and prepared for risks is crucial for safeguarding the organisation’s future.

A practical example of Level 5 Ambition can be seen in companies like Southwest Airlines, where leadership consistently prioritised sustainable growth over rapid expansion. This approach allowed them to survive industry downturns and come out stronger.

By encouraging a culture of Level 5 Ambition, organisations can become more resilient against short-term market pressures and steadily move towards their ultimate vision. This principle highlights the importance of having a long-term perspective in leadership ambition, making sure that decisions made today lead to lasting success tomorrow.

5. Return on Luck and the SMaC Recipe for Disciplined Strategy Execution

Success in unpredictable environments often sparks debates about the role of luck versus disciplined execution. Great by Choice challenges the myth that extraordinary results are simply a matter of being in the right place at the right time. Jim Collins and Morten T. Hansen introduce the concept of Return on Luck—the idea that everyone encounters good and bad fortune, but great companies turn luck events into significant gains or minimise damage through deliberate choices.

Maximising Return on Luck

Luck, whether fortunate or adverse, is inevitable in business. What separates 10X companies from their competitors is not the frequency or magnitude of luck events, but:

Preparation: Building buffers and contingency plans so unexpected events can be leveraged rather than endured.
Response: Rapid, decisive action when presented with a lucky break or setback.
Learning: Analysing outcomes to refine future responses.

A classic example involves Southwest Airlines during deregulation. While deregulation was a widespread event (a “luck event” available to all airlines), Southwest’s disciplined business model and preparedness allowed it to capitalise where others stumbled. This highlights how fanatic discipline, empirical creativity, and productive paranoia work together to convert luck into lasting advantage.

The SMaC Recipe: Anchoring Consistency

The book introduces the SMaC recipe—an acronym for Specific, Methodical, and Consistent. This operating system consists of clear, actionable principles that guide decision-making under pressure. Key features include:

Specific: Detailed rules about what to do (and not do) in key situations.
Methodical: Repeatable processes rather than reactive improvisation.
Consistent: Adherence to these rules regardless of market volatility or external chaos.

For example:

“Stryker’s SMaC recipe mandated specific growth targets—20% annual sales growth—and strict controls on product development timelines.”

This disciplined approach anchors success by reducing decision fatigue, increasing predictability, and enabling steady progress even as conditions shift around you. Leaders who implement a SMaC recipe ensure that teams operate with a shared playbook, blending creativity with unwavering focus on what works.

These principles—fanatic discipline, empirical creativity, productive paranoia, Level 5 ambition, and a robust SMaC recipe—form the foundation for consistent performance in turbulent markets.

Real-Life Examples Illustrating Key Concepts from “Great by Choice”

Examining real-life examples can help illustrate the principles outlined in “Great by Choice.” Here are a few noteworthy instances:

Roald Amundsen South Pole Expedition Case Study

Roald Amundsen’s South Pole expedition is a prime example of fanatic discipline. Amundsen meticulously planned every aspect of his journey, including the type of food, clothing, and even the number of dogs. His disciplined approach enabled him to maintain a steady pace regardless of weather conditions, which ultimately led to his success.

Southwest Airlines

Southwest Airlines exemplifies empirical creativity with its “fire bullets, then cannonballs” strategy. Instead of making radical changes, Southwest tested new ideas on a small scale. For instance, they experimented with boarding processes and pricing models before implementing them company-wide. This evidence-based innovation allowed Southwest to minimise risk and maximise success.

Intel

Intel demonstrates productive paranoia through its constant vigilance and preparedness for market shifts. During the 1980s, Intel faced fierce competition from Japanese semiconductor manufacturers. Instead of being complacent during their profitable years, Intel focused on diversifying its product line and invested heavily in research and development. This proactive approach ensured Intel’s resilience in the face of industry changes.

Microsoft

Microsoft’s strategy highlights Level 5 ambition. Bill Gates’ vision extended beyond personal success; he aimed to put “a computer on every desk and in every home.” This enduring purpose drove Microsoft’s sustained efforts over decades, leading to its monumental impact on the tech industry.

Stryker Corporation

Stryker Corporation embodies the SMaC Recipe principle by developing specific, methodical, and consistent operating procedures. The company followed a clear set of guidelines for innovation, customer service, and operational efficiency. This disciplined strategy execution anchored Stryker’s success despite market fluctuations.

These case studies not only provide insight into how these principles can be applied but also offer valuable lessons about resilience and adaptability in the face of challenges. As illustrated in the article about lessons learned from mighty falls, it’s essential to understand that setbacks can serve as powerful learning experiences that contribute to future success.

Key lessons from these case studies include:

Discipline: Maintaining consistent actions towards set goals.
Innovation: Grounding new ideas in evidence through small-scale tests.
Vigilance: Preparing for potential threats even during prosperous times.
Purpose: Pursuing goals that extend beyond immediate profits.
Consistency: Adhering to proven methods for stability and success.

These examples demonstrate how principles from “Great by Choice” translate into practical strategies that foster resilience and sustained achievement amidst uncertainty.

Applying “Great by Choice” Principles to Modern Leadership Challenges

Navigating unpredictable markets and constant change demands leadership strategies under uncertainty. The “Great by Choice Summary” offers a blueprint for action, not just theory. Leaders who adopt these principles shift from reactive management to proactive, disciplined execution.

Implementing Fanatic Discipline

Fanatic discipline is about setting clear standards and refusing to deviate, regardless of external pressures or shifting trends. Leaders can:

Define non-negotiable behaviours and targets for their teams.
Enforce consistent routines—such as regular performance reviews or “20 Mile March” goals—that keep progress steady even when the environment gets chaotic.
Prioritise reliability over speed in decision-making, ensuring actions align with long-term objectives.

A manager at a tech startup might set a rule that every product release must pass strict QA benchmarks, regardless of looming deadlines or market hype. This kind of discipline creates trust and predictability.

Using Empirical Creativity for Safe Innovation

Innovation carries risk. The principle of empirical creativity means experimenting on a small scale before committing extensive resources.

Encourage teams to pilot new ideas as “bullets”—low-cost, low-risk tests. Scale only those innovations that deliver measurable results (“cannonballs”). Ground decisions in real-world data rather than gut instinct or industry fads.

A marketing team may A/B test campaign messages with small segments before rolling out a full-scale national launch. This approach ensures creativity doesn’t undermine stability.

Building Cultures of Productive Paranoia

Productive paranoia is about vigilance without panic. Leaders who build this mindset:

Regularly assess potential risks and develop contingency plans.
Foster open conversations about vulnerabilities instead of hiding from uncomfortable truths.
Maintain financial reserves or slack resources so teams can weather downturns without drastic layoffs or panic decisions.

An HR director could run quarterly scenario planning workshops, identifying threats like talent shortages or regulatory shifts and outlining proactive responses.

Cultivating Level 5 Ambition

Leaders need ambition anchored in purpose rather than ego. Level 5 ambition emphasises collective mission over personal gain.

Articulate a vision that connects daily work to enduring values.
Recognise and celebrate contributions that move the organisation closer to its bigger cause.
Build succession plans so momentum continues regardless of leadership changes.

When employees understand their work drives a lasting impact—not just quarterly profits—they commit more deeply through turbulent times.

Developing and Following SMaC Recipes

The SMaC (Specific, Methodical, and Consistent) recipe transforms strategy into concrete action steps.

Document essential practices that define how the organisation operates under stress.
Revisit and refine these recipes periodically but avoid wholesale changes unless evidence demands it.
Train teams on the importance of sticking to proven methods while allowing room for incremental innovation.

A logistics company might implement a SMaC recipe dictating exact routes, inventory thresholds, and communication protocols during disruptions—ensuring clarity even when external chaos reigns.

These leadership strategies under uncertainty foster resilience, adaptability, and sustained performance—cornerstones for thriving in today’s fast-changing business landscape.

The Importance of Deliberate Decision-Making Over Luck or Market Conditions

Great by Choice shows us that while luck is a part of every business journey, it’s the strategic choices that truly lead to long-lasting success. According to research by Jim Collins and Morten T. Hansen, “10X” companies experienced just as many random events—both good and bad—as their less successful counterparts. But the key difference was not in how often or how well luck struck, but in how leaders reacted to those events.

Deliberate decision-making means:

Prioritising preparation over reaction: Successful leaders plan ahead for crises by investing in contingency plans and risk management strategies. This proactive approach allows them to take advantage of opportunities and navigate challenges instead of scrambling for solutions after the fact.
Building consistent systems: Companies that thrive don’t rely on market trends or chance occurrences. They establish specific, methodical, and consistent (SMaC) operating practices that guide their actions even when circumstances change unexpectedly.
Learning from evidence: Every major decision is based on empirical data rather than gut feelings. Leaders test ideas gradually, analyse results, and scale up what works—a process that minimises risk and maximises outcomes.

“The critical question is not whether you will have luck, but what you do with the luck that you get.” — Jim Collins

The strategic choices vs luck in business resilience becomes a defining factor in long-term performance. Proactive leaders shape their environments through intentional moves, while reactive ones become victims of circumstance. When organisations choose discipline over drift, innovation over guesswork, and vigilance over complacency, they create resilience that endures beyond fleeting market conditions or random events.

This mindset positions companies to not just survive uncertainty but to consistently outperform rivals regardless of external forces.

Conclusion

The evidence is clear—success in turbulent environments is not reserved for the luckiest or most visionary, but for those who choose discipline, empirical experimentation, vigilance, and unwavering ambition. Leaders who adopt these principles from Great by Choice position themselves and their organisations to thrive when the future looks unpredictable.

Fanatic discipline keeps you grounded when chaos erupts.
Empirical creativity ensures your innovation is guided by results, not wishful thinking.
Productive paranoia prepares your team to weather storms that would sink less vigilant competitors.
Level 5 ambition aligns daily actions with a deeper mission, fueling perseverance through adversity.
The SMaC recipe provides a playbook that brings stability even when the market does not.

“The signature of mediocrity is not an unwillingness to change. The signature of mediocrity is chronic inconsistency.” – Collins and Hansen

As markets shift and uncertainty becomes the norm, these lessons remain as relevant as ever. Adopting the strategies outlined in this Great by Choice Summary isn’t just about survival—it’s about setting the pace for meaningful, long-term achievement. Choose consistency. Choose preparedness. Choose greatness by choice.