1-31-2012
by John Fullam
Author Jim Collins did it again ? another look into what makes great companies great and separates them from all others. Great by Choice is a follow up to his classic book Good to Great which sold over 4 million copies. Great by Choice asks why some companies thrive in times of uncertainty, and others fight to survive. Collins refers to the high performing companies 10xers because they beat their index by at least 10 times in difficult times. (10xers included Microsoft, Progressive Insurance, Intel, and Southeast Airlines)
These high- performing companies behave differently. What can radio learn from their success?
Fire bullets - not cannonballs. Collins discovered two important characteristics about the 10xer companies as they approached new opportunities or innovation.
? These great companies took a low cost, low rush, low distraction test or experiment by firing ?bullets? to see if it actually worked. Once they knew it was calibrated to hit the target is when they would fire a cannonball.
? They were rarely first to market with new innovations (Amazon didn?t pioneer online book selling and Microsoft didn?t pioneer the PC spreadsheet. Nor did Intel have the most innovative chip) As one CEO said he?d rather be ?One fad behind?
As managers what bullets can we fire then calibrate? The best companies in the world demonstrate innovation doesn?t mean being first but that it is a calibrated process. When Steve Jobs wanted to open retail stores he first went to GAP CEO Mickey Drexler. Drexler said to first open one store and do not launch another until it is right. The first Apple store was not anything like Jobs wanted and required many redesigns until they nailed it. He then opened stores in Virginia and Los Angeles.
When we look at new opportunities with social, mobile, digital, deals or new initiatives of any kind of how can we better calibrate before we roll out uncalibrated cannonballs?
You cannot predict the future, but you can create it
Another important trait high performers had in common, Collins found - they utterly reject the idea that events outside their control or chance events will determine their results. These companies were not more creative, not more visionary, not more risk seeking, not more ambitious. It was the different behaviors over a long period that drove their success that can be an example to radio managers. Collins identifies three core behaviors great companies? exhibit, fanatic discipline, empirical creativity, and productive paranoia.
These days radio managers have so many distractions yet there are an incredible amount of opportunities as well. Firing more ?bullets? and ?creating your future? like some of todays best companies may improve your chance of success in 2012.
John Fullam is VP Market Manager for Greater Media Philadelphia and can be reached at JFullam@greatermediaphiladelphia.com
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