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“Learn from yesterday, live for today, hope for tomorrow.”
Albert Einstein
Awarded the 1921 Nobel Prize in Physics, named Time’s Man of the Century in 1999, and best known for his conception of the theories of special and general relativity
Great by Choice: Uncertainty, Chaos, and Luck – Why Some Thrive Despite Them All
by Jim Collins and Morten Hansen
About the Reference
Great by Choice by Jim Collins and Morten Hansen represents a detailed assessment of companies thriving in times of uncertainty compared with similar organizations not performing so well. In the analytical tradition of Built to Last, Good to Great, and How the Mighty Fall, Collins and Hansen imperially demonstrate that organizations performing well in tumultuous times:
Benefits of Using this Reference
StrategyDriven Contributors like Great by Choice for its data-driven analysis of organizational performance in turbulent times. We believe this assessment and its findings are particularly relevant given today’s highly uncertain marketplace.
However, StrategyDriven Contributors believe there are some flaws in Collins and Hansen’s analysis. First, it appears that a majority of the 10x companies were small, fragile, and subsequently more nimble than their comparisons during the early portion of the comparison period. We feel this difference in organizational structure materially influenced the results each company was able to achieve; the 10x companies having ‘less to lose’ were better positioned to take the actions necessary for a higher long-term payoff whereas their peers were laden with ‘historical scaring’ – legacy contracts and obligations, well established shareholder expectations, etcetera – and were subsequently more confined in what they are able to do and so were less likely to be able to take the action needed to achieve 10x gains.
Another flaw was the comparison of Microsoft to Apple. While both were high tech companies during the assessment period, Microsoft was a software company whereas Apple was an integrated software and hardware company; placing it in a very different business. We disagree that these companies were comparative.
Finally, Collins and Hansen do not broaden their analysis to include companies such as Microsoft and Apple that change performance positions over time. Subjectively, if a company can be great by choice, then turnarounds such as that which Apple orchestrated in the 2000s should not only be possible but, given the vast number of businesses in the marketplace over the past 100+ years and the several periods of market turbulence, should have occurred in other instances. Validating the Great by Choice principles against several turnaround examples would help strengthen their assertions – assuming they are true.
In spite of our analytical reservations, StrategyDriven Contributors like Great by Choice and believe it offers significant, if not groundbreaking, insight to the principles for building a successful organization regardless of the marketplace environment. For its data-driven insights of how to succeed during uncertain times, Great by Choice is a StrategyDriven recommended read.
Budgets are the financial representation of an organization’s business plan. As such, they convey a great deal of information regarding the organization’s direction - its ongoing operations, market pursuits, future investments, and staffing levels.
Evolution of Corporate Communications Activity
In many professions, the idea of full-scope, sophisticated positioning has been foreign up until now. Business development has occurred primarily by accident or through market demand.
Because of economic realities and the increased numbers of firms providing comparable services, the notion of business development is now a necessity, rather than a luxury.
Competition for customers-clients is sharpening. The professions are no longer held on a pedestal… a condition which mandates them to portray or enhance public images.
As companies adjust comfort levels and acquire confidence in the arena of business development, there is a direct relationship to billings, client mix diversity, market share, competitive advantage, stock price and levels of business which enable other planned growth.
Public perceptions are called credence goods by economists. Every organization must educate outside publics about what they do… and how they do it.
This holds for corporate operating units and departments. You must always educate corporate opinion makers on how you function… and the skill with which you operate.
Gaining confidence is crucial… as business relationships with professionals are established to be long-term in duration.
Each organization or should determine and craft its own character and personality… seeking to differentiate from others. That appeals to professionals within your own staff, those professionals whom your firm would like to attract and clients.
Top management must endorse corporate imaging and other forms of practice development, if your company is to grow and prosper. Few companies can even sustain present levels of sales without some degree of business development.
Some people in your organization will devote much time to promotions, public relations, marketing and advertising. This quality should be recognized and rewarded… since professionals with a sense of business direction play an important part in company growth.
Be it a ‘necessary evil’ or not, corporate imaging activity can be accomplished with skill and success…provided that organizations follow the advice of professional communicators.
Companies must maintain a delicate balance between seeking new business, replacing lost clients and nurturing client relationships. Operating units and departments must schedule and follow a program to market their worth to their companies.
No matter what time allocation basis is selected by the organization, it is vital that some basis exists in writing and in execution.
Guidelines and Customs to be Observed in Corporate Communications
The professional organization that evokes a caring image – and backs it up with service – will prosper in today’s marketplace.
In image building, the following ideas should be considered:
Corporate Communications Program – Essential Ingredients
Strategic Plan
Policies and Procedures
Investor Relations Program
Public Relations Program
Marketing Program
Job Descriptions (Position Results Oriented Descriptions)
Staff Training Program
Corporate Communications Manual
Crisis Plan
Compensation, Benefits and Other Financial Plans
Accounts Payable and Accounts Receivable Plans
Continuous Quality Improvement Program
Ethics Statement
Literature and Audio Visual Programs Which Portray Company Image
Special Financial Publics Program
Internal Auditing and Assessment Program
Government Relations Program
Community Relations Program
Staff Development and Professional Enhancement Program
Conflict Resolution and Arbitration Plans
Corporate Philanthropy Program
Contingency Program for Specified and Unplanned Emergencies
About the Author
Hank Moore has advised 5,000+ client organizations worldwide (including 100 of the Fortune 500, public sector agencies, small businesses and non-profit organizations). He has advised two U.S. Presidents and spoke at five Economic Summits. He guides companies through growth strategies, visioning, strategic planning, executive leadership development, Futurism and Big Picture issues which profoundly affect the business climate. He conducts company evaluations, creates the big ideas and anchors the enterprise to its next tier. The Business Tree™ is his trademarked approach to growing, strengthening and evolving business, while mastering change. To read Hank’s complete biography, click here.
Business Programs