Insight
Collins: A company's second major cannonball usually becomes its biggest business
“What history shows is usually the second cannonball from a bullet to cannonball process on top of an existing flywheel becomes the biggest part of the company. Marriott started in restaurants, bullet to cannonball, hotels, right? Apple started in personal comp…”
Opinion
Collins: West Point cadets were happier than Stanford MBA students
“I came to the conclusion that my West Point cadets were, in a general, happier than my Stanford MBA students that I taught, and I think that we just, it was really interesting. I think it has to do with the fact that they're in an ethic of service that's immen…”
Insight
Jim Collins: Leaders who take care of their people will not fail
“The second is stop taking care of your career. Start taking care of your people, and if you do that, then they won't let you fail.”
Disclosure
Collins: Personal board of directors should be chosen for character, not success
“And when I chose members for my personal port of directors, they were not chosen for their success. They were chosen for their values and for their character.”
Insight
Collins: In great relationships, both people feel they benefit more
“A really great relationship is one where if you ask each person independently who benefits more from the relationship, they would each say, well, I do.”
Insight
Collins: Defaulting to trust in relationships yields far more upside than starting with mistrust
“He said, I've come to the conclusion when I think across the iterative relationships and interactions and aspects of life, that there is far more upside in an opening bid of trust. And there is far more downside in an opening bid of mistrust.”
Insight
Collins: Perceived untrustworthiness usually stems from mistakes or incompetence, not malice
“One of the things that Bill always emphasized was that sometimes you don't know the whole story. He said sometimes it may not be ill intent. It could just simply be a misunderstanding, or it could be just incompetence, right? Somebody might not actually be unt…”
Insight
Collins: Writing is easy to read because it is hard to write
“The only reason writing becomes, ah, easy to read is because it's hard to write. And writing is just hard. I think of writing as it's like running. If you're going to run your best, it's always gonna hurt. And so if you can run a five minute mile and then you …”
Insight
Collins: Decision speed should depend on how much time before risks change
“What really Morton and I found in our research is the question is not fast decision or slow decision, you know, as sort of proxies for decisive or not. It's how much time before your risk changes, and then make your decision within that time frame.”
Insight
Collins: Autopsies with blame create an agency problem driving corporate indecision
“The moment that you introduce autopsies with blame, as opposed to autopsies without blame, the more you are going to begin to create an environment where it's like, man, the upside downside here of making a decision is, you know, you've got upside downside for…”
Insight
Collins: Effective flywheels convert world contribution into reinvestable fuel
“And if you really study the best flywheels, they have a different role. On the right-hand side of the flywheel, the 12 o'clock to six, Is really about what you do in the world, what you do to contribute, what you do that makes people's lives better, what you d…”
Insight
Collins: Built-to-last companies reinvest fuel while built-to-flip companies siphon it
“If you see that the point of the flywheel is to generate resources that get siphoned out of the flywheel, they're really the purposes to have that flywheel generate cash to other people to allow you to cash out, to sell the company to somebody else. That's sip…”
Insight
Collins: Enduring crisis requires unwavering faith paired with brutal realism
“You must never confuse the need on the one hand for absolute unwavering faith that you can and you will prevail in the end with the need on the other hand for the discipline to confront the most brutal facts as they actually are.”
Insight
Collins: 'Who luck' from influential mentors defines career trajectories
“One of the things I believe in is you get not just luck in life, but who luck, And a little bit later, by the way, I hope we circle back to the question of luck, because we actually systematically studied and quantified its role in our research in one of our s…”
Assertion Not checkable as stated
Collins: Most iconic company builders never faced a crushing wilderness experience
“And if I go look at that list, and I could go make the list longer than this too, but most of them did not have the crushing wilderness experience. Most of them did not.”
Insight
Collins: Human cognition is not evolutionarily wired for probabilistic thinking
“Even people who've been trained in statistics and probability make probabilistic errors all the time, because for whatever evolutionary reason, we don't naturally think that way. And so, you can make the right decision and still have a bad outcome.”
Insight
Collins: Good outcomes from bad decision processes compound negative habits
“Bad decision process with good outcome reinforces bad process. Which then when you were talking about compounding, Ends up producing compounding in the wrong direction.”
Insight
Collins: Convert every 'what' decision into a 'who' decision
“One of my big takeaways from our research about decision making is try to change every what decision into a who decision. Not what should we do about this cybersecurity threat, but who should we have involved in it? Not what should we do about this investment …”
Insight
Collins: Reacting to failure without understanding triggers an organizational doom loop
“What happens as a company reacts without understanding. Oh my gosh, we had disappointing results. And often what happens is they panic. They look for a new direction, or a new program, or a new leader, or a new acquisition, or a new technology, or something. A…”
Insight
Collins: A personal Hedgehog Concept requires passion, genetic encoding, and economic value
“I think individuals have hedgehogs as well as companies. So go back to the hedgehog and the idea of like, of understanding what you're really passionate about. And in the case of the personal hedgehog, what you're truly genetically encoded for. And then third …”
Insight
Collins: Preserving the core while stimulating progress drives institutional renewal
“Preserve the core and stimulate progress, which is kind of the secret to long-term renewal of an institution.”
Assertion Not checkable as stated
Collins: Validating small tests before big bets correlates with outperformance
“If you calibrate with empirical validation by firing bullets first, and then you get calibration, then you convert to the cannonball, that's what correlates with the best performers over time.”
Insight
Collins: Built to Last companies showed greater endurance due to non-monetary purpose
“If you zoom way out and you ask which set of companies had greater endurance, now Built to Last was about Built to Last, but the Built to Last companies did. And I have to ask myself why. Because we're looking through different lenses, so you're still just try…”
Insight
Collins: Great CEOs manage with a quarter-century horizon
“What I can say is that the great CEOs that we ever studied managed for the quarter century, and if you are not making decisions To hit a twenty-mile march for a quarter of a century, if you are not building a company, if you are just trying to build the flip o…”