miguel a. lopez alexander johnson carissa tarnowski rebecca eggerman hannah stephens great by choice...
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Miguel A. LopezAlexander JohnsonCarissa TarnowskiRebecca EggermanHannah Stephens
Great By Choice20 Mile March
Preview Walk Across the U.S.20 Mile MarchThe AlternativeThe StrategyCharacteristics of 20 Mile March20 Mile March Comparisons Unexpected FindingsPerformance Mechanisms
Results of SuccessSelf-Imposed DiscomfortGood 20 Mile Marches10X and the 20 Mile MarchWhole FoodsCause and EffectsSummaryWalk across the U.S.How long will it take you?
How much supplies will you need?
Where will you find shelter?
How much will it cost you?
How will you communicate to the outside world?
How far is 3,000 miles?
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San DiegoMaine3,000 MilesHow far is 3,000 miles???4
20 Mile MarchWalk 20 milesDont walk more than 20 milesDont walk less than 20 milesDont think about weather5
AlternativeWalk in only good weatherIf you can, walk more than 20 milesIf the weather is bad, rest6The Strategy20 Mile March AlternativeWalk 20 Miles
Dont walk more than 20 Miles
Dont walk less than 20 Miles
Dont think about the weather
Walk in only good weather
If you can, walk more then 20 miles
If the weather is bad, rest
7Characteristics of a 20 Mile March Clear Performance markers John Brown 20% marker
Self-imposed restraintsNot move past a given point in a year
Appropriate for specific enterpriseNo such thing as an all purpose 20 mile march it must be tailored to the industry.
820 mile march Largely within the companys control to achieve No need for luck in the market to achieve your goal.
A proper timeframeNot too short and no too long
20 mile marchImposed by the company on itselfImposed by the enterprise not copied from somewhere else (no outside pressure)
Achieved with high consistency.Intention to achieve benchmarks not good enough.
20 Mile March Comparisons StrykerUSSC20% annual earnings
20 Mile March consistently
Successful from 1992-1994Erratic growth and earnings
Breakthrough innovation
Overextended and sold out in 1998
Southwest AirlinesPSAProfitable for 30 years
Maintained profit even after 29/11
Constrained growth to ensure profitability Began with 20 Mile March philosophy
Abandoned philosophy in 1970s
Taken over in 1986 by US Air
Progressive InsuranceSafeco InsuranceAveraged combined ratio 96%
Limited growth to ensure maintained ratio
Profitable 27 of 30 yearsFocused on combined ratio early on
Went for growth acquisition of American States in 1980
Profitable 10 of 27 years
IntelAMDUpheld Moores Law
Doubled complexity at minimum cost
Kept consistent over entire coursePursued big growth
Unprepared for bad times
No steady growth marker
14MicrosoftApplePracticed 20 Mile March innovation
Products improved over time
Never strayed from 20 Mile MarchDidnt use 20 Mile March initially
Inconsistent profit and growth
Introduced 20 Mile March with return of Steve Jobs
AmgenGenentechUsed 20 Mile March in incremental innovation
Continuously developed existing drugs
Strong revenue growthBet-big and over overpromising mentality
Began 20 Mile March in 1995 after downfall
Broke 5 year goals into 1 year goals
BiometKirschnerConsistent profit growth 20 of 21 years
20 Mile March innovation
Never overextendedDidnt use 20 Mile March
Grew fast through acquisition
Resulted in crisis and sold out in 1997
Unexpected FindingsExpectationsRealityPursuing aggressive growthMaking radical, big leapsCatching the Next Big WaveHit stepwise performance markersGreat consistencyLong term
Performance MechanismsConcrete
Clear
Intelligent
Rigorously PursuedA Result of Success?10X CompaniesEmbraced long before they were big companies
Comparison CompaniesSome had shown no signs of 20 Mile MarchSome only did well when they also 20 Mile Marched
Creates Self-Imposed DiscomfortUnwavering CommitmentHigh performance in difficult times
Holding BackIn good conditions
A Good 20 Mile MarchPerformance MarkersLower Bound
Self-imposed ConstraintsUpper Bound
Tailored to the EnterpriseApplies to Company
Lies Largely Within Control to Achieve
A Good 20 Mile MarchGoldilocks Time FrameNot Too Long/Short
Designed and Self-imposed by the EnterpriseNot Imposed from the Outside
Achieved with Great ConsistencyGood Intentions Not Enough
10X Companies 20 Mile MarchStrategic MechanismNear-perfect RecordMissing a march is not seen as OK
Theres no excuse, and its up to us to correct for our failures, period.
Whole Foods MarketIntends to Growat such a pace that financial health continues to prosperSalary Cap limits the maximum cash compensation paid to any Team Member
http://www.wholefoodsmarket.com/mission-values/core-values/declaration-interdependence25Whole Foods Market"The pace of new store openings and lease signings continues to increase, and our accelerated growth plans are on track. We expect healthy comparable store sales growth and continuing operating margin improvement in fiscal year 2013.- John Mackey, co-founder and co-chief executive
Whole Foods MarketFor the quarter ended Sept. 30, Profit of $112.7 millionSales grew 24% to $2.91 billion.Latest quarter same-store sales rose 8.5%14th consecutive quarter of growth.
http://www.marketwatch.com/story/whole-foods-profit-up-49-raises-dividend-2012-11-0727Cause and effects of the 20 Mile MarchBuilds confidence
Failure to complete leaves an organization exposed to turbulent events
Helps exert self-control
The 20 Mile March SummaryA distinguishing factor to 10x companies and comparison companies
Requires hitting specific performance markers with great consistency over a long time period
Does not have to relate to financials
It is never too late to adopt
10Xers set their own 20 Mile March
What is your 20 Mile March?What is something that you want to commit to achieving for 15 to 30 years with as much consistency as the 10X companies we have discussed today?