Great by Choice (Jim Collins and Morten T. Hansen): Chapter 03: 20 Mile March

20 mile marching symbolizes a benchmark of consistent progress within a given time frame. Jim and his co-authors favor consistent progress over erratic, uncontrolled progress. 

He tells a story about John Brown, CEO of Stryker from 1977, who demanded a 20% net income growth every year. If your division failed to reach the target, he invented a number of measures to embarass you so you never repeat the same mistake again. And if you failed to reach the target two years in a row, things would get really bad for you.  

In addition to a growth target, John Brown also had a limit about how much growth was acceptable. This proved to be very wise because they managed to have enough reserves when the hard times came. It's competitor, USSC, didn't have enough reserves. They had overreached, they were erratic in their behavior, and they got punished for their lack self-control. Things got so bad for USSC that they had to eventually close their doors and sell their business to Tyco.

20 Mile Marching is about hold yourself to a high performance standard in difficult times, while have the discipline to hold back and not overreach in good conditions. 

Jim tells a similar story about Southwest Airlines. They achieved a profit every year for 30 years straight. This is unheard of in the airline industry. Just like Stryker, they had the discipline to hold back and not overgrow. They preserved their profits so they could reinvest when the tide turned. 

Southwest's growth was deliberate and incremental. They didn't take dramatic leaps and unnecessary risks. 

A 20 Mile March requires constraints on the upside as well as the downside. You do not drop below a certain performance marker, and you do not grow above a certain performance marker. 

Jim gives us several criteria that must be met in order to set for yourself a good 20 Mile March. It must be within your control, not dependent on luck. Timeline must not be too long, nor too short. Must be self-imposed. Not copied or imposed from the outside. Must be achieved consistently. Don't let yourself off the hook with excuses. 

20 Mile March requires you to be disciplined in every segment of your business. "It reduces the likelihood of catastrophe when you're hit hy turbulent disruption." Make incremental progress year by year. 

 20 Mile Marches don't all have to be financial. You can create different marches for different goals. 

Confidence comes from competence, not from pep talks and motivational speeches. 20 Mile Marching helps you gain confidence by setting a goal for yourself and achieving said goal no matter the conditions. Think back to Amundsen who prepared rigorously no matter the conditions. And when performance time came, he sailed to victory with ease. 

Remember The Power of Full Engagement? You need to replenish your energy consistently. If you push yourself too hard, and circumstances turn bad the next day, you won't have enough strength to fight and survive. Whereas if you're properly rested and have sufficient reserves, you stand a good chance. 

Our performance ultimately depends on our abilities and our preparation, not the environment or circumstances. 

It's ultimately about what you can control. 

20 Mile Marching helps you preserve resources, avoid exhaustion, and better handle external calamities. 

Jim reiterates that so long as you stay alive and in the game, it's never too late to start the march. 

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