The Idea: Transformation happens not when something new begins but when something old falls apart. Transformation occurs through the process of letting go of the old and embracing the new; including a reorientation says philosopher Richard Rohr.
The 10X companies are growing at a rate at least 10 times the pace of their competitors. What’s their philosophy and what makes them special?
They are not more innovative, charismatic, faster, smarter or creative. Nor are they always introducing big new ideas states Jim Collins. The 10X companies are more consistent than their competitors. Yes they are agile (and flexible) but they test the markets with lots of “Small Bets.”
And according to researcher Peter Sims, they are not always “first” to market with their ideas. First to market actually is very overrated and full of risk. The 10x organizations are a radical blend of: innovation, discipline, purpose and EXECUTION!
Philosophy #1: They believe they control their destiny. And it doesn’t matter the industry.
Philosophy #2: Success is about something bigger than sales, it’s artistry, purposeful and beautiful.
At this year’s most recent Growth Summit in Boston, our leaders shared a number of significant ideas embraced by the 10X companies. Which of these do you embrace?
Kantar’s Brian Owens spoke on “The New Rules of Thought Leadership.” We now live in disruption, polarization and urban growth. Growth companies create Shopper First Organizations. The companies are flatter, more flexible and great at listening to the shopper. And you can’t do it alone. The 10X organizations understand that partnerships are the key to thriving. The right partnerships are growth accelerators. How well do you do strategic partnerships?
CVS Health’s Alex Perez Tenessa outlined the mega-trend of “Health & Beauty Becoming One.”
The future of the beauty category is additional health benefits, while health brands are adding personal care characteristics. Beauty is evolving into health; healthy beauty will account for over 50% of all non-cosmetic beauty within 3-5 years. And this is being fueled by smaller 10X growth brands. The broader societal shift towards health fuels this innovation trend – specifically in skin, hair and oral health. Brands such as Vichy, Cetaphil, CeraVe, Sensodyne are setting the tone. There is a broader generational shift in the world of health and wellness. Most companies follow the leaders (playing tag) but the future is bubbling up on the fringe. How are you at assessing emerging competitors?
IRI’s Larry Levin reminded us “The Ultimate Insight is Hyper Personalization.” It’s not about being all things to all shoppers, it is about being hyper local, aligning product assortment to the right store. Store segmentation is now on a store level. IRI calls this a “Segmentation of One.” On a broader level, 20 percent of the top growth markets deliver 33 percent of the growth. The 10X companies think like a start-up, not striving for perfect (100 percent) distribution, but “distributing perfectly” (surgically) in the right stores. Does your organization think like a start-up?
We all crave certainty and are not immune to this internal desire. The dark side of many high performing teams is paranoia gone amuck. As Collins reminds us, the best high performing 10X companies embrace productive paranoia.
They experiment, embrace failure as a teacher and simplify their plans, embracing the heart of execution.
Which 10X Companies are you modeling?
