1. Great By Choice Chapter 6: SmAC
Team #1
Andrew McDaniel
Brad Schaefer
Brandon Christian
Robert Pace
Ryan Schafer

2. SMaC & Southwest
Southwest Airline Decided to use same recipe over and over for what they already do well
Putnam Specified every detail for the airlines success
Remained consistent over time while steadily evolving.

3. SMaC Recipe Specific Methodical and Consistent
A set of durable operating practices that create a replicable and consistent formula for success
Also includes points on what not to do
10xers use SMaC to gain as much control as they can

4. Adhering to Smac With Fanatic Discipline
10X companies kept their Smac Recipe in place on average about 20 years.
Comparison companies would change their plan about 4 different times within their comparison competing companies implementation of their Smac Recipe.
In addition, the comparison companies best years were when they displayed a Smac Recipe.

5. Adhering to Smac With Fanatic Discipline (cont.)
Southwest became a dominant airline by copying PSA proven Smac Recipe
The irony with PSA is they moved away from their proven Smac Recipe to follow Unite Airlins in reaction to a deregulation set in place.
Had PSA stayed with their proven recipe they very well could have become the most successful airline today.

6. Adhering to Smac With Fanatic Discipline (cont.)
Microsoft flourished while Apple crumbled.
Why? Because, Microsoft stuck with unwavering consistency in leadership, purpose, strategy, and recipe.
While apple was constantly switching direction. From CEO to target market of their computer’s.
How did apple turn around? By brining Steve Jobs back in 1997 and returning the company to its original principal’s.

7. Adhering to Smac With Fanatic Discipline (cont.)
John Wooden produced 10 NCAA championships in 12 years.
How? By not changing his proven recipe of success.

8. Amending the SMaC Recipe: Paranoid, Creativity Consistency
Paranoid, creative consistency”
Changes in the:
Economy
Markets
Fashion trends
Technology
Political landscape
Laws & regulations
Societal norms
Line of work

9. Amending the SMaC Recipe
Intel
Memory chip business (DRAMS)
Intel switched focus to processors but upheld its recipe
They zoomed out to see gain clarity in their logical decision making
Changed one ingredient in their recipe but kept the recipe the same

10. Amending the SMaC Recipe
AMD
AMD was not able to experience long-term momentum
Switching their recipe numerous times
This change interfered with their wholesales

11. Amending the SMaC Recipe
When is it time for a 10xer company to make a change?
Explicitely consider the recipe’s ingredients in relation to changes in the environment
Examine the facts
Zoom out

12. Amending the SMaC Recipe
Approaches:
1. exercise empirical creativity:
Internally driven
Fire bullets to test practices before making it a part of the recipe
2. Exercise Productive Paranoia
Externally focused
Zoom out to assess a change in conditions
Zoom in to implement the change as needed
“10xers accept consistency & change at the same time”

13. Consistency and Change: The Great Human Tension
Amendment mechanism:
allowed for the Constitution to evolve as America evolved.
High hurdles for change, making it stable through time.
Constitution only amended 17 times between 1791 and 2011.

14. Consistency and Change: The Great Human Tension
Amendment mechanism:
allowed for the Constitution to evolve as America evolved.
High hurdles for change, making it stable through time.
Constitution only amended 17 times between 1791 and 2011.

15. Brief Overview Stick to your SMaC in all environments
Change only what is necessary
Exercise empirical creativity and productive paranoia

16. SMaC in our personal lives
How can we create Specific, Methodical, and Consistent live styles?
Goal setting
Interviews
Relationships
What is your SMaC Recipe and does it need amending?