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What 10X Winners Do to Keep Their Chance of Winning High

What 10X Winners Do to Keep Their Chance of Winning High

In 1985, Coca-Cola made the decision to switch their formula, creating essentially a different-tasting soda product. They called it New Coke. The sweeter version was arrived at after 190,000 nationwide taste tests that cost roughly $4 million. The result was not positive. Coca-Cola drinkers didn’t like the new taste — 39% or so were extremely loyal to the original — and Pepsi, their biggest rival, was able to say “The other guy blinked.” (That means Coke had reformulated to taste more like Pepsi.) The entire experiment lasted all of 79 days before Coke switched back to the original formula, which it now was calling Coke Classic.

    Coca-Cola is a very successful company, but in this specific case, they failed badly. Why?

    Fire bullets, then cannonballs

    Coca-cola was confident about their new product so they invested a lot in it and threw this “cannonball” to the market. When customers didn’t like this new product, it means the cannonball missed the target. This brought Coca-cola a great loss at the end.

    If Coca-Cola tested their product carefully, launched the new product in only selective places, like shooting out bullets, they might not fail tremendously like that.

    This idea of “fire bullets, then cannonballs” was developed by Jim Collins in his book Great by Choice.

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    The basic principle is this: during trying times, oftentimes people look for big solutions and giant leaps. They want to show dramatic success to emerge from the failure. But that’s actually the wrong approach.

      Successful people take small steps before making big leaps.

      This isn’t just work. Think about dating, for example, you don’t often just go approach someone and ask to be super serious or get engaged. You try to start to talk to them first, then go on a few dates, and include them when you hang out with friends.

      Or think about when you’re buying a car. Very few people walk into a car dealership with no research done and spend $35,000. They visit several. They talk to friends. They do research.

      In this model, bullets are small steps to test the idea first. Cannonballs are giant leaps to make a great impact.

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      You deal with bullets first, taking small steps to test an idea first e.g. prototype, test, redesign, and test again; when you’ve got enough experience to know this idea works or is welcome by customers, shoot.

      The cannonballs stage is about scaling the idea up, publicly launching it in a wide scale, and making it loud.

      By carefully testing something before you try to make it big, you can prevent big idea failure.

      How to fire bullets

      A bullet is a small empirical test that should meet these criteria:

      • low cost
      • low risk, meaning minimum consequence
      • low distraction, meaning not having great impact on the overall

        A bullet might be a piece of research you find, or a small focus group. They come in different forms.

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        Once you’ve fired bullets and see some results, you enter into this process:

        • Assess: Did your bullets hit anything? What can you learn from the failed bullets to improve other bullets?
        • Consider: Can any of the successful bullets worth turning into a cannonball? Do you need to fire another bullet to make sure it?
        • Convert: When confirmed the success of bullets, concentrate resources and fire a cannonball
        • Terminate: The bullets that show no evidence of eventual success.

          The process of reviewing the bullets is more important than the bullets themselves. Let’s say a student gets an “A” on a test, but he cheated. The “A” might be seen as the cannonball-esque result, but the process is highly flawed and could encourage more negative behavior. Reviewing your process is crucial.

          Now let’s think of all this in terms of the New Coke marketing blunder. Before those 190,000 nationwide taste tests at a cost of $4 million, and before they launched their New Coke, they could have try out bullets e.g. market New Coke as freebies in small size and distributed to only a few shops, use different ways to test out its popularity in different regions first; before they muster all the effort to a big launch of it and had to return to use the original formula of Coke.

          Bullets first, and only then should you fire the big launch cannonball.

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            How can you do this in your life?

            Think of it along these lines:

            Step 1: Find your bullets

            • What small things can you do to test out your ideas?
            • Are they at low cost, low risk and low distraction?
            • Are there any existing ways that you can take reference of/learn from?

            Step 2: Fire your bullets and review them

            • Hit any target? if not, why?
            • What can you learn from the failed bullets?
            • For the successful bullets that hit the target, when is it time to use cannonball to hit the target?

            Again, this is about more than ideas at work. If you’re courting a relationship, bullets might involve learning about the person from their friends, setting up coffee, and sending small trinkets. The “cannonball” would be the relationship itself, but you can’t jump immediately to that. There needs to be some bullets fired first — and some might miss.

            You can learn more in Great by Choice, which argues that while we can’t predict the future, we can shape it through dedicated actions such as bullets before cannonballs.

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            Leon Ho

            Founder & CEO of Lifehack

            50 Ways to Increase Productivity and Achieve More in Less Time The Ultimate Night Routine Guide: Sleep Better and Wake Up Productive Powerful Daily Routine Examples for a Healthy and High-Achieving You How to Prioritize Right in 10 Minutes and Work 10X Faster What Is a Habit? Understand It to Control It 100%

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            Last Updated on November 19, 2019

            What Is the 80 20 Rule (And How to Use It to Boost Productivity)

            What Is the 80 20 Rule (And How to Use It to Boost Productivity)

            The 80 20 Rule or Pareto Principle, named after the nineteenth-century Italian economist, Vilfredo Pareto, who discovered that approximately 80% of Italian land in 1896 was owned by 20% of the population, has become a common axiom in business and life.

            The principle was highlighted in 1992 by a United Nations Development Program report that showed that roughly 80% of the world’s wealth was in the hands of 20% of the population.[1] Businesses have reported that 80% of their sales come from 20% of their customers and, Microsoft discovered that if they fix the top 20%, most reported bugs they eliminate 80% of the problems in their software.

            It seems the Pareto Principle is all around us.

            When it comes to our own productivity, the principle can be applied in that 80% of our results come from 20% of our efforts. The trick is to discover what that 20% is so we can apply our most effort to that 20% and eliminate as much of the 80% that does not produce the results we want.

            So how do we do that?

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            Be Absolutely Clear on What It Is You Want to Achieve

            The easiest and most effective way to do this is to be absolutely clear about what it is you are trying to achieve.

            What is the outcome you want to achieve? Most people do not get clarity on what it is they want to achieve, and so get sucked into working on things that will not deliver a big contribution to the overall objective.

            For example, if you have a project to move house, spending an inordinate amount of time discussing the colour you want to have the walls, what furniture you would like and what plants you will have in the garden will not move you very far towards moving house.

            Instead, deciding how many rooms and in what location you would like the house would give you far more important data on which to be able to go to a real estate agent. You are going to find the right house much more quickly than by discussing colours, furniture and items in your garden.

            Before you begin any project, make a list of all the tasks involved to take the project to completion and then flag or highlight the tasks that will give you the biggest contribution towards the completion of the project. Those tasks will be the 20% of tasks that will take you 80% of the way towards completing the project. Focus on those.

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            What Are Your Majors and Minors?

            Jim Rohn coined this question and it essentially means there are parts of the work you do each day that have a direct contribution to the overall objective you are trying to achieve.[2] Other parts of your work do not have a direct contribution to that objective but could be described as housekeeping tasks. The trick is to know what they are.

            Brian Tracy often talks about this with the sales process.[3] Major time is when you are in front of the customer talking with them. Minor time is traveling to the customer or being in meetings with your sales manager in the office. Of course, traveling to see your customer or meeting with your sales manager is important, but they do not contribute directly to your sales performance so that would be classed as minor time.

            When I was in sales many years ago, I learned that while you might be popular with your sales admin team, if you meticulously write out your sales reports every day, doing so did not improve sales performance. I observed that the best salespeople in our company were the ones who had terrible admin reputations and were not the more popular people in the office. The thing is, they were the best salespeople because they understood that being in front of the customer led to higher sales which ultimately led to higher salaries.

            Take a look at your calendar for last week and identify what tasks you did that had the biggest positive impact on your objectives. Then, plan to do more of those next week so you are working on the 20% of tasks you know will take towards achieving 80% of the results you desire.

            Stop Thinking, Start Doing

            I come across this with a lot of my clients when I am coaching them in developing their own businesses. Far too much time is spent on planning and thinking.

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            Now, planning and developing ideas do have their place when you are creating your own business, but there is a line. If you spend 80% of your time thinking and planning, your business is not going to launch.

            Take a simple example. When I began my YouTube channel just over three years ago, I spent a week planning what type of videos I would produce and then I began recording. My first video was terrible, but the process of putting out the videos week after week led to my learning better ways of producing videos which fuelled my channel’s growth.

            I see far too many people planning and thinking about what they want to do and not producing the content. If you spend 80% of your time producing content and 20% of your time planning out your content, no matter what medium you are producing for, you will see positive results. If you turn that ratio around, you are not going to see much by way of results.

            Stop for a moment right now and ask yourself: “What could I do today that will give me 80% of the results I most desire?”

            Use Your Calendar to Review How You Spent Your Time

            Your calendar is your most powerful analytical tool when it comes to seeing how you spend your time each week. If you see you are spending a lot of your daily time in meetings and dealing with co-worker issues, you will find you are not focused on the 20% where the real results are.

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            If you have taken the time to write down the activities that give you 80% of your results, then review your calendar at the end of the week to see where you are spending your time you will be able to make adjustments; so you are more focused on the activities that give you the biggest positive results. Block time each day to work on those tasks.

            Try to eliminate those tasks that do not bring in much by way of results. If you can do so, delegate them to other people better able to complete those tasks for you so you can spend more of your time each week on tasks. This will give you a much better return on your time investment.

            To really take advantage of the 80:20 principle, you need to be aware of where you are spending your time each day.

            If you are a content producer, then you need to be producing content, not wasting time analyzing analytics. Of course, analytics is important if you want to see growth, but without content, you will not have any analytics on which to base your future content. So 80% of your time needs to be spent on producing content.

            If you are in sales, if you spend 80% of your time planning out your sales calls and only 20% of your time in front of your customers, your sales performance is not going to be very good. Turn that ration around. Spend 20% of your time planning out your calls and 80% in front of your customers.

            Key Takeaways

            So to make the 80 20 rule work for you, remember these:

            • Be very clear about what it is you want to achieve. What will a successful outcome look like? Then identify the 20% of action steps that will get you 80% of the way there.
            • What are your majors and minors? What daily activities could you do that will create constant motion towards achieving whatever it is you want to achieve? Do those every day.
            • Reduce the amount of time you spend thinking about doing something and just start doing it. If you are spending 80% of the time thinking and just 20% of your time doing you have the ratio back to front.
            • Identify which action steps you have taken over the last week that had the biggest positive impact on your goals. Do more of them next week. Prioritise them and schedule the time in your calendar.

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            Featured photo credit: Anete Lūsiņa via unsplash.com

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