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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?