Learning from one of the Fastest Growing Companies
Jim Collins wrote an article on Walmart some years ago and correctly predicted the unstoppable driving force that is Walmart today. Going through his observations on Walmart back then, there are some interesting facets I believe can be learned from one of the fastest growing companies in the world.
You achieve greatness, it turns out, in much the same way that you turn a giant, heavy flywheel: It takes a huge amount of effort to get the thing moving from one turn to two, from two to four, from four to eight. But if you keep pushing in a consistent direction, you’ll eventually hit a hundred, then a thousand, then a million RPMs. When you combine a consistent direction with substantial speed, you achieve something greater than either of those elements alone: momentum.
I believe this is the same way net worth is built: slow and steady. In the beginning it may be hard to get started, trying to squeeze out income to put towards investing and every deposit seemingly like a paltry sum. But before long, with the magic of compounding, starting early, and as long as you are willing to consistently apply your saving and investing practices, you will hit the point of critical mass where your assets can generate more than yourself working 9-5. It is important to stay consistent in order to maintain the momentum on your side. And if you do fail, as most of us do one time or another, don’t dwell on it. Instead, focus on recovery, on getting the momentum back on your side and working for you.
Wal-Mart has been willing to try all sorts of new things — from creating supersized grocery stores to selling cars. The company keeps what works and gets rid of what doesn’t but always remains guided by its core traits, which have not changed in more than 50 years.
Similarly, in moving towards the overall goal of retiring early, saving for financial freedom, etc… it is important to keep an open mind and forever be learning so that we can sieze new opportunities that might help us along our path. We should learn and implement new ways of increasing our income while decreasing our liabilities. If it works then we can accelerate our goals, if not then we try new things. Life is a constantly changing environment and we need to adapt to see what works, but never compromise on what is personally important to us.
But effective culture is not just about rock and roll, clanging cowbells, and dancing chickens. It is also about discipline — disciplined people who engage in disciplined thought and who take disciplined action. And the ultimate form of discipline is this: Never think of your company as great, no matter how successful it becomes . Instead, always stay irrationally worried that it is never really measuring up to its potential.
I most identify with the above statement. Even though circumstances may warrant complacency and ego, never let it eclipse what is ultimately important to you. Like I mentioned above, this world is constantly changing, it is better to be prepared for all circumstances and be cautious about the future rather than assuming everything will always be rosy and go your way. To this effect, maintain an emergency fund, diversify your portfolio, always be on the look out for becoming better. Complancy is the enemy of progress and the womb of mediocrity. And retiring early definitely falls outside the lines of mediocrity. If you are always trying to get better, you will. And you will hit the goals you set out for yourself. If you don’t try to exceed where you are currently, you won’t.
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