The SMaC recipe explained: A simple way to boost your business
Mar 31, 2022 · 2 mins read
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A SMaC recipe is a technique for converting strategic business plans into reality through a 10-point list of actionable points.
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The concept was developed in the book Great by Choice by Jim Collins and Morten Hansen, and the acronym “SMaC” stands for Specific, Methodical, and Consistent.
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SMaC recipes are durable that successful businesses don’t need to adjust theirs more than 20% every decade. The US Constitution is a good example: it has been amended just 17 times since its ratification in the year 1791.
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The SMaC recipe’s blueprint dates back to 1979 when Howard Putnam, then CEO of Southwest Airlines, came up with a list of 10 specific principles or actions as a simple formula for consistent success. Crucially, it drew from what Southwest had already done well up to that point.
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The inspiration came from this 10-point strategy by Southwest Airlines:
1. Remain a short-haul airline.
2. Use the Boeing 737 as our primary carrier for 10-12 years.
3. Aim for maximum occupancy and a turnaround time of 10 minutes.
4 Passengers are paramount (not cargo).
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5. Balance low fares with high frequency.
6. Forget about catering.
7. No ‘interline’ connection agreements with other airlines.
8. Keep Texas as the top priority.
9. Retain the family atmosphere.
10. Keep it simple, e.g. cash-register tickets and no seat selection.
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Not all of the items on Southwest’s SMaC recipe are actionable, but each one is equally important. Remarkably, this strategy not only helped the company achieve great success but it has remained largely intact over 40 years later.
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Companies that thrive when others struggle are ‘10X organizations.’ They follow three core behaviors:
– fanatical discipline
– empirical creativity (taking decisive actions based on experience)
– productive paranoia (preparing for worst-case scenarios)
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Creating a SMaC recipe is not easy. It can requite honing over great lengths of time to make sure it accurately reflects your business and its marketplace. Once you've perfected it, however, it should remain untouched – only changing in the face of fundamental disruption.
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Bottom line: By adopting the three core behaviors of 10X organizations, and defining a set of durable operating practices into one recipe, anyone can successfully grow their company into a consistent performer – even in a highly dynamic market.
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