Why billionaires act fast: The secrets to success they don’t want you to know

ILLUSTRATION BY
RUTH MACAPAGAL

Your ability to act swiftly often differentiates the successful from the unsuccessful. As the “mentor of the giants,” as Fortune has called me, I have been advising famous CEOs and wealthy business owners from around the world for many years. I’ve seen first-hand the critical importance of taking decisive action. While many seek perfect solutions, the most successful entrepreneurs and CEOs understand that momentum and action are key drivers of success.

‘Done’ is better than ‘perfect’

US Army Gen. Norman Schwarzkopf once said, “It’s easier to change the movement of something that’s already in motion than to get something in motion from inertia.” This quote encapsulates a fundamental truth in business: movement creates opportunity. One of the most common pitfalls I observe among business leaders is decision paralysis, where overanalysis leads to inaction. The pursuit of perfect solutions can result in missed opportunities, as the market rarely waits for perfection. Instead, it rewards those who are willing to take the first step, make adjustments and refine their approach on the go.

Successful leaders understand that the pursuit of perfection can be a significant hindrance. They recognize that taking action, even if it’s not perfect, is often better than doing nothing. This approach allows them to seize opportunities, learn from their experiences and iterate their strategies. The key is not to avoid mistakes but to ensure that they are made quickly and are used as stepping stones to improvement.

Adopt a ‘bias for action!’

This principle has been fundamental to Amazon’s growth strategy. Jeff Bezos encourages his team to make decisions quickly and to learn from the results. This approach has enabled Amazon to innovate rapidly and maintain its competitive edge in the market.

Momentum is key

Momentum in business functions is much like a rolling stone gathering moss: the more you move, the more you accumulate. In the context of business, momentum refers to the continuous movement toward goals, leading to constant improvement and innovation. When a company or an individual is in motion, they are more likely to identify and seize new opportunities. This proactive approach creates a dynamic environment where growth and adaptation are continuous.

I’ve witnessed numerous instances where taking immediate action has led to significant business gains. For example, Elon Musk’s approach with SpaceX is a testament to the power of momentum. Musk’s philosophy of rapidly testing and iterating has allowed SpaceX to achieve milestones in the aerospace industry, such as the first privately funded spacecraft to reach orbit and the development of reusable rockets. By acting quickly and learning from each launch, SpaceX continues to push the boundaries of space exploration.

Another example is Sara Blakely, the founder of Spanx. Blakely launched her company with a simple idea for women’s shapewear. Rather than waiting for the perfect product, she brought her concept to market quickly, refined it based on customer feedback and built a billion-dollar brand. Her willingness to act fast and adapt was crucial in her success.

The habit of ruthless action and accountability

When I mentor and advise billionaires and top business leaders, I tell them to cultivate a habit of ruthless action and accountability. This means being unwaveringly committed to delivering on deadlines and holding themselves accountable for their decisions. This mindset helps maintain momentum and ensures that progress is continually made.

Richard Branson, the founder of the Virgin Group, emphasizes the importance of action in business. He once said, “Screw it, let’s do it.” This philosophy underlines the importance of being proactive and taking risks. By fostering a culture of action and accountability, leaders can create an environment where employees feel empowered to take initiative and drive the business forward.

Indra Nooyi, former CEO of PepsiCo, was known for her hands-on leadership style and commitment to accountability. She implemented the “Performance with Purpose” strategy, which balanced financial performance with sustainability goals. Nooyi’s focus on clear goals and accountability drove significant innovation and growth within the company.

Learning from mistakes and course correction

Taking action doesn’t mean being reckless; it’s about making informed decisions and being ready to adapt when necessary. Successful entrepreneurs understand that mistakes are an inevitable part of the journey. What sets them apart is their ability to learn from these mistakes and course-correct swiftly.

Steve Jobs, cofounder of Apple, is a prime example of this mindset. When Apple initially launched Macintosh, it didn’t achieve the expected success. However, Jobs and his team quickly adapted, refining the product and launching new versions that eventually became iconic. Similarly, Reed Hastings, CEO of Netflix, made a significant shift from a DVD rental business to streaming, understanding the changing market dynamics. This pivot allowed Netflix to dominate the streaming industry.

In contrast, Kodak’s hesitation to fully embrace digital photography is a cautionary tale of missed opportunities due to inaction and fear of change. Despite being a pioneer in digital camera technology, Kodak’s failure to act quickly and decisively led to its decline as digital photography became mainstream.

The impossibility of 100-percent information

One of the greatest myths in decision-making is the need for complete information. The reality is that having 100 percent of the information is impossible and often not necessary for making good decisions. The most successful business leaders trust their judgment and experience, making decisions with incomplete data and adapting as new information becomes available.

In my global practice advising famous CEOs and wealthy entrepreneurs, I’ve seen numerous instances where quick decisions with limited information led to successful outcomes. For example, a CEO decided to expand into a new market based on limited but crucial data points. This swift decision allowed the company to capture market share and establish a strong presence before competitors could react. Larry Page and Sergey Brin of Google exemplify this with their “launch and iterate” philosophy. They release products early, gather user feedback and make improvements, allowing Google to innovate rapidly and stay ahead in technology.

Your call to action

Perfection is an illusion; taking action is a practical path to success. Cultivate a bias for action, embracing a mindset of constant movement and improvement. Don’t wait for the perfect moment or all the answers. Take action now, learn from your experiences, and keep moving forward. Remember: Money seeks movement! INQ

Tom Oliver, a “global management guru” (Bloomberg), is the chair of The Tom Oliver Group, the trusted advisor and counselor to many of the world’s most influential family businesses, medium-sized enterprises, market leaders and global conglomerates. For more information and inquiries: www.TomOliverGroup.com or email [email protected].