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Understanding those differences is an important part of being able to take our conclusions seriously. The bedrock assumption of every success study is that one can infer the causes of differences in performance by comparing the behaviors of companies with higher performance with the behaviors of companies with lower performance. Most success studies set performance benchmarks that are intuitively demanding and then declare that any companies clearing those benchmarks have achieved superior performance.

How much of each of price and non-price value a company provides relative to its competitors defines its position in competitive space; that is, how a company creates value for its customers. In the case of trucking, deregulation in 1980 dramatically increased customer choice, which forced trucking companies to define their positions—that combination of price and non-price value that would differentiate them from their competitors in ways that customers would be willing to pay for. Unfortunately, there was no easy way to know which position would be the most profitable.

It is not enough simply to set up a performance benchmark, no matter how demanding it might seem, and see who clears it. Neither is it enough to put a sample or even a population of companies in rank order and focus on those at the top of the list. Either approach leaves you highly susceptible to focusing on lucky random walkers. We wanted only those companies that were good enough for long enough that we could be confident something special was going on. We wanted companies that were truly exceptional.

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