A data-driven look at the ultimate business question: What makes some companies outperform over the long term? Every industry has had outliers that deliver superior performance over the long run, despite facing the same constraints as competitors. In the pharmaceutical industry, it's Merck; in retail, it's Abercrombie & Fitch; in appliances, Maytag. What do these companies do differently? Drawing on Deloitte's insights and analysis of almost 25,000 companies spanning forty-five years, the authors identified 394 companies that are true long-term standouts in every kind of industry-medical devices, trucking, semiconductors, even discount stores. Using cutting-edge statistical analysis coupled with detailed case studies, they discovered that what sets those companies apart is not just how they act, but how they think. Exceptional companies, when faced with tough choices, follow three rules: Better before cheaper. They rarely compete on price. Revenue before cost. They drive profits through price and volume, not thrift. There are no other rules. Everything else is up for grabs. Raynor and Ahmed explain how executives can apply these rules to their organizations to take control of their destinies and deliver exceptional long-term performance.