The Flywheel & The Doom Loop Good to Great by Jim Collins, Chapter 8

Revolution means turning the wheel. - Igor Stravinski

The transformation from good to great appears a sudden, skyrocketing turning point, according to the outside perspective

However, from the inside, a company's leap from good to great is much more an organic process

Two cycles: a company's momentum can become either A SUCCESS CYCLE OR A FAILURE CYCLE

Buildup and Breakthrough

Good-to-great companies will appear to explode on the scene- however, this is the result of an INTERNAL PROGRESSION rather than any one move or event ("Egg to Chicken")

From good to great, THERE WAS NO MIRACLE MOMENT.

In all examples of good-to-great companies, success was a "quiet, deliberate process of figuring out what needed to be done... and simply taking those steps..." (Collins, 2001, p. 169)

Good-to-great is a not a matter of one moment, but of progressive MOMENTUM

Not Just a Luxury of Circumstance

Long-term approach: staying STEADY IN THE FACE OF PRESSURE

Good-to-great companies maintain their core mission and gameplan, despite short-term pressures (i.e. Wall Street)

Good-to-great companies hold to their well-defined Hedgehog Concept

The "Flywheel Effect"

"Tremendous power exists in the fact of continued improvement and the delivery of results" (Collins, 2001, pg. 174)

Tangible results over time become indicators of growing momentum

When in line with the company's core focus, the continual achievement of small successes creates a culture that takes care of all corporate elements (i.e. alignment, motivation)

Carried by the momentum, people turn potential into results, and "goals almost set themselves"

The Doom Loop

In comparison, other companies will forgo the quiet, deliberate process and commitment to simple success required and look for the "Silver Bullet"

Many companies will look to new programs and exciting company shifts to make the jump to great, becoming reactive

Without the proper commitment to consistent growth and dedicated steps of success, many companies fall into a pattern of failed jumpstarts

Acquisitions are often used as an attempt to launch a company ahead, but can fail as a jumpstart

Good-to-great companies use such opportunities as an ACCELERATOR, not a creator, of momentum

In order to bolster rather than impede the flywheel momentum, leaders must be careful to align with current success

The Flywheel as a Wraparound Idea

The keys to Flywheel success: CONSISTENCY & COHERENCE

Created By
Park Ticer
Appreciate

Credits:

Created with images by Pexels - "architecture buildings city" • Elsie esq. - "Flywheel" • PublicDomainPictures - "achievement bar business" • Brett Jordan - "Beakout" • thenails - ""Wall Street Bull"" • Paul Keller - "SUCCESSFULLFAILURE (opening of Dutch Identity at de Paviljoens in Almere)" • skeeze - "jet aircraft takeoff" • Phil_Parker - "Painted flywheel"

Made with Adobe Slate

Make your words and images move.

Get Slate

Report Abuse

If you feel that this video content violates the Adobe Terms of Use, you may report this content by filling out this quick form.

To report a Copyright Violation, please follow Section 17 in the Terms of Use.