The Flywheel and The Doom Loop

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Good to Great:The Flywheel and The Doom Loop

Published in: Business, Technology

The Flywheel and The Doom Loop

  1. 1. Good to Great Chapter 8 The Flywheel & the Doom Loop Mohamed Azmi Taufik
  2. 2. Two main organisational performance concepts i. The Flywheel ii. The Doom Loop
  3. 3. Flywheel  Buildup and Breakthrough  Breakthrough never happens in one fell swoop  Step by step, action by action, decision by decision  Turn by turn of the flywheel  All add up to sustained and spectacular results Nothing obvious from “outside”  No launch event, no tag line  No miracle moment  Artfully manage change Patience & discipline  Concentrate on continued improvement and the delivery of results  Simply focused on accumulating results,  Under promising but over delivering  Tactfully manage short-term pressures
  4. 4. The Doom Loop  No careful process – just simply doing it. Frequently Launched New Programs Made it a big deal to Motivate Programs failed to produce lasting results Fell inside the doom loop 1. 2. 3. 4.  Two common patterns of the Doom Loop from company to company: 1. The Misguided Use of Acquisitions o o 2. Good-to-great companies used acquisitions as an accelerator of flywheel momentum, not a creator of it. The comparisons often tried to jump straight to a breakthrough via an acquisition or merger Leaders Who Stop the Flywheel o New leaders who step in, stop an already spinning flywheel, and throw it in an entirely new direction.
  5. 5. The Flywheel as a Wraparound Idea  Each piece of the system reinforces the other parts.  An integrated whole that is much more powerful than the sum of the parts.
  6. 6. Key Takeaways  Level 5 Leaders  Getting the right people on the bus.  Completely understand the three circles of your Hedgehog Concept  Follow the flywheel model regardless of the short-term consequences.  The most successful companies evolve over time, and do not dramatically change. Thank you
  7. 7. Are you on the Flywheel or in the Doom Loop? Flywheel Doom Loop  Follow a pattern of buildup leading to  Skip buildup and jump right to breakthrough.  Reach breakthrough by an accumulation of steps, one after the other, turn by turn of the flywheel; feels like an organic evolutionary process.  Confront the brutal facts to see clearly what steps must be taken to build momentum.  Attain consistency with clear Hedgehog Concept, resolutely staying within the three circles. breakthrough.  Implement big programs, radical change efforts, dramatic revolutions; chronic restructuring-always looking for a miracle moment or new savior.  Embrace fads and engage in management hoopla, rather than confront the brutal facts.  Demonstrate chronic inconsistencylurching back and forth and out of the three circles.
  8. 8. Are you on the Flywheel or in the Doom Loop? Flywheel Doom Loop  Follow the pattern of disciplined  Jump right to action, without people (“first who”), disciplined thought, disciplined action.  Harness appropriate technologies to your Hedgehog Concept, to accelerate momentum.  Make major acquisitions after breakthrough (if at all)  Spend little energy trying to motivate or align people.  Let results do the most of the talking.  Maintain consistency over time. disciplined though and without first getting the right people on the bus.  Run about like Chicken Little in reaction to technology.  Make major acquisitions before breakthrough.  Spend a lot of energy trying to align and motivate people.  Sell the future.  Inconsistency over time.

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