The Flywheel and The Doom Loop
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The document discusses the concepts of the flywheel and the doom loop. The flywheel represents a gradual buildup of momentum through consistent small improvements over time, while the doom loop involves frequently changing programs without lasting results. Good companies follow the flywheel approach, focusing on continued delivery and underpromising but overdelivering, while those in the doom loop lack process and fail to achieve breakthroughs.
The Flywheel and The Doom Loop
- 1. Good to Great Chapter 8 The Flywheel & the Doom Loop Mohamed Azmi Taufik
- 2. Two main organisational performance concepts i. The Flywheel ii. The Doom Loop
- 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. 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. 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. 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. 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. 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.