The concept of the Flywheel Effect was termed by Jim Collins in his book “Good to Great”. The opposite of the flywheel is the “doom loop.” A company that tries to revolutionize its strategy, culture, product, or process in one fell swoop is fated to fail. We had a number of websites that we had launched for fun but were a drag on our time. ), …taking on design and development of Shopify sites under $XX,XXX, …working with clients who have undecided branding, …working with clients who are poor at communication & do not pay on time. You’ll learn what it takes to be a “Level 5” leader, why assembling the right team first is more important than having the right idea, and why you should be more like a hedgehog than a fox. Do you want a business that accelerates and grows almost by itself? In the South African example, the Flywheel is something like this: Not only are the different countries accelerating their Flywheels but this also gets fed into the other Amazon Flywheels. This allows us to think about pricing not as a unilateral budget but as an investment through which our clients can expect a good return. The elements of the Doom Loop are self-explanatory, but the scary thing is they either result in flat or disappointing results.
These were largely undefined, and I know that I personally lacked an understanding when it came to proactively developing an organization. The Good to Great companies Great companies and … According to Jim Collins there are three areas to focus on consistently to get the Flywheel to start to spin: More detail on this can be found in Jim Collin’s book “Turning the Flywheel” which is available on Amazon. The diagram constitutes one of the key takeaways from Good to Great. Geoff said that the growth of AWS in South Africa has followed a very similar trajectory to AWS in other countries across the world. The million, or billion, Dollar question is how do you get the Flywheel to spin the first place. Competed in the same industry as its relative good-to-great company; Possessed similar resources and opportunities as its good-to-great company; and, Featured a fifteen-year stock return at or below the general market return that, Fannie Mae (Great Western) – Financial Services, Gillette (Warner-Lambert) – Consumer Goods, Pitney Bowes (Addressograph) – Business Services, Wells Fargo (Bank of America) – Banking/Financial Services, Harris – Aerospace and Defense (previously Business Services), Teledyne – Conglomerate (Electronics, Aerospace and Defense), Why it's better to focus on your one core strength than get spread thin, How to build a virtuous cycle, or flywheel effect, in your business.