Discover how a Scaling Up Coach can help you create a Flywheel for your business and help you achieve your goals.
Achieving business success is not a matter of shortcuts, luck, or magic bullets. It requires consistent and persistent effort, like pushing a heavy flywheel over and over until it gains momentum and propels the organisation forward.
The flywheel is crucial for communicating your company’s strategy and ensuring everyone understands their role in scaling the organisation. It also serves as a helpful tool for distinguishing between activities that propel the flywheel forward and those that hinder it.
A successful flywheel gains momentum over time as each decision and action builds upon previous successes. This concept was introduced by Jim Collins, one of Forbes’ 100 Greatest Living Business Minds.
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Amazon Case Study:
How Implementing a Flywheel Can Drive Success To Your Business.
In 2001, Amazon’s stock took a major hit, dropping from $107 to $6 per share.
This caused a lot of negative attention from Wall Street analysts and news outlets, like Barron’s, who predicted that Amazon would run out of money.
Founder Jeff Bezos sought a solution and turned to Jim Collins, one of Forbes’ 100 Greatest Living Business Minds.
Collins introduced the concept of the flywheel, which is a strategy that generates momentum over time.
Amazon implemented this concept throughout its operations, focusing on improving the customer experience. The flywheel revolves around offering lower prices to attract more customers and third-party sellers, which has allowed Amazon to expand its store, distribution, and revenue.
By consistently turning this flywheel, Amazon has achieved long-term success.
Over the past two decades, Bezos and his team have successfully advanced their flywheel using artificial intelligence, machine learning, and big data.
This has led to significant momentum, as Amazon’s stock chart shows.
Create a Flywheel for Your Business in Seven Simple Steps Using The Scaling Up Model
To create a flywheel for your organisation or department, follow these seven simple steps:
- First, make a list of all your successes that you can replicate.
- Then, list your failures and disappointments, including any new initiatives that didn’t meet expectations.
- Compare your successes and failures to identify potential components for your flywheel.
- Create a sketch of your flywheel using the components you’ve identified. Start at the top with an element that’s most under your control, such as a core competency. Ensure that each following part feeds into the next turn of the wheel, linked by the phrase “we can’t help but.”
- Simplify the model and capture the essence of your flywheel by diagramming a loop with 4 to 6 components. Brainstorm with your team and have a productive conversation around this topic.
- Test the flywheel against your list of successes and failures to see if it validates your approach.
- Test the flywheel against the three circles of your hedgehog concept: The Hedgehog Concept, developed by Jim Collins, is a critically important idea that stems from a thorough comprehension of the intersection of three circles: 1) your profound passion, 2) your ability to be the best globally, 3) and what most effectively propels your economic or resource engine. This concept must be understood and applied to achieve success in any endeavour.
The flywheel offers an excellent framework to outline your strategy and rally your team around the key factors that drive momentum. Building momentum is undeniably beneficial, enabling you to tackle substantial challenges and quickly making them look small.
Scaling your organisation demands unwavering focus, disciplined execution, and a whole lot of hard work. With these qualities at play and implementing a well-designed flywheel, your organisation will be well on its way to achieving sustainable growth and success.
The journey towards scaling your business is a continuous one, and it requires ongoing commitment and dedication. You can steer your organisation towards long-term prosperity by harnessing the power of the flywheel and maintaining your focus.
If you want to discuss your growth journey and get expert advice, click the button below to book a call with Glenn Marvin, founder of Connect The Dots and Scaling Up Certified Coach.
Glenn has guided countless entrepreneurs like you to new heights of success. With over 17 years of expertise as a Scaling Up practitioner, Glenn is an expert on navigating the challenges of scaling your business.