The Flywheel Concept resembles turning a heavy wheel—initially hard but gains momentum. It’s when small wins compound, leading to effortless business growth.
When small wins for a business build on each other over time and eventually gain so much momentum that growth almost seems to happen by itself.
In a hurry? Download our free guide here so you can work on your Flywheel at your own pace.
How to create your own Flywheel Concept
In his monograph, Jim Collins lists the steps as:
1. Create a list of significant replicable successes your enterprise has achieved.
This should include new initiatives and offerings that have far exceeded expectations.
2. Compile a list of failures and disappointments
This should include new initiatives and offerings by your enterprise that have failed outright or fell far below expectations.
3. Compare the successes to the disappointments
Ask, “What do these successes and disappointments tell us about the possible components of our flywheel?”
![Successes and disappointments [Flywheel]](https://yourva.co.nz/wp-content/uploads/2023/10/Screenshot-2023-10-18-at-5.21.03-PM-1024x553.png)
4. Sketch the Flywheel
Using the components you’ve identified (keeping it to four to six), sketch the flywheel.
Using the components you’ve identified (keeping it to four to six), sketch the flywheel.
Where does the flywheel start—what’s the top of the loop? What follows next? And next after that?
You should be able to explain why each component follows from the prior component.
Outline the path back to the top of the loop. You should be able to explain how this loop cycles back upon itself to accelerate momentum.
5. Simplify
If you have more than six components, you’re making it too complicated; consolidate and simplify to capture the essence of the flywheel.
6. Test
Test the Flywheel against your list of successes and disappointments. Does your empirical experience validate it?
Tweak the diagram until you can explain your biggest replicable successes as outcomes arising directly from the flywheel, and your biggest disappointments as failures to execute or adhere to the flywheel.
7. Test the Flywheel against the three circles of your Hedgehog Concept.
A Hedgehog Concept is a simple, crystalline concept that flows from deeply understanding the intersection of the following three circles:
- (1) what you’re deeply passionate about,
- (2) what you can be the best in the world at, and
- (3) what drives your economic or resource engine.
Does the flywheel fit with what you’re deeply passionate about—especially the guiding core purpose and enduring core values of the enterprise? Does the flywheel build upon what you can be the best in the world at? Does the flywheel help fuel your economic or resource engine?
Our Flywheel Concept
How to execute your Flywheel Concept
- Data Collection: Regularly gather data related to each element of the flywheel through surveys, feedback forms, reviews, and relevant platforms.
- Analysis: Review the collected data to identify trends, strengths, weaknesses, and areas for improvement in each element.
- Actionable Insights: Based on the analysis, identify specific actions to enhance the performance of each element.
- Continuous Improvement: Implement changes and improvements based on the identified insights.
- Iterate and Optimise: Regularly revisit the flywheel elements, refine strategies, and adjust tactics to ensure consistent progress.
- Feedback Loop: Establish a feedback loop with both team and clients to maintain open communication and adapt to changing needs.
- Alignment: Ensure all team members understand and contribute to the flywheel’s success, aligning their efforts with the defined elements.
By following this process, you’ll be able to measure, execute, and continuously improve your flywheel, building momentum, and driving sustained success.
Action
Download this guide we’ve put together to help you. In it we include:
- Our framework for documenting our flywheel
- Benefits of a flywheel
- How to measure and execute your flywheel
- Resources to help you understand more about the flywheel concept
