Good to Great The Flywheel and the Doom Loop. Team 2 Shawn Buck Ashley Burnett Whitney Horton Kelly Riester Jennifer Shotts Sam Snelling Mickea Smith. Build up and Breakthrough. What was the one push that made the flywheel go so fast?
Steps Forward, Consistent With Hedgehog Concept
People see and feel tangible accomplishments
Accumulation Of Visible Results
Flywheel Builds Momentum
People Line Up, Energized By Results
Jim Herring, President
Good-to-great transformations often look like dramatic, revolutionary events to those observing from the outside, but they feel like organic, cumulative processes to people on the inside.
There is no single action, no grand program, no one killer innovation, no miracle moments.
Sustainable transformations follow a predictable pattern of buildup and breakthrough.
Comparison companies skip buildup and jump immediately to breakthrough. Then, with disappointing results, they'd lurch back and forth, failing to maintain a consistent direction.
The comparison companies frequently tried to create a breakthrough with large, misguided acquisitions. The good-to- great companies, in contrast, principally used large acquisitions after breakthrough, to accelerate momentum in an already fast- spinning flywheel.The Doom Loop
1980: sighted health care industry and competition
1981: focused on diversification and consumer goods once again
1982: Ward Hagen CEO turned to hospital.
1985: Joe Williams CEO took a $550 million write off.
1990’s: focus was on R&D in an effort to once again beat out competitors.
1998: sold out to Pfizer- ironically a global health company.
This was a time of heavy health care reform, yet the company backtracked and focused once again on consumer brands.
1901: birth of the Boston based personal hygiene products manufacturer.
Long term focus has always remained true to their humble beginnings
Variations of their original “Trac 2” razor have come about through generations.
Marketed under P&G
Part of both their household products and beautification lines.
Razors, hair care, shave care, clinical strength, body wash
SNL:Warner-Lambert vs. Gillette
Follow a pattern of buildup leading to breakthrough
Reach breakthrough by an accumulation of steps
Confront the brutal facts to see clearly what steps must be taken to build momentum
Momentum of flywheel is infectious
Skip buildup and jump right to 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
Spend time trying to align and motivate people
Remember to maintain level 5 leadership
Get the right people on the bus
Attain deep understanding of the Hedgehog Concept
Have the discipline to make good decisions consistent with your hedgehog concept
Accumulate momentum step by step
Good-to -great transformations may look dramatic on the outside but really are organic, cumulative processes to the people on the inside
No good-to-great transformation happened in one fell swoop
Sustainable transformations follow a predictable pattern of buildup and breakthrough
Comparison companies followed a different pattern known as the doom loop
Comparison companies frequently tried to create a break through with large, misguided acquisitions
Those inside the good-to-great companies were often unaware of the magnitude of their transformation
Good-to-great leaders spent hardly any time trying to align or motivate employees