Summary and focusing on key concept of the famous book “Good to Great” by Jim Collin. Highly recommended book for CEO’s and entrepreneurs.
You can predict the importance of these concepts in building and strengthening a company’s bone by this quote:
Why did the good-to-great companies have s substantially higher success rate with acquisition, especially major acquisition? The key to their success was that their big acquisition generally took place after development of the Hedgehog concept and after the flywheel built significant momentum. They used acquisition as an accelerator of flywheel momentum, not a creator of it.Good to Great by Jim Collin
Hedgehog concept is very precise and dense concept that intersect these three basic understanding circles:
- In which skill set or matter you can be the best in the world? It doesn’t means your core competency, it not necessary that you are best in it over the rest of the world. It actually means that you have to dig out a skill that meets you and you can be the best in it.
- What drive you financial system? You need to analyze the skill you chosen that is it a money making machine or not? If it is not a money making machine, it doesn’t go to work for you. And effective money making machine with robust cash flow and profitability.
- What your passion? The main idea of this concept is to amalgamate your passion, skill and money. So that you will get all three in a single basket.
Basically this is a not a minute to decide terminologies, you need to invest couple of years to find out your skill, passion and financial source. After clicking some themes and ideas, you have to chip on to the next step. Another vital idea that helps you to implement this concept to build your dream.
Just as the flywheel everywhere in machines, this ideological flywheel working is same. First you have push so hard to move a flywheel. Let’s make a clear understanding by an example;
First you have to put full effort to rotate a flywheel of 50kg weight, supposed you have to insert 100N of force for the first rotation, 90N for the second and 80N for the third. Finally you will reach a level that a very negligible effort will gives you an uncountable result at the point of full momentum.
If you implement the same example in your professional life, you have to bear so much challenges, discomforts, struggles and hardworking each and every day at the startup. These small but countless efforts will generate countless results at the time of its maturity.
Effort on the flywheel works on the principal of coherence, it means that the magnifying effect of one force over the other. Simply, 1 plus 1 becomes 4 in the principal of coherence. That the advantage of consistency with time: Flywheel effect.
All you need to do is keep your nerves tight until the final results, millions of startup fails not because of their efforts or mismanagement, just because of not keeping the heads up till the final glove of hard works.
If I try to summarize this ideology in few words, it could be; Consistency with time is so important in the flywheel effect. In contrary to flywheel effect, THE DOOM LOOP concept, which is for all those who try to jump on the floor without any support and obviously they fail.
The Doom Loop
Many major companies suffer from Doom Loop, when change in leader results in change in company missions and vision. In other words, the efforts of previous leader putted on the flywheel in his direction is changed by his successor and he is trying to rotate in his way. And his successor is going to do the same. It results in wastage of energy and flywheel of company’s strength, efforts, hard work and struggle never going to catch the momentum.
If you diligently and successfully apply each concept in the provided and recommended in reference to the research of author’s framework, and you continue to push the flywheel in a consistent direction, accumulating momentum step by step and turn by turn, you will eventually reach breakthrough. It might not happen today, or tomorrow, or next week. It might not happen next year. But it will happen