The achievement of a significant organizational goal often triggers a natural desire to relax and bask in the success. However, this is precisely the moment to intensify efforts and capitalize on the generated momentum, often referred to as the “flywheel effect.” This principle dictates that sustained progress requires continuous exertion, especially following a major victory, as this is when the organization possesses the most energy and enthusiasm to propel further advancements. This momentum is like a flywheel, initially requiring significant effort to start turning, but once spinning, it maintains its motion with less effort and can even accelerate with strategic, well-timed pushes.
The flywheel effect can be effectively illustrated by the implementation of “Innovation Days” at Intuit. Initially, the company faced the daunting challenge of improving its uptime from a seemingly insurmountable 87% to a perfect 100%. This ambitious goal required a fundamental shift in mindset and work practices across the organization. Through concerted efforts and innovative approaches, Intuit not only achieved its 100% uptime goal but sustained it for four consecutive months. This remarkable success instilled a newfound confidence and inspired a collective desire for further innovation, marking the beginning of their flywheel’s momentum. This initial success acted as the initial push to get the flywheel turning.
To further capitalize on this burgeoning momentum, Intuit introduced Innovation Days, dedicating two full days solely to fostering innovative solutions for internal and external customer challenges. Despite initial resistance from business units concerned about the disruption of regular operations, the initiative proved immensely successful, generating a wealth of creative ideas that would have otherwise remained unexplored. This commitment to innovation, even at the cost of short-term disruption, represented a conscious effort to further accelerate the flywheel.
The success of these Innovation Days resonated throughout the organization, capturing the attention of executive leadership and fostering a greater appreciation for the innovative potential within the workforce. The visible celebrations and recognition of innovative achievements created a palpable buzz, sparking curiosity and emulation in other departments. This positive reinforcement and the clear demonstration of value created a pull effect, drawing other parts of the organization towards the spinning flywheel.
This widespread enthusiasm marked a tipping point in Intuit’s transformation. The desire to contribute to the organization’s success became pervasive, fueling the flywheel’s momentum and making the transformation process self-sustaining. As more individuals and teams engaged with the process, the flywheel spun faster, requiring less external force to maintain its momentum and driving further innovation.
This Intuit example perfectly encapsulates the power of the flywheel effect. Rather than resting on their laurels after achieving a significant milestone, they doubled down on their efforts, leveraging the generated momentum to drive further innovation and organizational transformation. The key takeaway is that periods of success are not times for complacency, but rather opportunities to accelerate progress by pushing on the flywheel and fostering a culture of continuous improvement.
The core principle highlighted by the Intuit example is the importance of capitalizing on momentum. Once a significant goal is achieved, the resulting energy and enthusiasm should be channeled towards setting and achieving even more ambitious objectives. This continuous cycle of setting ambitious goals, achieving them, and then leveraging the resulting momentum to pursue even greater achievements is the essence of the flywheel effect. It’s about creating a self-reinforcing loop where success breeds further success. Just as a flywheel requires an initial push to start turning, organizations need to invest initial effort to initiate change. However, once the flywheel gains momentum, it becomes easier to maintain and even accelerate its spin, leading to sustained progress and transformation. The key is to maintain focus and consistently apply effort, especially after achieving significant milestones, to ensure the flywheel continues to spin and generate momentum towards future success.