by Rand Manasse
The momentum of the “Merry-go-Round” is fantastic!
We all remember as kids having fun on that dirty playground pushing the heavy piece of equipment.
At first, it was hard to get going!
Everyone had to push. You would dig into your Converse high-top sneakers and try as hard as possible. You would make it around once, then twice, and by the third time, it was starting to pick up speed, so you would yell to your little sister and brother to jump on as you pushed some more.
What teamwork it took to make that merry-go-round turn, but it was worth the effort in the end. We got to feel the wind in our faces and the rush of excitement as we raced around and around. But we would also not rest at that point. To keep it going, occasionally, someone would jump off and start running alongside to maintain or build up more speed. We’d enjoy the ride if we could continue pushing and spinning that wheel.
The Flywheel of Business
The ride on the merry-go-round is just like the flywheel within your business.
Every business evolves. We determine what we are passionate about. We examine ourselves to understand what we are best at compared to everyone else. We analyze our core values and align them with how our business should project itself to employees, partners, and customers. Finally, we determine how we’ll make money.
As we combine these essentials of business, the flywheel gains momentum. It takes more effort in the early stages, but as the flywheel picks up speed, we start to enjoy the ride. We jump off from time to time to reassess the company. We jump off and start pushing again to make sure we not only maintain momentum but also go even faster as we grow and expand.
An Example of the Flywheel in Action
Let’s think about that merry-go-round again.
Remember when the big kid left, and a new one jumped on? Did that transition slow down the ride? Did the new big kid have ideas that made it go fast? Did he decide to continue to go in the same direction?
Changing the products and services you offer is important in our changing times, but changing the flywheel’s momentum is seldom beneficial.
This question is on the mind of Mike Mikan, the interim Chief Executive of Best Buy, as he adjusts his service offering through the Geek Squad in an attempt to cut costs. It appears that Mikan is looking to maintain his company’s momentum while adapting to change in the retail world.
Mikan has already been criticized for this move. He’s attempting to change a business model that is not working, and those clinging to the old model are resisting his efforts to change it and make the company successful in the future.
It is not easy to change, but change is necessary. The most difficult part is maintaining the momentum of the business flywheel. It will be interesting to see if Best Buy can maintain the momentum it still has in the consumer retail industry. The company still has revenue sources to keep it going. It’s simply the reality of change that the old model is maintained to keep the current momentum while another model is attempted to grow the business.
The load is being lightened on the flywheel while a few people jump off to give it a push.
Is changing necessary at your business?
Are you building new value for your business that keeps the flywheel rotating, or are you headed for the doom loop?
As always, please comment and let me know what you think. If you need help building value into your business, contact me at 914.666.0830 or RManasse@GreenLnPartners.com.
Image Credit: The Knowles Gallery
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