Turning the Flywheel: Building Momentum Through Operational Excellence

For members of the Esteemed Coterie of Professionals, this month’s focus is Operations Plans.

If the Business Plan is the why, the forecasts, budgets, and expected EBITDA, then the Operations Plan is the what and how. It answers the essential question: How are we going to accomplish our forecasted revenue and profit goals?

At its simplest, an operations plan can be viewed through a classic project management lens: What needs to be done, by whom, and by when? That’s the tactical side. But the truly exceptional leaders, the ones who move from good to great, go further.

Enter Jim Collins and the Flywheel

Jim Collins, one of the great management thinkers of our time, introduced a powerful metaphor in his classic Good to Great, and later expanded it in Turning the Flywheel: A Monograph to Accompany Good to Great.

The central idea is simple but profound:

“Great companies don’t rely on one big breakthrough—they build unstoppable momentum through a series of reinforcing actions, each driving the next like turns of a heavy flywheel.”

When these activities align, each small win accelerates the next, creating self-perpetuating momentum that becomes almost impossible to stop.

The Amazon Flywheel

In Turning the Flywheel, Collins recounts how, in 2001, he worked directly with Amazon’s leadership team as they faced a defining moment. Together they distilled the company’s essence into one simple, repeating cycle:

Lower prices → More customer visits → More sellers → Wider selection → Better customer experience → Lower cost per customer → Lower prices

That loop, once set in motion, reinforced itself endlessly. Every action made the next easier and more powerful. That’s the flywheel in motion—and it became Amazon’s strategic core.

Finding Your Core Flywheel

Every organization has multiple flywheels operating within it whether you’ve named them or not. But the key is to identify your core flywheel: the one loop that drives the heartbeat of your business.

If you’re an accounting firm, for example, is your core metric on-time, 100% accurate tax returns? Or is it speed and cost-efficiency?
Those are two very different flywheels. Each demands a unique rhythm of activities, systems, and priorities that reinforce one another.

Once your core loop is clear: “When we do A really well, it naturally leads to B, which leads to C, which strengthens A again”—you can then identify other flywheels that support it.

The Four Supporting Flywheels

Collins’ framework can be mapped into four reinforcing systems that exist in nearly every business:

1. Growth Flywheel – The momentum that drives new business.
   Example: Delighted clients → Referrals → Reputation → Easier new sales → More delighted clients

2. Operational Flywheel – The systems that create efficiency and scale.
   Example: Streamlined processes → Fewer errors → Lower costs → Better customer experience → More volume → More efficiency

3. People Flywheel – The culture and leadership loop.
   Example: Strong culture → High engagement → Better performance → Greater results → Stronger culture

4. Innovation Flywheel – The loop that keeps your company learning and adapting.
   Example: Consistent experimentation → New insights → Improved products → Market growth → Resources for more innovation

Why This Matters for Esteemed Leaders

The flywheel approach invites leaders to think beyond linear “to-do lists.” It’s not just about assigning ownership or setting deadlines: it’s about understanding the system of motion that powers your organization.

When your leadership team maps its flywheels, you see how progress in one area accelerates others. You also see where energy is wasted, where you may be caught in what Collins calls the doom loop, changing direction too often and losing momentum.

Taking the time to define these loops can reveal profound clarity about how your business truly works and what drives sustainable success.

The Esteemed Challenge

This month, I encourage you to take your operations planning a step further:

• Identify your core flywheel.

• Map the four supporting flywheels.

• Ask: Where are we spinning strong? Where are we stuck?

Because when you build and protect momentum, flywheel by flywheel, you move from managing the business to mastering it.

Give it a try… and Be Esteemed.