Podcast Ep 118 | Flywheel Model: Part Two | Powering Up Your Flywheel

There’s a big prob­lem with most fly­wheels, and it’s the main rea­son they’re des­tined to fail. The Fly­wheel Con­cept orig­i­nat­ed from Jim Collins’ book Good to Great and out­lines a series of actions that a busi­ness takes in order to build momen­tum in the busi­ness. The Fly­wheel Con­cept is designed to build ever-increas­ing momen­tum and growth in a busi­ness, there­by mak­ing the busi­ness more suc­cess­ful over time.

The suc­cess­ful fly­wheels that are pro­vid­ed as exam­ples are built after a deep under­stand­ing of the busi­ness’s fun­da­men­tals, and yet today we see many peo­ple show­cas­ing fly­wheels that are nev­er going to build momen­tum in a business.

In this episode two of two, we dis­cuss five things to ensure that your fly­wheel will fire up and build momen­tum over time, and what to watch out for.

EPISODE TRAN­SCRIPT

Please note that this episode was tran­scribed using an AI appli­ca­tion and may not be 100% gram­mat­i­cal­ly cor­rect – but it will still allow you to scan the episode for key content.

Kevin Lawrence 00:13

Wel­come to the Growth Whis­per­ers pod­cast where every­thing that we talk about relates to build­ing endur­ing, great com­pa­nies. Because that’s some­thing that we believe in. That’s some­thing that we get excit­ed about. That’s some­thing that we want to share with you the best that we can. I’m Kevin Lawrence, and I’m here with my part­ner down in Perth, Aus­tralia, Brad Giles, as we are every episode, Brad. How’s it going today?

Brad Giles 00:36

It is beau­ti­ful. Win­ter here is a lit­tle bit unlike your win­ter. It’s crisp, it’s cold. It’s fine. Yeah, love­ly, lov­ing, and I’m doing well. Thank you for asking.

Kevin Lawrence 00:51

I know you’re doing pret­ty good. You almost always are. Yeah, and things are good here. I mean, we’re actu­al­ly in our sum­mer, thank­ful­ly, and our sum­mer where it gets to get warm and sun­ny. Oh my gosh, love the sun. It makes a dif­fer­ence. So hey, before we jump into the episode today, want to remind sub­scribers Hey, if you haven’t sub­scribed, wher­ev­er you lis­ten to your pod­casts, please do. And if you’re enjoy­ing the show, please give it an awe­some rat­ing. The high­er the bet­ter. Hope­ful­ly the show is wor­thy of that any­ways, appre­ci­ate if you have a chance you would today. So Brad, what are we talk­ing about today? What’s the what’s our, what are we dig­ging into? I know it’s episode two of two.

Brad Giles 01:30

A fly­wheel — last week we spoke about the prob­lem with fly­wheels. Our peo­ple are build­ing fly­wheels that are not real­ly fly­wheels. They’re just a series of statements.

Kevin Lawrence 01:42

And then they kind of like slice squares that kind of like a square wheel in some cas­es, thud, thud, thud.

Brad Giles 01:48

They don’t they don’t build momen­tum. So now this week, we’re talk­ing about pow­er­ing up your fly­wheel. How do you actu­al­ly get it right, last week? Again, we spoke about it, we went into it, and we spoke about why they don’t work. But now we’re giv­ing you a few tips on how you can make it work. Excellent.

Kevin Lawrence 02:12

What’s your quick word of the day, Brad?

Brad Giles 02:16

I’m work­ing with a team last week. They’re under­tak­ing major strate­gic piv­ot, let’s say. And there’s this HBR arti­cle Why trans­for­ma­tion efforts fail? I know it’s not a quick word. But yeah, it’s some­thing from that, that it’s hard­er than it seems. And you’ve got to main­tain focus, one with­in that there was this one phrase, and it said, you know, in order to make your strate­gic changes effec­tive, you need you are prob­a­bly under com­mu­ni­cat­ing your vision by a fac­tor of 10. So that’s my sim­ple word of the day, you’ve got to over com­mu­ni­cate your vision by a fac­tor of 10.

Kevin Lawrence 03:05

Or like that. minds think­ing ahead. So I was with one of my clients last week, and they are doing out­stand­ing­ly well, and they’re com­ing into some tur­bu­lence, expect­ed tur­bu­lence. And we spent a lot of time debat­ing some key issues that could affect them next month, or in the next six months. But because we debat­ed it, and we’re ahead of it, we’re mak­ing lit­tle moves today to recal­i­brate the busi­ness. So we don’t have to make a dra­mat­ic move down the road. So we’re so far ahead of it, we should be able to man­age it real­ly, real­ly well. But it requires a lot of think­ing ahead. And a lot of debate time, we had to dra­mat­i­cal­ly change the agen­da of the meet­ing to make room for these debates. And yeah, it was real­ly, real­ly good. So Brad, your word again, was

Brad Giles 04:01

over com­mu­ni­cate your vision by a fac­tor of 10. Right.

Kevin Lawrence 04:05

And I would say and mine is think­ing ahead, think­ing ahead and over com­mit­ting your vision and this over com­mu­ni­cat­ing the vision and the plan. Both great strate­gies. All right. So the fly­wheel by Jim Collins, I mean, we’re both mas­sive fans of it. And again, in the last episode, that was episode 117, we dug into mak­ing it a good fly­wheel not one of those square clunky ones that I ref­er­enced ear­li­er on. But once you’ve got it, and hav­ing worked with dozens of com­pa­nies through this process, either at the work­shops and the pri­vate ses­sions that Jim does with some of our clients and you know, two days with Jim and his lab, the CEOs come away like walk­ing on water, just incred­i­ble. But you know, com­ing away with a fly­wheel that actu­al­ly does pow­er itself when it’s pow­ered up is awe­some. And that’s hard work, but let’s assume that you got that Then is okay, great. Now how do you pow­er this thing up? How do you fuel it so it gets stronger and stronger, and then con­tin­ue to iter­ate it. So it con­tin­ues to get stronger even when some­thing might change in the mar­ket. So that’s kind of what we’re dig­ging into today. So as I men­tioned, Episode 117, how to build the fly­wheel. We also did an episode way back. But a year ago, Episode 51, we just intro­duced the fly­wheel con­cept by Jim Collins. So we’re gonna go and dig in today. And so the first point I’ve already kind of cov­ered is, you got to ensure that it’s right, and that one part pow­ers the next which last episode was about. And the key thing that Brad we talked about was, you can’t help but so because of X action, you can’t help but get why. Why can’t they help? Why hap­pened? Yeah, and because why hap­pens? You can’t help but have Zed hap­pen? Yeah, no, I ran out of let­ters there. So that fly­wheel will need some cre­ative num­ber­ing or let­ters to go around. But the point is, so that’s the last episode. You can go dig in. There was any­thing else you want to add to that brad?

Brad Giles 06:10

Any fly­wheel that you see where it shows you an arrow, you must replace that in your mind with, we can’t help but oth­er NFL it’s not a log­i­cal out­come. That’s the real­ly sim­ple stress test, it was not a log­i­cal out­come, well, then you’ve got to start again, or you’ve got to make it work, because it’s not going to build momen­tum, which is the whole point of doing the flow will exercise.

Kevin Lawrence 06:35

That’s what a fly­wheel is about. You get a mass rotat­ing, that has a lot of pow­er that it’s hard to stop or impos­si­ble to stop.

Brad Giles 06:42

So that’s real­ly our first point, right? That’s right. And at one part pow­ers the next, lis­ten to the last week’s episode 117. Let’s move on to num­ber two. Yeah.

Kevin Lawrence 06:57

So it’s KPIs for each part of the fly­wheel unknown who owns that damn part of the machine? Yeah. So last week, and with the client that I was with, and if a few weeks before that with anoth­er client, but last week with a client, we’ve had the fly­wheel dialed for a long time, it’s a fore­front in our meet­ings, we talk about it a lot we talk about at the top of the fly­wheel is this key ingre­di­ent, and we con­tin­ue to invest in it. And be care­ful of not invest­ing. And actu­al­ly, most of our meet­ing was about that one piece at the top of the fly­wheel. But we’ve done a great job and the five aspects that are fly­wheels. And we’ve got a set of KPIs that mea­sure each part of the fly­wheel, so we can have an opin­ion about how the fly­wheel is doing. But that’s cute, we actu­al­ly have KPIs. So we went through in the meet­ing, like we do every quar­ter, and we just go in red, yel­low, green, all the aspects. And we found that the top of the fly­wheel is actu­al­ly a lit­tle yel­low­ish right now. The sec­ond step is actu­al­ly we did­n’t, it was either orange or red, orange, between between between yel­low and, and red. But the rest of the fly­wheel was green. But we had two parts that were you know, we know, we’re a lit­tle late, and we got them and we made sure that we are doing things to recal­i­brate them. Some­times, some­times we like to col­or out­side the lines. So if it’s yel­low, where it’s it’s off track, but prob­a­bly will cov­er red, you know, deep trou­ble. We kind of felt it was in the mid­dle. Because what it was in a, you know, is that we had four KPIs in it. Two were green, one was yel­low, one was red. So we did­n’t want to call it yel­low, because there’s some­thing red, but we did­n’t want to call red because there was a cou­ple that were green. So we com­pro­mised. We nego­ti­ate sometimes.

Brad Giles 09:08

So the point here is that, we want to know that each com­po­nent of the fly­wheel where is it at today? So for me, it’s slight­ly dif­fer­ent. I would be say­ing it’s a snap­shot of today. Is it red or green? There isn’t an amber, which isn’t right. And yours is wrong. It’s just a dif­fer­ent fla­vor. Yep. But so today is this red or green? And if it’s red, obvi­ous­ly, we’re look­ing for pri­or­i­ties in the next 90 days to help to build that momen­tum up. So that’s it real quick and dirty. But then the next kind of lay­er might be one or two or three or four KPIs team that I work with. They’ve got I think, For KPIs for each of the com­po­nents of the fly­wheel, and then each of those four KPIs with­in each of the com­po­nents are equal­ly col­ored red or amber or green. And, and then we’re able to real­ly under­stand what is we’re get­ting max­i­mum momen­tum from the fly­wheel that we can.

Kevin Lawrence 10:21

And that’s iden­ti­cal to the client that I was with is that we have four KPIs for each one of them actu­al­ly has five, we col­or the indi­vid­ual. And then we give it the sum­ma­ry col­or. Oth­er com­pa­nies have chose to go with a rat­ing. And we’ll, we’ll come into that into the next point, the point of it. Ide­al­ly, you have KPIs, because you have a busi­ness with lots of mea­sure­ments, they should relate direct­ly to the fly­wheel. And that should be how you ground it. So you as best you can you stay away from an opin­ion fast anoth­er client that I was with a cou­ple of weeks before that, they’re not there yet. We got the fly­wheel. We revised it, we dialed it, and we nailed it. And we are cur­rent­ly just giv­ing it a rat­ing. And then talk­ing about how we improve it. Well, the KPIs will come. But it’s, you know, it’s the ulti­mate estab­lished KPIs.

Brad Giles 11:09

What, what do I found inter­est­ing with one of the teams that I’m with, we ana­lyze the fly­wheel under­stand­ing every­body in the busi­ness in every depart­ment, how do they con­tribute to it. And that meant that each of the four KPIs, they were not nec­es­sar­i­ly all from the same area, there were peo­ple from all parts of the busi­ness that were con­tribut­ing to each of the dif­fer­ent com­po­nents. And it kind of got quite a lot of buy in from peo­ple through­out the business.

Kevin Lawrence 11:40

Yeah. And as com­pa­nies get larg­er, there will be mul­ti­ple peo­ple that have own­er­ship with­in those. Awe­some. So point num­ber one, mak­ing sure you’ve done your fly­wheel prop­er­ty and one part pow­ers the next. And you can answer it’s an auto­mat­ic answer is we can’t help but get to the next stage and fly­wheel to hav­ing KPIs and own­ers know­ing who is account­able for those KPIs, which ide­al­ly already have, but some­times that’s messy. And then three, and I talked about a lit­tle bit with that sto­ry. And Brad did as well, but quar­ter­ly, and annu­al­ly rate how we’re doing. And whether you do red, yel­low, green, or red and green, or read­ing at zero to 10. Or ide­al­ly using the KPIs are above but use the tool as a reflec­tion point on the health of the busi­ness. Your finan­cials could be per­fect or hor­ri­ble. The fly­wheel is the piece that you should be pay­ing atten­tion to because it’s a dri­ver of future results. So that’s look­ing at it and real­ly giv­ing an objec­tive mea­sure. The oth­er piece in there is Brad, you want to hear some­thing want to add some­thing in their circle.,

Brad Giles 12:55

What I found fun­ny with fly­wheels, is peo­ple think that once they write it down, it’s going to cre­ate momen­tum. And it’s, it’s, it’s just a ping, it’s just words on a piece of paper.

Kevin Lawrence 13:09

It’s kind of like that’s like fairy tales, and Dis­ney­land and cot­ton can­dy and butterflies.

Brad Giles 13:16

But maybe not every time but quite a lot of times I’ve seen peo­ple, they, they’re very proud of it. They’re pro­duced a fly­wheel, even whether or not it actu­al­ly makes sense. It’s like, well, this is only doc­u­ment­ing the work that we’ve got to do. That’s it.

Kevin Lawrence 13:34

Yes, that’s the point. This point, it won’t take care of every­thing needs main­te­nance, and ener­gy, improve over time. If you leave it alone, it’ll degrade, guaranteed.

Brad Giles 13:44

And so that’s why we’ve got this point quar­ter­ly. And annu­al­ly, we’ve got to ana­lyze and look at the fly­wheel. And so what do we need to do in the next 90 days so that we can main­tain green get more green or get to green?

Kevin Lawrence 13:59

Exact­ly, or get to extra green. The oth­er piece that you can look at once you get dialed in, you got­ta be real­ly care­ful. But ide­al­ly, once you look at the data for the over­all, you can start to break it down and look at it by divi­sion, or region or loca­tion. And look at the how that fly­wheel is per­form­ing in dif­fer­ent seg­ments. So if you’ve got sev­en dif­fer­ent divi­sions in your busi­ness, you can look at the fly­wheel for each of those divi­sions as part of how the gen­er­al man­ag­er or per­son lead­ing divi­sion reports out. In a in a real estate devel­op­ment com­pa­ny worked with in India, the fly­wheel has been so help­ful, it’s been one of the most help­ful tools for them. And when we look at each of the loca­tions they have across the coun­try, we look at the fly­wheel and the cor­re­la­tion with the fly­wheel health and the busi­ness health is uncan­ny like they nailed it. But we get red, yel­low, green and KPIs. Both they do both for the fly­wheel for each of the loca­tions, and it helps to set up a very strong con­ver­sa­tion for the location.

Brad Giles 15:08

But each of those fly­wheels would be con­nect­ed and would be draw­ing up to the pri­ma­ry flow.

Kevin Lawrence 15:15

It’s iden­ti­cal. It’s just the sub snap­shot, it’s not a dif­fer­ent fly one, here’s Be care­ful, that sim­plest client that it is one client that did this. And they try, they end­ed up try­ing to come up with three dif­fer­ent fly­wheels that work togeth­er. No, it’s just, it’s about sim­plic­i­ty. And it’s very, so I have a cup, two rules around this. Once you get a fly­wheel, we lock the lan­guage. And we keep like a secure file, because some­one decides usu­al­ly from mar­ket­ing that they want to go in and slick that thing up, and they gen­er­al­ly destroy it. So num­ber one, num­ber two, peo­ple want to go make depart­ment fly wheels and all these oth­er flights. I mean, if you want to do fill your boots, I from a strate­gic lead, I don’t want to see the oth­er stuff. I don’t even want to pay atten­tion to it. Because nor­mal­ly it just cre­ates con­fu­sion and mess.

Brad Giles 16:07

So the rule that I applies is one fly we’ll per bal­ance sheet. Okay. Be great. I love that. Yeah, because we’re con­nect­ing the we’re try­ing to build momen­tum with the assets that we have. I’ve got a busi­ness I work with, they’ve got to com­plete­ly bal­ance sheet.

Kevin Lawrence 16:28

That’s frickin that’s awe­some, Brad, because there’ll be mul­ti­ple income state­ments from all kinds of dif­fer­ent divi­sions, but they gen­er­al­ly share the same cash or bal­ance sheet.

Brad Giles 16:38

And the fly­wheel tells us how do we max­i­mize the use of that bal­ance sheet?

Kevin Lawrence 16:44

My oth­er client, it would­n’t work, though. Because they have sep­a­rate bal­ance sheets. But the prin­ci­pal, the prin­ci­pal is good for a lot of busi­ness­es that have mul­ti if it’s got a sep­a­rate bal­ance sheet, you could con­sid­er a sep­a­rate fly­wheel. I like it.

Brad Giles 16:59

Well, some­times bal­ance sheets lead to one bal­ance sheet, right? So that’s kind of what I’m say­ing like, so yeah. I’ll give you the exam­ple. I’ve got a busi­ness I work with two very dif­fer­ent busi­ness­es. Yes, they’ve got dif­fer­ent p&l. Yes, they’re dif­fer­ent com­pa­nies. But there’s one ulti­mate own­er with one bal­ance sheet. And so what we want is a retail and one is a whole­sale, com­plete­ly dif­fer­ent mar­kets. And the aver­age price point is, let’s say $5,000, com­pared to $250,000. Com­plete­ly dif­fer­ent. But what we say it is, yeah, the fly­wheel must we must have one fly­wheel that we can con­nect with the whole thing. Because we’re try­ing to lever­age we don’t want to add any. We don’t want to invest more in one area than necessarily.

Kevin Lawrence 17:56

I like that. So if you’re going to look at it divi­sion­al­ly, region­al­ly, what­ev­er it hap­pens to be. Ide­al­ly, it’s same fly­wheel just scored for that part of the busi­ness, not invent­ing new things, because you’re just adding com­plex­i­ty. And nov­el­ty is fun, it just gen­er­al­ly does­n’t scale that well. So that’s ideas quar­ter­ly, or annu­al rate, the effec­tive­ness of each of the areas know where you stand, which leads us into the next point. We’ll look at them once you’ve rat­ed them. How do you get them all to like bright green? Or if you’re using num­bers, 10 and a 10? Or what­ev­er it hap­pens to be? How do you make sure each of those pieces is incred­i­bly strong? Because the weak­est point of the fly­wheel estab­lish­es the speed of the strength of the thought the fly­wheel is the old weak­est link argu­ment. So the key is how do we get them there. And some­times you have to under invest in an area over invest in anoth­er area, because it’s about allo­cat­ing the scarce resources that you have to get max­i­mum impact. So it’s real­ly inter­est­ing. When we did this exer­cise for a com­pa­ny, this is a com­pa­ny down in Los Ange­les, this is going back. Four years ago. Yeah, for and as we’re doing the fly­wheel. It was just an epiphany that usu­al­ly it’s an epiphany when you nail it. Every­one’s just like, oh, my gosh, it’s incred­i­bly valu­able. And then we went and there was one spot of the fly­wheel. And I think I men­tioned in the last episode to one spot in our fly­wheel that was about a three out of 10 for strength. And then we went and some­one said, You know what? We’ve hired 50 peo­ple over the last year or so. There was one per­son added in that area of the fly­wheel. And then we look at the bud­get and they’ve spent noth­ing on that and they’re like, and it was like it was num­ber two on the fly­wheel. It might it. Yeah, it was num­ber two posi­tion on the fly­wheel. And they were just like bang­ing their heads in the dust. I can’t believe we missed it. Not only was it incred­i­bly weak, they had under under invest­ed cap­i­tal and human cap­i­tal on it. So it was like, it was like the, the neglect­ed sec­ond third cousin in the fam­i­ly din­ner that’s for­got­ten about it was just it was. Any­way, that’s, that’s, that’s why we do it.

Brad Giles 20:14

That’s why we do it. That’s why we want to come back and ana­lyze it reg­u­lar­ly. Yeah. It’s the whole pur­pose of com­ing back. And we want to be able to, to use it amongst all of the oth­er tools that we do. Peo­ple look, and they see exam­ples of fly­wheels, for exam­ple, the Ama­zon fly­wheel, and they think, wow, that’s genius. But what they don’t appre­ci­ate is that that Ama­zon fly­wheel was prob­a­bly built over many, many years, all of the busi­ness case stud­ies that we read, it’s not like some­one doc­u­ment­ed it. And you know, the lead­er­ship team, high fived each oth­er and then all of that suc­cess was instant.

Kevin Lawrence 21:04

It takes years and lots of lit­tle time ever the fly­wheel is lots of lit­tle bits of pow­er into it, even­tu­al­ly, over time builds this mas­sive, mas­sive pow­er and force. But it takes an incred­i­ble amount of lit­tle inputs to get it going many, many, many, many, many things. Just just like remem­ber, did you guys have in Aus­tralia, when you were a kid, those things called mer­ry go rounds? Yeah, a big spin­ning still just the grab onto and some­one sits on it, and you push when you try and spin your bud­dies off? Yep. Yeah, for sure. Same thing, when you’re get­ting that thing going, it takes a lot of force once it’s going, if you don’t want to get hit, it’s got a lot of momen­tum, and it has made a steel, it’s got a lot of pow­er. I’m sure they don’t even have I’m sure those aren’t allowed on play­grounds any­more. They’re just way too much fun. So the idea is, is it the brand, the work of the team? Is that okay? How do we get into 10 or 10. So this client last week, as we’re dig­ging into it, we were talk­ing about the top of the fly­wheel, which is the one that we were con­cerned about the most. And the sec­ond one that was weak, the one that was you know, orange col­or. And we were talk­ing about mak­ing sure that our plants cal­i­brat­ed to give the addi­tion­al invest­ment it need­ed. We weren’t over­do­ing it, just mak­ing sure there was enough ener­gy going there. Because in con­text of the econ­o­my and what’s going on in the busi­ness, we need­ed to pay atten­tion and did­n’t want to be play­ing catch up six months or a year down the road.

Brad Giles 22:32

Awe­some. And so then the next point is decid­ing invest­ments and goals. So the the­o­ry is, is that we should be able to invest mon­ey or resources or peo­ple into the fly­wheel and make it gain more momen­tum and spin faster. That’s the broad prin­ci­ple. Like you said, your team iden­ti­fied, they’d under invest­ed in one area but we should be able to under­stand once we’ve got the KPIs or where we’re mea­sur­ing, we under­stand the dif­fer­ent col­ors, we should be con­fi­dent enough over time to say this is where we’re going to invest to build fly­wheel momentum.

Kevin Lawrence 23:19

So that client last week is we were doing invest­ments and we were look­ing at a quar­ter­ly recal­i­bra­tion because we’ve been doing it for a few years, we got an excel­lent rhythm cou­ple of weeks ago, we were reestab­lish­ing our three to five year we call key thrusts are our three biggest three to five invest­ments over the next three to five years. We’re estab­lish­ing those invest­ments based on on the fly­wheel. I’ve got one this com­ing week with a client that had an amaz­ing growth tra­jec­to­ry. And then it got along a lit­tle bit weird and wob­bly. And we’re gonna go back and reset. We’re gonna go look at the fly­wheel, cal­i­brate it, do this exact exer­cise we’re talk­ing about here. And then we’re going to reset those three to five year invest­ments, the areas that we believe that we invest in, that will strength­en the fly­wheel, which is essen­tial­ly strength­en­ing and adding momen­tum to the growth engine. Again, it’s not rock­et sci­ence, this tool is to remind us the stuff that mat­ters most. And most of all, because it’s the stuff that pow­ers up the eco­nom­ic and eco­nom­ic engine of the business.

Brad Giles 24:24

Yeah, the great endur­ing busi­ness­es, they were able to turn it once, and then 10 times and then 100 times 1000, and then up to a mil­lion or a bil­lion times, and it’s spin­ning ever faster and faster over time. And it’s not about you don’t win by hav­ing more turns, but you win by gain­ing momen­tum in the busi­ness because you’re get­ting these fun­da­men­tals right and build­ing that momentum.

Kevin Lawrence 24:53

Yes, and one good deed leads to the next one and just it’s a beau­ti­ful thing to watch it hap­pen. It’s also a beau­ti­ful thing when you can do a ret­ro­spec­tive on the per­for­mance over the past year, and link it back to the fly­wheel and basi­cal­ly have your lit­tle guide­book of why it worked. So well. Or maybe yeah, why did­n’t we in one side note, we had one acqui­si­tion in a com­pa­ny worked with it just there’s a lot of excite­ment about it. And once we start­ed doing it, it was­n’t what was expect­ed. And we went back and looked at it through the lens of the fly­wheel. And it was just did­n’t belong on the fly­wheel. Yeah, yeah. Nev­er mind, it was­n’t in our core com­pe­ten­cy. It’s learning.

Brad Giles 25:42

That’s, is you’re get­ting a deep­er insight. A quick com­ment, we it’s awe­some to be in a lead­er­ship team, where you get fly­wheel momen­tum. I’ve been in meet­ings where you’re going around doing check ins, at the begin­ning of let’s say, a quar­ter­ly work­shop. And it’s like a major, a major mile­stone, with the first per­son, anoth­er major mile per­son with a mile­stone with the sec­ond, third, fourth, fifth, the end the sense of like, growth is good, but momen­tum is awe­some, right?

Kevin Lawrence 26:17

It is because it basi­cal­ly fuels and funds itself. It’s kind of like cash­flow like good cash flow. It just fuels and funds the bank. Any­way, it’s awe­some. So let’s go back. And real­ly so this is about pow­er­ing up your fly­wheel once you’ve got it estab­lished, again, Episode 117, how to build it, this one how to pow­er it. So num­ber one, make sure it’s right. Last episode num­ber two, have KPIs to mea­sure each piece of the fly­wheel and know who the own­er is, who’s account­able for it. So you can see and know the per­for­mance fac­tu­al­ly. And not just feel­ing wise, num­ber three, quar­ter quar­ter­ly and annu­al­ly, step back and rate it each of those areas, whether using col­ors or num­bers based on those KPIs. And the advanced move is to do it by divisions.

Brad Giles 27:08

Okay, and then look at how to get to 10 out of 10, or super green, or what­ev­er you would use, right where you’re at. And then ask your­self, how do we get there. And reg­u­lar­ly every quar­ter ide­al­ly, bring in new pri­or­i­ties that help you to build fly­wheel momen­tum. And then vio­lent­ly Final­ly, set your invest­ments and goals around three to five years to build that fly­wheel momen­tum, so that you can con­tin­u­al­ly invest in what­ev­er form it takes. What a good chat we’ve had today. Yeah. Last week, the prob­lem with fly­wheels and this week, how to real­ly get that fly­wheel momen­tum going. hope that you’ve enjoyed the episode today, you can sub­scribe to us. And we do love reviews, the things that warm the cock­les of our hearts, let me tell you that. So we’d love it if you could post a review, in form in which you watch. And you can see us on YouTube, and obvi­ous­ly, wher­ev­er you catch your pod­casts, you can see Kevin at Lawrence and co​.com. He’s got a love­ly newslet­ter that he puts out each week and myself, Brad Giles at evo­lu­tion part​ners​.com​.au And obvi­ous­ly I’ve got a newslet­ter as well, where I talk about inter­est­ing things on a reg­u­lar basis. So hope you’ve enjoyed today’s episode about the fly­wheel. Look for­ward to catch­ing up with you again next week.