This chapter discusses the flywheel, which is demonstrated by good to great companies, and the doom loop, which is where comparison companies end up. The flywheel effect consists of the accumulation of visible results, people line up (energized by results), the flywheel builds momentum, and steps forward (consistent with the hedgehog concept). The doom loop is the opposite by displaying disappointing results, reactions without understanding, (new direction, program, leader, event, fad, or acquisition), nor any build-up or accumulated momentum. Some examples that a good to great company shows signs of being on the flywheel include, following a pattern of buildup leading to a breakthrough, taking things step by step, and making major acquisitions after its breakthrough. Some examples that comparison companies show signs of being in the doom loop include, skipping building up and jumping right to a breakthrough, always looking for a miracle moment, and making major acquisitions before its breakthrough. Good to great companies stay on the flywheel by not only displaying these characteristics but also maintaining consistency with all other factors in the previous chapters such as the hedgehog concept. I do believe a company in a Flywheel could move to a doom loop if it does not stay consistent.

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