In sharp contrast to the breakthrough impact of the companies that practiced the flywheel effect all of the organizations that could not transition from Good to Great were caught in The Doom Loop. Instead of the consistent daily movement of the flywheel they went for the big impact event that would give the immediate impression of progress only later to regress into failure.
They were not willing to use the deliberate process of figuring out what needed to be done and then simply doing it. “The comparison companies frequently launched new programs-often with great fanfare and hoopla aimed at motivating the troops-only to see the programs fail to produce sustained results.”
They wanted the big event or the grand program or the new celebrity CEO that would allow them to skip the daily discipline of the flywheel and move immediately to breakthrough. The repeated pattern of this cycle consistently produced disappointing results and then reaction without understanding starts the loop all over again.
Peter Drucker commented on these companies, “The drive for mergers and acquisitions comes less from sound reasoning and more from the fact that doing deals is a much more exciting way to spend your day than doing actual work.”
The Doom Loop is a classic example of an organization continuing to do the same wrong things over and over again and yet somehow expecting different results. At the core of this problem is a leadership team that is more concerned with short term personal success than what is best for the long term benefit of everyone involved?
In the end this is not a strategy problem but a character one.
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