Glossary of Terms

What is The Flywheel Effect?

Flywheel Effect Definition

The Flywheel Effect is a concept made famous by Jim Collins' book "Good to Great." It refers to a self-sustaining cycle of growth that occurs when effort is consistently applied towards a particular goal.

At first, results may seem insignificant, but with continued focus and persistence, momentum builds and progress accelerates, eventually leading to breakthrough success.

The Flywheel Effect can be seen in many areas of life, from fitness to business. It's a reminder that steady, consistent action is often more effective than sporadic, bigger efforts. Collins explained the concept to Jeff Bezos, who built on the analogy at Amazon to describe marketplace moementum. A marketplace creates a virtuous growth cycle— with more sellers comes more product, which creates a better customer experience, which drives more traffic, and leads to more sellers, etc.  Understanding and harnessing the power of the Flywheel Effect can be the key to achieving long-lasting success.

Flywheel Effect Definition

Related terms

The network effect is a phenomenon that occurs when a product or service gains value as more people use it.
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