The Flywheel and Your Strategic Activity Map — Strategy in Motion

“You don’t need more strategy slides — you need a system that actually spins.”

When Jim Collins introduced the Flywheel in Good to Great, he described it as the compounding force of consistent, disciplined action — “pushing a giant heavy wheel” that gains momentum over time.

But here’s what most people miss:

The Flywheel isn’t just about momentum. It’s a strategic architecture — a visual map of how your organisation actually wins.

When used properly, it becomes more than a metaphor. It becomes your company’s strategic activity system in motion — the living engine that links purpose, action, and performance.

From Concept to Strategy: The Hidden Depth of the Flywheel

At first glance, the Flywheel looks like a simple loop — each activity feeding the next.

Jim Collins’ original Amazon Flywheel:

• Lower prices on more offerings
• Increase customer visits
• Attract third-party sellers
• Expand the store and distribution network
• Grow revenues and lower costs
• Pass savings back to customers

Then the cycle repeats.

Simple? Yes. But underneath is a strategic activity map — a coordinated network of actions that reinforce one another, creating a system competitors can’t easily copy.

The Flywheel Meets Porter’s Activity Map

Michael Porter’s concept of an activity system shows how competitive advantage comes from a network of interlinked choices. Each reinforces the others — producing coherence and trade-offs that protect your position.

When you overlay this thinking on the Flywheel, you see its true depth:

• Each step is a strategic activity.
• Each connects logically to the next.
• Each builds cumulative advantage over time.

The Flywheel isn’t a list of steps — it’s your business model in motion.

Why It Matters: The Flywheel as Your Strategic Engine

Recognising the Flywheel as a strategic system unlocks four powerful advantages:

1. Strategic Clarity

It clarifies how your company wins — not just what it does.

Each element is a deliberate choice: how you attract customers, create value, and reinvest that value for long-term advantage. 

Example:
Netflix’s Flywheel links personalised recommendations → user engagement → retention → reinvestment in content → even more engagement.

Takeaway: The Flywheel turns abstract strategy into an actionable, interconnected system.

2. Alignment and Focus

A clear Flywheel acts as a decision filter:

“Does this initiative accelerate the Flywheel?”
✔️ Yes → Prioritise it.
❌ No → Reconsider.

Example:
Apple’s Flywheel centres on seamless user experience. Every product, service, and process must reinforce that promise — which is why Apple never licenses iOS to third-party hardware.

Takeaway: A Flywheel gives leaders a built-in strategic compass.

3. Operational Discipline

Each component depends on the others — break one link, and the wheel slows.

Example:
Southwest Airlines’ Flywheel — low costs → low fares → increased demand → fast aircraft turnaround → more efficient operations → lower costs again.

Takeaway: When activities reinforce one another, operational consistency becomes competitive advantage.

4. Reinforcing Advantage

Like Porter’s activity map, the Flywheel protects your advantage by making it hard to replicate the whole system. 

Example:
Tesla’s Flywheel leverages direct sales, gigafactories, and scale to lower battery costs — feeding affordability, demand, and reinvestment in innovation. 

Takeaway: A true Flywheel compounds advantage — it doesn’t just sustain it.

Building Your Flywheel as a Strategic Activity Map

If you want your Flywheel to become the centrepiece of your strategy, follow this process:

• Define the Core Outcome — What long-term effect are you trying to achieve (e.g., loyalty, leadership, impact)?
• Map the Reinforcing Steps — Identify the 4–6 key activities that build on one another.
• Test the Logic — Each step should clearly drive the next — and feed back to the core.
• Assign Capabilities & Metrics — Define ownership, KPIs, and strategic enablers for each step.
• Use It to Drive Decisions — Make the Flywheel your strategic filter and execution roadmap.

When designed correctly, the Flywheel becomes both your strategy on a page and your execution engine.

Strategy in Motion — The Power of Sub-Flywheels

Most companies don’t just have one Flywheel — they have sub-flywheels powering it.

For example:

• A marketing Flywheel driving awareness and leads.
• A customer Flywheel driving retention and advocacy.
• A product Flywheel driving innovation and efficiency.

When these sub-systems align, your enterprise Flywheel accelerates — creating self-reinforcing momentum across the business.

Takeaway: The more coherent your sub-flywheels, the faster your strategic engine spins.

Final Thought — The Flywheel Is Strategy

The Flywheel isn’t a metaphor for hard work — it’s the mechanics of strategy itself.

When leaders see it as an activity system, they stop talking about momentum as something abstract and start designing it intentionally.

Want help building your company’s Flywheel?

At Strategy & Execution Advisors, we help leadership teams design, test, and refine Flywheels that clarify direction and accelerate growth.

Contact tedb@strategyandexecution.com.au for a discovery session.

Strategy isn’t static — it’s motion, built one turn at a time.

TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS

Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.

My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.

Want help building your company’s Flywheel?

Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

ABOUT STRATEGY & EXECUTION

For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.

Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.

If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops