Collins’: Avoid Doom Loops

This was originally part of last Friday’s post, but it was too long. So I conclude today.

On Friday, we discussed how great organizations, once they get the momentum going in the right direction, maintain that momentum with less energy. We likened them to the merry go round on the playground. The runner had to expend a lot of energy to get the merry go round going.refer back to Flywheels to recognize doom loops

Doom Loops Destroy the Momentum

Unfortunately, most leaders (remember Collins started with 1,485 companies and ended with only 11 great ones) let their egos get in the way. This is especially true when a new leader steps in place. Rather than continue the momentum established by the previous leader, many leaders begin their administration with a major change of the organization. They feel the need to “put their stamp” onto the legacy of the company. They don’t just tweak, they overhaul.

Jim Collins calls this thinking the Doom Loop. Returning to our metaphor of the merry go round. A doom loop occurs when the person pushing the merry go round decides to stop it and start pushing it the other direction. Slowing down or stopping a fully circling merry go round requires even more strength than to start it. Then, once it is stopped the runner must expend energy to begin moving it in the opposite direction. Now imagine the waste of resources used if every time the merry go round achieved velocity, you decided to reverse it. The runner would lose strength and finally give up.

Personal Experiences with Doom Loops

I worked for two organizations that institutionalized doom loops. They both could have been great. They did not achieve their potential because they constantly changed. Almost every new director or managing director began their administration with a major review. The purpose of the review was not to understand what was happening, but to make changes. Every change

• Stifled momentum and reduced productivity
• Paralyzed the organization with speculation, uncertainty, and worry
• Distracted both management and employees from achieving results
• Diverted financial and social capital from results to change

College students who frequently change majors exemplify personal doom loops. People who constantly change careers, starting at the bottom of each new one, represent personal doom loops. People who focus so much on the next promotion or job, that they fail to deliver on the current job implement doom loops.

Not Against Change

Before I finish, I am not against change. Many people and organizations required change, especially when they move in the wrong or unproductive direction. Confronting the brutal facts recognizes change. The intent and the reason for the change become important. Change that enhances or accelerates the Hedgehog Concept moves the organization to greatness.

Too many times change occurs because of ego, faulty implementation, or changing economies. Great organizations changed. Walking away from the principles that made them great creates a doom loop. Collins found this out when he analyzed why several of the great companies failed in Why the Might Fall.

Flywheels may take time to build the momentum, but maintaining the momentum compensates for the expenditure of time and energy. Unless, of course, once you get going you decide to move in another direction. Doom Loops, in the long run, cost much more and deliver much less satisfaction. Doom loops, however, seem to appeal to leaders more than flywheels. Remember, it is your choice.

Join me Wednesday when we conclude our review of Good to Great with Build to Last