STARTUPS: GET THE FLYWHEEL EFFECT

BY ROBIN GHOSH
( FORMER CHIEF ECONOMIST, BENGAL CHAMBER OF COMMERCE AND INDUSTRY)
KOLKATA, 28 NOVEMBER 2022

Today one of the most important issues of business is : business should have a human face. There has to be a broader purpose.
Earning   Profit  is important . It is the key purpose. But the changing business environment is now demanding that corporates should also have some social commitment. Do something for the society and the underprivileged.
Corporates invest in building brands .They also invest in social projects.
Now the challenge  for the corporates is – how branding and social projects  can be blended. Can be packaged so that a flywheel effect is generated. And competitive advantage can be created.
Before we move forward, let us pause for a while, and try to understand – what is the flywheel effect ?
Jim Collins , author of the book Good To Great defines flywheel effect like this :
“No matter how dramatic the end result, good-to-great transformations never happen in one fell swoop. In building a great company or social sector enterprise, there is no single defining action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Rather, the process resembles relentlessly pushing a giant, heavy flywheel, turn upon turn, building momentum until a point of breakthrough, and beyond.”
Many companies have taken up initiatives and projects  under the ambit of CSR . Yet, these programs have not been judiciously used for brand building.
How do you do that ?Listen to  legendary brand builder David Aaker . ” One of the things brands can do is to put their brand on top of a signature social programme. Too often these programmes are in the form of Grants or Volunteers  or Goals that are not easily branded, not easily Communicated and don’t have a lot of impact. So the need is to have a signature branded programme that does have impact and inspire.
It is very important to have a branded programme.”
These signature programmes help to advance the business brand. Inducts energy and image lift. Connects shareholders, employees, and customers. The program helps the business, the business helps the programme.The classic flywheel effect.