From 1973 to the end of 1978, Harris Corporation beat the market by more than five times. What happened to its performance from the end of 1978 to the end of 1983 after a new leader stopped the flywheel?

Correct answer: It fell 39 percent behind the market.

Explanation

This quantitative question uses the Harris Corporation example to show the severe and measurable negative consequences of breaking the flywheel's momentum.

Other questions

Question 1

In the opening metaphor of Chapter 8, what is the approximate weight of the massive metal flywheel?

Question 2

According to the book, what is the 'nonsensical question' someone might ask about the flywheel once it's spinning with unstoppable momentum?

Question 3

How did the media's perception of Circuit City's success differ from the internal reality of its transformation?

Question 4

What analogy does the author use on page 179 to illustrate the difference between how a transformation looks from the outside versus from the inside?

Question 5

What did the good-to-great executives consistently report about the 'miracle moment' of their company's transformation?

Question 6

The 'Doom Loop' is a pattern found in comparison companies. What is its primary characteristic?

Question 7

How did comparison companies in the Doom Loop often use acquisitions, according to the book?

Question 8

What company is presented on page 182 as a case study of a new leader stopping an already spinning flywheel?

Question 9

From the end of 1984 to the year 2000, by approximately how many times did an investment in Fannie Mae multiply?

Question 10

What mechanism did Abbott Laboratories use to manage short-term Wall Street pressures while still investing in the future?

Question 11

In the table on page 194, which of the following is listed as a sign of being on the Flywheel?

Question 12

What did the author and his research team find about the number of articles written about good-to-great companies before versus after their transition point?

Question 13

How long did it take for Kimberly-Clark's shift from good to great to be recognized by Forbes magazine after the company decided to go head-to-head against P&G?

Question 14

According to the summary on page 194, what is the Doom Loop response to confronting brutal facts?

Question 15

How did coach John Wooden's basketball dynasty at UCLA illustrate the flywheel concept?

Question 16

What is the 'flywheel effect' on people inside the company?

Question 17

In the case of Warner-Lambert's failed attempt to become like Merck in 1987, how did its spending on advertising compare to its spending on R&D?

Question 18

What was the one word that came to the author's mind when looking over all the good-to-great transformations, as mentioned on page 182?

Question 19

What was the final outcome for Warner-Lambert, the primary example of the Doom Loop in the chapter?

Question 21

What is the key difference in how Flywheel companies and Doom Loop companies approach disciplined thought and action?

Question 22

At what point did Nucor's leadership realize they could become the number one, most profitable steel company in America?

Question 23

How did the good-to-great companies handle the short-term pressures from Wall Street?

Question 24

What is the primary reason the 'flywheel effect' makes it unnecessary to spend a lot of energy on motivation and alignment?

Question 25

How many major restructurings did Warner-Lambert undergo from 1979 through 1998?

Question 26

What does the book suggest is the main problem with the media's coverage of good-to-great transformations?

Question 27

What was the buildup-to-breakthrough timeframe for Circuit City?

Question 28

The chart on page 178 showing Circuit City's stock value and media coverage illustrates that significant media attention began:

Question 29

How is the Flywheel described as a 'wraparound idea' on page 182?

Question 30

The story of Jim Herring at Kroger illustrates what about communicating a new vision?

Question 31

In Peter Drucker's observation about acquisitions, what is the primary drive for them in many companies?

Question 32

What does the table on page 194 suggest is the Flywheel approach to technology?

Question 33

How did Upjohn's approach to Wall Street differ from Abbott's, as described on page 184?

Question 34

What is the primary theme of the 'THE FLYWHEEL EFFECT' section starting on page 185?

Question 35

From 1959 to 1974, Abbott and Upjohn's stocks roughly tracked each other. What happened after Abbott's 1974 breakthrough point?

Question 36

What is the crucial difference between the buildup phase and the breakthrough phase?

Question 37

How long did the buildup stage last for Nucor before its transition?

Question 38

What is the relationship between the Flywheel and Level 5 leaders, according to the summary on page 184?

Question 39

How did the research team's view on the 'alignment question' evolve during their interviews?

Question 40

In the comparison between the Flywheel and Doom Loop on page 194, how do the two approaches to consistency differ?

Question 41

What does the book conclude about the role of a 'grand program' or 'killer innovation' in good-to-great transformations?

Question 42

What was the final outcome for the unsustained comparison company Harris Corporation?

Question 43

What is the relationship between the Flywheel and the Hedgehog Concept?

Question 44

What did the author conclude about the buildup-breakthrough flywheel model in dire short-term circumstances, such as looming bankruptcy or takeover threats?

Question 45

According to the summary table on page 194, how does the feeling of the transformation process differ between Flywheel and Doom Loop companies?

Question 46

In the summary of the chapter's Key Points on page 197, what is the stated relationship between the buildup and the breakthrough?

Question 47

What did Nucor CEO Ken Iverson say when asked in 1975 when the company would become number one?

Question 48

What is the final conclusion presented at the end of the chapter about the journey from great to enduring great?

Question 49

What was the key difference in how David Maxwell of Fannie Mae viewed his company's dire situation versus how comparison companies might have?

Question 50

One of the 'Unexpected Results' listed on page 197 is that those inside the good-to-great companies were often: