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Flywheels vs. Relationships — Why your business architecture matters to your initial marketing plan

Rita McGrath
5 min readAug 12, 2022

In developing an initial marketing plan, it is crucial not to be confused about what kind of business architecture you are building in order to establish your initial metrics for success. Geoffrey Moore has a great way of capturing this in the distinction between complex systems versus volume operations sales.

Which hand do you lead with?

Geoff likens the distinct business architectures to your organization’s “handedness.” In other words, we all have two hands, but for the most part use one more effectively than the other. In business, what that means is that there will be one taken-for-granted model for what we should align around. When you mix and match models, the inevitable result is a lack of alignment and confusion. Geoff explains in detail here. You can watch a recording of our Fireside Chat here.

The two models create value in entirely different ways. The complex systems model designs unique solutions for each customer situation, combining disparate elements that the provider differentially can access. Think IBM in systems integration or Goldman Sachs in complex financial instrument design. It’s a small-number-of-transactions model for a great big price. Customer frictions in this model are quite delightful, each…

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Rita McGrath
Rita McGrath

Written by Rita McGrath

Columbia Business School Professor. Thinkers50 top 10 & #1 in strategy. Bestselling author of The End of Competitive Advantage & Seeing Around Corners.

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