Organizations grow similarly to the way a principal grows through generating interest. The more often you compound interest, the more wealth you generate. An organization improves and grows no differently. This assumes the organization can learn effectively, translate that knowledge into organizational change, and accurately assess the results and failures of those improvements.

Below you’ll find a graphic that illustrates how the rate of growth of an organization can improve simply by the number of iterations the entity does on its knowledge base and business logic over a given period of time. Again, it is critical to understand that we are not describing iteration for its own sake, but rather a process of improvement that necessarily involves taking old logic, building upon it, and redeploying that improved logic into the business. Companies that do this more quickly and effectively will dominate. Those that don’t will fail.

In the coming weeks, we’re going to focus on revenue generation, and in particular how you build a Revenue Engine through constant iteration. The next set of posts will focus on this core part of developing a business, but it won’t end there.

Did you find this post useful? How do you think about the iterative speed of your organization?