In November 2022, when OpenAI launched ChatGPT, the technology company Nvidia saw its stock value soar. It seems the graphics processing units (GPUs) the company produces are instrumental in training artificial intelligence and helping it perform.
In less than a year and a half, Nvidia’s stock value increased 428%. Casual observers may have thought Nvidia simply took advantage of the momentum ChatGPT created, riding someone else’s wave.
Maybe so.
But perhaps Nvidia had lassoed momentum years before, putting itself into a position to ride high when the opportunity presented itself. What looked like sudden momentum was in fact the result of years of intentional, tedious preparation until a spark (in this case ChatGPT) set things in motion.
To many leaders, momentum is something that builds after success is achieved.
But in actuality, as the Nvidia example shows, the opposite is true.
The best companies engineer momentum through preparation, belief, culture, and systems, and they do this long before results appear — just the way Nvidia did, putting itself in a position to capitalize on that momentum when the right circumstances presented themselves.
Defining Momentum
Momentum is talked about a lot — in sports, in politics, in business, in other walks of life — but defining it is tricky. Momentum can seem nebulous, perhaps ethereal, but it most certainly produces tangible results — as any basketball team that goes on a scoring spree just before halftime can tell you.
Not to get too wonky, but a good definition of momentum is this: Momentum is a synergistic force that influences the progress, resilience, and focus of a team; and its impact on the mindset of a team — positively or negatively — can be manipulated and extended.
For example, long before ChatGPT entered the equation, leadership at Nvidia demanded a culture in which senior executives are expected to operate independently and work relentlessly. And Nvidia had a concrete, intentional approach to recruitment. They knew what they were looking for, and if they didn’t find the right talent, they didn’t hire at all.
How to Build Momentum Intentionally
In all of that are lessons for other leaders who want to build momentum and develop teams ready to take advantage when opportunity knocks. If you are only reacting to momentum once it’s happening, you’re already at a disadvantage.
Some of the things leaders can do to put their organizations in the right mindset to seize the moment — and the momentum — include:
- Hire the right people. Identify your most critical roles and ensure you find the right people for those seats. Certain roles play a larger part in generating organizational success than others.
- Develop your team’s ability to take smart risks. To seize momentum, teams must frequently take risks. Encourage your team to evaluate the potential consequences of taking risks so they can make an informed decision about whether to proceed. Smart risks are ones that can propel something forward if navigated well and can be absorbed if success is not achieved. Conversely, dumb risks are ones where there is no coming back from falling short of the objective.
- Enhance the team’s ability to collaborate effectively. A 2017 Harvard Business Review research publication cited several reasons why collaboration encounters obstacles. The top three reasons cited were “silos (67%), the lack of collaborative vision from leaders (32%), and senior managers not wanting to give up control (32%).” Enhancing the team’s collaboration acumen is essential if they are to act decisively and effectively when the opportune moment arises.
- Enhance trust. The ability to lead effectively is amplified when a high degree of trust exists. When leaders ask others to lean into behaviors that might generate anxiety, followers will undoubtedly conduct a trust assessment before electing to honor the leader’s requests.
- Consistently ensure two-way communication. Effective two-way communication can enhance trust, strengthen alignment, and sustain adherence to behavioral expectations. The practice of routinely engaging in two-way communication can foster faster and more effective learning, creating the conditions for better decision-making.
Organizations that successfully harness momentum do so by understanding and manipulating the conditions that allow it to flourish.
To the rest of us, the result may look effortless. But don’t be fooled. What we don’t see are the preparation, mindset, team climate, and leadership that made the momentum possible.
About Don Yaeger
Don Yaeger is the author or co-author of more than 30 books, including 12 New York Times bestsellers and the recent title The New Science of Momentum. He is also a nationally recognized keynote speaker on leadership and teamwork. As a longtime associate editor at Sports Illustrated, he has interviewed the world’s greatest champions — from Michael Jordan to John Wooden — and distilled their insights into practical lessons for success. Yaeger also hosts the Corporate Competitor Podcast, where he explores leadership through the lens of sports and business.
