The Transformation Flywheel
In recent years, there has been a general sense that digital transformation remains critically important for organizations but frequently fails to deliver consistent results. In the conversations we have with founders, operators, and functional leaders a recurring theme is the challenge they have to reach escape velocity when trying to materially enhance performance or activate a new vision.
Consider the current economic headwinds and there is added pressure for those leading growth and transformation initiatives to be more efficient and improve their success rate. The explosive emergence of generative AI means the pace of business transformation is likely to accelerate and the potential to create competitive distance by those who get it right is likely to compound. Regardless of industry, there is a growing imperative to redesign workflows, reinvent job descriptions, and refocus talent to unlock the potential of powerful new technologies.
But what distinguishes those who succeed from the vast majority who fall flat, failing to capture the significant benefits of digital transformation? The answer may surprise you.
A pattern language for transformative change
For over two decades, we’ve had the privilege of working with some of the world’s most respected businesses and recognized innovators in the digital age. As a result, Beacon Advisory has identified a common set of organizational traits and behaviors that distinguish the serial high-performers from the also-rans. Which gives them the ability to spark and then sustain transformative change that creates meaningful value.
It is a delicate cocktail, but with equal parts courage and intention, it is repeatable. This perspective informs our approach to disrupting convention and catalyzing growth, whether that’s incubating new ventures, customer experiences, or organizational ways of working.
A foundational insight underlying our approach is captured by a model we call The Transformation Flywheel. This model explains the propulsive energy you gain when you intentionally nurture conditions that generate sustainable momentum for transformative change.
The physics of transformation
A flywheel is a centuries-old device used in mechanical systems to store and transfer energy. Functioning like a mechanical battery, the amount of energy it stores depends on how fast it spins, the amount of friction it encounters, and its size.
Initially, a flywheel is difficult to set in motion due to the inertia it holds. However, if effort is applied consistently and friction is not present, the flywheel begins to move. Small, positive actions accumulate and compound. With each successive push, its revolutions gain momentum, and it becomes easier to turn.
Anyone who’s had a successful start-up or had a sudden breakthrough after months of slogging through trenches and feeling misunderstood is probably familiar with this phenomenon. Like bankruptcy, it happens very slowly and then all at once.
That’s The Transformation Flywheel in action.
“How did you go bankrupt?” Bill asked. “Two ways,” Mike said. “Gradually and then suddenly”
Reverse engineering successful transformations
If we do a product teardown and look inside The Transformation Flywheel to identify its key components, we can identify the following elements:
Putting the flywheel to work
Each aspect of The Transformation Flywheel feeds another. Apply force and remove friction to any part of it and the flywheel accelerates, generating more energy for your endeavor to bring about a future that does not yet exist. The more aspects that you engage, the faster you will generate wins that build on each other over time to fuel success and sustain momentum.
The select few who are successful with digital transformation (remember, only 27%!) systematically target elements of the flywheel, using each to add force and remove friction. Which helps grease the wheels for change at velocity and scale.
Importantly, the specific elements of the flywheel that you target and the associated tactics you use should be tailored to your context and organizational culture. Just like the design of a flywheel used in a Formula-1 race car is different than that used in a steam engine, the choices you make should be fit-for-purpose. Think of The Transformation Flywheel as an approach to problem-solving that aids progress toward an effective solution….in this case creating a strategy that can help you (re-)energize your transformation efforts, making them more engaging, more efficient, and more successful.
Also worth noting, the flywheel applies broadly to any effort to innovate, not just digital transformation. If you need to figure out how to do something that hasn’t been done before, bring others along, and reach scale then the same rules apply.
And if you need help developing or activating your strategy for growth and transformation, Beacon Advisory can help. We work with ambitious leaders to create tangible, energizing wins that accelerate their most important initiatives and build the foundations for lasting change. We’ll help you get your shift together ;)
Follow us on LinkedIn, Instagram, or Threads where we’ll share more about each aspect of this model, explaining the role they can play to help you achieve success when trying to introduce a breakthrough product, service, or way of working.
