Transformation programs have become ubiquitous, with more than one-third of large organizations engaged in some form of transformation at any given time. But the conventional model that most companies rely on for transformation has faltered in the wake of today’s rapidly changing business environment. Leaders need a fresh approach — one better suited to the continuously evolving nature of our world.

Typical transformation efforts are organized as programs with a defined beginning and end, often overseen by a program management office.

Rooted in a change model popularized by German American psychologist Kurt Lewin in the 1950s, this approach involves three stages: “unfreeze, change, and refreeze.” While effective for discrete projects like implementing a new payroll system, this model falls short in today’s dynamic business environment. The continuous evolution of the external landscape demands ongoing business transformation, with no room for pausing, refreezing, and stepping away.

In this article, we draw on our research and experience to describe the three key drivers of continuous transformation.

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1. Adopt an Agile Mindset

Unlike the conventional “unfreeze, change, refreeze” approach, which implies change represents only a temporary disruption, an agile orientation embraces the philosophy of “rethink, reshape, repeat” — an ongoing quest for excellence. Under this paradigm, transformation becomes a perpetual journey involving assessing the company’s strategy, prioritizing critical issues, carefully considering potential alternatives for addressing each issue, choosing the best course of action, adapting the organization accordingly, and then moving to the next critical issue. Much like agile software development, where tasks progress from “to do” to “doing” to “done,” business transformation should involve a similar continuous process of issue identification and resolution.

By embracing an agile mindset, organizations unlock the potential for sustained innovation and adaptation, thereby making continuous change a core capability. The transformation of State Farm, a company we worked with, serves as a compelling example. As a leading provider of various insurance services including auto, home, life, health, and business coverage, State Farm had long been a trusted name in the industry. However, in 2019, the company’s leadership recognized a shift in the fundamentals of their business. The insurance landscape was evolving beyond merely offering coverage; it was now about delivering personalized experiences, swift service, and seamless claims processing within an intensifying pricing environment. Customers increasingly demanded convenience, efficiency, and tailored solutions. In response, State Farm recognized the need to rethink its operations, processes, and technology infrastructure to remain competitive in this swiftly changing market.

A pivotal factor in State Farm’s successful transformation was the adoption of an agile mindset by its leadership. While previous change efforts at the company had been treated as episodic, the pace of change in the insurance industry now necessitated continuous transformation. Accordingly, State Farm built a “persistent change capability,” essentially a suite of tools empowering executives to continually reassess and reshape the company’s strategy and operations. In addition, in working with State Farm, we saw how the company’s newly established “Change Center of Excellence (CoE)” provided support and coaching to leaders throughout the organization in driving transformative change and helping the impacted workforce adapt. This group also served as a central repository for best practices, approaches, and tools utilized at State Farm to strengthen ongoing change initiatives.

State Farm’s transformation journey has already yielded significant benefits for both the company and its customers. By embracing digital technologies and modernizing processes, State Farm improved customer experience, enhanced operational efficiency, and achieved substantial cost savings. Notably, between 2018 and 2023, State Farm Mutual’s net worth — a critical measure of financial strength in the insurance sector — grew from $100 billion to nearly $135 billion, and the growth across its primary lines of business surpassed the average growth rate for each sector.