The Value Flywheel Effect, enabled by effective cloud adoption, is a powerful framework for accelerating business outcomes. It provides a practical model for connecting technical execution to strategic objectives. At the heart of this model are 12 foundational tenets, which form the core of The Value Flywheel Effect book.
These tenets are distributed across the four phases of the flywheel—Clarity of Purpose, Challenge & Landscape, Next Best Action, and Long-Term Value. Each phase includes three guiding principles that reflect a blend of engineering discipline, organisational strategy, and leadership mindset.
Importantly, these are not static rules. Technology and organisations evolve. That’s why we complement each tenet with Wardley Mapping, a strategic tool that lets you visualise context, evolution, and position—ensuring you adapt these principles to your unique environment.
We also identify a lead persona for each phase. This isn’t about ownership, but rather about who in the organisation should sleep well at night if these tenets are in place.
🔁 The 12 Value Flywheel Tenets
| Phase | Tenet | Persona |
|---|---|---|
| Clarity of Purpose | 1. Clarity of purpose: A data-informed north star 2. Obsess over time to value: Innovation is a lagging metric 3. Map the market: Know your differentiation | CEO |
| Challenge & Landscape | 4. Psychological safety: Team-first environments 5. The system is the asset: Sociotechnical thinking 6. Map the org: Enable engineering | Engineers |
| Next Best Action | 7. Code is a liability: Embrace serverless 8. Frictionless developer experience 9. Map your solution: Align on delivery | Product Leaders |
| Long-Term Value | 10. A problem-prevention culture 11. Low carbon footprint: Build sustainably 12. Map emerging value: Prepare for change | CTO |
Phase 1: Clarity of Purpose
Persona: CEO
The flywheel begins with strategic clarity. Without a shared direction, organisations risk misalignment and inertia.
- 1. Clarity of Purpose
The CEO’s primary responsibility is to establish a compelling and measurable North Star. Use tools like Amplitude’s North Star Framework to connect long-term value (lagging metrics) to short-term efforts (leading indicators). - 2. Time to Value
Many leaders chase “innovation”, but innovation is an output, not an input. Instead, focus on reducing time to value—how quickly ideas deliver real outcomes. This metric is actionable and drives innovation as a by-product. - 3. Map the Market
A clear understanding of the competitive landscape is essential. Wardley Mapping helps expose your true differentiators versus commodities, enabling strategic focus and resource alignment.
Phase 2: Challenge & Landscape
Persona: Engineers
This phase speaks to how teams operate. Engineering excellence is not just about code—it’s about culture, systems, and enablement.
- 4. Psychological Safety
High-performing teams thrive in environments where it’s safe to challenge, collaborate, and fail. Like elite sports teams, engineering groups need trust, autonomy, and support—not politics. - 5. The System is the Asset
Software systems are more than technology—they are sociotechnical systems. Success requires recognising the interdependence between code, process, and people. - 6. Map the Org
Technical friction often stems from organisational misalignment. Use Wardley Maps to highlight where governance, process, or culture is out of step with delivery needs—and adjust accordingly.
Phase 3: Next Best Action
Persona: Product Leaders
This phase centres on value delivery. Product leaders must remove bottlenecks and focus teams on what matters most.
- 7. Code is a Liability
Every line of code introduces complexity. A serverless-first approach helps reduce operational burden and lets teams focus on differentiated value. - 8. Frictionless Developer Experience
Speed and safety go hand-in-hand. A smooth path to production, enabled by automation and CI/CD, ensures engineers can ship quickly without cutting corners. - 9. Map Your Solution
Product and engineering must share a view of what they’re building. Visualise the system through mapping—so that teams align around delivery and value, not just functionality.
Phase 4: Long-Term Value
Persona: CTO
The final phase ensures that value compounds over time. Good architecture is invisible when it works—but critical when it doesn’t.
- 10. A Problem-Prevention Culture
Don’t reward firefighting—reward prevention. Invest in robust, well-architected systems and create space for teams to design for reliability and security. - 11. Low Carbon Footprint
Efficiency and sustainability are now architectural concerns. Leverage cloud insights to measure carbon output, and build with both cost and climate in mind. - 12. Map Emerging Value
Architecture should be future-facing. Use Wardley Maps to anticipate shifts in technology and market dynamics—so you’re ready to evolve ahead of the curve, not react after the fact.
Adapt and Apply
These tenets are not rules—they’re a compass. Use Wardley Mapping to understand where you are, where you’re going, and how to adjust. The true power of the Value Flywheel is in momentum. When these tenets are embedded across leadership, engineering, product, and architecture, the flywheel turns faster—delivering meaningful, sustainable outcomes.
For a deeper dive, check out The Value Flywheel Effect by David Anderson, Michael O’Reilly, and Mark McCann.
Originally published in IT Revolution
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