A funny thing happened on the way to class one day.

As I was preparing for an executive education class at Kellogg School of Management, I found myself pulling a little red Radio Flyer wagon through the halls. What happened next was truly remarkable.

People from all walks of life - from custodial staff to board members - stopped to share their personal stories about this iconic toy. In those moments, I witnessed something extraordinary: a simple product that could bridge gaps and connect people across diverse backgrounds.

Little did I know, this experience would offer valuable insights into the remarkable turnaround of Radio Flyer itself.

When Success Becomes a Limitation

Radio Flyer, the company behind that famous wagon, had a problem. They had become so proficient at manufacturing metal objects with wheels that they lost sight of their true purpose and value.

The Wake-Up Call

Imagine this scenario: Two brothers overhear a banker shouting at their father, "You have no cash! You have no cash!" This crisis moment forced Robert and Paul Pasin to make a critical decision about the future of their family business.

The Million-Dollar Question

Instead of reacting with panic, the Pasin brothers took a step back and asked themselves a crucial question: "What value are we really creating for our consumers, employees, and ourselves?"

This, in essence, is what I call a Framing Question. It's a powerful tool that can reset your entire business perspective and open up new possibilities.

NEWCO™: Mapping Your Company's Hidden Treasures

To answer their big question, the Pasin brothers needed a fresh way of looking at their company. This is where the concept of NEWCO™ comes into play.

What is NEWCO™?

NEWCO™ stands for Networked Economy of Working Capitals and Opportunities. Think of it as a comprehensive map of your business ecosystem that reveals:

1. Untapped resources within your organization
2. Hidden connections between different aspects of your business
3. Unmet market needs that your company is uniquely positioned to address

Rediscovering Your Core Purpose

For Radio Flyer, this process led to a surprising revelation. Their real value wasn't in their manufacturing capabilities - it was in the brand itself. The Little Red Wagon wasn't just a product; it was an American icon that represented childhood memories and family moments.

The Three Pillars of Leadership

To successfully navigate their transformation, Radio Flyer needed three types of leaders:

1. The Visionary: Robert Pasin, who could see new possibilities and tie them to business value
2. The Executor: Paul Pasin, who could systematically implement ideas and operationalize strategies
3. The Connector: Team members who could link internal processes with external market realities

Together, these roles formed a powerful engine for innovation and growth.

From Insight to Action: The "Stay on the Wagon" Strategy

Armed with these new insights, Radio Flyer developed a strategy they called "Stay on the Wagon." This approach kept them focused on their core value while exploring new opportunities for growth and innovation.

Your Path to Transformation: Four Key Steps

Based on Radio Flyer's success and my years of consulting experience, I've developed a four-step process to help companies uncover their hidden potential:

1. Construct Framing Questions to Open Possibilities
2. Engage Your Core Purpose
3. Identify and Empower Three Types of Leaders
4. Make the NEWCO™ (Networked Economy of Working Capitals and Opportunities™) Explicit

The Takeaway: Your Company's "Little Red Wagon"

Every company has its own version of the Little Red Wagon - a core value or product that resonates deeply with people. Your challenge is to identify it and build from there.

Ask yourself: What seemingly simple thing in your business connects people and embodies your true value? Finding this could be the key to transforming your entire organization.

Remember, innovation doesn't always mean reinventing the wheel. Sometimes, it's about rediscovering why your wheels mattered in the first place and using that insight to drive your business forward.

If you're intrigued by this approach and want to explore it further, keep an eye out for my upcoming book, The Power of Hidden Treasures. It's filled with stories like Radio Flyer's that will inspire you to see your business in a whole new light and unlock its full potential.

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