70% of change initiatives fail
In the ever-evolving landscape of business, change is inevitable. Organizations must adapt to remain competitive. However, despite the critical importance of change management, a striking statistic looms over this field: approximately 70% of change initiatives fail. Understanding why change efforts often falter is crucial for leaders aiming to navigate their organizations through successful transformations.
Disruption is everywhere and affects everyone in today’s business world and changes the overall way business is made. Disruption often comes fast and require quick adaptations. However, many organizations are slow to improve.
Understanding common pitfalls is key to avoiding them. Driving successful change—or as I prefer to call it, improvements—are two very different things. There is no reason to change anything if not for the better. I’d be very happy if you simply did not use the term change management in your organization. Let me explain why:
Words matter
Words matter. Human beings are creatures of habit and change often brings uncertainty and fear. Resistance to change is a natural response, but if not managed properly, it can become a significant barrier. Many people fear change. How you communicate matters. Communicating we need to change is far less effective than communicating we have a chance to improve, including the clear reason why you need this improvement and how it will benefit your customers, the organisation as a whole and the people in it. People are generally scared of change even though they often want improvements. However, switching the words is not enough. Driving change and leading improvements are two very different things.
People need to understand the desired impact
One of the primary reasons improvement initiatives fail is the absence of a clear vision and well-defined goals. When the purpose of the wanted improvement is absent, it becomes difficult for employees to understand and commit to the transformation. Clear, compelling goals provide direction and motivation. Without them, efforts are fragmented, leading to confusion and resistance among team members. Effective communication is the backbone of any successful improvement. However, many organizations underestimate its importance. Poor communication can manifest as inconsistent messages, a lack of transparency, or insufficient updates on progress. When employees are not adequately informed, rumours and misinformation can spread, breeding distrust and disengagement. Ensuring consistent, transparent, and two-way communication is essential to maintain alignment and support throughout the improvement process.
Common forms of resistance when people don’t understand why include scepticism, passive non-compliance, and outright opposition. Addressing this means engaging employees through communicating why early and throughout the process. Other keys to success are addressing concerns and involving employees in decision-making and providing training and support systems to ease the transition.
If there is no purpose-driven improvement vision, or very few see it you risk failing. Global studies show that most companies have unclear visions. On average only 7% understand the vision, suggesting that many organisations struggle with communicating clearly. A lack of purpose and vision leads to low motivation and low speed of execution.
Communicating “we need to improve” without communicating why and what benefits it will bring will create resistance. If you instead communicate why you need to improve and what you expect to attain by improving (the desired impact), people from all levels of the organization will go out of their ways to help you achieve the desired impact faster and more efficiently. When people understand what’s in it for them, they want to help. Connecting the improvement to a purpose, why you need to improve, and vision, what you need to improve, is critical. You need to make sure the desired impact of the improvement is clear to help people understand what they can do to help.
Hindering Systems
A serious reason why many leaders fail is that they do not pay attention to how their systems work. When systems make it hard to attain the desired impact, progress is hindered. Great systems make the desired impact obvious, attractive, easy and satisfying.
Having a clear purpose represents the “I want to”. People’s willingness improves when they understand why the improvement is critical and what the desired impact is. However, purpose alone is not enough. Wanting to and being able to are two very different things.
You need to understand that behaviour is what needs to improve. And the easiest way to improve behaviour is by having a clear purpose and desired impact and supporting systems.
If you truly want to improve you need to calibrate your systems,
so they make it obvious, attractive, easy and satisfying for your employees to deliver the desired impact.
Neglecting organisational culture
Organisational culture is a powerful force that can either facilitate or hinder necessary improvements. Initiatives often fail when they do not take the existing culture into account. If the proposed improvement clashes with the organization’s core values and norms, employees are likely to resist. Successful improvement leadership requires an understanding of the current culture and strategies to align new initiatives with these cultural elements. This may involve gradual cultural shifts or targeted efforts to reshape certain aspects of the organisational culture. When this is necessary leaders must make sure systems support the wanted behavioural change by making it obvious, attractive, easy and satisfying.
Dated change models
Another common failing factor is utilizing antiquated, non-agile change models such as ADKAR, Lewin’s, or McKinsey’s 7s model, conceived long before agile methodologies. For instance, McKinsey’s 7s model, originating in the 1980s, fails to align with contemporary agile practices. Even Kotter’s 8-Step Change Model falls short in relevance to today’s dynamic environment. These models, albeit valuable in their generality, lack the agility required to navigate the swift currents of modern business.
Specifically, they lack the incorporation of agile methodologies such as sprints, backlogs, and agile roles, which are integral to effective improvement leadership in today’s fast-paced world. Moreover, they lack practical guidance on assembling cross-functional genius teams and scaling their efforts. These models also neglect modern improvement events, proven techniques, and detailed agendas essential for successful adaptation. Crucially, they overlook the necessity of training for new roles and role definitions. Being a change manager and leading improvements is therefore two very different roles. The former very ineffective in today’s disruptive world.
Using outdated tools hampers the pace and effectiveness of improvement initiatives, resulting in inefficiency and financial strain. In analogy, persisting with obsolete mobile phones and subscriptions in an era of advanced communication technology would be incongruous and financially imprudent. Just as newer mobile solutions offer faster, more cost-effective communication, agile improvement models provide superior adaptability and efficacy in managing organisational ability to adapt to the disruptive and unpredictable world at high speed as needed. Embracing modern methodologies is imperative for driving swift, efficient, and impactful improvements in today’s business landscape.
Learning to master agile improvement leadership is an entirely new skill. A necessary skill to cope with disruptive change.
Inadequate leadership and lack of measurements
Leadership plays a pivotal role in driving improvements. Ineffective leadership can derail even the most well-planned initiatives. Leaders must be champions of improvements, demonstrating commitment and setting the tone for the rest of the organization. They should possess the ability to inspire and motivate their teams, as well as providing the support systems needed to make the transformation. When leaders fail to do this, they hinder progress. Unconscious incompetence is dangerous in a fast-moving world.
The inability to measure progress and adapt to changing circumstances can doom improvement initiatives. Without proper metrics and feedback loops, organizations cannot gauge the effectiveness of their efforts or identify areas for improvement. Regular assessment and flexibility are essential to navigate the complexities of disruptive changes. Leaders must be willing to make course corrections and continuously seek ways to optimize the process.
Lack of sustained effort
Improvement is not a one-time event but a continuous process. Many initiatives falter because they lack sustained effort and follow-through. Once initial excitement wanes, the focus may shift back to routine operations, and momentum is lost. To combat this, organizations must establish mechanisms for ongoing support, monitoring progress, and making necessary adjustments. Creating systems that sustain relentless improvements is key.
“Successful people do consistently what others do occasionally.”
– Craig Groeschel, Founder of Life Church
Insufficient resources and commitment
Finally, improvement initiatives require adequate resources, including time, money, and personnel commitments. Many organisations fail to allocate these resources appropriately, leading to underfunded initiative and overburdened staff. This can result in burnout, decreased morale, and ultimately, failure. Leaders must ensure that resources are available and aligned with the scope and scale of the improvement effort. One way of doing this is to make sure the only improvement you invest in are initiatives that align with the highest prioritised impact goal.
Summary and key takeways
In today’s fast-paced business world, effective adaptation to change is critical for maintaining a competitive edge. Despite this, 70% of change initiatives fail, primarily due to poor leadership, inadequate communication, lack of clear vision, and resistance to change. Key takeaways include that leaders must:
Shift from “change management” to “improvement leadership” to emphasize purpose and opportunities rather than fear.
Prioritize clear vision and communication. Success requires a compelling purpose and well-defined goals. Organizations must communicate why improvements are necessary and the benefits they bring, aligning with employees’ aspirations.
Build organizational systems. Systems should be designed to make achieving the desired impact obvious, attractive, easy, and satisfying for employees and customers.
Ensure purpose and system align with culture. Improvement efforts must consider and integrate with existing organizational culture to minimize resistance.
Apply modern leadership approaches. Traditional change models are outdated. Agile methodologies and continuous improvement practices are more relevant in today’s dynamic environment.
Sustain effort and resources on continuous improvements. It is an ongoing process requiring sustained focus, resource allocation, and proper metrics to measure progress and adapt.
Reflection:
How do you lead improvements today?
Do you experience any of the challenges of the common mistakes?
Do you want to upgrade your chance of driving successful change?
