In Brief
The Problem
Failed corporate transformations are usually attributed to execution—but often leaders misdiagnose what changes need to be made.
The Costs
When organizations pursue the wrong changes or tackle them in the wrong order, existing problems get worse, new ones are created, and employees, having been burned, become wary of future initiatives.
The Solution
Before setting their change priorities, leaders should analyze three things: the catalyst for transformation, the underlying quest, and the leadership capabilities needed to pursue it.
Corporate transformations still have a miserable success rate, even though scholars and consultants have significantly improved our understanding of how they work. Studies consistently report that about three-quarters of change efforts flop—either they fail to deliver the anticipated benefits or they are abandoned entirely.
