Beat the odds: what causes transformations to fail?

This business world is cluttered with the vestiges of unrealized and unsuccessful transformational agendas and plans that many of them have made to the annals of history as failures we should all learn from. One in three CEOs says their organizations have failed to achieve the value they anticipated from previous transformation initiatives. McKinsey reveals that 72 percent of transformation programs fail to deliver their actual targets due to organizational issues.

But why do so many grand plans undertaken by organizations fail to actualize?

Transformations fail because there are wheels within wheels. And most of the times, behind the big ambitions transformation goals, and in the zeal to achieve those goals, organizations often miss the fundamental elements that make them a reality. From the failure to comprehend the intricacies of the operating model, undermining the significance of operating model changes necessary to affect transformation across the organization, the inability to innovate, a deficient cultural connection, failure to take a “business value first” approach to technology, and the inability to execute, there is a plethora of elements and reasons that can lead to unsuccessful transformations.

Understanding the reasons behind the failure of transformations is only a part of the process. For any transformation project to materialize or succeed, organizations need to consider the key process changes, transformational strategies, and the other critical factors that work on strategic, tactical and operational levels. Stakeholder buy-in, a conspicuously defined scope and breadth, a well-groomed plan, a robust and aligned culture, and transparency in communication throughout the transformation journey are just a few explicit factors that make successful transformations. 

Through this cover story, we bring insights and perspectives of thought-leaders who collectively state that in absence of a clear goal and without the future in mind, transformation efforts will turn obsolete even before organizations embark on the transformation journeys.