If you believe the ever-quoted studies, up to 70% of all transformation programs fail or do not achieve their envisioned goals. And this in a variety of companies, in different industries and all over the world. This raises the question of which factors are responsible – here is a selection of the most frequently mentioned ones.

Lack of a clear vision

A lack of deep understanding of the reasons for a change initiative and its desired results can lead to fear, skepticism, and resistance within an organization. It often seems obvious to management that everyone in the company understands the urgency of the situation simply based on financial indicators, but the reality is much more complex. Successful change requires a compelling narrative that resonates with employees and is strong enough to generate enthusiasm or at least openness to exploring new ways. However, it is also about creating a credible story that weaves together the past, present and future into a meaningful whole.

Overblown expectations

But be careful, a too strong change narrative can also lead to building up overly optimistic expectations about the results. Setting unrealistic goals and then not achieving them can damage the credibility of the leadership team and the entire initiative, undermine confidence in the company’s capabilities for the long term, and make it even more difficult to gain support for future projects. The larger the gap between unrealistic expectations and actual progress, the more enthusiasm and momentum dwindles, and leaders, employees and other stakeholders become disillusioned and frustrated.

Weak governance

The absence of a clear governance structure can lead to ambiguity, lack of organization, resistance, and inefficiency in the transformation process, which significantly reduces the potential of the program. Without clear responsibilities, progress can stall, and important milestones may not be met. It must be clear to everyone how the program relates to the rest of the organization, who can contribute and why certain people have been assigned to the program. Those responsible need to know the extent of their decision-making authority and who makes the final decision when those limits are reached. Otherwise, unclear situations will arise that can take a long time to resolve.

Missing sponsor engagement

As a natural sponsor, the CEO, but also other members of the leadership team, play a crucial role in steering and supporting the transformation initiative. Top management commitment can significantly influence the direction and effectiveness of the entire project. Weak sponsor engagement, on the other hand, can lead to a lack of priority, inadequate resources, a lack of commitment and, as a result, general rejection by the organization. Once operational pressure and new emergencies arise, the focus quickly shifts back to day-to-day business. A permanent and active role of the leadership team is essential – far beyond the ceremonial announcement of a change program.

Underestimating the human factor

Although change programs often seem to “only” affect processes, technologies, and strategies at first glance, they have a profound impact on the people within the organization. Neglecting the human aspect can lead to several negative consequences, especially when it comes to an explicit or perhaps even only implicitly desired change in behavior and leads to a discrepancy between the goals of the transformation and the culture of the organization. This discrepancy can lead to confusion, loss of trust and an impairment of the acceptance of new behaviors and practices. Culture cannot be changed overnight and directly; a desired change is a challenge and requires sufficient time.

Clinging to the past

A successful transformation requires a willingness to let go of the past, pursue new approaches, and create a more agile and future-oriented organization. Processes and ways of thinking that have been practiced for years, and which were once successful, give employees a sense of safety, especially in challenging times. Replacing this anchor with new and seemingly untested concepts is not necessarily accepted, but rather creates additional uncertainty. Clinging to outdated systems, processes or ways of thinking is therefore often a form of resistance to change as self-protection.

Insufficient involvement of stakeholders

Engagement at all levels is the lifeblood of any successful transformation, bridging the gap between the strategic vision of leaders and the collective action of the workforce. Typically, a small internal team works closely with external consultants and updates the entire organization on the status, goals achieved and next steps. However, do not make the mistake of confusing “information” with “involvement”. Informing employees is the necessary first step, but real involvement means engaging in critical discussions, taking contributions seriously and actively including employees in the change process. People do not fundamentally resist change, but they do resist being changed. Definitely avoid any form of “token participation”, as this usually backfires.

Disagreement at the top

Have you ever worked in a company where the entire leadership team was perfectly aligned and worked exclusively towards a common goal, with no personal agenda? Then you know how difficult it is to achieve such a state. Therefore, there may already be disagreements at the definition of the goals, the supposed reasons for the necessity or even the concrete implementation. Depending on the corporate culture, this can then spread to the next levels and endanger the entire initiative. To make matters worse, in times of great change, there is usually a lot at stake for executives, be it loss of influence, budgets or even their own position.

Not enough focus on implementation

Without effective implementation, even the best-conceived transformation strategies remain unrealized wishes. A well-implemented transformation program strengthens employee confidence by showing that change is feasible and can lead to positive and measurable results. A lack of focus on implementation can lead to inconsistent behavior, where lofty goals are not reflected in day-to-day business, and it becomes difficult to measure and evaluate the impact of the transformation. Consequently, delays, the notorious “scope creep” and unforeseen problems contribute to the failure of the project.

Running into “change fatigue”

“A magic dwells in each beginning” – wrote the famous writer Hermann Hesse, probably quoted in the wrong context here. Starting a transformation is the easier part of the undertaking. At the beginning, there is a lot of positive energy and the people in the organization are full of energy – but after a while, progress slows down, the employees get used to the state, the enthusiasm wanes and it becomes increasingly difficult to maintain a certain momentum. Here comes the bad news: Transformations are not short-term projects, but long journeys that require continuous effort and maintenance of momentum.

Conclusion

The path to a successful transformation is paved with numerous obstacles. However, being aware of the most important pitfalls helps to transform good intentions into tangible results. A clear vision and expectations, strong governance and the leadership team at the forefront of implementation create a solid foundation. Do not underestimate the importance of the human factor and remember that a transformation is a long journey, not a joyride. And maybe you will be part of the successful 30% in the end.