Leading Change – Why Transformations Fail – The 7 Keys To Success
- Jul 31, 2024
- 9 min read
Updated: Sep 5, 2024
Written by Elizabeth Congdon, Team and Leadership Coach
Elizabeth Congdon, is a Team & Leadership Coach rooted in Creative Consciousness' Coaching. She guides individuals, teams and organizations to clarify and align their purpose, values and goals. Her work cultivates cultures that ignite growth, unlocking full potential in high performing individuals and teams who consistently achieve impactful results.
According to McKinsey, transformation efforts often fall short, with up to 70% failing to meet their objectives. The root of this problem often lies in a fundamental misunderstanding of who truly holds power in a business: the customer. As Sam Walton famously said, "There is only one boss. The customer. And he can fire everybody in the company, from the chairman down, simply by spending his money somewhere else."
The hard reality is that customers don't care about the intricacies of your transformation process. They only care that their problems are solved and receive the best possible service. Unfortunately, many transformations, mainly digital or agile ones, focus too much on the transformation itself rather than what the customer needs now and in the future.
This article will outline the keys to purpose-driven change. Over the years, I have been involved in numerous complex transformations—some successful, some not. Through reflection and insights from these experiences and thought leaders like John Kotter, I have identified 7 keys to successful transformation.
The 7 keys to success
What does success mean?
Success means achieving a balanced focus on results with genuine care for people. It involves delivering outcomes that provide the most significant value to the business and its customers while prioritizing the well-being and inclusion of individuals. Valuing people means recognizing their contributions and ensuring they are integral to the process.
Why 7 keys and not 7 steps?
Transformations involve emergent and interconnected solutions that require continuous revisiting, realignment, recalibration, and redefinition. Today's solutions and thinking may no longer fit tomorrow's challenges in a VUCAH world characterized by volatility, uncertainty, complexity, ambiguity, and hyperconnectivity. The "7 keys" offer a flexible framework designed to adapt to these rapidly changing conditions, unlike a "7 steps" approach, which may imply a rigid, linear process. Each key supports a systemic and adaptive approach, allowing organizations to respond dynamically to evolving challenges and opportunities.
The 7 keys explained: Essential elements for successful transformation
The urgency factor
Transformation efforts gain momentum with a sense of urgency. Successful transformation requires an unwavering commitment to Plan A—there is no Plan B. Organizations must learn and grow or face extinction in a world where only the fittest survive. Transformation is about staying relevant and serving stakeholders now and in the future. Your stakeholders include customers, shareholders, employees, investors, regulators, and business partners, all of whom rely on your success. "What can you uniquely do that the world of tomorrow needs?" is a question frequently asked by Dr Peter Hawkins.
A sense of urgency is foundational to successful transformation. Begin by examining the competitive reality. Consider your organization's short- and long-term relevance, considering future ecosystems, market dynamics, workforce dynamics, and technological trends. Proactively assess external pressures like increasing competition, regulatory changes, and economic shifts. How agile are you in responding to these pressures? What do your stakeholders need you to deliver now and in the future? How can you best position yourself to meet these needs?
The consequences of inaction can be dire: lost market share, customer dissatisfaction, and eventual obsolescence. Consider the ripple effect if your business fails: people lose their jobs, families face financial stress, and personal hardships mount. The call to action must be clear and compelling, inspiring immediate and sustained commitment to change. It is time-bound and non-negotiable—if you do not achieve the first outcome by a specific date, your customers will take their business elsewhere.
Visible collective leadership
Transformations are inherently complex, and in today's adaptive ecosystem, they require more than traditional management approaches. Successful transformations need a think tank of leaders who embody collective ownership and accountability, a leadership team with a balance of fierce creativity and innovation with practical execution and implementation.
At the helm should be a leader with a compelling vision and fierce conviction for the transformation journey and beyond, propelled by a sense of urgency. This leader and their team must embrace the emerging future, where adaptability and foresight are crucial.
Dr. Peter Hawkins, in his book Leadership Team Coaching, emphasizes the need for leadership teams that can work collectively and cohesively to meet the demands of the future. He argues that effective collective leadership requires a deep commitment to shared goals and a continual readiness to adapt and innovate. He describes the experience of a collective leadership team as a team where:
They know what is required of them.
They are passionate about their collective purpose, which they know they could only achieve if they worked at their best individually and together.
They are looking forward to meeting and with a keen interest in each other's successes, setbacks, and learning.
There is a real sense of partnership, not just between the team members but also with the board and stakeholders.
Work is experienced as an adventure and a classroom; every setback is an opportunity for new learning, and every challenge is a spur to creativity.
Be clear
Let clarity of outcome guide you every step of the way. Without clarity, unmet expectations, uncertainty, and ambiguity arise. While the ecosystem is inherently uncertain, it's crucial not to add confusion by being unclear about the transformation's purpose and vision.
The purpose statement defines why the transformation exists and must align with the company's overarching goals and the sense of urgency. This alignment provides meaning and a blueprint for the transformation, ensuring that every decision moves the organization closer to its objectives. Constantly ask: Will this action significantly advance our purpose or take us further away from it?
A current and compelling vision is also crucial. It should clearly and simply paint an inspiring and motivating picture of the future. The vision should energize, creating a tangible sense of excitement and engagement. Regularly revisiting, recalibrating, and redefining the vision helps it remain relevant and impactful.
A clear purpose and vision provide direction amidst complexity, acting as a guiding star. It ensures efforts are coherent, focused, and adaptable, boosting buy-in and engagement. The purpose and vision are essential sources for decision-making. To maximize impact, test the vision with stakeholders, incorporating their input to foster ownership and commitment.
Fit for a purpose culture
A purpose-driven culture is essential for bringing an organization's vision to life. Culture is a dynamic interplay between people and their surroundings, constantly influencing and being influenced by their thoughts, feelings, and behaviors. To truly harness this potential, organizations must cultivate a culture that is fit for purpose and aligns with their unique identity and aspirations.
Values and principles should be authentic and distinct to your organization. They should never resemble a cookie-cutter approach but rather reflect your core identity. To ensure authenticity, ask yourself: "How will this differentiate us?" and "Is this shining the light on our purpose?" These values act as catalysts for desired behaviors, shaping decision-making and communication. They should serve as a hierarchical checklist, guiding actions based on alignment with the organization's most essential principles.
Fit for purpose culture guidelines:
Authentic and unique to your company
Propelling the organization's Purpose
It enables people to make a contribution bigger than themselves—an aligned purpose where the individual's purpose serves the organization's purpose and the organization's purpose serves the individual's purpose, fostering a deep sense of belonging.
Cultivate an environment that encourages ongoing learning and growth.
A culture where people feel safe, heard, and valued.
Set free by compelling values to guide and inspire actions rooted in humility, courage, and discipline.
People leave work feeling happy.
Developing a culture requires a gentle and kind approach. Recognize that behavioral change is deeply personal and often uncomfortable. Support individuals by helping them understand which beliefs and assumptions need to change and what needs to be unlearned. Clearly define the new behaviors and attitudes required and explain how they will positively impact individuals and the organization. Frequently communicate the expectations for behaviors and desired outcomes. As the transformation progresses, demonstrate how these new behaviors lead to improvements and align with the desired impact. Create awareness so people can assess whether their behaviors support or hinder progress. Incorporate the new behaviors into individual and team development plans and goals. Role modeling the desired behaviors is crucial; leaders should practice these behaviors consistently and hold each other accountable. Establish accountability and compassion partners and consider leadership and team coaching for additional support.
Approach the journey toward cultural transformation with empathy and clarity, ensuring everyone aligns with the new purpose and values. This alignment will create a resilient and thriving organizational culture ready to achieve its vision.
Innovation
Transformations are complex, especially when balancing day-to-day operations with the need for change. Considering efficiency innovation and transformational innovation can help navigate this complexity.
While efficiency often has a negative connotation related to cost-cutting, viewing it through the lens of innovation can unlock new potential. Streamlining existing business operations can free up time and mental space for transformative innovation. Efficiency innovation focuses on incremental improvements such as automation, improving processes, and identifying current constraints and bottlenecks. Look for areas where employees, partners, or customers consistently encounter challenges. Addressing these issues can free up time, money, and mental capacity for transformational innovation.
Transformational innovation involves profound changes in product, service, process, or business model. It goes beyond incremental improvements to create entirely new ways of doing things. It requires vision, commitment, and a willingness to embrace and drive change at a fundamental level. Daniel Pink and Alex Osterwalder advise explicitly committing to long-term, transformational innovation through experimentation and learning. Invest time, energy, and mindset into this process and adopt a Think Big, Start Small approach. Aim for small wins and differentiators that can gradually build momentum and drive significant change over time.
By balancing efficiency innovation with transformational innovation, organizations can effectively manage day-to-day operations while driving significant and sustainable change. This approach fosters a dynamic environment where creativity and strategic thinking lead to a competitive edge and long-term success.
Communicate
Effective communication is essential for transformation success. Be intentional with your language and communication to bond, build trust, and form partnerships that cultivate inclusivity. Create a shared vocabulary that promotes growth and collaboration, ensuring everyone is aligned and engaged.
Over-communicate the vision using diverse channels, forums, and methods, starting from day zero of the transformation and continuing until the last day. Seize every opportunity to reinforce the vision and intentionally create events to discuss the transformation, progress, and stakeholder experiences. Communication isn't just about sharing information—it's also about listening. Regularly engage with customers to gather feedback and input, ensuring you understand their needs and concerns. Likewise, maintain open lines of communication with employees and partners, encouraging their contributions and insights. Transparency is another crucial layer of communication. Be open about decisions, progress, mistakes, and wins, fostering an environment of trust and collaboration. By prioritizing clear, consistent, and interactive communication, organizations can navigate the complexities of transformation and achieve their desired outcomes.
Infuse creativity and fun into your communication strategies. One of the most impactful transformation messages I've experienced came through industrial theater and an internal TV channel. Be effective and bold, and don't shy away from innovative approaches.
Ruthless prioritize
Ruthless prioritization is essential for success in transformation projects because it enables organizations to focus on what truly matters amidst the chaos and complexity that often accompany change. Transformation efforts inherently involve juggling current operations with future aspirations, requiring clear priorities to guide decision-making. By prioritizing effectively, organizations can allocate people, time, and energy to the initiatives that will have the most significant impact, ensuring that efforts balance across only a few competing demands. Ruthless prioritization helps teams to work on the right problems at the right time, maximizing value creation and minimizing waste. Additionally, ruthless prioritization creates clarity and alignment, empowering teams to work sustainably without the distraction of less critical tasks. In a transformation program, where every decision can be a pivotal step towards success or failure, having a clear set of priorities is crucial to maintain focus, drive progress, and achieve the desired outcomes.
To further refine your approach, ask the tough question: "What do we need to stop doing?" Align this question with the transformation's purpose and vision. Don't embark on transformation unless you've reviewed and assessed your backlog of projects and current initiatives. For example, a bank I worked with took the bold step of halting all projects for three months to determine what to discontinue strategically, which paid off significantly.
Additionally, consider potential fatigue or depletion in your prioritization plan to ensure a sustainable approach.
Putting the 7 Keys into action: Your path to transformational success
Embarking on a transformation journey is both exhilarating and challenging. To truly harness the power of the 7 keys, you must commit to more than just understanding them—you need to live them. Begin by embedding these keys into your daily practices, ensuring they resonate through every decision and action. Cultivate a sense of urgency that drives progress, foster visible collective leadership that inspires and motivates, and embed clarity and purpose into your organizational fabric. Embrace innovation with an open heart, communicate transparently and creatively, and prioritize ruthlessly to focus on what truly matters.
Ready to transform your organization with purpose and clarity? Reach out now to start your journey with Elizabeth Congdon | LinkedIn
Elizabeth Congdon, Team and Leadership Coach
Elizabeth Congdon is a team and leadership coach who brings a unique blend of experiences to her practice. She empowers people to embrace innovative thinking and adaptability. With a foundation in creative consciousness coaching and a background in leading business transformation, digital transformation, and agile ways of working projects for global companies, she excels at guiding individuals, teams, and organizations toward clarity and alignment in their purpose, values, and goals. Elizabeth fosters inclusive cultures that promote courage, confidence, and creative thinking. Her holistic coaching approach ignites team engagement and collaboration, resulting in high-performing teams and individuals.
