Transforming a business is a tall order, with only 26% of executives believing their company’s transformation was successful. Success is more likely when transformation initiatives are owned and driven by leaders from within the organisation, not external consultants. Leaders must communicate a compelling, high-stakes vision to employees, demonstrating why transformation is necessary and what the future could look like.
The transformation process should be rigorous, with clear targets, milestones, and performance metrics. It’s also crucial to maintain transparency and foster a positive culture. Notably, companies that prioritise the health of their organisation during a transformation are twice as likely to meet their objectives.
Employees should be involved in the transformation process, with their ideas and feedback taken into account. Companies that foster a sense of ownership among employees are 1.4 times more likely to succeed in their transformation efforts.
Finally, companies must be prepared to think long-term and make tough decisions. This might include reallocating resources or letting go of underperforming employees. Despite the challenges, a successful transformation can lead to significant business improvements and a stronger competitive position.
Go to source article: http://www.mckinsey.com/insights/organization/How_to_beat_the_transformation_odds?cid=other-eml-alt-mip-mck-oth-1504