5 More Reasons Why Business Transformation Fails

Almost every business aims to survive, grow and / or sustain. Transformation, thus, is no more a choice. It has become mandatory under current fast paced business situations. Many businesses have already started this journey.

It’s a common observation that most business transformations fail, while some of them produce only minor results. The question!

Why do business transformations fail?

There are many reasons behind it. In 1st edition of this newsletter (Transform), I shared five (5) such reasons. In this edition, I’ll share five (5) more reasons that I observed in my career as the major ones. These are (in?no particular order):

Let’s discuss them one by one.?

6. Lack in Clarity of Vision:

Try this at your workplace. Ask ten people about transformation purpose and goals. Most people will say different things. They lack clarity of vision about transformation.

You are not clear what exactly you want to change (and why). It's just like passing by some routes without clear destination. “Why transformations fail” shall not be a surprise then.?

How can we create clarity of vision?

a. Add specificity in transformation goals.

b. Devise a communication framework to discuss transformation goals and progress often.

c. Adopt good performance measurement practices like focus, alignment, transparency, and regularity. (Refer newsletter edition 1 for more details)

7. Lack in Continued Management Support:

In most firms, you get management support in early phases of transformation. With the passage of time, however, it fades away.

Lack of management support reflects in many ways. Consider below three:

a. Lack of prioritization.

Management tries to do too many things. Transformation is just one of them. When everything is a priority, nothing is a priority. So, transformation doesn't remain a priority.

b. Attraction towards new & interesting things.

Management attracts towards new ideas, new programs, new change initiatives. The transformation programme involves many steps that are not interesting.

Desire for engaging in new and interesting initiatives, eats away management support for consistent, boring transformation program.

c. Not allocating required resources.

Some examples are: Not allocating needed resources, using shared resources to do too many tasks, and treating transformation like regular operations.

Hence, transformation programs fail because of lack in continued management support.

8.?Leadership Blind-spots & Issues:

Leadership blind spots and issues also derail transformation. Nothing ruins a business transformation faster than leaders with these blind spots. Let’s discuss a few.

I. The Spotlight Stealers

There are some leaders who want to take all the credit. They don’t praise you and don’t acknowledge your efforts when things go well, but never forget to blame you when things go wrong.

?II. The Controllers

Then there are leaders who micro-manage you. They are obsessed with controlling others. They don’t trust you and don’t listen you. They don’t discuss things in the groups. These are my-way or highway type guys.

III. The Number Guys

Have you seen leaders who treat you just as a number. The ones who are only concerned about your productivity. The ones who see you as a means to the profit or an expense or cost. They have zero empathy for you or your wellbeing or your happiness.

IV. The Narcissistic

You might have seen some leaders that threaten you when they need something. The leaders who make you doubt your worth. The ones trying to devalue you. You might see them ridiculing people at meetings.

V. The Self-Centred

And then, the solo flight guys, the leaders who worry only about their own success. They have no concern for others at work or for company goals. It’s always about them (whatever it is).?

Is any of these leader types hurting your business transformation?

9. Weak Project Management:

A business transformation comprises of a number of projects. Thus, success in transformation requires good project management practices. Many firms lack project management competence. This badly impacts the execution of transformation plan.?

How can we improve project management practices to support transformation??

I. Training.

Give department heads, business unit heads and change agents training on project management good practices and tricks.

II. System & Process Upgradation.

Change and improve system & processes for inclusion of good project management frameworks like PMP (PMI), Prince2, and other known project management bodies.

III. Monitor & Control Transformation.

Track and adjust transformation plan’s implementation according to project management good practices.?

10. No Integrated Communication framework

Although discussed partially in other points, communication & alignment are so common reason of transformation failures that we need to discuss them as a stand-alone point.

Organizations start transformation programs without first setting communication framework in place. To be successful, transformation programs need to have an integrated communication framework. For alignment, meetings are set at appropriate regular frequency (for example: annually, quarterly, monthly and weekly). Agendas and right meeting participants are decided appropriately for each one of these meetings.?

Are you using an integrated communication framework at your firm to create alignment and make transformation a success??

Need more reasons? Two more bonus reasons are:?

11. Organization Readiness Not Considered.?

Farmers know to prepare the soil before planting seeds. They don’t sow seeds until the soil is ready. It’s strange that many organizations don’t practice this principle. They don’t assess their readiness before initiating transformation programs. They start transformation programs without first being ready for it. Thus, one major reason why business transformations fail is lack of organizational readiness.

Before starting its transformation program, an organisation must be ready for its elements (like leadership, management, system & processes, infrastructure etc), competencies (like decision making, critical thinking, agility, resilience, adaptability etc), and other important aspects. Readiness assessment aspects and criteria will depend on business nature, situation and various other elements.

12. Unsupportive Culture

For a business transformation to succeed, culture is not less vital than strategy, operating model or other business areas. Culture, however, is not helping in making transformation stick in many firms. The question is, “Why”.

First reason: Leaders’ behaviour is at odds with the cultural message they’re sending. They say one thing but do another. People don’t trust them anymore.

Second reason: The culture claimed by leaders doesn’t match with the culture experienced by employees.

For a culture to make transformation stick, two things are must:

I. Leaders must walk their culture talks. This will build their trust with employees.

II. Align the culture employees experience with the culture leaders claim.

Concluding Remarks:

There can be many reasons why a business transformation fails. I have shared Ten (10) important ones [plus two (2) bonus ones] that I observed.

Thank you very much for reading this newsletter. I hope you find it valuable.

Let me know what else would you like me to publish next time.

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PS2. Please comment reasons you've observed so far behind business transformation failure.