7 Reasons why Transformations Fail

To understand why transformations fail, one needs to understand why transformations succeed. Below is a playbook of sorts. Over many years, Jeff Coulter and I, besides leveraging our respective experience at two large manufacturers, engaged with or studied a dozen companies. From transformations that have been mightily successful to the ones that languished, insights emerge.?

1.????The “Rainmaker” Factor: From Mandela to Musk. In a country or an industry, a central figure, with authority, driving a transformation with enthusiasm is essential. Geoffrey Moore in his book “Zones to Win,” sees the CEO’s role pivotal in a transformation.

2.????Make no Little Plans: This quote from Daniel Burnham, considered the architect of the city of Chicago, is central to a transformation. Audacious plans unify team members. That in turn instigates action.???

3.????Bear Hug: Anchor on a business partner who will stay throughout the transformation journey. This “Bear Hug” brings catalytic efficiency. In our case, the business partner was a hyper-scaler.

4.????Pace matters: A transformation needs to make material impact to customer experience and to financials within 24 months or it moves to “languishing” territory.?

5.????Meta-Metrics: 2-4 Meta-Metrics matter in a transformation. A slide full of metrics is deluge.?An aspirational P&L model at the outset, that improvised along the way, became the lighthouse for Jeff and I to navigate towards.?

6.????North Star: We learned early on that a transformation, while triggered by technology, is really about outcomes for the customer. In pursuit of this North Star, inertia is bound to eat intent for breakfast. Radical candor across stakeholders helps dismantle inertia.

7.????Drumbeat:?Patience as you progress through the transformation, acknowledging and celebrating the small steps towards the transformation, and tying your results back to that transformation, thus keeping the organization constantly focused and believing along the way through proof points—is the way. This predictable drumbeat transforms the culture itself.?

Jeff and I admit, the actual results outran our original model. You will hear perhaps the same from an Adobe or a Kronos. That said, transformations lead to more and different work ahead to keep up with the gains--goalpost keeps on moving.??

Partnership between the CEO and the head of Financial Planning & Analysis (FP&A) in a transformation is defining. Jeff and I showed up in the mornings having read through earnings releases, spent iterative sessions on the white board, and went on walks to deliberate.?

At an outing at Republica Empanada in Tempe, Arizona, Jeff and I memorialized our partnership and the transformation, this time with our significant others. Amidst savory bites and laughter, no talk of transformation was to be heard.