‘Culture eats strategy, structure and process for breakfast’

Why so many transformations fail

Yes, yes, we know it by now, we live in a VUCA* world. And it’s becoming more VUCA with the fast disruptions of technology, digitalization, complex interdependencies, or exponential developments to name a few. * VUCA - Volatile, Uncertain, Complex, Ambiguous

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As a result, organizations and leadership are desperately seeking to become more adaptable or changeable as the key qualities to develop. ‘How do we transform to a constant learning organization’?

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Gartner suggests that?more than 85%?of organizations have undergone a restructuring program in the past few years. However, research and practical experience show that only a limited number of transformations are considered a success, with?70% failing according to McKinsey (source: Forbes). How come?

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Why so many transformations fail

The actions leadership undertake to start realizing this new way of working are mostly focused on strategy, structures, processes, systems. However, changeability is not only a logical implementation question. That’s the static part. This is the part leaders are familiar with, it is rational, it is clear. It can be managed as they have done over the past 80 years... However, what got us here, won’t get us there.

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Changeability is also the more dynamic (lively) activation part. And that’s where the human comes into the equation. Activating the human mindset, energy, commitment and will requires a totally different approach. Since the variables that need to be taken care of are geared towards cultural phenomena such as purpose, emotional commitment, intrinsic motivation, inspiration, feelings, insecurities, values, behavior and so on. That’s a whole different ballgame.

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Practical example

A stock exchange listed company wanted their staff to become more digital savvy, work more in a digital way, using digital tools and systems. So, they bought an already digitally operating company and offered all the tools, processes, systems to their staff. It would make their work easier, it would save their employees time so they would have more valuable time to spend on their core tasks, they would have more adequate data to work with and supply their customers with… Guess what? The employees did not adopt the new digital possibilities as anticipated. Reason: the transformation was predominantly focused on the logical, rational, manageable, implementation part. Leadership did not also focus enough on- and invest in the cultural (dynamic, emotional, human) side: the activation part. Culture eats strategy, structure, process, and systems for breakfast.

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Changeability via activating culture, behavior

Facilitating transformations or culture development is a time consuming, emergent, sometimes messy, highly personal, uncertain, and often emotional process. Feelings, trust, behavior, and mindset are some of the currencies here! Because of these elusive variables and because it is hardly manageable let alone predictable, it is understandable that leadership is hesitant to also invest in the activation part of transformations heavily (predominantly?). But it is not wise. That is an important reason why so many transformations fail. Can you imagine the costs involved in not following this activation route too?

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Implementation and activation

The implementation of transformation is focused on executing the plan, concrete goals, guiding KPI’s, unifying people’s behavior, keeping people focused, deliberate planned steps, an outside in process and managing the whole process. Common the pitfall: ‘My way or the highway’.

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Whereas the activation of transformation starts with people and is focused on mobilizing people, keep people in a growth mind, co-creating a journey, empowering teams, an inside out process, work ‘with what is’ and develop. Common pitfall: ‘We need to go faster’.

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Leadership tends to shortcut the transformation route by putting all energy, attention, and budget on the implementation part due to reasons such as ‘fast results needed, and implementation is more comprehensible’. Evidence shows this one-sided approach can be a very expensive decision.

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Some examples of obstacles to overcome in activating a transformation

Suppose leadership wants their staff, processes and systems become more digitally oriented. Being more adaptable or changeable towards the future (which is here already). The processes and systems part can be tackled via the implementation approach, a familiar route. The activation approach however will have to overcome obstacles such as e.g.:

1.??? Fear of Redundancy

2.?? Resistance to Learning New Technologies

3.???Concerns Over Work-Life Balance

4.?? Loss of Personal Interactions

5.???Doubts About the Effectiveness of Digital Tools

6.???Overwhelmed by the Pace of Change

7.?? Perception of Impersonal Services

8.???Mistrust in Automation

9.???Fear of the Unknown

10. Loss of Control, Status, Power

As said: feelings, trust, behavior, and mindset are the currencies here. They need a different approach than the implementation strategy.

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Crossing the Liminal stage

If leadership wants to facilitate the learning and development process of their employees, they need to support the journey with interventions which helps their staff to overcome the emotional and practical obstacles for transformation during the ‘Liminal stage’ (source: Dave Gray, Liminal Thinking). Liminal means threshold towards a new era and can be described as the interim stage between ‘now’ and ‘after’. It is also described as the stage of ‘not anymore’ and ‘not yet’. A transition stage which Bushmen from wilderness facilitate for over 30.000 years during the ‘rites of passage’.

Where young Bushmen get the time and opportunity to let go of the now (comfortable, security, predictability), deeply experience and develop in the Liminal stage (uncomfortable, insecurity, unknown future) and embrace the after (comfortability, security, predictability on a new or higher level). They acknowledge that a human cannot transition in a wink of an eye from ‘now’ to ‘after’. Even though we, nowadays, often expect this from our employees, our colleagues. Imagine you yourself having to transform into a new professional, with new mindset, new skills, new…? We all instinctively know that needs time, attention, trust, perseverance, and support.

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Make it personal, very personal

There are 4 levels which we need to address, for us people to change our behavior or transform (source: McKinsey) before, during and after the Liminal stage(s):

1.??? I understand why I need to do it, agree with it and I want to do it

2.??? The way we are organized stimulates me to do it (supporting systems)

3.??? I have the competencies to do it and can do it

4.??? I see others (leadership, peers, colleagues) do it and I want to join

I would add to the process -> addressing and facilitating the pivotal ‘individual undercurrent’ of people, such as intentions, feelings, needs, values, identity. Translated into personal BOCA’s: Beliefs, Opinions, Convictions and Assumptions which drive behavior.

People don't want to be changed, they want to evolve. They are very open to add new ways of working, behavior, skills to their existing repertoire. Building upon the valued and already existing strengths, talents, knowledge, expertise in the organization will open up new possibilities, brings new energy and should be supported by empowerment at all levels.

Designing an activation journey for transformation of people should each time check all levels. Leadership, coaches, mentors, peers need to support, inspire, motivate their employees and colleagues heavily during the Liminal stage(s) and afterwards in a constant appreciative manner. Showing personal exemplary behavior is key. Otherwise, they will logically fall back into the old ways of thinking, acting and working. Making the desired transformation journey personal, very personal is the secret sauce here.

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Final kickers

If leadership wants to start the transformation of their organization and its changeability, they need both an implementation approach and an activation approach. And/and. Both sides of the bridge complement each other like Yin and Yang. Not investing in one of the two (very) different approaches, will ultimately cancel out the other force. Leaving you with nothing or even less than nothing.

Final and most important kicker: we discovered some 10 years ago that organizational and leadership transformations are far more successful if one first starts with the activation part, the human side, followed by the implementation part, the structure side. Not the other way around, like most organizations do...

We invite you to dive deeper into this exciting world of transformation and changeability via the white paper 'People driven transformation' on our website for in-depth knowledge.

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Boudewijn Roubroeks

Founding Partner

The Thrive

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