How effective are your change initiatives? Studies in 1995 (John Kotter) and 2008 (McKinsey & Company) both determined that 70% of change programs fail. That rate might be even higher if you rigorously calculated the financial and human impact of the effort, both direct and lost opportunity costs. The failure rate also might rise if you asked those who had to live with the changes every day rather than the leaders who initially championed the changes. The bottom line is that a very significant opportunity exists to more effectively execute change initiatives.
The best way to implement successful change in any organization is to ensure stakeholder engagement through copious communication that celebrates small wins, indirect leader buy-in, and effective implementation/execution. For purposes of this discussion, “stakeholder” is defined as any group that will be affected by the change initiative, which, at the minimum, includes employees, customers, and supply chain. We identify key stakeholder groups in the following sections.
Missing one or more stakeholder groups is like losing one or more of your rocket thrusters – you will quickly go off course.
If you’ve been involved with a major change initiative, I’d welcome your insights on the drivers of your success or shortfall. I would also be very appreciative if you could spare 5 minutes or so during a quiet point in your day to read the rest of this white paper.
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