Top 3 Factors in Successful Transformations

Even seemingly small business transformations are complex and multi-faceted. If you want a team that emerges from the process that is both functional and high-performing, you must repair the business without breaking it.

To do this, we recommend to focus on three key areas highlighted in your Aniline dashboard:

• Employee Engagement

• Trust in Leadership

• Corporate Culture

These factors are impacted by the changes inherent in transformation initiatives and, without careful consideration, can derail even the most well-intentioned strategic initiative, because even veteran employees can become unsettled by the changes happening around them.

Employee Engagement

According to a study by Boston Consulting Group, only 30% of digital transformations are successful - due in part to issues with employee engagement and resistance to change.

To mitigate these risks, it is important for leadership to be transparent and open with employees about the strategic business reasons behind the changes and the potential impacts on individual departments and roles. Communication about transformation should be ongoing and two-way, with ample opportunities for employees to ask questions and provide input.

Another study by Harvard Business Review found that organizations that communicate effectively about the underlying drivers for change initiatives are over three times more likely to be successful in executing those changes than those that do not. McKinsey & Company recommends setting up cross-functional teams or task forces to help implement the changes to foster collaboration and build a sense of ownership among employees.

McKinsey & Company recommends setting up cross-functional teams or task forces to help implement the changes to foster collaboration and build a sense of ownership among employees - and in their own study, found that companies that engage employees in the change process are over 12 times more likely to achieve successful outcomes.

In addition to establishing communications channels, it is equally important to involve employees in the change process, which can help to improve buy-in across the organization and make employees feel like they are an integral part of the transformation.

Trust in Leadership

When an organization undergoes significant change, it can be easy for employees to become skeptical or distrustful of the leadership team - particularly if they feel they are not being kept informed or their concerns are not being addressed. According to a study by the Institute of Leadership and Management, a lack of trust in leadership is one of the top reasons change initiatives fail.

To avoid this, it is important for leadership to be transparent and honest about the changes and the reasons behind them. Doing this can help to build a foundation of trust and credibility - making it easier for employees to embrace change.

Leadership must also listen to employee concerns and be willing to make adjustments to the change process as needed. The Center for Creative Leadership found that leaders who listen to and involve employees in decision-making are more likely to achieve successful change outcomes.

Corporate Culture

Culture is the collective values, beliefs, and behaviors that shape an organization, and it can be a powerful force in shaping employee engagement and trust in leadership. When an organization undergoes major changes, it can be difficult to maintain the same culture, and there is a risk that the culture may shift in ways that are not aligned with the goals of the organization.

A study by The Association for Talent Development found that 69% of change initiatives fail due to a lack of alignment with the organization’s culture. To mitigate this risk, it is important for leadership to be mindful of the impact of the changes on culture, and to take steps to preserve or enhance the aspects of the culture that are most important to the organization.

This means setting clear expectations for behavior and communications and providing training or development opportunities to help employees adapt to new functional roles created through the transformation process.

Summary

At the end of the day, in order to assure a successful organizational transformation, senior leaders need to closely manage and monitor the employee experience throughout the process and its impact on culture and ultimately company performance.

Having the right tools and data at-hand on a continuous basis are critical to navigating the changing landscape of organizational change and setting sustainable foundations for long-term growth.