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Why Organisational Change Efforts Fail? Tips and Strategies

Common reasons why organisational change efforts fail
According to UNSW Professor Kevin Lowe, 50-80% of change efforts fail. This is greatly attributed to people’s impatience. Change requires a significant amount of time, but the assumption that many of us have is that the people under us share the same desire for change.
 
 

Psychologist Edgar Schein explains that resistance to change is generally because people associate their success and identity with the old way of doing things. It is innate human nature to shun away from what’s comfortable and familiar. If something is working or going well, why is there a need to embrace something different?

 

To be in an organisational context, the policies, practices and procedures that made the company where it is today are what people attribute to success. It is doing these things that make them feel good, that their work makes a difference.

 
Hence, shaking that up challenges people’s sense of identity. As leaders, we need to be patient with our people, to give them time to mourn the loss of doing things the old way.
 
 
While Schein offers a theoretical explanation based off human psychology, Harvard Business Review takes a practical, action-oriented stance towards reasons why change efforts in organisations fail. Having a deep understanding from both perspectives can shed light on what are your people’s needs and what is the best way to help them embrace change better.

Download our free ‘Change Management Essential Tips’ now and empower your organization with proven strategies for transformation.

1. Not establishing a strong sense of urgency

Successful change initiatives typically start with a close examination of the company’s current position, status, trends and performance.
 
By communicating this to employees, it inspires people to see that the status quo is more dangerous then taking the risk of trying something new. Approximately 75% of a company’s management should believe that change is necessary to ensure a successful transformation process.
 
This means that not only the leaders should feel the sense of urgency. Everybody, regardless of their rank or title, should have a buy-in in the need for change.
 
Actionable Tips:
  • Conduct Diagnostic Assessments: Regularly evaluate the company’s performance metrics and market position to identify areas needing change.
  • Create a Burning Platform: Share compelling data and real-life examples that highlight the risks of not changing, such as declining market share or customer dissatisfaction.
  • Engage All Levels: Hold workshops and focus groups with employees at all levels to discuss the need for change and gather input on perceived obstacles and opportunities.

2. Lacking a vision

Does the leader have a compelling vision that is – easily communicated, appeals to various stakeholders, practical, well-defined?
 
This is crucial in order to develop an effective strategic blueprint to get towards the desired future. Without it, trying to change can be confusing and frustrating as the team may be moving in different directions, or nowhere at all.
 
The vision is the glue that unifies everyone in the team, ensuring that when the organisation faces hiccups, they have a foundation to fall back on to in order to make decisions that move everyone forward.
 
Actionable Tips:
  • Develop a Clear Vision Statement: Create a vision that is concise, memorable, and aligns with the company’s core values.
  • Visual Storytelling: Use visual aids like infographics, videos, and presentations to illustrate the vision and its impact.
  • Consistent Communication: Reinforce the vision through regular updates in company meetings, newsletters, and on the intranet to keep it top of mind.

3. No signs of progression

Real transformation is a gradual process, and maintaining momentum in a renewal effort requires achieving and celebrating short-term goals.
 
People are more likely to commit to a long-term change when they see clear evidence of progress within the first 12 to 24 months. Without these early wins, many individuals become discouraged and bitter as they do not see the fruits after months of effort.
 
Some positive signs of progression include improved quality metrics, increased market shares, enhanced productivity, higher client satisfaction ratings etc. Celebrating these unmistakable wins boosts team morale and spurs everyone on to continue their best efforts.
 
Setting smaller goals to achieve smaller wins makes the change process less daunting. It is much easier to take multiple small steps than one big step.
 
Actionable Tips:
  • Create a Milestone Map: Develop a visual timeline that highlights key milestones and progress points.
  • Celebrate Successes: Publicly recognize and reward teams or individuals who achieve milestones. Use events, social media, and internal communications to highlight these achievements.

4. Not anchoring changes in the company's culture

Successful change in an organization occurs when it becomes ingrained in the corporate culture, becoming “the way we do things around here.” This happens when the new change behaviors align with social norms and shared company values.

This also ensures longevity of the change.

Actionable Tips:
  • Align Policies and Procedures: Update company policies and procedures to reflect new behaviors and practices.
  • Embed Change in Training Programs: Incorporate new practices into onboarding and continuous learning programs.
  • Model the Change: Leaders should consistently demonstrate the desired behaviors to set an example for the rest of the organization.

2 Factors To Consider To Institutionalise a Change in Corporate Culture

  1. Intentional action by the leaders to demonstrate how the new changes have brought success. Drawing this link for employees convinces them that adopting this change would be beneficial. The more people that buy into the change, the deeper rooted the change would be. Changing people’s hearts is more sustainable than just using authority to force out a behavior.
  2. Ensuring that the next generation of top management encapsulates the new approach. When successors of senior leaders don’t embrace the transformation, renewal efforts will begin to erode.

 

In summary, building long-term change is not a simple linear process. Obstacles are inevitable, but what’s important is that the vision is clearly defined, and everyone believes in working towards it.

Download Change Management Essential Tips

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Picture of Kenneth Kwan, CSP
Kenneth Kwan, CSP

Kenneth Kwan is an internationally recognized Author, Global Leadership and Motivational Speaker, renowned for his ability to inspire and empower audiences worldwide. With over a decade of experience, he has spoken to leaders from 40 countries, helping transform cultures and shift mindsets within Multi-National Companies (MNCs) and Government Organizations. Kenneth’s expertise in solution-focused thinking and strategic planning has guided numerous businesses toward significant results and high-performance environments. Featured in esteemed media outlets like Channel News Asia and Malaysia's BFM89.9, his insights on leadership and motivation are highly sought after. Kenneth's book, "Small Steps To Big Changes," showcases his profound wisdom and practical strategies, making a lasting impact in lectures and training programs across the region.