SITTING AT THE TABLE WITH THE MASTERS TO LEARN WHY “CHANGE” SOMETIMES FAIL
In 1996, John Kotter published “Leading Change” which was heralded by many as the foundation for the work on change management. However, Kotter discovered in his studies that two out of every three change projects fail. In relation with IT, the “Secrets of Software Success” nonetheless saw a 10–20% success rate on IT and digitalization projects. In more than 70% of cases, cultural reasons account for the failure — as Kotter would argue since 1992 — and is thus a matter of mindset.
In our view, the “Change” business has not really changed, what it did do was take on other pseudonyms such as disruption, digital transformation, transform your business etc. But why do Change projects still fail today?
9 years ago, Aiken & Keller identified 9 reasons and these reasons incidentally still contribute to the failure of Change projects up till date. Below we list the reasons and expand on them with our own experiences:
1. What motivates one doesn’t necessarily motivate the others: This is often lost in communication between the different tiers of leadership.
We suggest visual communication and visible strategies. Nobody reads a 30-page Powerpoint presentation nor follow inexplicable long charts. Besides, they do not seem practical nor motivational.
2. Instructions are given instead of actually getting the employees involved.
Participation is today a major key in a world that demands transparency and is accustomed to a constant supply of information through mediatization.
3. Too much focus on the deficits or on the other hand, too much focus on the possibilities. Both sides require a balance in order to reduce the prospective risks.
A well-balanced communication strategy is crucial.
4. Executives are often unaware that they are not sufficiently living the change they are leading.
Mindset is not enough. There needs to be visibility conveyed by so-called “cultural ambassadors”.
5. There is often a misconception that a few influential leaders can drive change. On the contrary, it takes a critical number of people to make change happen.
This follows Schein’s change model which requires involvement through workshops and the use of interactive communication (corporate social intranet, forums, etc.).
6. Money is an impractical and irrational way of motivating people. Today, employees should be motivated based on more qualitative reasons.
The question “what’s in it for me” must be clearly answered and communicated to all employee levels.
7. The false notion that the process and end results have to be fair. However, a fair process for all stakeholders is seen as equally crucial for the employees.
The project must be holistically thought out for all fields and levels.
8. The building up of competence is simply about behaviours and attitudes, i.e., the mindset of individuals, thoughts, feelings and beliefs must be addressed in the same way as behaviours.
Culture eats strategy for breakfast.
9. Intentions are not enough. Rather, assistance should be readily extended to the employees in the implementation of change into their daily work.
Therefore, we regularly integrate expansive and creative formats planned over a long period of time, in order to ensure participation in workshops and an insightful handling of the reasons for the change. This results in useful feedback to the change agents and the leadership.
Written by Klaus Motoki Tonn for Lumen Partners
