Alexandra Wendt’s Post

Great article about Transformations from Harvard Business Review. In 2013 and 2023, Bain studied 300 large companies on transformation initiatives. In both surveys, only 12% met or exceeded expectations. This article discusses why they failed and how Ford, T-Mobile, and others defied the odds and had lasting results. If you are a part of a transformation or have one upcoming, this is an awesome article to help build a foundation for a successful transformation.

Lessons from companies that are defying the odds. More than a third of large organizations have some type of transformation program underway at any given time, and many launch one major change initiative after another. Though they kick off with a lot of fanfare, most of these efforts fail to deliver. Only 12% produce lasting results, and that figure hasn’t budged in the past two decades, despite everything we’ve learned over the years about how to lead change. Clearly, businesses need a new model for transformation. In this article the authors present one based on research with dozens of leading companies that have defied the odds, such as Ford, Dell, Amgen, T-Mobile, Adobe, and Virgin Australia. The successful programs, the authors found, employed six critical practices: treating transformation as a continuous process; building it into the company’s operating rhythm; explicitly managing organizational energy; using aspirations, not benchmarks, to set goals; driving change from the middle of the organization out; and tapping significant external capital to fund the effort from the start. https://lnkd.in/d6DHrfrN

More than a third of large organizations have some type of transformation program underway at any given time, and many launch one major change initiative after another. Though they kick off with a lot of fanfare, most of these efforts fail to deliver. Only 12% produce lasting results, and that figure hasn’t budged in the past two decades, despite everything we’ve learned over the years about how to lead change. Clearly, businesses need a new model for transformation. In this article the authors present one based on research with dozens of leading companies that have defied the odds, such as Ford, Dell, Amgen, T-Mobile, Adobe, and Virgin Australia. The successful programs, the authors found, employed six critical practices: treating transformation as a continuous process; building it into the company’s operating rhythm; explicitly managing organizational energy; using aspirations, not benchmarks, to set goals; driving change from the middle of the organization out; and tapping significant external capital to fund the effort from the start. Read more:

In most companies across industries, transformations have become ubiquitous, yet their success often remains elusive. Benchmarking highlights that there exists a prevalence of change initiatives, and only a mere 12% yield lasting results. This cycle of underwhelming outcomes underscore the urgent need for a new approach—one that embraces continuous transformation, integrates change into the company's rhythm, and meticulously manages organizational energy. By adopting these critical practices, organizations can defy the odds and unlock the full potential of their transformation efforts, ensuring sustainable growth and success in an ever-evolving business environment. I found the below article super informative and a useful reference as one drives transformation initiatives. https://lnkd.in/g9mD3Rfb

It seems like nearly every organization has embarked upon a transformation effort within the last few years. This Harvard Business Review article draws on the experiences of hundreds of organizations over several decades to distill the characteristics associated with successful transformations. Most transformations are not successful, and those that are share six characteristics. Treating transformation as a continuous process. Organizations have traditionally approached change as a discrete and time-delimited project. In today’s complex world transformation should be treated as dynamic and ongoing. Building transformation into the operating rhythm. Transformation should not be considered a side project or add-on and instead should be integrated into operations. Explicitly managing organizational energy. Changes need to be sequenced and coordinated to limit disruption and organizational fatigue. Use aspirations and not just targets. “Relying on benchmarks tends to confine “the art of the possible” to what others have already achieved, effectively setting the bar too low. True transformation calls for breakthrough thinking and pushing beyond current practices.” Driving change from the middle out. Generally top-down change efforts don’t produce lasting results. “Why? Because enduring improvement requires changes in both the work being done and how it is accomplished. Cross-company intelligence and deep experience are needed to identify those changes, and that calls for a “middle-out” approach.” Accessing significant capital from the start. Lasting change efforts have the resources needed for success.

Every leader embarking on an organizational change initiative, big or small, should read this article. “Transformations fizzle when they consume more energy than they generate.” “Enduring improvement requires changes in both the work being done and how it is accomplished … and that calls for a “middle-out” approach.” Just two great pieces of advice from an article loaded with insights about how to make organizational transformations produce good results, keep people engaged, and keep the org moving in the right direction. MGMA sits at the nexus of two industries undergoing dramatic evolution: healthcare and associations. The only way we can be successful in meeting our members’ needs, helping them address new challenges, and playing our role in creating meaningful change in healthcare is to continuously transform what we do and how we do it. It’s never been easy. As the authors point out, most transformations don’t produce the results hoped for. But that doesn’t mean they can’t be successful with the right approach and the right tools. Excellent article from Michael C. Mankins and Patrick Litre of Bain & Company, via Harvard Business Review. https://bit.ly/4djaMva

How to manage and what mindset you need to have to manage transformation in this every changing landscape. Transformations in large companies frequently fall short of their ambitious goals, with only 12% producing lasting results. Despite initial enthusiasm, most initiatives fail to meet expectations, often leading to cycles of repeated, unsuccessful attempts. However, successful transformations share six key practices. 1. Continuous Transformation: Instead of treating transformation as a one-time project, companies should see it as a continuous process. Dell Technologies, for instance, used an evergreen agenda to address ongoing critical issues, resulting in significant market value growth. 2. Integration into Daily Operations: Effective transformations are built into the company’s daily rhythm. Alan Mulally’s turnaround of Ford Motor Company involved weekly business plan review meetings, aligning the team around the “One Ford” strategy and driving a remarkable recovery. 3. Managing Organizational Energy: Transformations should be carefully sequenced to avoid overburdening employees and causing fatigue. Virgin Australia’s careful management of energy and enthusiasm through employee engagement and strategic change sequencing facilitated its successful overhaul. 4. Aspirational Goals: Setting high aspirations rather than relying solely on benchmarks can drive more significant transformation. Adobe’s shift to a cloud-based model, driven by CEO Shantanu Narayen’s bold vision, led to substantial market value growth and industry-wide impact. 5. Middle-Out Change: Midlevel executives, who understand both operations and strategic context, are crucial for lasting transformations. Amgen’s transformation involved midlevel leaders, resulting in significant improvements in its portfolio and market position. 6. Securing External Capital: Transformations often require substantial investment. Companies like Ford and T-Mobile secured significant external funding, enabling successful transformations that led to extraordinary growth. https://lnkd.in/dSXcj9aV

Embracing change as a constant: How successful organizations defy the odds by making transformation a part of their ongoing strategy. Very insightful! #BusinessStrategy #ContinuousImprovement #OrganizationalChange"

Explore this enlightening article from Harvard Business Review: "Transformations That Work". Discover proven strategies for successful business transformation - Gain insights into navigating change effectively. The article highlights: - Treating transformations as a continuous process. - Integrating transformation into the company's operating rhythm. - Explicitly managing organizational energy. - Using aspirations, not just targets, to stretch management's thinking. - Driving change from the middle out. - Accessing capital from the start. Read the full article here: https://rb.gy/8edwsf #Transformation #BusinessStrategy #SuccessTips 

Transformation programs often promise breakthrough results, but most never realize them. Successful companies adopt an approach that fundamentally differs from other companies' strategies. Their leaders view change as a continuous process, integrating it into the company's operating rhythm. They understand that organizational energy is a scarce resource and manage it diligently, and they focus on driving the transformation from the middle out. Never forgetting that significant change requires major investments, they secure external capital early (and often). In short, successful transformations employ a transformative strategy—a must for companies aiming for enduring success in today's ever-changing world.