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Wednesday, September 25, 2024

8 Common Reasons Organizational Change Fails



It happens time and again. I’m sure you’ve either witnessed it or suffered through it — the failed attempt of a large change at an organization. Maybe it was with a new process or switching over to a new technology. Maybe it was a change to the structure or the metrics. Whatever it was, it was difficult and painful for everyone involved. The people who were impacted by it will not soon forget. If you were the one that was trying to implement the change, the tinge of failure is salt in the wound after all your hard work. All your dedication and efforts to try and make a great improvement — and for what?

If this has happened to you, it’s time to do some reflecting to ensure this doesn’t happen again. Allow yourself to be brutally honest and analytical. If you haven’t yet, ask for feedback. This is incredibly important because, with each failure, the inertia of change grows. People may be less willing to buy in as they lose trust in the ability to change. And while the result isn’t always so bleak, if you’re not learning from your failures, then you’re doing yourself (and those around you) a major disservice.

Here are some of the top reasons I’ve seen initiatives fail time and again.

1. Poor Planning for Change

Often, leaders are so focused on getting their results that they dive right into the solution phase of organizational change without adequately doing the upfront planning work required. This sets the effort up for failure right from the start. Instead, identify all the conditions and activities that must occur early to set the project up for success, like: 1) change roles, governance and decision-making, 2) stakeholder engagement strategy and communications, 3) timeline, resources and capacity, and 4) key initiatives and how to integrate them for maximum speed and efficiency. Without a well-designed change process plan, a likely outcome will be a false start, resistance, and/or eventual failure.

2. Inadequate Support from Leadership

Organizational change does not succeed without leadership support. And lip service is not enough. Leaders must champion and model the change for the rest of the organization, in both what they say and do. They must be active, consistently supporting the change teams as they design and implement changes. They must be out communicating the benefits of the change to stakeholders and listening to and responding to their concerns. If your leaders are not prepared to stay actively involved, perhaps it isn’t the right time for them to launch a major change effort. Unsuccessful change initiatives often have executives who describe the desired outcome of the change project but do not instruct managers on how to implement it.

3. Lack of Resources

Lack of resources is one of the most common reasons why organizational change fails in most organizations. Adoption and sustainment of change are long term investments. They don’t occur just because an awesome solution was designed. It has to get implemented, and then tested, refined, and reinforced. This generally is a longer, and costlier endeavor than most change leaders realize. If you don’t plan and resource the latter phases of change, you’ll not realize the full benefits you set out to achieve.

4. Priority Focus on Systems vs. People

Leaders often focus more on the system changes than the people that have to make and live with them. Don’t forget that while you need to have systems in place, it’s the people who matter most. Too many transformation initiatives fail to focus on the development of the capabilities required for people to be successful in the new organization. This is a mistake for two reasons. First, organizational transformation always alters the nature of “the work” that must be done. Second, one of the biggest reasons people resist change is the fear that they won’t be able to be successful in the new organization, that “what got them here won’t get them there.” So, an upfront commitment to investing in helping people be successful reduces resistance.

Be sure that your leaders equally prioritize and attend to the system changes AND the people.

5. Inadequate Change Leadership Skills

One could easily argue that this is the #1 cause of failed organizational change. Why? Because every issue or problem within a given change initiative either gets prevented, solved, or caused by the skill of the change leaders in charge. And the truth is, we don’t adequately train our leaders to become competent change leaders. Leadership development is a part of virtually all large organizations but change leadership development is sorely missing. The net is that leaders tend to run change initiatives like they run their organizations, and the two are vastly different.

6. One Way Communication

Change leaders often make mistake by having one-way communication with employees and other stakeholders. They fail to engage their employees.

Change doesn’t happen when message is only coming from top. If organizational culture fails to exchange ideas and share experience, then it’s hard to implement transformative change. People learn by acquiring and applying the information and not just by absorbing it.

7. Lack of Effective Monitoring

It’s very crucial to check on progress being made on implementation of change. So an effective and efficient monitoring system is required to track progress on change. When organizations lack effective monitoring mechanisms, they actually put their change initiative at risk.

A good monitoring mechanism doesn’t mean identifying problems but taking corrective actions and finding solutions. Monitoring provides valuable information and insights about what is working and what is not. And many a times this kind of monitoring system is missing in change initiatives and organizations have to pay heavy price for this.

8. Ignoring the Human side of Change

Our brains are hardwired to resist change. With the mere suggestion of change a fear response is triggered in our brains. This is why most of us are resistant to even the idea of organizational transformation, we are resistant to our familiar world changing from what we know to the unknown. We need to embrace the human side of change to effectively manage resistance to change and we need to understand that, whilst all change is not bad, it is a natural human response to have a defensive reaction to the unknown. 

Avoiding these pitfalls doesn’t guarantee success, but it will vastly increase your likelihood. Winning starts with clearly defining the case for change and ends with an effective effort to build the new competencies the organization needs.

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