The CTO should be an extension of the CEO, with the mandate and authority to address all levers and to influence decisions about personnel, investments, and operations. Change management as it is traditionally applied is outdated. Many would agree that failure doesn’t happen overnight because failure is a few errors in judgment, repeated every day. A McKinsey survey of more than 3000 executives around the world found that only one transformation in three succeeds. The TO should regularly report progress to the CEO, highlighting issues and decisions for resolution. 95% of digital transformation projects fail to achieve their aims according to Bain’s survey highlighted above; The below example highlights one of the indicators of the failure. We'll email you when new articles are published on this topic. However, the painful reality is that most transformations fail. After almost two decades of intense change from corporate reorganizations, new software systems, and quality-improvement projects, the failure rate remains at 70%. Learn more about cookies, Opens in new However, the painful reality is that most transformations fail. The impact of the transformation was significant: dramatically reduced costs, trend improvements across markets, and the development of new skills in important segments. Powerful Strategy and Business Lessons from…, 8 Principles to Managing in an Economic…. Bringing it together - large change programs such as transformations and turnarounds are complex in nature and involve significant uncertainty. However, the painful reality is that most transformations fail. To achieve extraordinary results, we believe a comprehensive, highly disciplined methodology—encompassing both the “what” and the “how”—is needed (exhibit). To drive home the point that a lack of discipline is the underlying cause of digital transformation failures, Saldanha observes that 99.999999% of aircraft takeoffs and landings are successful compared with only 30% of digital transformations. We break the “how” into two parts: change management and performance infrastructure. Many large and small organizations are trying out “change programs” on their own to save consulting overhead costs. The weekly cadence is a critical building block for the transformation process, but it’s not enough on its own. But fully 70 percent of digital transformations fail." It helps enforce “closed loop” accountability and accelerate implementation by preventing “pocket vetoes,” other delaying tactics, and slippage. Technological innovation, regulatory changes, pressure from activist investors, and new entrants are just some of the forces causing disruption, even in historically less volatile business sectors. In bottom-up planning sessions, the company’s executives and line leaders developed initiatives focusing on three cost levers (external spending, supply chain, and overhead) and three revenue levers (field sales, marketing, and alternative channels). Ten tips for leading companies out of crisis. Common pitfalls include a lack of employee engagement, inadequate management support, poor or nonexistent cross-functional collaboration, and a lack of accountability. Below are a few insights based on my experience of working on large scale change programs. Our answer is unequivocal. Several organizations have started focusing on large “change programs” such as transformations, turnarounds or restructures in past few years. Research shows that 70 percent of complex, large-scale change programs don’t reach their stated goals. inadequate management support, poor or nonexistent cross-functional collaboration, and a lack of accountability. 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