Most transformations stall. According to new research from Russell Reynolds it is typically due to three conditions—and the problem usually is not the strategy. The organization is simply not structured for change.
Why it matters: Although 79% of leaders consider transformation extremely or very important to long-term growth, only 29% say their organization has been extremely or very successful at it.
Driving the news: In their survey of more than 1,000 executives and dozens of CEO interviews, they narrowed 27 organizational dimensions to eight “conditions for change.” Three of those conditions account for 56% of the difference between transformations that stall and those that last.
1. A change-ready culture: This was the strongest driver. It means encouraging experimentation, continuous learning, and challenging the status quo.
2. High-impact talent: Focus on having the right people in the right roles, plus reskilling and, when needed, take an honest look at the effectiveness of the leadership teams.
3. Goal and role clarity: Establish clear performance metrics, defined roles and a shared understanding of “the why” to speed up decisions and execution.
CEOs highlighted three practices for building shared understanding:
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Ensure every leader can explain why the change is necessary.
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Hold regular discussions about market dynamics and how the business is evolving.
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Encourage open dialogue and test assumptions to align priorities.
The bottom line: Success depends less on the plan and more on whether leaders believe in the change and spread that belief. That means communicating consistently, aligning incentives, and modeling the behaviors they want to see.
