Reflections on "Why Transformation Efforts Fail" Part 1

The article in the Harvard Business Review "Why Transformation Efforts Fail" is focused primarily on large organizations (think GE, P and G) but also has relevance for smaller businesses. After joining my organization I was given the task to turnaround a smaller uniform company that was experiencing a slow (but obvious!) decline in sales. The change process that was created certainly didnt have the structure that this next framework possesses although it likely would have been more successful (i.e. faster) if it was used within this context. This article outlines 8 errors that cause tranformations to fail.

The first error is that organizations do not establish a great enough sense of urgency. The primary cause of this error is the fear that creating disturbances and awakening people to the pending disaster will cause more harm that it creates. In situations - such as mine - where organizations are in slow decline, employees create a delusion that things are fine or place blame elsewhere. While a leader must take every precaution to not sink the ship while fixing it, action must certainly be taken.

The second error is a branch of the first in that once a sense of urgency is created, a group within the organization must form to carry forward the urgency. This group must include senior management if it is to take hold and create lasting change. In the case of my particular company, small by any comparison, the group would have to include almost everyone. This was made difficult as information flow within the 'management' of the company did not allow flow to the lower levels. While its vital to have senior management back the change, without the employees included in won't go far.

Once a sense of urgency is created and a group is formed to back the changes, the leadership must decide where the group is to go. Lacking a vision is the third major error of change transformations. This designed future must be easy to communicate, created from within the team and appeal to customers and employees alike. This was the major error within my organizations change efforts; no vision was established and like Don Quixote, we were riding off into every direction at once.

The next logical step once the vision is created is to communicate the vision. While a vision should never have to be sold, it must be communicated clearly and concisely. Like Jack Welch, if each employees isn't able to communicate the top three goals of the company than the leadership isnt doing a good job. Within a small company this vision is best communicated with weekly or daily meetings. Like the daily early morning cheers at 1-800-GOT-JUNK, these meetings can be take any form but must be consistent and meaningful. My father once emphasized this point within his company. Each friday he would shut down the office for a full two hours to discuss the companies goals and hold learning sessions.