70 % of all transformation projects fail.
Look at AI projects and the number is a staggering 90 %. So why on earth are companies still attempting to transform themselves?
Well, while transformation is hard, standing still is worse. Look at Kodak or Blockbuster and you'll instantly understand why companies continue trying to transform.
Either you evolve or disappear - Tupac Shakur.
To put it mildly, I'm not a hiphop fan. But I feel it's warranted to quote Tupac Shakur here. 30 years after his demise, and the words ring truer than ever before.
Because most of us feel like the world is spinning faster than ever. And that the speed seems to only increase. Throughout the history of human beings there have been several revolutions that completely shifted the way we work. Taming fire. Inventing the wheel. The industrial revolution. Cars. Computers. The internet. AI.
All revolutions have shifted the way we work. And while it took decades for society to adapt to the car, the smartphones became standard in just one decade. AI is growing faster than that.
But this is not only about AI. It's about everchanging macro factors we didn't see just 10 years ago. The pandemic made a massive shift. The geopolitical instability has shaken us to our cores. Rapid changes in consumer behavior. Everything impacts our businesses and we must adapt.
There are scientific approaches that work better than trusting good luck.
There are a few, commonly agreed upon, approaches that researchers and consultants swear by. For example:
- Share why and create a sense of urgency
If people understand why they need to change and why now, they'll be more adaptable.
- Ensure active and visible leadership
Support people through the transformation.
While there are more, I'll stop here. Because you can go to any management consultancy and they'll repeat this like their life depends on it. Some may use fancy slide decks. Some opt for abbreviations that make no sense to you. Some tone it down and make it understandable for people.
If you've come for this, continue looking.
I'm not here to iterate this approach. Or perfect it.
I'm here to turn it upside down.
We've looked at transformation from the wrong lens
Leaders, consultants, researchers have looked at transformation from one common lens. How to make transformation successful.
It's a compelling thought and approach. Problem is, it rarely works. Because the question very few leaders ask themselves is:
Are we approaching the right problem?
Most of the transformation I've encountered through the years have all tackled A PROBLEM. But rarely they've looked to find THE PROBLEM. And the difference is profound.
Tackling A PROBLEM means that, even if you succeed with your transformation, a new problem occurs as soon as the old one has disappeared. So you tackle that one, too. Enter: an infinite loop of transformation projects.
And the organization that might have been keen on the first 1-2 transformation is getting more tired from each initiative. We say that people are afraid of change. In these types of organizations they're not afraid. They are tired. They have seen it all before. The motivational speaks. The workshops on what to stop, continue, and start doing. The new organizational chart that will be "revolutionary". When in reality, it's just business as usual. Just a bit messier, because the boss they got along well with is now in a completely different part of the organization.
Other organizations are truly afraid of change. Because they've never had to face it. They've grown fat and happy. Milked the cow. And suddenly the grass is wilted, water is running out and no one knows where to start acting. So, they bring in a consultant who has studied more organizations than you and me have ever met. And they create a 90 page strategic document, alongside 65 projects.
No wonder the organization gets overwhelmed.
The solution is so simple. Yet painfully hard.
Find the right problem. All symptoms have a root cause. The harder you look, the easier it is for you to realize that the 30 symptoms you're experiencing is rooted in 2-3 systemic issues.
- It may be conflicting agenda from the owner
- You may be solving the wrong problem for the right customer
- The incentives, intentions, and value proposition might be misaligned
It doesn't just take time to look for these root causes. It takes experience, outside perspective and requires you to pause and reflect. As a leader you might have experience and judgement. But I've stood in your shoes and know that time and pauses are what you lack the most when you're running a business that is struggling.
So should you just stop trying?
Of course not.
But if you're serious in your intention to successfully transform your business, you must come to terms with 3 things.
- A stressed approach rarely wins. Stop, pause, and reflect.
- Don't look for a silver bullet. There rarely are ones. Once you've found shifts that can propel you forward, start acting.
- Come to terms that this will hurt. True transformation requires shifts that hurt. Power. Previous assumptions. Ways of working.
Now, get going. And good luck.