HBR article: Transformations that work

The article can be found here: https://hbr.org/2024/05/transformations-that-work

The article I’m summarizing addresses the challenge many large organizations face when it comes to transformation programs. Despite a growing focus on change initiatives, the success rate of these transformations remains low. According to the research, only 12% of major change programs actually achieve their desired outcomes, a figure that hasn’t improved in recent years despite efforts to avoid common pitfalls.

The article identifies six key factors that distinguish successful transformation efforts from those that fall short. One of the main takeaways is the need for companies to treat transformation as a continuous process rather than a one-off initiative. In today’s fast-paced business environment, companies cannot afford to revert to a “business-as-usual” mindset after a transformation. Instead, they must embed change into the organization’s daily operations, ensuring that it becomes part of the company’s culture and ongoing strategy.

The six key factors that differentiate successful transformations from those that miss the mark:

1. Treat Transformation as a Continuous Process – Rather than treating transformation as a one-time event, successful companies embed it into their culture and operating rhythm. Transformation is ongoing, not something that can be “finished” and forgotten.
2. Build Transformation into Daily Operations – Instead of treating transformation as a separate project, the best organizations weave it into their everyday work processes. Leaders and teams see change as part of their regular responsibilities, not an additional burden.
3. Manage Organizational Energy – Transformation efforts can falter when they demand too much from the same group of employees. Successful transformations are carefully sequenced to prevent burnout and fatigue, ensuring that no group is overwhelmed.
4. Set Aspirational Goals, Not Just Targets – While benchmarks and targets can guide change, successful transformations aim higher. By setting aspirational goals beyond industry norms, companies unlock innovative thinking and move beyond incremental improvement.
5. Drive Change from the Middle Out – Top-down transformations often struggle because senior leaders lack the on-the-ground knowledge, and front-line managers are too focused on immediate tasks. By involving mid-level managers who understand both strategy and day-to-day operations, organizations identify more impactful solutions.
6. Secure External Capital Early – Transformations require significant investment, and underfunded efforts usually fall short. Companies that succeed ensure they have the necessary financial backing, often through external capital, to fuel their ambitious changes.

These six practices provide a framework for companies seeking to improve their transformation efforts, ensuring that change is both sustainable and impactful.

In summary, transformation programs often miss the mark because they aren’t fully integrated into the company’s operating rhythm, lack proper energy management, or are underfunded. To truly transform, businesses must adopt a long-term view, secure the necessary resources, and manage change from the middle out—ensuring that all parts of the organization are aligned and energized for success.