Change: Why do de keep getting it wrong—and why it matters more than ever?
It’s staggering, isn’t it? Year after year, business leaders and consultants echo the same sobering statistic, that around 80% of change initiatives fail. That means most change programs do not meet their objectives, and many fall well short of even modest expectations. For decades, this has remained true, and frankly, it’s unacceptable.
Why are we so bad at making change stick? And, more importantly, why should we even care about improving our capacity to lead it?
The reality is that the ability to manage and lead change is no longer a nice-to-have but a necessity. Change goes beyond individual projects and affects the future success and health of businesses, the growth of employees and the vitality of communities. As the pace of technological and societal shifts accelerates, the cost of failed change initiatives rises.
It’s time we talked about why businesses must get serious about mastering change and what’s truly at stake if they don’t.
Why Are We So Bad at Change?
Change is inherently challenging, often uncomfortable, risky, and above all, emotional. Many of our failures in implementing it are self-inflicted, and often they are both identifiable and avoidable.
Here’s why change frequently goes off the rails in organisations.
There’s a lack of clear leadership and vision. Too many leaders kick off change initiatives without a clear, aligned vision or a sound strategy for engaging their people, their skills, knowledge and creativity. If employees don’t understand the purpose of a change—the ‘why’ behind it—the likelihood of resistance, confusion and even outright conflict is greatly increased, which can slow or derail any change.
Another pitfall is poor communication. Communication is essential, but it’s too often undercooked or overlooked. Many leaders we have seen, assume that a couple of emails, a briefing or a corporate video will suffice. But the reality is that people need consistent, clear communication ( ‘bilateral conversations’ as one client noted) to fully understand and commit to the change. Employees need to hear not just what’s happening, but why it matters, how it will affect them and how they can help.
The aforementioned are part of culture, and the question that businesses often fail to ask – with enough rigour – is do we have a culture that will support and better enable this strategy, change or transformation. If not, why not? And therefore what do we need to develop the culture before trying to deliver the change.
We also tend to underestimate human psychology. Change is deeply emotional. People naturally fear the unknown and resist anything that disrupts their routine. Leaders must recognise and address these fears. Simply rolling out a new directive without consideration for how people feel can lead to covert resistance, decreased morale and even loss of talent. Conversely, by being open to these emotions and working with feelings, leaders in businesses can learn to access more of the human potential in their teams, for good.
As many people we work with and interview attest, there’s a lack of necessary skills in leading change. Businesses haven’t developed, at least not consistently, the skills required to identify and navigate complex change. Leaders need to be trained in such skills as adaptive thinking, resilience, and emotional intelligence if they’re going to guide their teams through the highs and lows of transformation.
Finally, businesses rarely, if ever, take time to identify and understand the potential hurdles which might slow or derail change or transformation. The business (people) knows far more than it realises. Failure to access this information and insights, means businesses have an incomplete view of the journey and may suffer losses, costs and delays that could have been mitigated.
Given all these challenges, is it worth the effort to improve our capacity for change? Absolutely. Because mastering change isn’t just about ticking off project milestones; it’s about future proofing the business, building agile, innovative teams, and strengthening the company’s relevance in the market.
The real value of getting change right
When an organisation develops the capacity to lead change, it doesn’t just become more efficient—it gains a competitive edge. Here’s why building change competency is worth every ounce of effort.
First off, it leads to stronger business performance. Change-ready organizations are more agile, resilient, and competitive. They can respond quickly to market shifts, technological advancements, and evolving customer demands. They don’t merely react to change; they anticipate it, capitalise on it, and thrive. By mastering the art of change, these businesses don’t just survive—they flourish.
Another key benefit is that employees in change savvy companies are more engaged and empowered. People want to be part of an organisation that has direction, purpose and a sense of forward momentum. When employees see that their company handles change effectively, they feel more secure, motivated and inspired.
When leaders communicate a clear path forward, it builds trust and makes people feel part of something larger than themselves—a dynamic, adaptive workplace that encourages growth and development.
But the impact goes beyond the organisation. Change ready businesses can have a transformative effect on their communities. These companies are often the ones driving social and environmental initiatives, creating jobs and strengthening the local economy. They’re not just following trends, they’re setting them, and actively contributing to the welfare of the communities they operate in. By adopting sustainable practices, supporting local programs and adapting to new regulations, these businesses create a ripple effect that benefits society as a whole.
Leading change strengthens the business
For businesses, the ability to lead change well has tangible benefits that extend beyond the balance sheet. Here’s how a change-ready organisation sets itself apart from the competition.
Change-ready companies are often hubs of innovation. They don’t view change as a threat but as an opportunity to evolve, innovate and create. These companies are in a perpetual state of iteration, improvement and reinvention, whether it’s in developing new products, services or ways of working. Innovation thrives in these environments because they nurture a culture that values flexibility and experimentation.
Additionally, organisations that handle change well enjoy greater stability and confidence among their workforce. Employees may not stop fearing change altogether, but they trust their leaders’ ability to guide them through it. Stability, paradoxically, doesn’t come from avoiding change—it comes from having the confidence to embrace it, knowing that the company is prepared for the challenges that lie ahead.
Companies with strong change capability also see enhanced brand value and reputation. When a company consistently navigates change successfully, it earns the trust of customers, partners, and investors. This doesn’t just enhance the company’s reputation; it also translates into long-term customer loyalty and strategic partnerships. A brand that’s known for resilience and adaptability becomes a leader in its field, and that kind of reputation is priceless.
Why developing the capacity to lead change is non negotiable
Businesses need to stop treating change as a one-off project. Instead, embrace it as a core organisational competency. Change is the new normal—we all know that. And companies that fail to adapt will fall behind, lose relevance, and, eventually, risk obsolescence. The stakes are simply too high to ignore. This isn’t just about survival, it’s about creating workplaces where people thrive, customers are delighted and communities are strengthened.
Change isn’t easy, but it’s essential. Companies that master change are the ones that shape the future. They’re the ones innovating, growing and setting the standard for what’s possible. It’s time to stop accepting the depressing change failure statistics and start leading with purpose and conviction.
The EXACT Process: a practical solution
To support organisations in developing the capacity to lead change, we’ve developed a five-step process called EXACT. It’s designed to tip the balance of success – in any change or transformation - in your favour, saving you time and money, and reducing risk.
The EXACT process has been tested and refined to help organisations deliver change faster, with a clear focus on achieving value.
EXACT combines robust diagnostics and practical strategies, including the MAE (Management Attention Explorer) diagnostic tool that pinpoints where management attention is currently directed and where it needs to be re-focussed to reduce impact from potential hurdles and drive the most significant impact. This process not only guides specific change projects and transformations – including growth, digital, M&A and business models - but also builds the organisation’s long-term capacity to lead change effectively.
EXACT is a comprehensive solution, providing leaders with a repeatable framework to move through change far more confidently. On average, the process delivers a return on investment of 15-200x, and in cases of large scale transformation projects, the ROI is often even greater.
It’s time to stop merely managing change and start leading it with purpose and precision.
Change is challenging, but with the right tools, the right vision, and a commitment to building organisational capabilities, it can be mastered. And when we get it right, the rewards—for businesses, employees, and communities—are enormous.
Call me to discuss how to help your managers lead business change
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