A business change failure means that you don’t reach your targets and/or there are major flaws in change execution. Even a single failure can have drastic consequences and the more you make business changes with systematic errors the more probable it is that the cumulative impact of failures impacts your financial results, competitive strengths and motivational climate.
—————- OVER 70% OF BUSINESS CHANGE PROGRAMS FAIL (McKinsey2019)—————-
Typical Reasons for a Failure
- Business renewal is “a low prestige activity” that just needs to get somehow done
- New business is a top-down process based only on assumptions of leaders
- Innovation is just like any other product/service development project of a company
- Change is delayed till there is no time for preparations and a change is done in a panic
- Customer development in a change process is no more than random talks to customer
Consequences of Failures
- Financial targets are not reached
- High immediate rechange costs
- Customer credibility is reduced
- Competition position weakens
- Your own people get frustrated
Please, contact me to hear more about business change failure and how to avoid it!