No doubt many of us have heard the oft-quoted statistic that 70% of all organisational transformation and change initiatives fail. But how many of us can recall some of the lesser known (and yet equally eye-opening!) facts and figures that paint a picture of the true impact of transformation, whether at an individual, team or organisational level?
So hold on to your hats because we’ve got 13 awe-inspiring statistics on organisational transformation listed below. Feel free to add your own in the comments section!
- Company-wide change efforts are 12.4 times more likely to be successful when senior managers communicate continually. (McKinsey)
- 92 percent of change practitioners name top management sponsorship as the most important factor for successful change. (IBM)
- Nearly 60 percent of projects aimed at achieving business change do not fully meet their objectives. (IBM)
- When senior leaders role model the behaviour changes they’re asking employees to make, transformations are 5.3 times more likely to be successful. (McKinsey)
- Leaders create the climate for success – 50-70% of variance in organisational climate can be explained by differences in leadership styles. (Hay Group)
- Up to 30% of variance in financial results (profits and revenue) can be explained by differences in organisational climate. (Hay Group)
- 86% of C suite executives and 84% of all managers and employees say culture is critical to their organisations’ success. 60% see it as a bigger success factor than either their strategy or their operating model. (PWC)
- Less than 10% of leaders have the right capabilities and experiences required to successfully lead transformations. (PWC)
- Frontline employees taking the initiative to drive change elevates the success of transformations to a whopping 71%. (McKinsey)
- 12% of people don’t believe their companies are keeping up with the changing landscape of business (Mitch Joel, Ctrl Alt Delete)
- 31% of CEOs are fired for not managing organisational change well enough. (Forbes)
- 25% of change management initiatives are successful over the long term (Towers Watson)
- 95% of leaders using stakeholder centred coaching improved their effectiveness (Marshall Goldsmith)
So there you have it: the good, the bad and the ugly! All business change requires some form of disruption from the norm, which, as you can see from some of the above stats, means that transformation done poorly can be very painful. However, it’s not all bad news – transformation can also be, well, for lack of a better term, transformational. Done right, it can position you, your team and your company to take advantage of challenges, turning what were once issues into opportunities.