Mckinsey & Company: Organizations still struggle with transformational change
The modern enterprise will have to be malleable in its practices. Whether its adapting to customer needs or even embracing technology yet further, businesses who set the strictest of guidelines for themselves often find it hard to react if and when problems present themselves.
Being changeable is therefore increasing in importance, but are enough companies ready and willing to deal with organizational change? According to a study from Mckinsey & Company, the answer appears to be no.
Only a quarter of businesses experience successful change
Just 26 per cent of the executives questioned in the research claim that any changes their enterprises have gone through were a success, which is only a marginal increase from the 20 per cent who answered similarly in the corresponding survey from 2012.
So, how can organizations defeat the odds? Well, the main way is by implementing sound strategic planning processes.
The figures go on to suggest that when a company has a thorough and effective plan mapped out before any restructuring takes place, the likelihood of the whole endeavor being a success is nearly doubled – to 58 per cent.
Mckinsey & Company go on to explain that this is due to the fact that any objectives with regards to organizational change are eminently more achievable when leaders develop a clear vision to share across the enterprise.
Strategy mapping is key before carrying out sweeping change
Similarly, research from Forrester, which specifically looks at digital transformation, highlighted four key steps: discover, plan, act and optimize. Strategy mapping before any major business adjustments can help avoid issues further down the line.
As the need for organizational change becomes more pronounced – a Forbes Insights and KPMG report suggested that 93 per cent of all businesses are in the midst of, or are planning for change – the most progressive enterprises will ensure that they have a plan of action in place, which will likely present them with a better chance of success.