Research by EY and Oxford University's Saïd Business School revealed the complex factors that influence the success or failure of a business transformation are rooted in human emotions.
Leaders who prioritise workforce emotions in their transformations are 2.6 times more likely to be successful than those who don't. In high-performing transformations, 52% of respondents said that their organisation provided them with the emotional support they needed during the process. Conversely, the emotional strain on the workforce increases by 136% during an underperforming transformation.
Failure rates remain high
The rate of failure for transformation projects remains stubbornly high, with 67% of respondents have experienced at least one underperforming transformation during the same time.
Errol Gardner, EY global vice chair for consulting, warns that the emotional strain that both leaders and employees experience in a failed transformation comes at a high human cost.
“The key to turning transformation failure into success relies on the ability of organisations and their leaders to completely redesign transformations with humans at the centre,” he added.
Andrew White, a senior fellow in management practice at Saïd Business School, University of Oxford, says during these disruptive times, the pace of change is ever accelerating and for many businesses, transformation is 'do or die'.
He laments that too often transformation is seen as a dirty word, a fig leaf for redundancies, where a failure in vision and leadership leads to an overworked, stressed, and untrusting workforce.
“This research shows that bringing emotions to the heart of transformation significantly increases the chance of success and safeguards the well-being of workforces. Leaders must embrace the inevitable emotional journey that flows through every transformation and lead their people through each step of it if they are to turn vision into reality and make change exhilarating,” he continued.
Six drivers that can lead to transformation success
The research finds that maximising the emotional impact of six key drivers can increase the probability of transformation success.
Adapt and nurture leadership skills: The workforce ranks leadership as the top driver regardless of the success or failure of the transformation.
Create an inspirational vision that the workforce can believe in: Nearly half (49%) of respondents in a high-performing transformation said the vision was clear and compelling compared with 27% of those in a low-performing transformation.
Build a culture that embraces and empowers everyone’s opinion: Leaders need to harness the right emotions to keep workers engaged and motivated while providing enough emotional support to prevent anxiety and burnout.
Set clear responsibilities and be prepared for change: Leaders should provide the structure and discipline, as well as the creative freedom to explore and innovate while creating autonomy for the organisation to execute.
Use technology to drive visible action: Leaders should prove the value of new technology-enabled approaches early and enlist early adopters and influencers to bring the workforce along.
Find the best ways to connect and co-create: Leaders need to create a safe space where new ways of working can emerge to nurture innovation, engagement and fulfilling work.
