The Science of Organisational Transformation

Sunday, September 13, 2015

Organisational TransformationI have been rereading the classic text on change management, Leading Change, by John Kotter, and it seems that as a result, everywhere I look there are articles, blogs, books and references to change management. One report that has really captured my attention is a McKinsey and Company report on a survey they recently undertook on Organisational Transformation. It is published in a September 2015 report, and can be read here.

The obvious point is made that successful large scale organisational transformation doesn’t just happen – it requires a lot of hard work. The work of the McKinsey researchers resulted in the conclusion that investing in designing before making the changes makes a big difference to success. In fact, McKinsey reports that about 20% of organisational transformations are successful without any prior design work, whereas if all four of the following factors are present before and during the change process, the success rate rockets to 74%.

The four key activities are:

  1. Role modelling
  2. Fostering understanding and conviction
  3. Reinforcing changes through formal mechanisms
  4. Developing talent and skills

No one of these is more important than any other, what is important is that all four are implemented.

Other key results from the survey include:

  • Most change processes are on the basis of improving weaknesses rather than building on strengths. This was also noted as being much less effective than designing change to achieve both.
  • When key influencers (not just positional leaders) are involved in the design process there is a significant improvement in the chance of success.
  • The process of HOW the design process is undertaken is just as important as WHAT is designed.

The authors of the report summarise the survey results in this way:

Leaders would do well to spend time thinking through the design process to ensure that their transformations are focussed and that multiple stakeholders are involved.

It is worth taking notice if the probability of success for your organisational change can lift from 20% to 74%!

The Avondale Business School can advise your organisation on being effective in these areas – find out how by contacting Warrick Long at the Avondale Business School.

E: [email protected]

P: 02 4980 2168