Transformation programmes often fail. Creating a “performance infrastructure” can help ensure that yours won’t.

Disruptive forces abound in today’s business environment. Technological innovation, regulatory changes, pressure from activist investors, and new entrants, are just some of the forces causing disruption, even in historically less volatile business sectors. It is therefore no surprise that many companies are embarking on transformation efforts, sometimes in response to outside pressure and other times to get ahead of it. Regardless of why, these companies are introducing new ways of working to large numbers of employees, with the goal of producing a step-change, sustainable boost in business results.

However, the painful reality is that most transformations fail. Research shows that 70 percent of complex, large-scale change programs don’t reach their stated goals. Common pitfalls include a lack of employee engagement, inadequate management support, poor or non-existent cross-functional collaboration, and a lack of accountability. Furthermore, sustaining a transformation’s impact typically requires a major reset in mind-sets and behaviours, which not all leaders know or seem able to achieve.

The essential elements for success are:

  • Adopting a holistic approach, not a sectional or departmental one
  • Making change happen at speed
  • Implement a governance structure led by a chief transformation officer
  • Adopt a relentless delivery approach
  • Develop robust tracking and reporting systems

A transformation effort is not for the faint of heart. A company’s leaders must be absolutely unified and committed before embarking on such a program. Once they do, they must pay close attention not only to the specific initiatives, but also to the changes they are making in how the business operates. Establishing a performance infrastructure is an essential ingredient of a successful transformation that yields rapid, dramatic, and sustainable business improvement.