Leading Change: Why Transformation Efforts Fail (And How to Avoid It)

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TL;DR: Many business transformation efforts fail due to lack of vision, poor communication, and insufficient stakeholder buy-in. Learn how strong leadership, clear strategy, and structured change management can prevent failure and drive lasting success.

Leading Change: Why Transformation Efforts Fail (And How to Avoid It)

By Richard Keenlyside

Over the course of my 34-year career spanning retail, manufacturing, financial services, logistics, and private equity-backed ventures, I've led or advised on numerous digital and organisational transformation programmes—some totalling over £120M in scope. What’s abundantly clear is this: transformation, when poorly executed, fails. Often spectacularly.

And while the technologies and sectors may differ, the reasons behind these failures remain strikingly consistent.

1. Lack of a Clear Vision

Every successful transformation begins with a compelling vision. Yet many organisations charge ahead without articulating the 'why'. When I joined Mothercare PLC during its pivotal carve-out, the transformation lacked early strategic alignment. We quickly recalibrated, defined our north star, and structured the change portfolio (£18.1m) around measurable business outcomes.

Lesson: Anchor the transformation in purpose. Make the vision tangible and regularly communicate progress.

2. Inadequate Stakeholder Engagement

Transformation is not an IT initiative. It’s a business-led, people-powered journey. Failing to involve cross-functional stakeholders often results in resistance, misalignment, and low adoption rates.

At a recent client, as IT Director, CTO and Strategy Director, I ensured cross-department collaboration was baked into the delivery of AI-driven solutions—like chatbots for HR and finance—which led to a 40% operational uplift and faster supplier payments by 29%.

Lesson: Engage early and often. Secure buy-in from board level to the shop floor.

3. Failure to Build Change Capability

Companies often underestimate the time, tools, and talent required to embed change. During s clients global ERP rollout, I led the transformation with a robust data strategy and ERP blueprint. Without skilled programme governance, this £14M initiative would have risked overspending and scope creep.

Lesson: Equip your teams with the skills and structures needed to execute and sustain change.

4. Overreliance on Technology

Digital transformation is not just about software. I’ve seen too many initiatives—especially in M&A scenarios—over-focus on systems while neglecting processes and culture.

At a utility client, I implemented RPA and AI solutions that saved 75,000 hours annually. But the real success stemmed from rethinking processes and realigning the workforce around automation.

Lesson: Technology is the enabler, not the outcome.

5. Poor Programme Governance

Governance often becomes an afterthought. Yet it’s critical to success. In my current role as Global CIO, we implemented a governance framework across all business units to standardise systems and deliver a unified IT strategy.

Lesson: Embed programme governance early—track milestones, manage risks, and enforce accountability.

Infographic titled "Leading Change" highlights key factors in organizational transformation: leadership, communication, and employee involvement. — Leading Change - Simplified

FAQs

Q1: What is the biggest reason most transformations fail?A lack of strategic clarity and executive alignment tops the list, closely followed by poor stakeholder engagement.

Q2: How can we measure transformation success?Define KPIs early—think operational efficiency, cost savings, customer experience, and employee engagement.

Q3: How do you sustain transformation?Sustainability lies in continuous learning, leadership visibility, and evolving the change roadmap post-delivery.

Final Thoughts

Transformation isn’t a project—it’s a cultural shift. It takes more than strategy decks and technology. It takes courageous leadership, relentless focus, and a willingness to challenge the status quo.

To avoid failure, organisations must treat transformation as a business-wide priority, build change capability, and most importantly—lead with purpose.

Richard Keenlyside is the Global CIO for the LoneStar Group and a previous IT Director for J Sainsbury’s PLC.