There have been surprisingly few studies that set out to quantify what makes for a successful corporate transformation. Using a meta-analysis that crunched data on financial performance as well as corporate reputation, the authors examined 128 global companies that had undergone transformation between 2016 and 2020 and found that: 1) Transformation is even harder than expected (only 22% of companies in their sample were successful), and 2) Successful companies shared a common focus on initiatives that prioritized employees, including DE&I programs and support for women managers’ careers, in addition to competitive pay and access to health care.
Successful enterprise transformation has long been considered the holy grail of the corporate world — continually sought after, but difficult to grasp. More than 25 years ago, John Kotter highlighted the challenge when he made his now-famous assertion that 70% of corporate transformation efforts are doomed to fail.
Is Kotter’s number accurate? And what makes a successful transformation? There have been surprisingly few studies that set out to answer these questions in a quantitative way. So last fall, our three organizations, Copperfield Advisory (Copperfield), Insider, and Revolution Insights Group (RIG) came together as a team to determine what puts some companies on the path to success.
Read the full article on the HBR website via this link.
Source: HBR, Paul A. Argenti, Jenifer Berman, Ryan Calsbeek, and Andrew Whitehouse