How not to fail at large-scale transformation, against all odds

75% of transformation programmes fail to achieve their golas.

With so many complex moving pieces, it's not that success is not guaranteed - success is not even likely.

Why engage in large-scale transformation in the first place, if it's such a bad deal on average?

Because it's often unavoidable. Because it's the price corporations have to pay to grow, adapt, improve, innovate. Order has to break for "new" or "better" to have space.

This price you have to pay is not fixed though, and often you can tell something is heading for disaster or success from the way things are set up. In my experience as a strategy and management consultant, there are a few building blocks used or missed when establishing the foundation of a programme, that can signal the success or failiure with remarkable accuracy.

Fail at these, and it's likely the initiative will fail as well. Succed at these, and you're likely to maximise your chances of wheathering the many storms that the Universe will no doubt throw in your way.

1. Clearly define the problem or opportunity being addressed

Before beginning a corporate transformation program, it is important to have a clear and concise understanding of the issue or opportunity that the program is intended to address. This could be anything from a need to reduce costs and improve efficiency, to an opportunity to enter a new market or launch a new product. Clearly defining the problem or opportunity will ensure that the program is focused and effective, and will also help to align the program with the overall goals of the business.

A study by McKinsey found that organizations with a clear and well-communicated purpose were more likely to successfully execute their transformation programs. In fact, they found that companies with a clear purpose had 2.5 times the return on investment of those without a clear purpose.

2. Engage key stakeholders early on

In order for a corporate transformation program to be successful, it is necessary to have the support and engagement of key stakeholders across the organization. This includes executives, managers, and employees at all levels. To ensure that the perspectives and needs of these stakeholders are taken into account, it is important to engage them early on in the planning process. This can be done through focus groups, surveys, or one-on-one meetings.

According to a study by Bain & Company, organizations that engage employees in the planning and execution of their transformation programs are twice as likely to achieve their goals. By involving key stakeholders in the planning process, you can build buy-in and commitment to the program, which will be essential for its success.

3. Set clear, measurable goals

An important aspect of defining a corporate transformation program is setting clear, measurable goals. This will help to keep the program on track and allow for accurate measurement of progress. Goals should be specific, measurable, attainable, relevant, and time-bound (SMART). For instance, instead of setting a goal to "improve customer satisfaction," a more specific and measurable goal would be "increase customer satisfaction ratings by 10% within the next six months."

Having clear, measurable goals can also help to increase accountability and ensure that the program stays on track. A study by the Harvard Business Review found that organizations with clear performance metrics were three times more likely to successfully transform their businesses.

4. Develop a realistic plan and budget

An integral element of any corporate transformation program is a detailed plan outlining the steps required for implementation. This should include a timeline, key milestones, and a budget. It is essential to be realistic when developing the plan and budget, taking into account the resources that will be necessary and any potential challenges or risks that may arise. A realistic plan and budget will enable better management of the program and ensure that it stays on track.

According to a study by the Project Management Institute, organizations with strong project management practices were twice as likely to achieve their transformation goals. This includes having a clear plan and budget in place.

5. Communicate regularly with all stakeholders

Effective communication is crucial to the success of a corporate transformation program. It is important to keep all stakeholders informed about the progress of the program, as well