Why transformation efforts fail in change management

Change
Management
Leading Change: Why transformation
efforts fail.

Introduction
Change management is a critical aspect for the success of any organization. Rightly said, change
is the only constant. Organizations go through a lot of changes in their course. This includes
mergers, acquisitions, restructuring, resizing and going through a cultural change (Doppelt). It is
imperative that businesses manage this change in a proficient manner. This essay highlights upon
why organizational transformational efforts fail.
Leaders who competently bring about organizational changes are effective as well as efficient.
This indicates that they do the right things and they do things in the right manner (Cameron and
Green). Irrespective of the change strategy adopted by different business, their ultimate goal is
the same. That ultimate goal lies with the growth of the firm, improved efficiency, and increased
use of technology or coping with the changing market dynamics.
There are a large number of transformations that we have witnessed. A few of them have created
a significant mark in the industry while a lot of them continue to serve as examples of failed
transformation efforts by businesses. There can be various reasons behind why transformation
efforts fail. But what can be learnt from most of these transformation stories is that any kind of
transformation in business goes through a number of phases and usually requires a huge amount
of time. Skipping these steps might create an illusion of speed but does not actually help the
change process.
Why Transformation efforts fail?
The primary reason behind failing of transformation efforts is the inability of the leadership to
generate a sense of urgency within the organization regarding the need for the change (Raineri

262-272). The basic and the first effort that is required from the organization’s leaders is to
identify the need for change and effectively communicate that need to the entire business. This
sense of urgency plays the role of a motivator in helping involved teams understand that there is
a need to change.
General motors witnessed a reducing demand in the Asian market. The biggest market for GM in
the Asian subcontinent has been India. The country has been approached by various competing
firms. There were enough signs in the form of lowering demand that there is something new that
GM needs to do in order to successfully compete with Toyota, Maruti and Tata cars. However,
instead of working towards bringing that change, General Motors completely failed to create that
sense of urgency. By the time the brand introduced new models, it was late and the overall
demand for GM products had drastically reduced. Since the brand could not understand the need
to change, it could not cope up with the competing automobile scenario of the country. In May,
2017, the brand finally decided to cut ties with India and end its operations in the country. The
business suffered from mounting losses due to poor management, near-negligible sales and little
demand (Times of India, 2017).
The next big error that organizations commit while leading any kind of transformation is the lack
of clear vision. A vision is exactly what guides businesses to change and bring about that change
effectively. All the teams that need to effectively coordinate must create a picture of what the
future must look like. This first helps in clarifying that every team working on it in on the same
page and secondly it helps in communicating with business stakeholders including investors,
customers and governments. Without the presence of a sensible vision, an effort to transform can
dissolve into incompatible and confusing projects.