Perpetual Transformation | Page 2

Challenges ahead

Most companies fail to successfully launch , drive , and sustain their transformation efforts – they do not sufficiently drive behavioral change and fail to unlock the full value of their transformation ambition

5 out of

10

S & P 500 COMPANIES will be replaced over the next ten years

9 out of

10

COMPANIES have launched one or more transformation projects in the last ten years

8 out of

10

TRANSFORMATION PROGRAMS do not achieve their financial and operational targets
LAUNCH
• Setting targets too conservative or optimistic
• Lack of shared purpose and alignment among leadership team
• Lack of commitment by leadership team
SUSTAIN
• Insufficient communication of purpose
• Failure to engage employees and drive behavioral change to overcome resistance
• Overstressing of employees and lack of building required capabilities

TRANS- FORMATION

DRIVE
• Insufficient linkage of initiative targets to financial and / or strategic goals
• Unbalanced portfolio of initiatives ( i . e ., focus on short-term cost reduction )
• Insufficient accountability and / or capabilities among initiative owners
• Missing transparency on progress and execution due to poor definition of targets , milestones , and responsibilities
Source : goetzpartners
2