An analysis of the most pressing concerns based on insights from 1,000 UK business leaders.
Author: Gemma O’Hara
In the fast-paced and ever-evolving landscape of business, transformation has become a constant necessity. Whether driven by technology, AI, shifting markets or organisational restructuring, change is inevitable. But despite the increasing urgency for businesses to adapt, many organisations fail to achieve successful transformations. Why? The answer often lies in neglecting the most critical aspect of any change process: the people.
The people side of change: A strategic imperative
As organisations evolve, their leaders must recognise that true transformation goes beyond systems, processes or technology. At its core, transformation is a human endeavour. A business doesn’t innovate, serve customers or navigate change on its own; people do.
Yet, despite knowing this, many change initiatives falter due to one central issue: the failure to activate and engage the people who will drive and sustain these changes, according to and lack of management support. This statistic highlights a crucial truth: It’s not the lack of strategy or systems that causes failure, but the resistance or disengagement of the very people the change is meant to impact.
Change fatigue and resistance: Addressing the human element
Resistance to change is a natural, psychological response. When faced with uncertainty, fear of the unknown, or perceived threats to the status quo, employees often react with resistance. This is further compounded by "change fatigue," a condition where individuals, overwhelmed by constant change, struggle to embrace new initiatives. As reported by Prosci1, 43% of resistance occurs during the implementation phase. Without addressing these human barriers head-on, organisations risk failure even with the best strategies in place.
Effective change management recognises that people’s emotions, behaviours and beliefs are central to the success of any transformation. This means leaders must take the time to understand the impact of change on their people, create a compelling narrative and ensure that communication is clear, consistent and empathetic. According to McKinsey2, a staggering 70% of change programs fail due to employee resistance and often, businesses can reduce resistance, alleviate change fatigue and foster a more resilient workforce.
The role of leadership in people-led change
Leaders play a pivotal role in driving change, not only by defining the vision but also by motivating and empowering their teams to embrace new ways of working. According to a 2023 study by Prosci3, change efforts led by senior leaders have a significantly higher success rate, with up to 88% success when leadership is fully engaged. This underscores the importance of involving leaders at every stage of the transformation process—from vision creation to implementation.
But effective leadership in times of change goes beyond setting direction. Leaders must be equipped to manage change and inspire their teams. They need the right tools, training and support to communicate effectively and lead through times of uncertainty. This is where organisations need to invest in leadership development, ensuring that those at the helm can steer their teams through the emotional and psychological aspects of transformation.
Building a culture that supports change
While leadership is crucial, the broader organisational culture also plays a significant role in enabling or hindering change. A culture that is resistant to change, hierarchical or risk-averse will struggle to adopt new strategies or technologies. Conversely, a culture that fosters trust, collaboration, and innovation is more likely to embrace transformation successfully.
To cultivate such a culture, organisations need to address behaviours and attitudes across all levels. This includes ensuring that values, mission and vision align with the goals of transformation. Leaders must champion a culture of continuous learning, resilience and inclusivity, empowering employees to take ownership of change and contribute to its success.
Effective communication: The golden thread
Clear and compelling communication is the cornerstone of any successful change initiative. Employees need to understand not just what is changing, but why it is changing and how it will impact them. Communicating the vision for change, the benefits of transformation and the role each individual plays in the process can help align the organisation and reduce uncertainty.
In today’s digital age, communication is not just about delivering messages; it’s about creating a two-way dialogue. Regular feedback, listening to concerns and addressing questions in real-time can foster trust and create a sense of ownership among employees. By ensuring that communication channels are open and inclusive, organisations can navigate the complexities of change more effectively.
Conclusion: Transformation starts with people
Successful transformation is not just about deploying new technologies or redesigning processes; it is about engaging people at every level. It requires addressing the human side of change—understanding the emotional and psychological dynamics, empowering leadership, fostering a supportive culture, and ensuring clear, empathetic communication.
Change is inevitable, but its success is not. By prioritising people, organisations can unlock the full potential of transformation, achieving lasting success and sustainable growth. After all, change starts with people. So, let's start with them too.
