Transformation Success: Seats Over Strategy

I was once involved with a transformation programme aiming to improve customer experience, increase free cash flow, and decrease risk exposure. The advantages were clear and the rhetoric at board level underscored the organisation's commitment. Teams were mobilised, off-sites were planned, and millions of dollars were invested. Yet, eighteen months later, the programme was moribund. What went wrong and what can we learn to avoid similar failures?

While reasons cited often include technological blockers, budget constraints, or market headwinds, my experience suggests there is a more fundamental issue. Assuming your goal is clear, the single most important factor determining transformation success is not technology, budget, or the macro environment—it is who is in your boat. Do you have the right team in place with the right skills and the right level of commitment? Are people willing to take ownership?

In private equity-backed businesses, there is an explicit focus on building teams that are able to deliver the value creation plan and an eventual exit. Public companies would benefit from a similar emphasis. After all, in many scenarios the degree of complexity and the scale of the transformation will be even greater. In other words, the journey will take longer and the commensurate level of commitment required is higher. So how should leaders set teams up for success?

Firstly, know who wants to be in the boat. One can fall into the trap of believing everyone is excited by transformation. However, there will be those who have already been through one or more change programmes and have little desire to embark on yet another one. Being able to distinguish between who is committed to the new journey, and who would rather move on to a different adventure is critical. Leaders should be empathetic to this range of attitudes.

Secondly, for those committed, are they set up for success? As with rowing, if you have talent in the wrong seat, the whole boat pays the price. Answering this question involves balancing capabilities with present and future operating model requirements. This is not a one-time assessment but an ongoing process. The skills and mindsets needed will evolve as you progress from strategy to execution to scaling. Effective leaders anticipate these shifts and proactively develop talent pipelines and mentor high-potential employees for future roles.

Thirdly, leaders must be prepared to have candid conversations. Earlier in my career, I identified a manager who was inadvertently undermining the digital transformation by defending legacy systems and processes. Rather than hoping the issue would resolve itself, we had an open discussion which led to the person deciding to move into another part of the organisation where they would not have to champion change. As uncomfortable as these discussions can be, they are less painful than explaining why a multi-million dollar transformation failed.

Delivering meaningful change is rarely easy. For transformation programmes, making it across the finish line starts with having the right people in the boat—and ensuring they are willing to put in the effort. Blind faith in an overarching change narrative might be comforting, but it is not effective. As we face an era of unprecedented disruption with the acceleration of AI capabilities, the organisations that will thrive are those whose leaders understand their teams.

– Ryan

Image by ChatGPT.