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How to implement transformations for long-term impact

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Summary

This article discusses how organizations can implement transformations for long-term impact and sustain performance gains. The article outlines the four stages of a transformation and shows that, according to a McKinsey Global Survey, only 12% of respondents report that they have sustained their transformation goals for more than three years. It then outlines the attributes of top-performing organizations and explains that they are more likely to install a comprehensive and rigorous slate of implementation practices, focus on "people" goals, and commit appropriate resources to every stage of the effort. Finally, it discusses the value of getting implementation right and emphasizes the need for commitment, rigor, and passion throughout the transformation journey.

Q&As

What percentage of organizations achieve their transformation goals initially?
56 percent of respondents say their organizations have achieved most or all of their transformation goals.

How much value is lost in the executing and sustaining phases of a transformation?
42 percent of the potential financial benefit from their organizations’ transformations is lost during the latter of four stages of a large-scale change effort.

What is the average compound annual EBIT growth reported by those who achieve and sustain their performance goals for at least three years?
11 percent compound annual EBIT growth over the past five years.

What three implementation practices are more likely to be seen in organizations that succeed in their transformations?
Maintaining implementation rigor in the later phases of the program; focusing on “people” goals, including employee experience and talent management; and devoting appropriate resources to every stage of the effort.

How are top-performing organizations more likely to invest resources in their transformation programs?
Top performers are more likely than others to make their transformation a priority over other possible investments. They deploy their best people in critical program roles and provide the right level of financial support to foster a sustainable impact. They also keep the organization’s focus on minimizing the loss of value throughout a long transformation journey and use strategic resourcing to maintain pace and momentum.

AI Comments

👍 This article provides an excellent overview of the key steps necessary to successfully implement and sustain a long-term transformation effort in an organization. The survey results and analysis provide a great insight into how to achieve the best results.

👎 The article is overly long and contains too much detail that makes it difficult to quickly get the main points. There is also not enough focus on how to practically implement the strategies discussed.

AI Discussion

Me: It's about how organizations can implement transformations for long-term impact. It looks at the challenges organizations face when implementing transformations and how they can overcome them to achieve success.

Friend: Wow, that's really interesting. What are the implications of the article?

Me: The article highlights that long-term impact from transformations is rarer than one may think. Only 12 percent of respondents report that they have sustained their goals for more than three years. This means that organizations need to focus on executing and sustaining change throughout the transformation process. The article also points out that the top-performing organizations—those that achieved their transformation goals and sustained performance gains for at least three years—are more likely to install a comprehensive, rigorous slate of implementation practices over the program’s life span. They also focus on people-oriented transformation goals and commit enough resources to the effort. So it's important for organizations to commit to executing and sustaining changes over time in order to see the impact.

Action items

Research other successful transformation programs to understand the common attributes of top-performing organizations.
Develop a comprehensive, rigorous slate of implementation practices for your organization's transformation program.
Focus on people-oriented goals, including employee experience and talent management, and commit appropriate resources to every stage of the effort.

Technical terms

Transformation: A process of change in an organization, typically involving changes to processes, systems, structures, and/or culture.
Executing: The actions related to the rollout of designed initiatives, resource allocation, incentives, communication, role modeling, processes, and systems changes.
Sustaining: Those actions related to ensuring changes are embedded into business-as-usual structures of the organization after the transformation is completed and all initiatives have been executed.
Performance Goals: Goals set by an organization to measure the success of a transformation program.
Implementation Practices: Practices used to ensure the successful execution and sustaining of a transformation program.
People Goals: Goals related to employee experience and talent management.
Resources: Financial and personnel resources devoted to a transformation program.