Change management in business transformation

“In the realm of digital and business transformations, the path to success is fraught with challenges, with a startling reality that 70 per cent of these initiatives fail”, said Andreas Papadopoulos, Workforce Transformation and Consultant at PwC Cyprus.

This statistic underscores the urgent need for organisations to navigate the delicate balance between preparing for the future and maintaining current operations. It’s a stark reminder that recognising and addressing the key challenges of change is paramount for any organisation aiming to defy the odds and secure a successful transformation.

Firstly, it is crucial to recognise that in every transformation, there will inevitably be individuals who stand to lose. Papadopoulos insightfully pointed out, “Avoiding the hard truth that some people need to reposition themselves in the organization to stay relevant is not a sign of compassion, but rather irresponsible leadership to both the organisation and its people.”

He emphasised the importance of clarity about the future to prevent rumours, tensions, and ultimately resistance from those whose future seems uncertain. Demonstrating effective leadership means envisioning the future, anticipating change, and planning for it, including identifying roles for individuals in structures and operating models that may not yet exist. “In practical terms, identify your ‘losers,’ plan their future paths, involve them, and upskill them to turn them into ‘winners,'” Papadopoulos added.

Secondly, a traditional leadership stance is insufficient for navigating the complexities of transformation. Aligning the transformation with the organization’s future direction and setting the appropriate tone from the top is crucial, but, as Papadopoulos remarked, “they are simply not enough today.”

He emphasised the importance of empowering middle management to operationalise the vision with clarity and enable swift decision-making.

“A distant leadership approach exposes middle management to turbulence, including difficult conversations with subordinates, demanding transformation deadlines, and, worst of all, a blame game

when things go off course,” he mentioned, stressing that leadership must actively manage these dynamics. A conventional approach to leadership, focusing merely on high-level oversight, will not suffice.

Thirdly, it is a mistake to treat transformation as a mere destination. Papadopoulos wisely noted, “The idea that we will deliver the transformation project and then sit back and enjoy the benefits is naive.” He highlighted how external factors like digital advancements, policies, megatrends around healthcare, climate change, and demographic shifts necessitate continuous reinvention and change in business conduct. “Therefore,” Papadopoulos added, “there is a need to view business transformation as a continuous journey that constantly needs rethinking towards a viable tomorrow, rather than a destination you aim to reach.”

Realising these three critical challenges—acknowledging the reality of ‘losers’ in transformation, moving beyond traditional leadership models, and viewing transformation as an ongoing journey—is essential for organisations aiming for successful business transformation.