The technology vice president of a local financial services company was frustrated. A bottom-line strategy depended on the success of a recent reorganization. Unfortunately, the reorganization was not generating the expected results. In fact, people were behaving just as usual, despite new reporting relationships and a redesigned divisional structure.
This situation is more often the case than not: leaders design and institute strategies that fail to achieve results. According to a 2006 McKinsey survey, only 38 percent of change initiatives were completely or mostly successful at improving performance.
In other words, even when strategies are successful, they don’t come close to returning intended results.