A frequently cited figure suggests that 60–70% of new business initiatives fail to achieve their intended outcomes. While the precise rate remains contested in the literature—with McKinsey surveys finding that only around 30% of transformations fully succeed and sustain results (McKinsey & Company, 2021)—one theme appears consistently: organisations underestimate the people side of change (Beer and Nohria, 2000; Hughes, 2011).
Dr Lynne Derman, Executive Director People & Talent at 21st Century
The approval of new initiatives does not create business value simply because they have been signed off by the executive team and a project management team assigned. Initiatives to improve business processes create value when people understand them, adopt them, and are able to sustain new ways of working.
Now is the time to think about change management
As organisations review strategies, budgets and projects for the year ahead, many will be making decisions about new systems, operating models, structures, processes, cost-saving initiatives, growth plans and technology investments. These initiatives may be strategically sound, financially justified and well presented. Yet without a formal change management process, many will struggle to deliver the value expected of them.
A project can be delivered on time and within budget but still fail to create value if employees do not adopt the new behaviour, managers do not reinforce it, customers experience something different, or the business does not embed the change into everyday practice. It is important to distinguish between implementation of a new initiative and actual adoption which leads to changed behaviour.
This is why change management cannot be treated as a communication plan developed shortly before launch. It needs to be built into strategic and operational planning from the beginning of the year. The earlier an organisation understands the scale, complexity, people impact and readiness of the change, the better equipped it is to design an approach that moves the initiative from strategic intent to sustained adoption.
Donve Anderson 1 Jun 2026 Why good strategies still fail
Many business initiatives begin with a clear strategic rationale. Leaders identify a need to improve efficiency, respond to market pressure, reduce cost, strengthen customer experience, modernise systems, address compliance, redesign the organisation or build new capability. The business case may be compelling. The project plan may be detailed. The budget may be approved.
However, the people impact is often considered too late.
Employees may not understand why the change is necessary. Managers may be unclear about what is expected of them. Stakeholders may not have been consulted. The organisation may not have the capability, capacity or appetite to absorb the change. Previous initiatives may have created fatigue or mistrust. Different teams may interpret the change differently. In some cases, the change may require people to let go of familiar routines, decision rights, roles, relationships or ways of measuring success. These are not soft issues. They are business risks.
When the people side of change is not properly diagnosed, organisations often see predictable consequences: low adoption, passive resistance, inconsistent implementation, duplication of effort, confusion, reduced productivity, increased anxiety and limited return on investment.
Change management has the biggest impact when it helps organisations identify these risks early enough to do something about them.
Frik van der Westhuizen 15 May 2026 Change begins before implementation
One of the common mistakes organisations make is assuming that change begins when the project is ready to launch. In reality change begins much earlier.
It begins when leaders decide which initiatives matter. It begins when budgets are allocated. It begins when the organisation makes choices about priorities, sequencing, resourcing and expected outcomes. It begins when employees start hearing fragments of information and forming their own conclusions about what may be coming.
By the time a formal announcement is made, people may already have developed expectations, concerns or resistance.
For this reason, change management should be incorporated at the planning stage. This allows organisations to ask important questions before implementation pressure takes over:
- What is the real purpose of the change?
- Who will be impacted, and how?
- How ready is the organisation?
- What level of behaviour change is required?
- Which leaders and managers will need to sponsor and reinforce the change?
- What capability must be built?
- What risks could prevent adoption?
- How will success be measured beyond project delivery?
These questions help shift the focus from “What are we implementing?” to “What needs to change in the organisation for this initiative to deliver value?”
Calibrating the scale and complexity of change
Not all change requires the same level of support. A small process improvement, a major restructuring, a new technology platform and a culture transformation cannot be managed in the same way.
This is why calibration is essential.
This enables the organisation to determine the level of change management effort required and to avoid both under-managing and over-engineering the change.
A useful change calibration considers several dimensions:
- How many people will be affected?
- How significantly will their work change?
- Will roles, structures or reporting lines shift?
- Are new skills required?
- Will there be job security concerns?
- Is the change aligned with other initiatives?
- How much trust exists between employees and leadership?
- Has the organisation successfully managed similar changes before?
These questions provide a more realistic view of the change landscape. Without this understanding, organisations may assume that a single announcement, training session or project update is sufficient. In more complex changes, this is rarely the case.
People need context, involvement, capability, leadership support and reinforcement. The greater the impact of the change initiative, the more deliberate the change approach needs to be.
From intent to impact
Change only creates value when people do something differently, consistently and effectively. This is why change management belongs at the planning table. It helps organisations move beyond approval, launch and implementation towards adoption, performance and sustainable impact.
By calibrating the scale, complexity, people impact and readiness of each initiative, organisations can make better decisions, reduce implementation risk and strengthen the likelihood that strategic intent becomes business value.
As organisations review strategies, budgets and projects for the year ahead, the most important question may not be whether the initiative is strategically important. It may be whether the organisation is ready to adopt it.
Successful change is not achieved when a project goes live. It is achieved when people understand the purpose, trust the process, adopt the new behaviours and sustain the change long after implementation.
