The Paradox of Change

Humans are uniquely adaptable—we've thrived as a species because of our ability to change and evolve. Yet when faced with organisational transformation, people often struggle to embrace change, even when the stakes are high. This paradox lies at the heart of why so many transformation efforts fail.

The research, based on surveys of over 2,000 leaders and workers across 23 countries, identifies a stark reality: 67% of senior leaders have experienced at least one underperforming transformation in the past five years. More concerning still, the emotional toll of failed transformations creates a vicious cycle that makes future change even more difficult.

The Emotional Journey Matters

One of the study's most revealing findings centres on the emotional experience of transformation. In successful transformations, leaders maintained positive emotions throughout the process, ending with feelings of happiness and excitement. Workers, whilst starting slightly less positive than leaders, finished 12 percentage points more positive.

Contrast this with underperforming transformations: negative emotions overtook positive ones partway through, with the majority of leaders expressing upset or depression by the end. Workers experienced an even steeper emotional decline, with negative emotions spiking 136% during transformations that underperformed.

This emotional dimension isn't just a "soft" consideration—it's a critical success factor that directly impacts business outcomes.

Six Drivers of Transformation Success

The research identifies six key drivers that organisations must master to achieve transformation success:

1. Lead: Transform Yourself First

Successful transformation begins with personal transformation. Leaders must develop self-awareness, demonstrate courage and curiosity, and select the right team. As one executive noted: "If you are not ready to change yourself, forget about changing your team and your organisation."

2. Inspire: Create a Compelling Vision

Don't wait for a burning platform—be the fire. Successful leaders craft future-back visions and collaborate with workers to create a compelling "why" that everyone can believe in. Nearly half (48%) of high-performing transformations had leaders who clearly articulated why change was needed, compared to just 25% of low-performing ones.

3. Care: Build Emotional Support

Create psychological safety by being transparent about the transformation journey's challenges. Don't wait for employees to "speak up"—proactively "call up" by seeking out dissenting voices and understanding concerns. Over half (52%) of high-performing transformations provided the emotional support workers needed.

4. Empower: Enable Disciplined Freedom

Expect the "corkscrew"—transformations aren't linear. Realign power and resources whilst setting clear boundaries for experimentation. Create safe spaces for innovation where failed experiments don't negatively impact careers. High-performing transformations were significantly more likely to encourage experimentation (46% vs 29%).

5. Build: Make Technology Human-Centred

Use technology to make the vision real, not as an end in itself. Recognise the emotional impact of technological change and develop both skillsets and mindsets. Focus should be "10% on technology, 90% on people," as one leader put it.

6. Collaborate: Foster New Ways of Working

Consciously create space for new ways of working through co-creation between leaders and workers. Build interdependency among teams and empower workers to redesign their own work. Over 40% of high-performing transformations consciously implemented new organisational cultures.

Practical Implications for Leaders

The research offers several practical takeaways:

Start with yourself: Invest time and resources in your own emotional journey before expecting others to change.

Be proactive in communication: Don't just broadcast your vision—create dialogue. Call up workers rather than waiting for them to speak up.

Normalise the journey: Be honest about challenges and setbacks. Paint a realistic picture rather than an overly optimistic one.

Invest in emotional infrastructure: Provide coaching, support, and safe spaces for experimentation alongside technological infrastructure.

Measure emotional outcomes: Track how people are feeling throughout the transformation, not just traditional KPIs.

The Business Case for Human-Centred Transformation

The financial argument is compelling. Organisations excelling in all six drivers see their likelihood of success increase from 28% to 73%—nearly tripling their odds of success. Moreover, successful transformations create positive momentum for future change initiatives, whilst failed ones leave lasting emotional damage that makes subsequent transformations even more difficult.

Conclusion

Transformation isn't just about technology, processes, or strategy—it's fundamentally about people. The organisations that recognise this human dimension and actively invest in both the rational and emotional journey of transformation are the ones that will thrive in our rapidly changing world.

As we implement new technologies like Microsoft Entra Suite or undertake any major organisational change, the lesson is clear: put humans at the centre, and the technology will follow. Ignore the human element at your peril—because transformation is, ultimately, profoundly human.


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The research findings discussed in this post are based on "The Future of Transformation is Human," a collaborative study by Oxford's Saïd Business School and EY, surveying over 2,000 leaders and workers across 23 countries and 16 industry sectors.