Rachel McKlindon, an associate partner at McKinsey and a leader in transformation for industrial clients, joins in an insightful discussion on sustaining transformation success. They dive into the critical cultural shifts required for long-term change, the importance of integrating transformation into daily operations, and the role of accountability in measuring success. The conversation also explores how innovation, effective communication, and a supportive organizational culture can keep momentum alive and drive meaningful progress.
Successful transformations depend on cultural shifts and engaging around 60% of the workforce to mitigate resistance to change.
Organizations must build an 'improvement engine' post-transformation to continuously deliver value and integrate initiatives with daily operations.
Deep dives
Embedding Cultural Change in Transformations
Successful transformations require not just operational changes but also significant cultural shifts within an organization. Mindset shifts are integral to ensuring long-lasting results, as leaders must engage a substantial portion of the workforce—around 60%—in the transformation process. This engagement helps mitigate natural resistance to change and emphasizes the importance of understanding the 'why' behind the initiatives. When cultural change is embedded within the deliverables of an initiative, it enhances the likelihood of achieving sustainable results.
Sustaining Transformation Momentum
To maintain momentum post-initial transformation successes, organizations must build an 'improvement engine' that continuously delivers value. This involves creating a robust structure that keeps focusing on the full potential of the organization beyond the transformation phase. For example, companies can benefit from regularly measuring performance against set targets to close performance gaps continuously. This process ensures that the mindset shifts achieved during transformation can evolve into a culture of ongoing improvement.
Integrating Transformation with Day-to-Day Operations
Organizations often make the mistake of running transformation efforts in isolation, which can create friction with daily operations. Effective transformations require leaders to connect transformation initiatives with everyday business functions to avoid overburdening limited leadership resources. This integration allows for clearer accountability and fosters a culture where line leaders are empowered to drive change within their teams. By making transformation part of daily activities, organizations reduce the risk of a return to previous practices once the transformation program concludes.
Establishing a Framework for Continuous Improvement
A successful transformation framework comprises several key components: clear targets, defined accountability, glide paths for performance, incentives tied to metrics, and real-time progress monitoring. This operating backbone helps an organization stay aligned with both transformation goals and everyday operations. For example, setting clear ownership over metrics ensures that individuals are accountable for outcomes, while glide paths help track and adjust progress toward targets. Overall, this structured approach facilitates adaptability and alignment, enabling organizations to thrive even amidst ongoing challenges.
Too often, business transformation is treated as a short-term exercise or financial goal. In this episode, three of our transformation experts share the core elements of a sustained transformation, in which mindsets shift, expectations change, and new heights are reached.