Why 70% of Changes Fail: A Leader's Communication Guide to Beating the Odds in Organisational Shifts
- Kerrie Smit
- Jun 13
- 4 min read
Communication is the backbone of any successful human endeavour, relationship or organisation, especially during times of transition. As businesses work through change, effective communication becomes critical. This blog post explores the significance of communication during organisational shifts, highlighting its role in facilitating smoother transitions, bolstering employee morale, and ensuring alignment throughout the company.
Understanding organisational shifts
Otherwise known as 'change', an organisational shift can occur for many reasons. It could be a merger, acquisition, restructuring, new systems or a pivot in business strategy. Regardless of the cause, these transitions often create uncertainty among employees. To mitigate confusion and anxiety, clear and consistent communication is essential.
During organisational shifts, leaders must articulate the reasons behind the change, share the expected outcomes, and provide a roadmap for navigating the new landscape. For example, when a company decides to restructure, management must outline how the changes will benefit the organisation and its employees. By doing so, they can emphasise a sense of purpose and direction.
The Importance of Transparent Communication
Transparent communication is crucial during periods of change. Employees can often feel anxious when faced with uncertainty, so it is important for leaders to be open about what is happening. Regular updates about changes, upcoming initiatives, and the reasons behind specific decisions help build trust.
For instance, when an organisation announces a major restructuring, leaders should use various methods to be clear about what the restructuring will mean, and what it won't mean for employees. For instance, leaders can hold town hall meetings, send emails, and provide updates through internal communications. By sharing information consistently, employees are more likely to feel included and understand their role in the greater picture.
According to a study by McKinsey, 70% of organisational change efforts fail due to lack of communication. This statistic underscores the need for strong communication strategies in facilitating corporate transitions.
The more memorable and targeted the communications, the more successful they will be in managing expectations and fear of change.
Engaging Employees in the Process
Engaging employees during organisational shifts is key to facilitating their movement through a transition smoothly. When employees feel they have a voice and their opinions matter, they are more likely to support the changes. This can be done through feedback sessions, surveys, or creating focus groups that allow employees to express their concerns and ideas.
For example, when introducing a new technology platform, a company may invite a select group of employees to pilot the system and provide feedback. This not only empowers employees but also helps the organisation refine its approach based on real-world input.
The Role of Leadership in Communication
Effective communication during organisational shifts often begins at the top. Leaders must lead by example, embodying the values and vision they wish to convey. By being visible and approachable, leaders can create an environment conducive to open dialogue.
During a shift, leaders should communicate their vision and encourage managers at all levels to do the same. This cascading communication strategy ensures that the message resonates throughout the organisation and aligns efforts towards a common goal.
Developing a Communication Strategy
To navigate through organisational change effectively - avoiding the 70% failure rate - it is essential to have a well-defined communication strategy. Here are several practical steps to consider:
Identify key messages: Determine what messages are crucial to share and prioritise clarity and conciseness.
Utilise multiple channels: Different employees prefer various communication channels. Consider using emails, intranet updates, webinars, and face-to-face meetings to cater to diverse preferences.
Establish feedback mechanisms: Create outlets for employees to voice their thoughts, such as anonymous surveys or suggestion boxes. This can take the heat out of negative employee sentiment, and will reinforce the notion that leadership values employee input.
Train managers: Equip managers with the skills to communicate effectively and empathetically. They play a pivotal role in supporting their teams through transitions.
By implementing these steps, organisations can foster a culture of communication that supports ongoing change.
Measuring the Effectiveness of Communication
Evaluating the success of communication efforts is critical to improving strategies. Here are some metrics organisations can use to assess the impact of their communication:
Employee feedback: Regularly solicit feedback through surveys to understand how employees perceive communication during the change.
Engagement levels: Monitor employee engagement metrics, such as participation in meetings or response rates to communication initiatives.
Turnover rates: High turnover during or after a change may indicate communication issues. Analysing turnover rates can reveal underlying problems.
By assessing these metrics, organisations can identify areas for improvement and refine their communication strategies accordingly.
Building a Culture of Open Communication
A lasting legacy of effective communication during organisational shifts is the establishment of a culture of openness. Organisations that prioritise transparency and encourage dialogue tend to experience more successful transitions and improved employee satisfaction.
Encourage leaders to share both successes and challenges openly. This practice enables trust and encourages employees to voice their opinions without fear of repercussions. Furthermore, developing a culture where feedback is viewed positively can facilitate growth and innovation.
To create a culture of open communication, consider implementing regular forums to discuss progress and share insights. Recognise and reward team members who demonstrate strong communication skills and uphold a culture of transparency.
Navigating Future Changes with Strength
As organisations continue to evolve, the need for effective communication will only grow. Preparing for future transitions involves learning from past experiences and placing a priority on enhancing communication strategies.
Creating a robust communication framework can help organisations swiftly address new challenges. Consistently evaluating the effectiveness of these communication strategies ensures that leaders can adapt as needed, keeping employees informed and engaged.
In conclusion, the role of communication in organisational shifts cannot be overstated. It is essential for fostering unity and helping organisations navigate through change effectively. Leaders must understand that their communication during these times has a lasting impact on employee morale and the overall success of the transition.
Effective communication not only plays a crucial role in managing the present, but it also shapes the future of the organisation as it works through continuous change and growth. For more insights into effective approaches to managing organisational change, visit Agencia Change.
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