[This article is based on a presentation given by Shehryar Gilani, Director of Financial Planning and Analysis and Performance at L&Q at our FP&A Summit, London in 2023. Catch up with this presentation, and others, using our OnDemand service. For more exclusive content, visit your membership dashboard.]

Change is inevitable. But why do so many change initiatives fail, even when we, as leaders, embrace new technologies and strategies?

This question has been on my mind for a while, and I believe it boils down to three key factors: fear, despondency, and change fatigue.

In this article, we’ll dig into these hurdles and share some practical strategies for building a strong, flexible business culture that can thrive through change.

Topics covered:

Why do 75% of change projects fail?

Did you know that three-quarters of change projects fail? That’s a staggering statistic, and it’s not because leaders lack good ideas or the right tools. It’s about people.

Human emotions, resistance, and lack of buy-in can cripple even the most well-structured initiatives. When I look back on projects that have faltered, I see three recurring themes:

Fear

People fear change because it threatens their sense of competence. For example, early in my career, I was known as the “Excel Guru.” Back then, VLOOKUP was groundbreaking, and people would come to me for advice.

But when a new hire came in who was faster and more skilled, I felt threatened. This fear is universal. People worry about being exposed as less competent or becoming obsolete. Addressing these fears head-on and showing how change enhances roles rather than diminishes them is critical.

Despondency

Despondency often arises from repeated failed attempts at change. Teams have seen initiatives come and go, often without long-term success.

The result?

A pervasive attitude of, “Why should I bother? It won’t work.”

To counter this, leaders need to demonstrate that this time is different - because it’s backed by thoughtful planning and a focus on outcomes.

Change fatigue

We live in a world where changes are happening at breakneck speed. I’ve been guilty of what my wife calls the “squirrel complex” - chasing every shiny new idea and losing focus on the current project.

This constant pivoting leads to change fatigue, leaving teams drained and disillusioned. Leaders must prioritize, communicate effectively, and ensure that each change is thoughtfully managed, rather than jumping from one initiative to another.