BCG Research: Most Business Transformations Fail Due to Misunderstanding Human Behavior
A new book by Boston Consulting Group identifies that the majority of business transformations fail not due to flawed strategy, but because leaders misunderstand how people actually change. The book offers practical principles for success.
Boston Consulting Group (BCG) has released a new book, "How Change Really Works," which examines the reasons behind the common failure of business transformations. The book argues that over 70% of change initiatives fall short of their original goals, not because of strategic missteps, but due to leaders' misunderstandings of human behavior during change.
Authored by BCG experts Julia Dhar, Kristy R. Ellmer, and Philip Jameson, the book synthesizes behavioral science research, executive interviews, and practical experience from leading large-scale transformations. It introduces seven science-based principles designed to enhance the success rate of organizational change efforts. Key principles include achieving genuine alignment, increasing employee agency, and actively reducing barriers to adoption.
"Leaders often focus on strategy and targets," stated Julia Dhar. "But change succeeds or fails in employees' daily experiences. Measuring emotions, removing barriers, and giving people real agency are operational necessities."
The book also provides a structured roadmap for implementing these principles, covering phases from deciding to change, planning, starting, persisting, and ending. BCG emphasizes that applying behavioral science to change management is no longer optional but essential in today's volatile business landscape.