Change is inevitable, but not all companies achieve successful transformations. In a recent McKinsey Global Survey on transformations, partner Rajesh Krishnan and coauthors note that organizations implementing four broad elements—rigor, scope, skill, and will—are likelier to outperform peers whose transformations included just one of those elements: at 39 percent, compared with 16 percent.
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A dot plot on a 100% scale shows the shares of respondents reporting improved organizational performance and subsequent outperformance versus peers, classified by 7 actions and whether the respondents’ organizations took them. These actions include fostering understanding and conviction, role modeling, building skills, applying skills, moving quickly to realize impact, embedding reinforcement mechanisms, and striving for holistic impact. There are 2 actions that show the disparity between the effects of action and inaction on both organizational performance and outperformance versus peers: building skills, in which respondents taking action were 2.2 times more likely to report improved organizational performance and 1.5 times more likely to report outperformance, and applying skills, in which they were 1.4and 4.0 times more likely to, respectively.
Source: McKinsey Global Survey on transformation, Apr 11–25, 2023 (n = 472).
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To read the article, see “How to gain and sustain a competitive edge through transformation,” October 16, 2023.