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Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
Out of the comfort zone. Executives hired to disrupt organizations often encounter resistance to their ideas. This tendency to reject change is an organization’s “social defense”: an attempt to safeguard the traditions, structures, and cultures that make employees feel comfortable and safe, a psychiatrist and organizational expert explains. For a transformation to succeed, leaders must first show that they care why a tradition exists—whether it’s to create great content or to foster a diverse workforce, for instance. [HBR]
Building capabilities for change. Organizations are moving forward with digital transformations, but many may lack the skills needed to implement them. With leaders still grappling with tech talent shortages, companies are focusing on training existing employees. One CIO at a US university had students and other aspiring tech workers team up with mentors who could work alongside them. More than 40% of CIOs are planning to spend more on reskilling IT workers, a 2023 Gartner survey found. [CIO]
The need for speed. Transforming the portfolio, operating model, balance sheet, and digital and talent strategies can build enterprise-wide resilience. This helps organizations better handle adversity, respond nimbly to change, and thrive even in challenging times. Yet McKinsey research shows that transformations are tough to pull off. One factor especially stands out: speed. In today’s business environment, companies need value to land quickly, McKinsey partners Louisa Greco and Zachary Silverman share.
Start out right. One problem is that entrenched behaviors and practices can make it difficult to achieve rapid outcomes. Sprinting at the start turns the initial burst of ideas into an achievable, rigorous plan within a few short months. McKinsey analysis finds that successful transformations typically implemented initiatives that delivered 57% of value within six months and 74% of fully ramped-up value by the end of the first year. See three crucial actions organizations can take so that the changes in a transformation stick.
— Edited by Belinda Yu, editor, Atlanta
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