In business, “transformation” is a term that’s often overused. Many leaders refer to any large-scale change—like a reorganisation or tech upgrade—as a transformation. But is that accurate?
I’d argue that true transformation goes beyond improving HOW a company operates; it’s something more fundamental, changing WHAT it does and what value it delivers to its customers.
Harvard Business Review defines real transformation as changing at least 40% of a company’s core operations into something new or unrecognisable. Think of Ørsted’s shift from fossil fuels to renewables, Netflix’s leap from DVD rentals to streaming, and Amazon’s move into cloud computing. In the early ’00s music companies had to rapidly shift from selling CDs to developing new digital models, fundamentally changing the type of business they were.
These companies didn’t just improve—they became something fundamentally different.
Why Does This Matter?
Recognising true transformation is important because traditional project and change management methods often fall short. As John Kotter notes, most change efforts fail because they rely on outdated approaches that simply don’t match the scale or nature of transformation needed.
5 Keys to Successful Transformation
With transformational change it’s even more important to focus on the human aspects and essentially create a movement for change, an energy that feels unstoppable. Dial up engagement and dial down the emphasis on management and control, focusing on mission clarity. Here are 5 key focus areas to get you started:
1. Transform Yourself First
Leaders must challenge their own beliefs and behaviours. If you aren’t willing to change, why should anyone else? Model the behaviours you want to see: openness to new ideas, willingness to take calculated risks and push the boundaries. Transformation starts at the top.
2. Create a Purpose People Believe In
Transformation needs more than compliance—it needs commitment. People engage deeply when they see their work as meaningful. Beyond financial considerations, a sense of purpose drives genuine engagement. Focus on the endpoint and beneficiaries of the transformation. Who are you ultimately serving and why does it matter? The more your employees feel connected to meaningful outcomes and in the driving seat of the change they more committed and inventive they will be in ensuring its success.
3. Cultivate a Growth Mindset
Transformation is a journey, not a destination. Encourage a culture where experimentation, failure, and learning are integral to the process. Being prepared to try things that will most likely not work first time is critical to exploring new horizons and pushing existing boundaries. When teams see failure as an opportunity to learn rather than a setback, they become more resilient and creative.
4. Recognise That Emotions Drive Change
People don’t make decisions based solely on logic. Their actions are driven by emotions and perceptions. Understand that fears, biases, and habits will impact how they respond to change. Address both rational and emotional needs through clear communication, empathy, and trust-building.
5. Prioritise Psychological Safety
Transformational change normally brings fear and uncertainty, especially around job security and roles. To avoid unnecessary anxiety and rumours, communicate early and often. Be transparent, empathetic, and genuine. When people feel safe, they’re more likely to embrace change rather than resist it. The more people feel a sense of agency over the direction of the change and their role in it the less likely they are to resist it.
6. Don’t Leave It To Chance
A big mistake made by most leaders is failing to effectively take the pulse of the organisation throughout the change, so it’s then left to chance how people really feel. The mood can change rapidly due to external events so it’s important to be on the front foot, helping people to remain empowered throughout.
Key Takeaway
Real transformation isn’t just about new processes or technology; it goes deeper. It involves changing mindsets, pushing boundaries and challenging the very fabric of the organisation. Real change starts from within—both for leaders and their employees. To drive true transformation, focus on transforming yourself first and leading by example, emphasising a sense of purpose, a growth mindset and emotional connection to the outcomes.
Leave a comment below with your experience of transformational change.
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