Sensing, sense-making, acting - 12 times more likely to succeed in transformation programmes

Business Forum24 April, 2024 at 1:51 PM

The EY organization's latest research with Saïd Business School, at the University of Oxford, reveals new insights into what happens when a transformation program's leadership believes a transformation has or will go off-course and intervenes with the intent of improving its performance (turning points).

According to the joint research based on analysis of 846 senior leaders, and 840 workforce members, across 23 countries and 16 industry sectors, and five qualitative case studies, turning points are ubiquitous in nearly all transformation programs. 96% of respondents experienced at least one turning point over the course of a project, with 76% citing them as unavoidable in today's unpredictable business environment.

Data from the three-year collaboration with the EY organization and Oxford Saïd has highlighted that transformations are not linear, and that along with global volatility and the increased speed of disruption, new thinking is demanded around how leaders must navigate these turning points while also addressing the changing environment inside and outside an organization. The data reveals that at the center of this new thinking are humans.

The research finds that when leaders fail to take a human-centric approach to navigating turning points, the transformation program is 1.6x more likely to underperform and 3.5x more likely to leave workers experiencing negative emotions, such as anxiety, fear, and apprehension towards future change.

Yet, those who take an adaptive, people-centered view to a turning point are more likely to successfully steer the program back on course and can also potentially double (2.1x) the speed of the overall transformation program, improve the wider program performance against key performance indicators (KPIs) by nearly two-fold (1.9x) and support workforce readiness for the next transformation program (1.9x).

The study revealed a three-step human centered approach — Sensing, Sense-making, and Acting — that enhances the overall transformation chances of success by a factor of 12:

  • Sensing: Focusing on early detection by looking beyond traditional lagging KPIs to behavioral and emotional changes of the people involved in the transformation.
  • Sense-making: Identifying and addressing root causes of issues in collaboration with team members across the transformation program.
  • Acting: Reinforcing the six key drivers that set the conditions for successful transformations established in our initial whitepaper, these include engaged leadership, collaboration, fostering a culture of inspiration, empowerment, care, and finally recognition of the emotional impact of technology.

Claudia Sofianu, Partner, People Advisory Services leader, EY Romania: "The new edition of the survey reconfirms that when people are actively involved in a transformation process, they not only bring innovative ideas, but also become advocates for change. With a focus on continuous learning and adaptability, a people-centered approach ensures a program that remains flexible and responsive to evolving needs, thus maintaining its dynamism. While turning points are inevitable in a transformation program, in the current context, according to the study and as a novel element observed, the big difference is made by the organization's leaders in addressing them. Thus, those who see these turning points as opportunities to improve and accelerate the program are more likely to lead a successful transformational program."

The study has identified a new standard in helping leaders and their teams deliver transformation programs smoothly that moves beyond traditional KPI measurements and places a spotlight on the importance of comprehending the impact and role of human emotions as benchmarks in a transformation, demonstrating the power of placing humans at the center.

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