(gentle music)
Narrator: Transformation, it seems like every CEO
is talking about it in today's uncertain
and volatile global business environment.
But they're finding that organizational change
is easier said than done.
In fact, around 70% of such initiatives
fall well short of their intended goals.
A common reason is that leaders often under appreciate
the importance of changing mindsets and behaviors.
From behavioral science,
we know the human biases make change difficult.
We struggle to turn intention into action.
We lean towards preserving the status quo.
We fear failure more than we seek success.
How can you overcome these mental roadblocks to change?
Leaders should adopt the following three priorities.
(gentle upbeat music)
-: First, set a transformational ambition.
Set high aspiration and overarching strategic financial
and operational initiatives needed to get there.
Declare war on the three enemies of operational excellence:
waste, overburdened people, and uneven loading on
operations. And instill new principles and practices.
They should include a willingness
to challenge the status quo, new ways of working,
and empowerment of frontline teams.
-: Second, organizations, leaders,
individuals need to develop the right mindsets
and behaviors.
We have found that transformations
have a much higher rate of success when leaders are focused
on achieving sustained behavior change.
From our experience and applying the lessons
of behavioral science, there are four keys here.
First, the ambition and vision must be clear,
and it must be authentic.
Second, leaders have to walk the walk,
not just talk the talk.
In our experience,
the chances of successful behavioral adoption
across an organization are up to 80% higher
when leaders are acting as role models for that behavior.
Third, organizations need to invest
in building the right capabilities
and skills to deliver on the vision.
And then you need to align organizational structure
and processes to support that vision.
Narrator: To embed these best practices,
anchor the desired behavior changes with guidelines,
rules, and targets; be transparent about progress
through dashboards, check-ins, and other techniques;
establish accountability by showing that behavior change
is being monitored; and provide consequences,
both positive and negative, for behavior change.
-: Third, build and track the right capabilities.
Employees' mindsets shift when they have the opportunity
to learn and use new skills and when they're recognized
for higher performance.
Provide coaching for managers
to help them in the transformation journey,
rotate shop floor team members into improvement roles,
and provide training for employees
into how to solve problems in faster and more agile ways.
Narrator: In today's volatile times,
organizational transformation is becoming imperative.
With our industry-leading change management capabilities
and expertise in behavioral science,
BCG can help you succeed in this journey.
(gentle upbeat music)