According to a McKinsey report published in 2004, leadership initiatives that focus on organizational and cultural transformation will be managed on a rate of 40% or failed with a change of 60%. Research has discovered some of the key elements that separate success from failure, including:
- Clear written goals
- Leadership
- Structure aligned
- Commitment
These elements can be grouped as factors of sustainable development. Moreover, these factors could be included in one or more of these three buckets:
- People
- Processes or operations
- Environment
Although many consider the sustainability of a more “green movement”, this term is really, and to maximize the benefit of all the resources of each organization and, above all, understand the impact of decisions on such resources. By accepting this new paradigm or mindset, allows the organization to cross the only really alive and thrive. The advantage is high profitability.
What was interesting in the results of this study are the organizations that are in defensive mode have much less successful (34%) to achieve transformational change. This can be explained, because they have failed to address this change management initiative from a loan perspective of sustainability. Instead, they are in survival mode because they were forced to this position. Being proactive rather than reactive not work well when you try to gain a competitive advantage.
Think about life in general. When people are more active for their health, their homes, their personal finances, etc., must anticipate problems and be prepared to deal with them before birth. Why organizations composed of people who would be a different story?
Another interesting aspect was the impact of leadership. The leaders, who had problems with an open mind, ability and willingness of the more successful sustainable change.
This way of thinking in viewing the organization was also critical. Using a health point of view, I think of people as a system with interconnected components strengthened the focus is on corporate health. When all the organizations have a group of people to achieve objectives, combined, it would be much more difficult to achieve individually.
Transformational change is fast and may require a commitment of 3 to 5 years. The five stages of change management are:
- Recognize
- Start
- Realize
- Put into practice
- Transform
Each stage of change management is ready to sustainability and supports the next step. More steps work in collaboration with management and employees have passed a competitive advantage in a competition to be visionary.
To have a strategic competitive advantage requires an open mind and looking at the return from three sources of income and expenses as indicated above. Executive leadership to adopt this new paradigm will be the cultural transformation as a safe and sustainable profitability.