One in four Australian businesses recorded a high change readiness score. But why does this matter?
Change-ready businesses grow faster; perform ahead of their industry or category; and are more experienced and successful in dealing with change.
We’ll discover how being always ready for change is good for business.
If you're not ready for change, then growth is guaranteed not to happen. Your business has a life expectancy of about five years.
Change-ready businesses are performance leaders
The relationship between change readiness and business performance is linear – the higher the change readiness score, the more likely the business will perform well.
Over half (58%) of change-ready businesses say they are performing stronger than their competitors. This figure drops to 32% for less change-ready businesses.
Change readiness equals high growth
Change-ready businesses grow faster than other businesses. Based on their self-assessments, they are more than twice as likely as less change-ready businesses to have overachieved on their growth targets over the past two or three years.
When change is happening around you and you are changing with it, it sends a strong message that you’ll have a healthy business tomorrow.
Change programs often fail because there's no clear sense of progress. People get bogged down. Goals and targets shift autocratically. They’ve got contamination from existing incentives that reward particular behaviours that are not conducive to change.
Why change-ready businesses are better at transforming
Experience isn’t everything when it comes to successful change. Our research reveals businesses that have experience with change don’t necessarily have more success with their transformation initiatives.
What does make a significant difference is the change readiness of an organisation. Businesses that scored high on the change readiness scale succeeded with 75% of their transformation initiatives, while less-change ready businesses succeeded only 59% of the time.
Change is a positive, not a negative
Change-ready businesses take a positive view of change, focussing on external drivers. Their top two triggers for undergoing transformation were:
- meeting customers’ needs, and
- improving service delivery
Less change-ready businesses were more defensive and inward-looking. Their top two triggers were:
- reducing costs, and
- generating growth and increasing profits.
We always overestimate the time frame and underestimate the impact of change. We always think transformational change is going happen to faster than it does and we always underrate how transformative it's going to be.