Oct 14 Change Isn’t the Problem. Leadership Is.
Seventy percent of organizational changes fail. That means for every ten CEOs or senior leaders trying to guide their teams through transformation, seven will fall short. Not because the strategy is wrong, but because the leadership is.
And the cost is immense. Failed change can drain billions in wasted investment, drive top talent away, erode shareholder trust, and leave organizations open to competitors. The ultimate result is irrelevance. Kodak, Blockbuster, and many others didn’t fail because their markets vanished; they failed because they didn’t adjust to changing conditions. They failed because their leaders mishandled change.
Organizations encounter change for various reasons. Sometimes it’s mergers or acquisitions; other times, it’s market disruption, regulatory changes, technological progress, or leadership shifts. The cause varies, but the core truth remains the same: how leaders guide people through change determines whether the company succeeds or stalls.
I collaborated with the senior leadership team of a traditional insurance company as they transitioned into a digital-first organization. Together, we crafted strategies for a smooth changeover and guided their teams through it. Today, they are the largest online provider of small business insurance in the country. When led effectively, change doesn’t just safeguard market position; it establishes dominance.
I have extensive knowledge of organizational change. Having led eight mergers and acquisitions as a senior executive and now advising large Fortune 100 firms and mid-sized companies, here’s what I’ve learned. What leaders often say about change is very different from what actually drives results.
10 Change Myths Leaders Believe vs. The Truth
Myth: We need clarity on where we’re headed.
Truth: You don’t need perfect clarity; you need decisive direction.
Leaders often hesitate until they believe every detail is in place. The problem is, by the time clarity appears, the opportunity has already passed. Sometimes being first beats striving for perfection. Most executives confuse clarity with certainty, but certainty is impossible in times of disruption. Companies that move with purpose and adjust as they outperform those that wait. McKinsey found decisive organizations delivered 33 percent higher shareholder returns during disruption.
Myth: Communication is the hardest part.
Truth: Communication is simpler when leaders listen rather than just broadcast.
Executives tend to think if they polish their message enough, people will fall in line. In reality, the real barrier isn’t communication, it’s listening. Most executives overestimate the power of the message they deliver and underestimate the power of the conversations they create.
Myth: My team is exhausted by constant change.
Truth: Teams aren’t exhausted by change; they’re exhausted by poorly led change.
Employees are not tired of change itself. They are tired of sloppy, poorly led change that feels chaotic and disconnected from purpose. People can embrace almost any change if they see why it matters and how they fit in.
Example: Netflix reinvented itself multiple times while keeping talent energized by tying each shift to opportunity.
Myth: How do I keep my high performers engaged?
Truth: Change succeeds when everyone, not just top performers, is engaged.
Leaders often over-focus on their stars at the expense of the broader organization. Real engagement only happens when everyone sees themselves in the future. If you only design change for your top ten percent, you risk losing the other ninety.
Myth: I don’t want to lose institutional knowledge.
Truth: The real advantage isn’t protecting knowledge, it’s building adaptability.
Executives fear losing what has made them successful in the past. The truth is, clinging to the past makes them blind to the future. Knowledge can keep you rooted, but adaptability propels you forward.
Example: Kodak clung to knowledge and collapsed. IBM thrived by focusing on reinvention and agility.
Myth: I need to maintain high morale without overpromising.
Truth: Morale rises when employees own the solution, not when leaders sugarcoat reality.
Leaders think morale comes from reassurance. In reality, people don’t need cheerleading, they need ownership. The strongest morale comes when employees see themselves as architects of change rather than passive recipients.
Myth: I’m worried about silos forming.
Truth: Change doesn’t create silos; it exposes them so you can dismantle them.
Executives often believe silos are created by change. The truth is silos already exist, and change simply brings them to light. The moment of change is actually the best opportunity to tear silos down because people expect disruption.
Myth: We can’t just wait for HR to fix this.
Truth: Change is never HR’s job; it is an executive team responsibility.
Many senior leaders push responsibility for people and change onto HR. That’s a leadership dodge, not a strategy. If the executive team isn’t visibly leading change, no amount of HR programming can save it.
Example: PepsiCo under Indra Nooyi treated talent and change as boardroom-level priorities, which sustained growth across 260,000 employees.
Myth: I need to model resilience.
Truth: True resilience isn’t about holding steady; it’s about showing real vulnerability.
Executives think their job is to look unshakable. In reality, showing humanity and vulnerability creates far more trust.
Example: During the pandemic, Microsoft leaders admitted struggles in open forums, which increased employee engagement and trust.
Myth: The speed of change is outpacing our ability to adapt.
Truth: Speed is not the enemy; hesitation is.
Leaders often blame the pace of change for their lack of results. But the real enemy is hesitation, not speed.
Example: Zoom and Shopify gained ten years of growth in one year because they moved quickly during disruption, while slower competitors fell behind.
Most change efforts fail not because people resist change, but because leaders mismanage it. People embrace change when it feels purposeful, inclusive, and led with conviction. I’ve observed this in both global corporations and mid-sized firms. Change is not something to fear. It is something to master.
If you are a CEO, board member, or senior executive and your organization faces disruption, the question is simple: will you be among the 70 percent that fail or the 30 percent that succeed? I work with a select number of senior leadership teams each year through programs such as Sentient Strategy® and my Change Navigation Framework. Together, we transform disruption into a competitive advantage, ensuring your organization emerges stronger.
- About the Author
- Latest Posts
Sarah Hathorn, CEO of Hathorn Consulting Group, is the go-to-expert in working with leaders and companies to create successful corporate DNA. As an executive coach, consultant and speaker she collaborates globally with clients and brands such as Deloitte, McKesson, Kimberly-Clark, Sherwin-Williams, Home Depot and other leading organizations.
Subscribe today to get my newsletter, Corporate DNA™ for leadership articles on how to maximize your talent pipeline, develop & enhance leadership capabilities, inspire and influence to communicate top results and much more.
Sorry, the comment form is closed at this time.