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Why 70% of business transformations fail – and how to beat the odds

by Alastair Bannerman, President, Wavemaker Global Clients and WPP Global Client Lead; and Jessica Farmer, Global Transformation Lead, Wavemaker

In a world where 88% of organisations are undergoing some phase of  transformation—whether it be a digital overhaul or a new operational model—the alarming reality is that 70% of these initiatives fail. That’s right, 70%. The notion that change is difficult—even in the pursuit of progress—is well established. Why else would 70% of Americans continue to keep their savings in poorly performing accounts or 64% of new year’s resolutions go by the wayside within four weeks? 

The growing resistance to organisational change 

The reaction to AI serves as a prime example. While 50% of respondents in a recent UK governmental survey view AI positively on a societal level, the personal sentiment tells a different story—three of the four most mentioned words describing AI were explicitly negative. This resistance extends beyond AI. Over the past decade, workplace change initiatives have faced growing opposition, with only 38% of employees willing to support organisational change—down from 74% in 2016

So, where are businesses going wrong? What factors contribute to these failures? 

The real problem: Focusing on the wrong things 

Many experts cite employee cynicism and inertia as key reasons transformation efforts falter. But the real issue is that businesses often focus on what needs to change instead of who and how. Too often, we become consumed with frameworks, roadmaps, and governance structures—forgetting about the follow-through. Shockingly, 50% of leaders admit they cannot confidently assess the success of recent organisational changes, according to the researchers at Gartner, underscoring the difficulty of managing and evaluating transformation effectively. 

It’s easy to feel productive by producing principles, presentations, and playbooks. But with 70% of transformations still failing—and employee willingness to embrace change declining—it’s clear that something needs to shift. 

A people-first approach to change 

At Wavemaker, we’re transforming transformation for our clients by putting culture at the heart of change programmes. Because at its core, transformation is about people. It’s about learning, development, and behaviour change. Most importantly, it’s about defining what success really looks like. 

Involving employees in the process 

When employees are actively engaged in change initiatives, the likelihood of success increases significantly. Research shows that when employees feel genuinely invested, success rates rise by 30%. That’s why personal advancement is central to our approach for clients, with accreditation programmes designed to support employee growth. 

Multi-modal learning for maximum retention 

We know that the more areas of the brain that are activated, the better people understand and retain information. That’s why our client change programmes use multiple formats, from interactive storytelling and immersive experiences to AI-powered academies – ensuring transformation sticks. 

Driving behaviour change with proven science 

Established behavioural research highlights four key factors for successful change: ease, attractiveness, sociability, and timeliness. In the face of change fatigue, we structure our client change programmes around these principles to make transformation more engaging and effective. 

Defining success with clear metrics 

Setting clear timelines and measurable goals is critical. Organisations that track KPIs around change efforts are four times more likely to succeed. Transformation success rates also increase to 50% when initiatives have clear timelines, compared to just 16% without them. 

Final thoughts: making change work 

With 98% of businesses anticipating the same or more change initiatives over the next three years, transformation is now the norm. While change is inherently challenging, it doesn’t have to be chaotic or ineffective. By  shifting the focus from process to people, from plans to participation, and from theory to tangible action, businesses can break free from the 70% failure rate.

Transformation isn’t just about introducing change—it’s about embedding it in a way that truly lasts.