Why Organizational Change Fails

The staggering reality that 70% of organizational change initiatives fail remains one of the most persistent challenges in modern business[1][2][3]. Despite billions invested in transformation programs, the overwhelming majority of organizations struggle to achieve meaningful, lasting change. The reasons for this failure are not typically rooted in strategic flaws or technical inadequacies, but rather in fundamental human factors that are systematically overlooked in traditional change management approaches.

At the heart of this challenge lie two critical failure points that explain why so many organizational transformations falter: the disconnect between those designing the change and those experiencing it, and the failure to meaningfully engage affected employees in the change process by asking the simple yet profound question: "What do you need?"

The Magnitude of the Problem

The statistics surrounding organizational change failure paint a sobering picture. Research consistently shows that only 34% of change projects succeed[4], with some studies indicating that 60-70% of change projects fail outright[4]. These failures come at enormous cost, with organizations experiencing not just financial losses but also decreased employee performance, increased turnover, and long-lasting damage to organizational culture and morale.

The impact extends beyond immediate setbacks. 48% of workers dealing with change fatigue report higher stress levels, while 37% say they trust their employers less and 38% enjoy their jobs less[4]. Perhaps most concerning, 83% of employees with change fatigue say they don't have the tools they need to adapt[4], highlighting the fundamental disconnect between organizational expectations and employee needs.

The First Critical Failure: The Insulation of Change Designers

The first major reason organizational change fails is that those designing the new organization are poorly impacted by the change itself. This creates what researchers call "The Disconnect Dilemma," where senior managers and executives become increasingly detached from the everyday realities of their teams as they focus on high-level strategy and decision-making[5].

This disconnect manifests in several dangerous ways. Leaders frequently underestimate the amount of work required for change and overestimate the organization's capacity to make the change[5]. They suffer from what researchers term "scope naiveté," wanting transformational change to be easier than it actually is, often basing their expectations on insufficient understanding of the change process.

The problem is compounded by traditional top-down approaches to change management, which have been criticized for being too paternalistic and ignoring the value which employees can add towards a change program[5]. These approaches involve forceful implementation of change while entirely disregarding opportunities for gathering information regarding employee expectations and feedback[5].

Research reveals that 72% of leaders say they don't understand what employees need to do differently during changes due to being disconnected from daily work[4]. This disconnect creates a vicious cycle where change initiatives are designed by those who will experience the least disruption, implemented by those who have little understanding of the ground-level reality, and imposed upon those who will bear the greatest burden of adaptation.

The Second Critical Failure: The Absence of Employee Voice

The second fundamental reason for change failure is the systematic exclusion of affected employees from the change design process. Organizations consistently fail to ask those most impacted by the change a simple but crucial question: "What do you need?"

This omission is particularly damaging because research demonstrates that change initiatives are 30% more likely to last when those most impacted by the change are also fully invested in creating it[6][7]. When employees feel like they're part of the decision-making process, they become more engaged and committed to the transformation[8].

The evidence for the importance of employee voice is overwhelming. Studies show that employee attitudes to change are key predictors of organizational change success[9]. When organizations implement change management with a focus on employee engagement, they create conditions where both the organization and its employees thrive. However, the reality is that only 42% of employees feel they're truly included in change initiatives, despite 74% of leaders saying they involve employees in creating change plans[4].

This gap between leadership perception and employee reality highlights a critical blind spot in change management. Employee voice is about more than just generating feedback[10]. It includes actively bringing forward ideas, suggesting improvements, and expressing concerns within an organization. When employees feel heard, it contributes to a culture of trust and results in better decision-making because employees are closer to the work floor and have valuable insights that can help make processes more efficient[10].

The Path Forward: Engaging Employees Before, During, and After Change

The solution to these fundamental failures lies in radically reimagining how organizations approach change by meaningfully involving impacted employees throughout the entire transformation process. This requires a shift from traditional top-down approaches to what researchers call "participatory change management" or "co-creation" methodologies.

Pre-Implementation: Building Change Readiness Through Employee Engagement

Before any change initiative begins, organizations must conduct comprehensive change readiness assessments that go beyond leadership assumptions to understand the actual needs, concerns, and capabilities of affected employees[11]. This assessment should focus on seven key aspects: awareness and understanding, motivation and desire, capability and know-how, support and leadership, resources and capacity, culture and communication, and commitment[11].

Rather than simply measuring these factors, organizations should use this pre-implementation phase to actively engage employees in co-designing the change. This involves conducting employee focus groups where small groups of 8-12 influential employees serve as ambassadors for the desired change[12]. The goal isn't just to gather their input but to activate and engage this core group around the transformation[12].

Research shows that companies with high employee engagement experience 17% higher productivity and 21% higher profitability[13]. Organizations should leverage this by implementing employee engagement strategies that start with clear communication about the need for change, provide comprehensive training and support, and most importantly, involve employees in decision-making processes[14].

During the Redesign: Co-Creation and Collaborative Design

The redesign phase represents the most critical opportunity to involve employees in shaping their future work environment. This is where organizations can implement co-creation methodologies that put employees at the center of the change process[15].

Co-creation flips the script on traditional change methods by putting employees front and center and tapping into the collective intelligence and creativity of a diverse workforce[15]. By inviting staff to actively participate in every stage of the change journey, organizations can make better decisions, lead smoother transitions, and encourage employees to embrace the vision.

One powerful approach is to use design thinking for change management, which focuses on centering people at the heart of any initiative[6][7]. This methodology plays a key role in engagement by centering the needs of each participant and ensuring that each person involved has a stake in the success of the project[6]. The process asks all participants to center each other's feelings, attitudes, knowledge, and beliefs in the decision-making process.

Organizations can implement this through several specific methodologies:

Design Sprints for Organizational Change: These intensive, time-boxed workshops bring together cross-functional teams to rapidly prototype and test solutions[16][17]. Design sprints are particularly effective because they shift mindsets and build consensus while creating cultural change[18]. When companies are looking to become more agile, sprints are a really effective way to help drive organizational and cultural change[19].

Employee Workshops and Collaborative Sessions: These sessions should focus on encouraging employee involvement by organizing feedback sessions, encouraging collaboration across teams, and including employee input in decision-making to build ownership[20]. The key is to create environments where employees feel empowered to propose new ideas and improvements and are motivated to implement solutions that may benefit the organization.

Teamwork Redesign Methodologies: This approach involves experiment-based change methodology where teams gradually change their way of working by optimizing their intrinsic motivation[21]. In a series of recurring team sessions, the most important topics for improvement are investigated and small, hands-on experiments for work improvement are designed.

Sustaining Change Through Ongoing Employee Engagement

The final phase of successful change management involves creating systems and processes that maintain employee engagement long after the initial implementation. This requires organizations to establish ongoing, two-way, and transparent communication where people are provided with opportunities to provide feedback and importantly, have their feedback heard[9].

Organizations need to move beyond one-off announcements to early and regular conversations during periods of change[9]. The most effective approaches involve identifying the strongest influencers within the employee ranks and ensuring their grievances are heard while incorporating their ideas for solutions[9].

Research indicates that employee participation fosters a sense of ownership over the change process, and when employees feel like they're part of the decision-making, they become more engaged and committed to the transformation[8]. This creates conditions where employees are invited to develop solutions to the issues on the table, leveraging their deep expertise in their area of the business[9].

The Evidence for Employee-Centered Change

The business case for employee-centered change management is compelling. Organizations that implement effective change management see significant benefits:

• 47% higher likelihood of achieving their objectives compared to those without proper change management[22]
• 71% of projects with effective change management completed their projects on schedule[22]
• 81% of projects with effective change management coming in on or under budget[22]

Furthermore, when employees are genuinely engaged in the change process, organizations see 30% higher likelihood that changes will be sustained over time[6][7]. Employee involvement combined with humble leadership approaches positively affects organizational change outcomes[9].

The evidence also shows that participatory change processes address fears head-on by involving employees in shaping the very change that affects them[23]. This approach significantly reduces anxiety as it demystifies the change process and gives employees a sense of control and agency[23]. By contributing their ideas and insights, employees are more likely to develop a deep sense of ownership and commitment to the change[23].

Conclusion: From Imposed Change to Co-Created Transformation

The persistent failure of organizational change initiatives is not inevitable. It stems from fundamental flaws in how organizations approach transformation: the disconnect between change designers and those experiencing the change, and the failure to meaningfully engage affected employees in the change process.

The evidence overwhelmingly supports that when organizations genuinely engage those affected by change and ensure that change designers themselves experience the consequences of their decisions, transformation initiatives become dramatically more successful. The question "What do you need?" represents a profound shift from imposed change to co-created transformation, fundamentally altering the probability of success.

By implementing employee-centered change management approaches that emphasize co-creation, participatory design, and ongoing engagement, organizations can move beyond the 70% failure rate that has plagued change initiatives for decades. The path forward requires courage to abandon traditional top-down approaches and embrace methodologies that recognize the fundamental truth: successful organizational change is not something done to employees, but something created with them.

The transformation of organizational change management from a top-down directive to a collaborative, human-centered process represents more than just a tactical shift—it's a fundamental reimagining of how organizations evolve and adapt. In an era where agility and adaptability are crucial for survival, those organizations that learn to harness the collective intelligence and commitment of their workforce through meaningful engagement will not only successfully navigate change but will build the resilience and capability to thrive in an ever-changing world.

Sources 

1. [1] 65+ Change Management Statistics for Success in 2025 - Mooncamp https://mooncamp.com/blog/change-management-statistics 
2. [2] 100 Change Management Statistics: Effectiveness, Leadership, and ... https://flair.hr/en/blog/change-management-statistics/ 
3. [3] 60+ Helpful Change Management Statistics & Facts To Know https://passivesecrets.com/change-management-statistics/ 
4. [4] Change Management Statistics By AI, Technology And Digital Adoption https://www.coolest-gadgets.com/change-management-statistics/ 
5. [5] Fundamental Issues with the Top Down Approach in Change ... https://www.managementstudyguide.com/fundamental-issues-with-top-down-approach-in-change-management.htm 
6. [6] Co-Creating Change: Why Design Thinking for Change Management Works https://medium.com/@voltage_control/co-creating-change-why-design-thinking-for-change-management-works-6efcbb9edc20 
7. [7] Co-Creating Change: Why Design Thinking for ... - Voltage Control https://voltagecontrol.com/blog/co-creating-change-why-design-thinking-for-change-management-works/ 
8. [8] Employee engagement and change management: How are they ... https://www.culturemonkey.io/employee-engagement/employee-engagement-and-change-management/ 
9. [9] How to Foster Employee Engagement in Change Initiatives https://changemanagementreview.com/how-to-foster-employee-engagement-in-change-initiatives/ 
10. [10] How the employee voice can strengthen your organisation's policy https://www.greatplacetowork.be/en/inspiration/blogs/how-the-employee-voice-can-strengthen-your-organisation’s-policy 
11. [11] How To Conduct a Change Readiness Assessment [+ Template] https://www.aihr.com/blog/change-readiness-assessment-template/ 
12. [12] How to run an employee focus group - The Gathering Effect https://www.gatheringeffect.com/insights/how-to-run-an-employee-focus-group-for-effective-organizational-change 
13. [13] Employee Engagement and Its Impact on Change Management ... https://vorecol.com/blogs/blog-employee-engagement-and-its-impact-on-change-management-effectiveness-183270 
14. [14] Engage Employees in Change: Learn How! https://www.heflo.com/blog/involve-employees-in-the-change-process 
15. [15] Co-creation: the key to successful workplace change - Place North West https://www.placenorthwest.co.uk/insight/cocreation-the-key-to-successful-workplace-change/ 
16. [16] Can Design Sprints Transform the Way You Work? https://sprintstories.com/can-design-sprint-transform-the-way-you-work-2817005793a0 
17. [17] Integrating Design Sprints into Organizational Strategy - LinkedIn https://www.linkedin.com/pulse/integrating-design-sprints-organizational-strategy-jl-r4x3c 
18. [18] Design Sprints as a Tool for Organizational Change - YouTube https://www.youtube.com/watch?v=hE0yFi4-x7g 
19. [19] Design sprints: Creating more agile organizations | Bridgeable https://www.bridgeable.com/ideas/design-sprints-creating-more-agile-organizations/ 
20. [20] Change Management Workshop Ideas | Foster an Innovative Mindset https://changestrategists.com/change-management-workshop-ideas/ 
21. [21] Teamwork Redesign - Meaningful Work https://www.meaningfulwork.eu/teamwork-redesign 
22. [22] The Link Between Change Management and Employee Engagement https://www.prosci.com/blog/change-management-employee-engagement 
23. [23] Empowering Change: The Power of a Participatory Approach https://www.linkedin.com/pulse/empowering-change-power-participatory-trcff 
24. [24] 10 Proven Strategies for Effective Organizational Change ... https://culturepartners.com/insights/10-proven-strategies-for-effective-organizational-change-management/ 
25. [25] How To Maximize Employee Engagement During An Organizational Change https://www.panorama-consulting.com/employee-engagement-during-organizational-change/ 
26. [26] 59 Change Management Statistics | Pollack Peacebuilding Systems https://pollackpeacebuilding.com/blog/change-management-statistics/ 
27. [27] 40+ Definitive Organisational Change Management Statistics for 2025 https://changing-point.com/organisational-change-management-statistics/ 
28. [28] 21 Best Employee Engagement Strategies To Use [In 2025] - AIHR https://www.aihr.com/blog/employee-engagement-strategies/ 
29. [29] 15 Employee Engagement Strategies That Actually Work https://elearningindustry.com/employee-engagement-strategies 
30. [30] How To Implement an Employee Engagement Program Effectively ... https://peoplethriver.com/how-would-you-implement-an-employee-engagement-program/
31.  [31] 10 Proven Employee Engagement Strategies for Workplace Success https://www.betterway.dev/posts/employee-engagement-strategies-a-step-by-step-implementation-guide
32.  [32] Implementing Employee Engagement: A Step-by-Step Framework https://hrsimplified.org/implementing-employee-engagement-a-step-by-step-framework/ 
33. [33] Crafting an Inclusive Change Strategy: 6 Key Steps for Professionals ... https://www.agenciachange.com/post/crafting-an-inclusive-change-strategy-6-key-steps-for-professionals-and-leaders 
34. [34] Employee Engagement Action Planning: Tips for Easy & Effective Action https://www.quantumworkplace.com/future-of-work/employee-engagement-action-plan 
35. [35] The Four-Step Process for Redesigning Work https://sloanreview.mit.edu/article/the-four-step-process-for-redesigning-work/ 
36. [36] Redesigning Employee Experience: Touchpoints to Transform https://www.linkedin.com/pulse/redesigning-employee-experience-from-touchpoints-rozra-pgdm-hr--tepyf 
37. [37] What are the best practices for redesigning organizational structures to enhance collaboration and efficiency? - Restructuring https://flevy.com/topic/restructuring/question/optimizing-organizational-structures-collaboration-efficiency-best-practices 
38. [38] 5 Steps to redesign your team's ways of working - Midnight Labs https://www.midnightlabs.com.au/insights/5-steps-to-redesign-your-teams-ways-of-working 
39. [39] Scaling Design Sprints for Cultural Transformation https://www.slideshare.net/slideshow/scaling-design-sprints-for-cultural-transformation/145037453 
40. [40] Thrive at Work https://www.thriveatwork.org.au/wp-content/uploads/2023/06/Thrive-at-Work-Focus-Groups-Toolkit-2023-06.pdf
41.  [41] [PDF] Participatory Change Management: A Transformation Strategy for ... https://openresearch.ocadu.ca/id/eprint/722/1/Dempster_Margaret_2016_MDes_SFI_MRP.pdf 
42. [42] Maximizing Co-Creation in Change Management - LinkedIn https://www.linkedin.com/pulse/maximizing-co-creation-change-management-engaging-enhance-nils-koenig-tdcre 
43. [43] Top-Down vs. Bottom-Up Change Management: Which is Better? https://www.panorama-consulting.com/top-down-vs-bottom-up-change-management-which-is-better/ 
44. [44] Leveraging Employee Voice Behavior for Organizational Change: The Role of Commitment and Engagement in a Digital Era https://jisem-journal.com/index.php/journal/article/view/2184 
45. [45] Change Readiness Assessment: Preparing Employees for Organizational Shifts | Best Practices and Tips | EOXS https://eoxs.com/new_blog/change-readiness-assessment-preparing-employees-for-organizational-shifts/ 
46. [46] How can leaders ensure that change management processes are ... https://flevy.com/topic/organizational-change/question/ensuring-inclusive-change-management-leaders-guide-diverse-workforces 
47. [47] Redesigning the Employee Journey With Human-Centered Intent https://amazingworkplaces.co/putting-people-first-redesigning-the-employee-journey-with-intention/ 
48. [48] Workshops for Change Management and Change Leadership https://www.innovationtraining.org/workshop-for-change-management/ 
49. [49] Google Design Sprint / Methodology Overview https://designsprintkit.withgoogle.com/methodology [50] What role does employee engagement play in the success of change management initiatives? https://psico-smart.com/en/blogs/blog-what-role-does-employee-engagement-play-in-the-success-of-change-management-initiatives-87807