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How to Create a Transformation That Lasts
Transformations are critical to building competitive advantage and delivering shareholder value. They are most successful when managed through a transformation office.
For future-ready companies, there’s no such thing as a one-and-done transformation. BCG builds the capabilities and culture that drive always-on change, so businesses can evolve in the right ways, at the right time—every time.
Transformation doesn’t have an off button. New opportunities, new disruptions, and new demands and expectations all come wave after wave. Successful companies continually adapt—almost on the fly. Sparking ongoing, on-demand transformation requires a fundamental shift in capabilities and a significant organizational culture change. But if the effort is substantial, so too is the reward: sustainable value creation.
Three out of four large-scale transformations fail to meet their objectives. But there are ways to flip the odds: leadership commitment, a focus on culture, executional excellence, and inspiring and supporting people amid change. Our approach to organizational culture and change management combines all of these elements.
We use behavioral science to guide change management and to gain insight into what blocks or accelerates organizational culture change. We help leaders encourage, support, and ingrain new ways of working. And we build the capabilities to track and manage the current transformation—and all the transformations to come.
Our human-centric approach is built upon four key pillars:
We partner with organizations across the private and public sectors to spark the behaviors and mindset that turn change into value. Here’s some of our work in culture and change.
As part of a 12-week transformation, BCG worked with a global pharmaceutical company to help leaders articulate the case for change and foster clear communication between management and the workforce. This laid the foundation for a transformation that yielded $500 million in cost reduction, an earnings growth rate jump from 15% to 20%, and a rise in market value of $20 billion.
To accelerate a transformation for a leading brewery group, we helped leaders craft a shared purpose, articulate that purpose to employees, and involve people at all levels of the organization in changing organizational culture. This fueled a transformation that, over seven years, helped the company’s share price double, earnings per share rise 147%, and cash returns more than quadruple.
BCG worked with a South American telco to improve its procurement program by successfully investing in organizational culture change. Our change management consultants helped leaders engage staff throughout the process, communicate the purpose, and provide support through upskilling. The effort saw the company achieve $283 million in savings by creating a more adaptive procurement program.
BCG’s culture and change experts are supported by an array of proprietary solutions: cutting-edge applications of AI, deep learning, and advanced analytics that ensure lasting performance improvements. Here’s some of our toolkit.
OrgVantage. The best starting point for transformation is knowing where you stand—and where change matters most. A holistic diagnostic, this tool assesses organizational effectiveness and helps companies zero in on advantages that can boost performance and engagement. It efficiently diagnoses, analyzes, and roadmaps meaningful organization improvement opportunities for large-scale transformations.
Momentum Meter. Research has found that people’s attitude toward change is influenced by two factors. The first is confidence, or individuals’ belief in their ability to succeed. The second is mental capacity, or their bandwidth to complete complex tasks. These factors shift over time—often rapidly—and are affected by what is happening in their work life and personal life. Our meter is a weekly pulse check, supported by powerful analytics, that examines employee sentiment during periods of change and that provides insights that spark timely and precise interventions.
Transformation Academy. Developed by BCG change management consultants and transformation experts, this online and live learning program is tailored for each client and uses real case studies to ensure transformation best practices.
KEY Impact Management by BCG X. Through configurable dashboards—connecting organizational data to advanced analytics tools—this tool facilitates fast, data-driven decision making. Used across all levels of an enterprise, it helps ensure value delivery and true P&L impact.
Culture Diagnostic. Culture can make or break a transformation. Our diagnostic tool helps organizations get the lay of the land—and zero in on the behaviors and beliefs that foster growth and value—before changing organizational culture.
Ready, Willing, Able. Employees are the lifeblood of transformation, which makes it crucial to know their sentiment towards change. This survey helps companies understand how ready, willing, and able their workforce is to adapt successfully.
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BCG’s culture and change management consultants come from different regions and different backgrounds, but they’re guided by a shared belief: the best transformations don’t just improve processes, they create an environment for sustained success. Here’s some of our team.