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   Why corporate change fails
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   Plus: The five-step process that makes change stick.
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              Monday, June 22, 2026
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               Most corporate transformations fail. Getting executives to disagree can fix that
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               In the spring of 2019, Alexander Lacik arrived as CEO of Pandora to find a transformation already underway. The plan, called Programme Now, included a cost-reduction program, a brand relaunch, a digital marketing rebuild, and a go-to-market overhaul.
              </span>
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              <br/>
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               It looked complete. What it lacked was agreement.
              </span>
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              <br/>
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              <span style="font-size: 15px">
               When Lacik surveyed what his management team was actually working on, he found 46 priorities. A 
typical management team can execute three or four well. He convened a two-day off-site and cut the list to 12. For the first time, everyone was working toward the same thing.
              </span>
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              <br/>
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               For decades, the odds of a successful organizational transformation have remained stubbornly low. Boston Consulting Group studied nearly 2,000 public companies that tried to turn around declining performance and found that most failed to outperform their industry peers not only in the year after the downturn but
over the next five. McKinsey's Global Survey told the same story from inside organizations: fewer than one in three respondents whose companies had been through a transformation said it succeeded at both improving performance and holding those gains. In an era when organizations digitized entire economies and mapped the human genome, no one found a way to make large-scale change work.
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                  One Shark Missed Billions… Another Saw This 
Coming
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                   Imagine turning down Uber at a valuation of $10 million, only to watch it go public at over $80 billion.
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                  <span style="font-size:15px;color:#000000;background-color:rgba(0,0,0,0)">
                   That’s exactly what happened to Mark Cuban… a 799,900% return, gone.
                  </span>
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                  <br/>
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                  <span style="font-size:15px;color:#000000;background-color:rgba(0,0,0,0)">
                   But original Shark Tank investor Kevin Harrington built his career doing the opposite: spotting asymmetric opportunities before they go mainstream.
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                  <span style="font-size:15px;color:#000000;background-color:rgba(0,0,0,0)">
                   Like Uber turned vehicles into income-generating 
assets, Mode Mobile is
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                  <strong style="font-size:15px;color:var(=-blue-cta-default);background-color:rgba(0,0,0,0)">
                   <a data-linktext="turning smartphones into income streams." data-linktype="Normal" style="color:var(=-blue-cta-default)" target="_blank">
                    turning smartphones into income 
streams.
                   </a>
                  </strong>
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                  <br/>
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                  <span style="font-size:15px;color:#000000;background-color:rgba(0,0,0,0)">
                   They were named the #1
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                   fastest-growing software company
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                   by Deloitte and have already helped their users earn and save over $1B.
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                  <br/>
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                  <span style="font-size:15px;color:#000000;background-color:rgba(0,0,0,0)">
                   Kevin Harrington invested early.
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                  <br/>
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                  <span style="font-size:15px;color:#000000;background-color:rgba(0,0,0,0)">
                   And at just $0.52/share, you can still
get in before their potential IPO.
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                                  Early investors can earn up to 20% bonus shares.
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                                 <!--<![endif]-->
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                  <span style="color:#6C6B6B">
                   Potential Uber return for Marc Cuban does not take into account dilution.
                  </span>
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10px">
                  <br/>
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                 <div style="font-size: 10px">
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                   The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period in 2023.
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                  <br/>
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                   Please read the offering circular at invest.modemobile.com. This is a paid advertisement for Mode Mobile’s Regulation A Offering.
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               Julia Dhar, a managing director at BCG and founder of its Behavioral Science Lab, spent years trying to understand why. Her answer, developed with co-authors Kristy Ellmer and Philip Jameson in Harvard Business Review, is that the failure is less a strategy or execution problem and more a behavioral one. The specific 
behavior is false alignment.
              </span>
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              <br/>
             </div>
             <div>
              <span style="font-size: 15px">
               False alignment is what happens when executive teams act as if they agree on things when they really don't. Executive teams regularly launch transformations while holding fundamentally different understandings of why the change is happening, what will be different, and how the work will get done. Dhar distinguishes it sharply from true agreement. Alignment means not obstructing each other. True agreement means every leader on the team could write down the
same what and the same how on a piece of paper, and the answers would match.
              </span>
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              <span style="font-size: 15px">
               The causes are partly cognitive. Psychologists call the relevant mechanism the false consensus effect, which occurs when people systematically overestimate how widely their own views are shared. Julia Minson, a Harvard professor who studies decision-making, offered Dhar a vivid illustration. "If I love vanilla ice cream," Minson said, "I will persistently overestimate the proportion of the population that 
also loves vanilla ice cream."
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               In a corporate context, an executive who is enthusiastic about a transformation tends to assume colleagues share both the enthusiasm and the reasoning. That assumption goes untested because the conversations stay at the level of broad goals. Even if two executives agree on the need to improve margins, one may want to 
raise prices, while the other may view cost-cutting as the right way to go. Months can go by without either knowing they disagree more than they see eye to eye.
              </span>
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              <br/>
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               The problem is also partly social. Humans tend to anticipate that disagreement will be more unpleasant than it is. Research by Minson and her Harvard colleagues found that people consistently predicted more conflict with a senator from an opposing political party than they actually experienced after watching one speak. 
Executives who expect disagreement to be worse than it is tend to stay quiet rather than voice their real objections.
              </span>
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              <br/>
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               The third cause is schedule pressure. Dhar has heard the same set of justifications from executive teams across industries. "We don't have time to debate this further." "We'll sort out the details later." "Something is better than nothing." The reasoning isn't irrational. There are times in business when starting, no matter how imperfectly, is all that matters. But 
large-scale organizational change isn't one of them. When premises are vague or contradictory, they don't get resolved on their own. They compound. Teams below receive conflicting signals. Some freeze. Some scatter their effort across every priority at once. Some make good progress on the wrong thing.
              </span>
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              <span style="font-size: 15px">
               McKinsey research found that transformations start losing value before they begin. Leaders who haven't truly agreed on what they're trying to achieve set targets that reflect that 
ambiguity. About a quarter of the financial benefit disappears during target-setting, before implementation starts. Even companies whose transformations succeed capture only around two-thirds of what was possible. Those that fail capture barely more than a third.
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              <span style="font-size: 15px">
               Dhar's fix isn't simply patience. It's a structured five-step process designed to surface real disagreement before it derails execution. Leaders begin by setting ground rules, and then gather dissent in writing before any 
group discussion. Debate runs through one-on-one conversations rather than meetings, giving each executive time to understand the proposal on their own terms and identify where they can compromise. Each leader then commits individually at a formal sign-off, and a single unified message goes to the entire organization at once.
              </span>
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              <br/>
             </div>
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              <span style="font-size: 15px">
               Each step has a specific behavioral purpose. Written positions gathered independently reduce groupthink before it forms. Individual sign-off, rather than 
general assent, removes the cover that passive resistance depends on. Simultaneous broadcast across the organization blocks the version-drift that occurs when each executive briefs their own team separately.
              </span>
             </div>
             <div>
              <br/>
             </div>
             <div>
              <span style="font-size: 15px">
               At Pandora, Lacik used the process in full, bringing his management team back to a single premise: that the company existed to help customers commemorate moments in their lives. Everything else derived from that. The slogan "Moments First" went to every store. Products outside 
the campaign came out of shop windows and bracelets went in. Lacik set a daily sales target for bracelets in every location to make the priority legible rather than aspirational.
              </span>
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              <br/>
             </div>
             <div>
              <span style="font-size: 15px">
               Pandora stabilized, rebuilt its brand, and grew through the remainder of Lacik's tenure. The company that had cycled through four CEOs in seven years found its footing.
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                       Imagine turning down Uber at a valuation of $10 million, only to watch it go public at over $80 billion.
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                       That’s exactly what happened to Mark 
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                       Like Uber turned vehicles into income-generating assets, Mode Mobile is
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                       <a data-linktext="turning smartphones into income streams." data-linktype="Normal" style="color:var(=-blue-cta-default)" target="_blank">
                        turning smartphones into income streams.
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                       They were named the #1
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                       fastest-growing software company
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                       by Deloitte and have already helped their users earn and save over $1B.
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                       Kevin Harrington invested early.
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                       And at just $0.52/share, you can still get in before their potential IPO.
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                                      Early investors can earn up to 20% bonus shares.
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                                     <!--[if mso]><a href="https://www.ne16.com/t/10899313/226372826/9835712/9/1009501/?b44ed14b=ZmQ5NDhlNjEtOWVmYi00ZTRjLWIxZWItMzI4MWIxZmYzYzEx&x=5dd64595" target="_blank" style="-webkit-border-radius: 6px; -moz-border-radius: 6px; border-radius: 6px; color: #FFFFFF; text-decoration: none; font-family: Arial; font-size: 18px; font-weight: bold; border: none; 
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                     <div style="font-size: 10px">
                      <span style="color:#6C6B6B">
                       Potential Uber return for Marc Cuban does not 
take into account dilution.
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                      <br/>
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                      <span style="color:#6C6B6B">
                       The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period in 2023.
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                      <br/>
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                      <span style="color:#6C6B6B">
                       Please read the offering circular at invest.modemobile.com. This is a paid advertisement for Mode 
Mobile’s Regulation A Offering.
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3 days, 21 hours ago - leadership@e.qz.com
Why corporate change fails
Plus: The five-step process that makes change stick. ‌ View as a Web page Monday, June 22, 2026 M...
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