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Lessons from Failure: Case Studies on Change Programs Gone Wrong and Their Impact on Stress

Change is inevitable in the business world, but not all change initiatives end up giving organisations positive outcomes. In fact, many Transformation programmes fail, or at least don’t give the outcomes anticipated and this can have significant consequences, including increased stress among employees, as well as lower employee engagement and a general disgruntlement at work. 


In today’s blog, I want to take a look at a couple of real-world examples of failed change programmes and share some of the key lessons that were learnt along the way., particularly in terms of the impact they had on employee well-being.


One prominent case study involves the failed implementation of a new technology system at a large corporation. Despite extensive planning and investment, the rollout was riddled with technical glitches, delays, and inadequate training. As a result, employees struggled to adapt to the new system, leading to frustration, anxiety, and decreased productivity. The lack of effective communication and support from leadership exacerbated the situation, leaving employees feeling overwhelmed and unsupported.


Another example is a botched merger between two companies, resulting in widespread redundancies, organizational restructuring, and cultural clashes. The uncertainty surrounding job security, changes in roles and responsibilities, and conflicting company cultures created a toxic work environment characterized by fear, distrust, and low morale. Employees faced increased workloads, interpersonal conflicts,  and a sense of loss and disconnection from the organization's mission and values.



As any HR or OD professional that has either managed or been part of the team implementing such change programmes will confirm – managing transformation is not an easy feat! You can often feel like you are taking two steps forward, only to take one step back, especially when you are trying to change organisational culture. It is the nature of the beast, and often just something that we take as read. However, although dipping levels of Employee Engagement are often on the radar – and are tracked as one way to measure how smoothly a change programme implementation has gone – Employee Wellbeing and Stress levels are less often looked at (at least not in the midst of change). 


But change programmes that fail (or are tricky) can have a detrimental impact on employee stress levels. The lack of clear communication, inadequate support, and mismanagement of expectations all contribute to feelings of uncertainty, powerlessness, and insecurity among employees. As a result, many employees will experience symptoms of stress, such as fatigue, burnout, anxiety, and depression during Transformation and this will not only affect their mental and emotional well-being but also their physical health and overall job performance.


So, what can we do about this? Much of the below is not rocket-science, but still a helpful reminder of why getting these things right is so important. Not just so that the Transformation programme ‘lands’ and embeds well, and not just because our Employee Engagement scores will remain stable, but because the humans that are affected will experience less stress and more overall health and well-being.


  1. Effective Communication: Clear and transparent communication is essential throughout the change process to manage expectations, address concerns, and provide timely updates. As we know, leaders play a particularly key role in this and a great way to do this, is for them to ‘front’ the change by proactively and regularly engaging with employees, listening to their feedback, and communicating the rationale behind changes to foster trust and understanding.


2. Change Readiness and Resilience: This one is a tricky one, that I’ve been doing a lot more work on lately: Organizations must assess their readiness for change. This means not only investing in building resilience among employees to navigate uncertainty and adversity effectively, it also means getting clear on what areas (and colleagues) in the business can be trailblazers and what kind of help the Exec will need to enable this and get ‘unstuck’ themselves. Some ways this might look like in practice are providing training, resources, and support to help employees (and the Exec) adapt to new technologies, roles, and working conditions.


3. Leadership and Accountability: Leaders play a crucial role in driving successful change initiatives by setting a clear vision, modelling desired behaviours, and demonstrating empathy and support for employees. Although this is often stated as a ‘standard’ element to successful change, this is often the area where organisations come undone. In many cases the Exec want change to happen, but are either not willing or not equipped enough to make changes to their own behaviours and working practices first. Leaders must take ownership of change efforts and start to create examples of ‘what the new world looks like’, so that employees can start to see the world around them actually changing. As part of this, leaders also need to hold themselves and others accountable for results, and actively involve employees in decision-making processes.


4. Culture and Engagement: Organisational culture plays a significant role in shaping employees' experiences of change. Cultures that prioritize transparency, collaboration, and innovation are better equipped to manage change effectively and mitigate stress among employees. Organizations must foster a culture of continuous learning, adaptability, and resilience to thrive in an ever-evolving business environment. But when you are in the midst of Transformation, this can be easier said than done. And again, the Exec, but also HR colleagues play a key role here in supporting and enabling the trail blazers across the organisation to implement sustainable change. 



5. Planning and Execution: Ineffective change management often results in poor planning and execution, leading to disruptions in workflow, inadequate resources, and unrealistic timelines. Employees are forced to navigate unfamiliar processes, technologies, and job roles without adequate training or support, exacerbating feelings of overwhelm and incompetence. As a result, they may experience heightened levels of stress, burnout, and fatigue, leading to decreased job satisfaction, increased absenteeism, and higher turnover rates. Again, one element of success is to pin point projects across the business that will can act as trailblazing areas for change – this allows teams to pilot and test the new ways of working in a safe environment, learn from teething problems before the full roll-out, while at the same time demonstrating change is happening in tangible ways. 


6. Employee involvement and empowerment: Another significant contributor to stress in ineffective change management is the lack of employee involvement and empowerment. When employees are excluded from decision-making processes, their concerns and perspectives are overlooked, leading to feelings of alienation, resentment, and disengagement. Without a sense of ownership or control over their work environment, employees become demotivated, disheartened, and cynical, further eroding morale and productivity. One way around this, is to have ‘champions for change’ across the organisation, that are tasked with regularly feeding back how the change is landing and what employees concerns are. This, along with regular focus groups and ‘culture enquiries’ from across the organisation to gather feedback on how transformation is progressing and what the potential blockers are, can be really powerful.


Because organisations often focus solely on achieving strategic objectives and operational efficiencies, there is a risk of them overlooking the human side of change. As a result, employees going through change programmes often feel undervalued, disregarded, and unsupported, and this then leads to not only lower levels of engagement, but to feelings of stress, isolation, and disillusionment. 


I think there is an opportunity for leaders and HR colleagues to recognize these hidden costs of transformation and to minimize the negative impact of change on employees’ stress and wellbeing to create a healthier, more resilient workplace conducive to success. This will stand them in good stead – not just for the short-term success of navigating transformation well, but far more long-term. Taking the employee’s health and wellbeing into account will have a positive effect on the psychological contract as well as levels of trust and loyalty. Plus, if nothing else, it’s  the right thing to do!


If you want to dive deeper into Organisational Development and Culture Change, come and join me for a 90 minute virtual session in June. You can book tickets here: https://www.eventbrite.co.uk/e/869260309987?aff=oddtdtcreator 



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