Why programmes to transform companies fail

NONE other than Machiavelli said "there is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things".

So here is a familiar story. A company is about to embark on a transformation programme. The new CEO, who is also a first-time CEO, is under pressure from the board to submit a three-year turnaround plan. A consulting firm is duly appointed. With the plan complete and approved, the CEO gets a few young executives to create a project management office (PMO).

Despite some critical vacancies, the CEO draws up plans to launch the transformation programme, which includes holding town hall meetings to fire up the troops. The line managers have been asked to sign up to ambitious goals. What are the chances that this company will succeed?