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In an underperforming transformation: a negative cycle emerges
Leaders and workers begin in an emotional state that is similar to those in a successful transformation. However, there is a point during the transformation where things spiral down. Slightly more than one-third (38%) of workers reported negative emotions such as stress during a successful transformation versus two-thirds (66%) of workers during an underperforming transformation. Without any supportive intervention, workers and leaders alike lose hope. At the end of an underperforming transformation, the negative emotional impact is massive. Three-quarters of the workforce reported negative emotions, including 31% who experienced sadness, upset or depression.
Overall, negative emotions in the workforce increased by 25% in a successful transformation but by more than 130% in a underperforming transformation. Entering a new transformation with this well of negative emotions from the previous underperforming transformation can provide a crippling starting point for the next transformation.
“The key to turning transformation failure into success relies on the ability of organizations to completely rethink and redesign transformations with humans at the center,” says EY Global Vice Chair of Consulting, Errol Gardner.