“I’d rather quit”: Study shows how CEOs really feel about transformation projects

Our survey of over 700 senior decision makers of organizations with more than 1,000 employees has uncovered some surprising attitudes to organizational transformation.

68% of C-suite leaders think transformation projects are high risk. 60% believe decisions about workforce transformation are driven by human emotion rather than rational analysis and 61% say their organization doesn’t give enough thought to planning transformation projects.

Disconnects and discord within the C-suite

The research found that a lack of consensus among C-suite leaders (24%), disconnects between different parts of the organization (33%), lack of shared vision (30%), and executive resistance to change (29%) are the biggest barriers to successful transformation.

CEOs in particular said that leaders not being able to ‘do the hard thing’ (29%) was one of the most significant obstacles. There’s clearly a need for more unity in the C-suite if organizations are to be successful in their transformation efforts.

CEOs sit on extreme ends of the transformation scale

As part of the study, we identified several types of transformation leader, including two different CEO personalities, which we call the Conservative Guardian and the Agile Trailblazer.

Conservative Guardians are change-sensitive. They feel the intense pressure of organizational transformation. They’re affected by the harsh realities of change management and this impacts their view on transformation more broadly.

The research shows that Conservative Guardians, more than any other C-suite leader, feel transformation fatigue acutely. Only 29% would willing to lead major restructuring initiatives for their organization and only 25% are prepared to dismantle traditional hierarchies and management tiers to improve workforce efficiencies.

On the other hand, Agile Trailblazers are change-agnostic. Transformation confidence is high among these CEOs. They’re the most progressive among C-suite leaders and they understand the importance of taking an approach to transformation that doesn’t rely on ‘fire & rehire’ tactics.

90% of these CEOs say they’re willing to take a continuous approach to organizational change, rather than a disruptive, timebound approach. They embrace organizational change longer term and are more accepting of innovative answers that enable them to better adapt in turbulent economic times.

CEO personalities head-to-head

Our two CEO cohorts have distinctly opposite views when it comes to workforce transformation and attitudes to risk and change. In Our research findings show that:

• 97% of Agile Trailblazers are willing to lead a major restructuring effort for their organization versus 70% of Conservative Guardians
• 87% of Agile Trailblazers are willing to give their teams and individuals the autonomy to make risky decisions, compared to 64% of Conservative Guardians
• Another 97% of Agile Trailblazers are willing to make changes to address market pressures through radical transformation processes, Conservative Guardians
• And almost all (97%) Agile Trailblazers say they would make changes that address market pressures through radical transformation processes, compared to 70% of Conservative Guardians

The human element in decision making

60% of C-suite executives say that decisions about workforce transformation are driven by human emotion rather than rational analysis, a point that’s emphasized by personal preferences:

• 54% of executives would rather relive the COVID-19 pandemic than lead workforce redundancies
• And 38% of CEOs would rather quit than lead a large-scale workforce transformation
• However, 56% of C-suite executives and 64% of CEOs would rather conduct layoffs than miss earnings targets
• And 50% of executives would rather conduct layoffs than cut the executive team’s pay; another 61% would rather do so than freeze employees’ pay.

M&A pressure remains high, so does the need to optimize costs

Recent market volatility has made organizational transformation a priority for the C-suite and our research also shows that financial pressures are invariably the trigger for business leaders beginning a transformation journey.

Our research shows that cost take-out remains a top concern for C-Suite leaders. 63% say that cost cutting is the primary motive behind their transformation projects and 74% are willing to go through transformation for this reason.

When it comes to mergers and acquisitions, the findings show that 63% of senior executives believe that conducting layoffs is the easiest solution to managing the transition.

Notably, only 13% say investor pressure is the primary driver for transformation, going against common assumptions about external influences on organizational change.

For more stats from our research study take a look at this infographic, which summarises the top findings.