Eliminating Passive Resistance in Corporate Transformations
Thirty-two executives from fifteen countries, and one question none of them could answer: has anybody here got a perfect track record in corporate transformation? Ninety minutes on why transformation fails — and what operators have found that works.
In the room
- Host
- Jesse Hopps
- Guest
- Ron Denoo, Operator Coach; Roy van Griensven, Operator-Coach-in-Residence
- Room
- 32 executives from 15 countries — Honeywell, Pernod Ricard, AstraZeneca, Maersk, NielsenIQ, The Coca-Cola Company, Owens Corning, Smith & Nephew, and a half-dozen specialty chemical companies
What thirty-two senior executives revealed about why enterprise transformation fails
Ninety minutes, fifteen countries, and no slides. Operators talking to operators about the thing that kills most transformation efforts before they start: passive resistance.
The short version
- Not one of thirty-two executives claimed a perfect transformation record, and the follow-up — anybody batting fifty percent? — drew the same silence.
- The published rates back them up: McKinsey puts failure at seventy percent, BCG reports one in four transformations deliver sustained change, Bain has cited eighty-eight.
- Resistance is a symptom rather than the problem — a failure of design, communication, and empathy upstream of it.
- The people who design transformation are more resilient and adaptable than the population they design for, and they project their own capacity onto everyone else.
- The room’s fixes: direction top-down and execution bottom-up, resistors recruited early, quick wins planned in, and change management funded at ten percent of project budget.
The question that went unanswered
Thirty-two executives dialed in from fifteen countries. Their combined résumés spanned Honeywell, Pernod Ricard, AstraZeneca, Maersk, NielsenIQ, The Coca-Cola Company, Owens Corning, Smith & Nephew, and a half-dozen specialty chemical giants. They held titles like VP of Commercial Excellence, Chief Product Officer, SVP of Data and AI, and COO. Between them, they had overseen hundreds of transformation programs worth billions in projected value.
The moderator, a recently retired head of market strategy at a Fortune 500 materials company, opened with a simple question: has anybody here got a perfect track record in corporate transformation?
The silence was immediate and telling. He followed up: anybody even batting fifty percent?
More silence. A few knowing smiles.
The data explains why. McKinsey puts the failure rate for corporate transformation at seventy percent. Boston Consulting Group recently reported that only one in four transformations deliver sustained value-creating change. Bain & Company has cited numbers as high as eighty-eight percent.
The moderator made the math personal: if you hired a landscaper to cut your grass and only two or three times out of ten your lawn got mowed, you would fire them. And yet the enterprise world keeps buying the same playbook from the same providers and expecting a different result.
What followed was one of the most candid executive conversations most of these leaders said they had experienced in years. No presentations, no slides, no consulting theater. This is what they said.
The usual suspects
The opening wave of responses surfaced the familiar culprits — the ones that appear in any post-mortem, any after-action review, any consulting debrief. They are well known because they are real. But as the conversation progressed, it became clear they were symptoms rather than root causes.
C-suite misalignment
“Number one is the transformation project is something that is imposed from a board or from some investors from the outside, and you don’t have a full commitment in the C suite, and they’re not singing on the same tune. That is my experience. That is number one.”
Transformation programs often begin with a mandate rather than a conviction. The board wants it. The investors expect it. The CEO announces it. But the layer below — the P&L leaders, the regional GMs, the functional heads — are rarely aligned on what it means or how far they are personally willing to go.
The moderator framed this as a pyramid problem. Commitment is strongest at the top and weakest at the bottom, yet the bottom is where the numbers are. Each layer down, you need more people to change their behavior, not fewer — and the investment in engagement, communication, and support follows the opposite pattern, heaviest at the top and thinnest at the base. Organizations routinely launch phase two without asking whether the people in phase one were ready to move on.
Consulting firms disconnected from reality
“Large consulting budgets — those are successful for the large consultants and they can bring lots of people, but it doesn’t actually engage the business. You’ve got to actually have people rebuild the house that they’re living in themselves.”
He went further: the most important projects in any company are led by its own EVPs and CXOs, not by outside advisors. What gets outsourced to strategy firms is the second tier of work — important but under-resourced. If your senior leaders are unable to run the truly strategic projects themselves, you have a talent problem rather than a consulting problem.
“At the very best, they come and ask us internally what problems we have, how to solve them, and then they best package those and show it to the top leadership. And the question is: why did we not speak to our own people?”
Change fatigue and the outlasting effect
“I’ve walked into sites where there are hundreds of employees and you ask them what the current initiative is, and most of them can’t tell you. That silence resistance is either neglect or some of the employees knowing that they can outlast you. Because you’re going to come back in six months with another initiative, and they’ll outlast that one as well.”
“Every time I hear, yes, we’re gonna go through another transformation — in my head, it’s like, oh, bloody hell, not another one. Even when you know it is required.”
Misaligned KPIs and underfunded change
“Misaligned KPIs are kind of a death sentence when you are trying to do a transformation. If there’s a set of KPIs at the top that are completely misaligned with either region or a function, it’s not helping the organization to transform.”
One executive gave a concrete example: a company simultaneously pushing price increases and asking the sales team to grow share — two objectives that pull against each other at the customer level. The frontline resists not because they are lazy or uncommitted, but because the strategy asks them to do two things that seldom go together.
“When you allocate ten percent of the broad project budget to change management, you’re in a pretty good place. When you go down to five percent, it’ll be hard. And if your change budget is below five percent of your overall project budget, you’re in trouble.”
He also identified a pattern that makes each of the others worse: a persistent lack of adult-to-adult communication. Headquarters hides facts, withholds uncertainty, and treats the organization like children who are unable to handle ambiguity. The irony is that this protective instinct — meant to reduce anxiety — is what breeds the distrust that fuels passive resistance.
Resistance is a signal
About thirty minutes in, the tone shifted. Several executives began to challenge the framing itself. Passive resistance, they argued, is not the problem. It is the most visible symptom of a failure of design, communication, and empathy upstream.
“People resist not change itself, but what they might lose with change. If you peel the onion, it’s about fearing what I’m going to lose personally — autonomy, responsibilities, relationships with stakeholders I love, and why I’m doing my job.”
“A lot of the resistance comes not from people not wanting to do it, but from not understanding how to operationalize all the impact — loss of status, increased workload, risk on competencies, psychological safety, the fatigue. We don’t put enough time upfront mapping out who’s going to be impacted.”
“Flip the script. It’s not negative, it’s actually really positive. With shadow IT, they’re not doing anything wrong. They’re doing something because we haven’t provided the service they needed. It’s the same for passive resistance. The resistors are not resisting because they’re trying to be painful.”
“Ninety-nine percent of all our team members have only the best of intentions. They are not showing up for work in the morning saying, I want to sabotage something. The reason they are resistant is because they are not involved in the why.”
The design flaw that rarely gets named
The most uncomfortable moment came when one participant turned the lens on everyone in the room.
“The people that are designing transformations for other people are fundamentally different types of people than the people that they’re expecting to do it. All of you in this room — you’re all highly resilient, highly adaptable, highly motivated. When you look at the engagement levels of all the employees out there, frontline and mid-level sales guys, they’re not as engaged and they’re not as adaptable and they’re not as resilient as you guys are.”
He cited a McKinsey Health Institute report showing that nearly eight in ten employees self-report low resilience and adaptability. The people designing transformation are projecting their own capacity for change onto a population that does not share it. The failure is not that the frontline resists. It is that the architects of change assume everyone processes change the way they do.
“When you talk about passive resistance, I think what you’re saying is that you as a leader have actually failed. You haven’t spent enough time communicating with the responsible people. You haven’t built trust with them. You haven’t heard what they actually care about.”
“In my twenty-plus years in the corporate world, I've yet to see a single strategy. I see wish lists. We wanna be the best in customer service. We wanna be innovators. Well, these are wishes. These are objectives at best. These are not strategies.”
Several participants noted the career dynamics that sustain the cycle. Leaders rotate into roles, launch transformation programs, and rotate out before the results — or the lack of them — become visible. A new team arrives and the cycle starts again: new consultants, new decks, new language, and the same failure to engage the people whose behavior has to change.
What works
In the second half the group shifted from diagnosis to prescription. What surfaced was not a methodology but a set of principles, tested by operators rather than theorists.
Strategy top-down, execution bottom-up
“A company has a top-down obligation to identify where it needs to be. But there it kind of stops. How to get there? You need to involve the people. And in my experience, the people damn well know what to do. There’s very little that you need to tell them.”
A technology SVP proposed replacing the traditional post-mortem with a pre-mortem: sitting down with frontline teams before launch and asking what will cause this initiative to fail, what tools they need, and what they would do differently if they were in charge.
Guide, don’t tell
“Lengthy meetings, explain all the content, everyone’s nodding. Makes perfect sense. And at the end, you say, so are we going to do this? No. The heart is not there yet.”
Instead of telling people what to do, guide them with examples and inspiration. Share what other companies are doing and let them conclude for themselves what needs to happen. The moment someone says this was my idea, they will not let go.
“All of a sudden, the CRM not working perfectly is no longer a complaint. The process is no longer a problem. The data quality is no longer a problem. Because it’s their idea, and they want it to work.”
Convert resistors into champions
“We all know who the resistors are. When you’re putting together your ideas, you’re like, oh God, Mr. X and Ms. Y will resist. So use that — bring them in early and ask the question: why won’t this work? They become your ambassadors, and by default, your change management has just increased tenfold.”
If someone known to resist change visibly signs on, it sends a signal through the organization far more powerful than any town hall or email from the CEO.
Build in quick wins early
“Build quick wins into your milestone planning as early as possible. A lot of people leave it till midway or towards the end. And those early adopters become your change agents without you having to coach them or tell them to be change agents.”
Stop calling it transformation
“If we start thinking about it as continuous improvement — many different teams, many different sides of the company, specific projects that fit into the strategy — it’s much easier to drive smaller projects that can bear some fruit in half a year, one year.”
One head of commercial excellence at a chemicals company shared a practical example: rather than mandating a top-down AI transformation, his team gave people access to tools, permission to experiment, and a culture of sharing what works. They gamified it and celebrated early wins publicly. Adoption came from the ground up, because people felt agency over their own learning curve rather than being subjected to someone else’s rollout plan.
The framing itself creates an adversarial dynamic. Transformation implies something is broken and must be replaced. Continuous improvement implies that what exists has value and can be built on — a distinction that matters enormously to the people who built the current state and take pride in it.
Invest in people’s capacity for change
“Stop telling people what to do. Start asking them what they need. Help your people get better at change. How do you actually get them to be more change-oriented and not see change as something fearful?”
Resilience and adaptability are not fixed traits. Organizations that invest in adaptive capacity across the workforce — rather than in the top two layers — find the resistance problem solves itself, not because people stop resisting, but because they stop needing to.
The courage question
“I don’t think any CEO would disagree that involving people bottom-up is a good idea. None of them would say that’s wrong. The question is, how many of us are actually courageous enough to stand up and say, I think this way will work better — and if not, fire me?”
This is the crux of the paradox. The people designing transformation know the current model fails most of the time. They know that frontline involvement, bottom-up execution design, and structured autonomy produce better outcomes. They know consulting decks rarely change behavior. And yet the gravitational pull of the existing system — its safety, its familiarity, its ability to diffuse blame — keeps most organizations locked into the same pattern.
The COO on the call, who had worked at three of the world’s largest consulting firms before running global businesses, offered a blunt assessment of why the cycle persists. The incentives are misaligned from top to bottom. Leaders launch transformation programs and move to new roles before the results are in. Consulting firms sell large engagements that generate revenue regardless of outcome. Software companies sell platforms that get implemented and then go unused. The enterprise foots the bill, year after year, while the frontline watches and waits for the next wave to pass.
One executive proposed a concept the group found compelling: structured autonomy. Define the strategic boundaries — the five things that matter most to the company — then give people inside those boundaries complete freedom to figure out how to move the needle. Not a free-for-all. Not a suggestion box. A disciplined framework that marries strategic direction with frontline agency.
What this roundtable represents
This was not a webinar. There was no keynote, no product demo, no lead-generation form. It was ninety minutes of senior commercial leaders — operators, not theorists — sharing what they have learned the hard way about why transformation fails and what might fix it. Most of these ideas exist in the literature. What made them powerful was the source: executives who have personally overseen transformation programs worth hundreds of millions of dollars, at some of the world’s most complex organizations, and who were willing to say plainly what went wrong and why.
Practices to apply immediately
- Set direction top-down; design execution bottom-up. The people doing the work generally know what to do.
- Run a pre-mortem, not a post-mortem. Ask frontline teams what will make this fail — before launch.
- Bring the known resistors in early and ask them why it will not work. They become the ambassadors.
- Put quick wins into milestone planning at the start. Early adopters become change agents without being asked.
- Fund change management at ten percent of project budget. Below five percent is trouble.
- Stop calling it transformation. Continuous improvement implies what exists has value and can be built on.
Questions the room worked through
- What is passive resistance?
- People nod and agree in the meeting, then go back to what they were doing the next day. It is social rather than instrumental — the failure shows up in the room, not in a report. The room’s position was that it is a symptom rather than the problem: a failure of design, communication, and empathy upstream of it.
- Why do enterprise transformations fail so often?
- McKinsey puts the failure rate at seventy percent. BCG reports that only one in four transformations deliver sustained value-creating change. Bain has cited numbers as high as eighty-eight percent. The room’s explanation was design rather than people — transformation done to people instead of with them, and strategy treated as a deliverable instead of a conversation.
- Why do people resist change?
- Rarely the change itself, and more often what they stand to lose by it: autonomy, responsibilities, status, relationships with stakeholders they value, and the reason they do the job at all. One participant noted how little time gets spent up front mapping who will be affected and how.
- How should you handle the people you know will resist?
- Bring them in early and ask them why it will not work. Executives in the room described known resistors becoming the program’s most effective ambassadors once their objections were sought out rather than managed around.
- How much of a project budget should go to change management?
- The room’s rule of thumb was ten percent of project budget. Below five percent was described as trouble.
- Should transformation be designed top-down or bottom-up?
- Both, in different places. Set direction top-down; design execution bottom-up. The people doing the work generally know what to do, and the open question raised in the room was whether leadership has the courage to let them.
- What is a pre-mortem, and why run one?
- Ask frontline teams what will make this fail — before launch rather than after. It surfaces the operational objections that a post-mortem can only record.
- Should you call it a transformation?
- Several leaders said no. Transformation implies that what exists has no value and that the change has an end date. Continuous improvement implies what exists has value and can be built on, and that adaptation is normal.
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