Earlier, the goals of senior executives were straightforward, even in large companies. Shareholder expectations focused mostly on stable earnings growth. With many markets either undeveloped or closed, leaders could deliver on these expectations through routine adjustments to their strategic blueprints. Life was good—costs stayed in check, and employees remained secure in their jobs.

But now, global capital flows, labor mobility, instantaneous communication, and market transparency have shattered that safe approach. Today, in almost every industry, increased global competition has forced management to focus heavily on change—something they could happily avoid in the past.

This shift presents many seasoned executives with a challenging new reality. Executives and their advisors have typically focused on crafting the best tactical and strategic plans during large-scale enterprise transformations. But true success only comes when they gain a deep understanding of the human side of change management. Awareness of company culture, values, people, and behaviors is critical to achieving the desired outcomes.

Value isn’t captured by planning alone. It’s realized through the combined and sustained efforts of employees who develop, execute, and adapt to the changing environment.

Long-term structural transformation typically exhibits four key characteristics:

  1. Magnitude: Significant changes from the current state.
  2. Scale: Affects the majority of the organization.
  3. Duration: Often lasts months or years.
  4. Strategic importance: Critical to the organization’s future.

CEOs leading structural transformations often worry about employee response, uniting their teams to act in sync, and training people effectively. They are also concerned about maintaining performance standards, ensuring commitment, and preserving the company’s identity and core values.

Leadership teams that fail to manage the human side of change often struggle to implement even the best plans. A one-size-fits-all approach doesn’t work. Every organization must tailor its tools, techniques, and practices to fit its unique circumstances.

Below are the top ten principles to guide comprehensive and systematic change management:

1. Systematically Address the “Human Side”

Every major transformation creates “people issues”—whether it’s new leadership, changed roles, the need for new skills, or employees resisting change. Managing these issues reactively can compromise enthusiasm, speed, and results.

A formal process for managing organizational change should start with the leadership team and extend to key stakeholders. This involves collecting data, analysis, planning, training, and aligning systems, strategies, and processes.

The change-management process must be fully integrated into decision-making and program design, driving both strategic direction and execution. It should reflect a realistic assessment of the organization’s history, capacity, and readiness for change.

2. Begin at the Top

When change looms, it’s naturally unsettling for employees at all levels. They look to the leadership team—and especially the CEO—for direction, support, and strength. The leadership team must be open to new approaches, demonstrating the desired behaviors to inspire and motivate the rest of the organization.

Leaders must communicate with a unified voice and model the right behaviors. They should also understand the pressures their employees face and take proactive steps to support them.

Leadership teams that work cohesively, are aligned on the direction of change, understand the cultural shifts the change will bring, and are committed to driving those shifts themselves will see the most success.

3. Involve Every Layer

As transformation initiatives move from goal-setting and strategy to development and implementation, every layer of the organization will be affected. Leaders must be identified at all levels to take responsibility for formulating and executing plans so that change permeates the entire organization.

These leaders should be aligned with the organization’s vision, equipped with the necessary tools, and motivated to achieve their objectives and drive change.

A cascading leadership approach works best: executives set the vision, strategy, and goals, while managers and senior leaders build the foundation for change. Field leaders ensure successful execution. This method is effective for both driving change and identifying the next generation of leadership.

4. Make the Formal Case

People are inherently logical. When faced with change, they will question its necessity, direction, and whether they’re personally willing to support it. They will look to leadership for answers.

Presenting a clear, formal case for change is a valuable opportunity to align leadership. The case should include:

  • Addressing reality and conveying the need for change.
  • Instilling confidence that the organization can achieve its goals and that leadership can guide them there.
  • Providing a roadmap to guide decisions and behavior.

This message should then be tailored to different internal audiences, explaining the coming changes in terms that matter to them. Leaders must motivate employees to follow the new path by addressing the reality of the situation and making the need for change clear.

5. Create Ownership

Leaders driving large change initiatives must do more than just agree with the need for change. They must overdeliver in their roles as advocates of change, creating momentum among their teams. This goes beyond passive agreement—it requires a commitment to bringing about change in all areas they oversee.

Ownership is best created when leaders are involved in identifying problems and developing solutions. It’s reinforced through incentives, whether psychological (such as camaraderie) or tangible (like financial rewards).

Executives should invest personal time in the planning process to foster the ownership necessary for successful implementation. Top leaders must cultivate a sense of unity and alignment by working as a team.

6. Communicate Effectively

One common mistake change leaders make is assuming that others understand the need for change, share their commitment, and see the new way forward as clearly as they do. The best change strategies deliver core messages through regular, practical, and inspiring guidance.

Communication should flow both from the top down and the bottom up. It should deliver the right information at the right time, while also soliciting feedback and acknowledgment. Often, this will require redundant communication across multiple channels.

Leadership must design and implement a communication strategy that is consistent, timely, and motivational.

7. Assess the Cultural Landscape

Successful change programs gain momentum and speed as they unfold. It’s critical for leaders to understand and account for the behaviors and culture at each level of the organization. Many companies make the mistake of not assessing their culture upfront.

Conducting thorough cultural diagnostics can help identify areas of resistance and challenges. This enables leaders to anticipate obstacles, craft solutions, and build the necessary infrastructure for driving change.

8. Explicitly Address Culture

Culture should be treated as a key component of the change agenda. Leaders must clearly define the behaviors that will support the new ways of working and find opportunities to reward those behaviors.

This requires setting a cultural baseline, defining the desired end state, and planning how to achieve it. The company’s culture is a blend of shared history, behaviors, attitudes, beliefs, and values. Whether the goal is merging cultures, enhancing them, or developing a new one, culture must be addressed head-on.

9. Prepare for the Unexpected

Change initiatives rarely go exactly as planned. People may react unpredictably, resistance may surface in unforeseen areas, and external factors can shift. Leading change effectively requires regular reassessment and the flexibility to adapt as necessary.

Using real-time data and sound decision-making, leaders can make the adjustments needed to sustain momentum and achieve results.

10. Speak to Individuals

Change is both a collective and a personal journey. Employees spend a significant portion of their lives at work, and their colleagues often become a second family. People need to know what’s expected of them and how their roles will change. They also want to understand how they will be measured and what success or failure means for them and those around them.

Individuals must be engaged in the change process and given visible rewards—whether recognition, promotion, or bonuses. Those who stand in the way of change should face clear consequences to reinforce the institution’s commitment to its transformation.

Conclusion: Master the Human Element

Leaders overseeing change must recognize that people are at the heart of every transformation. Mastering the human side of change management is essential for success. Leaders who are clear, honest, and empathetic will guide their organizations effectively toward a successful future.