When even the largest and most experienced organizations take on major change initiatives, success is far from guaranteed and the odds of failure remain strikingly high. Studies show that more than half of enterprise transformations underperform or collapse before reaching their goals. For Mark J. Concannon, founder of Concannon Business Consulting, the core issue is that leaders underestimate the human side of change.
“Too often the first thing they cut is change management,” says Concannon. “They think that the communication and the messaging and the people necessary to drive consistency across the initiative are not important. If you don’t put money into the change management, your likelihood of failure goes up exponentially.” Concannon has built a global reputation for helping enterprises navigate the complex terrain of transformation by blending technical expertise, business strategy, and process-driven execution. His insights offer executives a candid look at what it really takes to guide organizations through high-stakes change.
Building the Case for Change from the Ground Up
While executives might succeed in crafting a vision that makes sense to shareholders, neglecting to articulate why a change initiative matters to employees, at every level, is one of the biggest contributors to resistance. “You need a why for the line worker, you need a why for the line managers,” he explains. “If the why is just higher revenue or reduced cost, that speaks to the board and the C-suite. But you have to show how every worker is going to benefit, whether that’s job stability, more flexibility, upward mobility, or a better work-life balance.”
This change messaging must be targeted. A chief operating officer and a factory floor supervisor will not respond to the same rationale. “It’s not one-size-fits-all,” he says. “A structured approach means identifying your stakeholders early, understanding what each group cares about, knowing how much resistance they will provide, and tailoring the message accordingly.”
Avoiding Common Pitfalls
Concannon points to three red flags that signal a change program is at risk: lack of investment in change management; poor executive alignment; and weak program leadership. “If you don’t put the right people around it, or if a CIO is driving a project without the COO’s buy-in, you’re already at a disadvantage,” he says. Budgeting is another frequent trap. Concannon recommends allocating 10 to 15% of an initiative’s budget to change management. While this can be a hard sell, especially on multimillion-dollar projects, he argues that cutting it is like “removing the insurance policy” on the entire investment. “It’s not just about avoiding failure,” he says. “It’s about ensuring that the investment pays off. Too often leaders cut it to make the numbers look good upfront, only to bring it back later when it’s too late to be effective. That’s like buying insurance after you wreck the car.”
Universal Principles with Industry Nuance
From energy to aerospace to early stage companies, Concannon has seen the same foundational elements of change management apply. At its core, effective change management rests on four pillars: defining the why; structuring the process; targeting communications; and supporting employees through training and cultural reinforcement. “At the base level you’ve got to have that why clear at all levels,” he says. “You have to identify your resistors, plan for how to move them, and make sure training isn’t just about the new task but about bridging the gap from where they were to where they are now.”
In other words, while the principles remain universal, the execution must be context-specific. “You could not cookie-cutter messaging for aerospace into automotive manufacturing,” Concannon says. “The fundamentals are the same, but the details matter. You need laser-focused communication that resonates with the culture of each industry and each workforce.”
Preparing for the Next Wave of Transformation
Many organizations are currently exploring how artificial intelligence and emerging technologies can enhance change management. The promise of these tools lies in their ability to streamline project coordination, but their true impact depends on how effectively they support the people-focused work at the heart of transformation.
“There are ways to leverage AI as a project coordinator, helping with scheduling, note-taking, and follow-ups,” he says. “But change management is still about people. It’s messaging, overcoming resistance, preparing the workforce. That requires human connection.” For Concannon, the future of change management lies in balancing technological tools with human-centered leadership, advising executives to ensure change leaders maintain both strong interpersonal skills and the technical literacy to integrate with modern project platforms.
Investing in People and Success
For senior leaders confronting transformation, Concannon’s message is to treat change management as seriously as any technical or financial component of the program. The companies that succeed are those that embed the why, structure the process, and keep people at the center of every initiative. “This is helping the people come along, reducing resistance, and improving the likelihood the investment you made is going to pay off,” he says. “Don’t let this investment in your employees’ well-being and your project’s success be the first thing you cut.”
To learn more about managing large-scale change management initiatives, connect with Mark J. Concannon on LinkedIn.
