The Pitfalls of Change: Lessons from Enterprise and Small Business

The goal of change management is to guide a company through planned transitions while minimizing disruption both operationally and culturally. A successful change management project is characterized by focusing on the organization’s most valuable asset, its people. Keeping your people informed, empowered, and engaged is the key to success.

Today, change comes fast and often. We see it everywhere, from global pandemics to the rise of AI technology to politically motivated market uncertainty. Businesses must be flexible and adroit, ready to adapt to every new wave of disruption.

Common Reasons Change Management Fails

Understanding the common pitfalls behind failed change initiatives is the best way to safeguard against them. While earlier studies claimed up to 70% of change initiatives fail, more recent research highlights a more nuanced reality—showing that many initiatives fall somewhere between partial success and unmet expectations. Here are a few key reasons why change management often falls short—along with what I’ve learned from firsthand experience.

Lack of Clear Vision, Poor Communication, and No Leadership Buy-In

Why it fails:

When the why behind a change isn’t clearly communicated, people struggle to understand the purpose or goal. Without a well-articulated vision, organizations lose a unified sense of direction. And when leadership isn’t visibly on board, it signals that the change isn’t a priority—so employees don’t take it seriously either.

Change often brings uncertainty, and poor communication only fuels resistance, fear, and confusion. In large enterprises, messages may get diluted as they trickle down. In small businesses, communication may be too informal or lack the urgency needed to inspire engagement.

Real-world example:

I’ve worked for several small organizations that introduced a new CRM system. In both cases, the initiative was led by middle management, while senior leadership remained quietly disengaged. As a result, the project dragged on for months. Employees were skeptical, openly resisted the change, and saw the CRM as “just more work.”

It wasn’t until leadership became more visible and vocal in their support that momentum shifted. Employees began to understand the value of the new system and how it could actually improve their workflow. In the end, the roll out succeeded—but after-action reviews made it clear: senior leadership should have championed the initiative from the very beginning and ensured consistent communication throughout the organization.

Ignoring Company Culture, the Human Side, and Lack of Reinforcement

Why it fails:

Culture is powerful. If a change clashes with an organization’s existing values or work style, it will be resisted—subtly or overtly. People are more likely to support what they help create, so failing to involve them in the process often leads to push back. Change is not just logistical—it’s emotional. Anxiety, fear of obsolescence, or role confusion can derail even the best plans.

And change isn’t a one-time event. Without ongoing reinforcement, people naturally revert to the old way of doing things.

Real-world example:

I’ve worked in large organizations across tech, healthcare, and museum capital projects. In each case, I’ve seen how overlooking culture and human dynamics leads to failure. Innovation stalls when there’s no clear champion or follow-up, no one to carry the torch after the excitement fades.

In one organization, a beloved CEO left suddenly with no warning and no structured transition. The culture took a hit. Productivity dipped, and the new CEO spent years trying to rebuild trust and familiarity. A smoother “unfreeze” process—using Lewin’s model of Unfreeze → Change → Refreeze—could have given employees space to prepare and adapt, softening the blow and protecting the organization’s internal rhythm.

Lewin’s Model Explained

In 1947 Kurt Lewin published his three step change model that is often referred to as the Unfreeze, Change, Refreeze model. The model states that each organizational change must have at least 3 stages. Unfreezing can be seen as getting people used to the idea of change; changing means increasing their motivation to move from one state to another, and refreezing is about making the new behavior the norm.

A Factory Lesson That Still Holds True

Back in the 1920s, researchers at the Hawthorne Works factory set out to test how changes to lighting would affect productivity. Strangely, no matter what they adjusted—brighter lights, dimmer lights, longer breaks—productivity improved. The real insight wasn’t in the lighting, though. It was in the people.

Workers weren’t motivated by conditions; they were motivated by attention. Simply knowing they were being observed, consulted, and cared about made them more engaged.

Nearly a century later, this insight from the famous Hawthorne Experiments still shapes how we manage change today. Change is powered by human connection. If you want people to embrace change, make sure they feel seen, heard, and involved in the process.

Lessons Learned & Rethinking the “70% Failure” Myth

• Resistance to change is often related to fear due to a lack of understanding around the change

• Lack of Reinforcement: Reinforcement provides clarity to employees by reminding them of the goals and objectives of the change

• Leadership Buy-In: An effective sponsor needs to understand their role in the change process, the resources needed, and the change initiative's purpose. 

• The oft-cited claim that “70% of change initiatives fail” stems from outdated research and lacks important context. More recent studies (e.g., 2009 IBM report and beyond) reveal that many initiatives are partially successful—falling short of goals but still moving the needle. The lesson? Change is complex, and measuring success isn’t always black and white.