Business leaders and employees have never before had to deal with change at the unrelenting pace we see today. As a result, leadership behaviors, corporate cultures and organizations’ operating systems must adapt and become more liquid to address the new reality and seize competitive advantage. The Liquid Changesm Solution 8

1. MAXIMIZING
THE BUSINESS
IMPACT
OF CHANGE
A NEW WAY FORWARD
The Study

2. 2
“Change will
never be slower
than it is today.
Are you able to
change as fast
as the world
around you?”

3. 3
It may seem trite to say we live in a world
of continuous change, but the accelerating
pace of change has turned this self-evident
truth into an urgent matter of survival.
The proof is in the numbers from around
the world. According to a seven-country
survey of executives in large organizations
commissioned by Ketchum Change, a
change management and communications
consultancy, change fatigue is pervasive
in certain corporate cultures and is bad
for business.
Simply put, in many companies employees
have hit the limit of their ability to deal
productively with change. They are
overwhelmed and burned out. They feel
isolated and powerless inside their own
organizations. As a result, they foot-drag,
ignore or destructively oppose change
because they know they won’t be able to
adjust to today’s change before tomorrow’s
is making new demands on them.
Ultimately they capitulate.
Conversely, the study reveals that
organizations that promote agility,
transparency, curiosity, courage and
relationships are optimistic outperformers.
Ketchum Change calls this organizational
culture and behavior “Liquid Changesm
”.
Liquid Change is about embracing change
as a fluid state of being, rather than as a
series of discrete events. Organizations
that want to thrive through change need to
build a culture, values, skills and operating
system that support this liquid state and
gain competitive advantage as a result.
Employees are
hitting the wall
in the face of
constant change

4. 74 percent of those surveyed said change
fatigue exists in their companies, with 39
percent of them stating it is highly prevalent.
We define organizational change fatigue
as a general sense of apathy or passive
resignation towards organizational changes
by individuals or teams. Respondents who
feel the draining stress of change most are
also more likely to feel that there are some
highly challenging obstacles getting in the
way of managing change effectively. They
can’t imagine their business succeeding
when overwhelmed by change, and they
are right. Overwhelmed businesses rarely
succeed.
Four key internal barriers respondents
find highly challenging when managing
change are:
• Gaining input from across the business
• Lack of decision-making power
• Being risk adverse
• Lack of transparency
The study indicates that to succeed in
an environment of continuous change,
a different, more collaborative approach
must replace the old top-down, command
and control model. Communicating a
clear strategy and goals (43 percent),
and engaging with leaders across the
organization to co-create the change
strategy (41 percent) were cited as the most
effective ways to lead through change.
It’s real,
it’s pervasive,
and it hurts
4

5. 5
74%
of those surveyed
said change
fatigue exists in
their companies

6. In fact, senior leaders seem to suffer change
fatigue blindness. Among Partners and
C-Suite executives, only 28 percent think
change fatigue is highly prevalent in their
companies, compared to 42 percent at the
Director, SVP and VP levels.
This tells us that top-tier leaders don’t
recognize the exhausting effect continuous
change and volatility have on employees.
And if they aren’t aware of it, they will be
unprepared for its damaging effects.
While nearly all respondents said managing
change effectively is critical to business
success – with 95 percent calling it very
or somewhat important – there were
some differences depending on the size
of the company. Smaller companies
seem less impacted by change fatigue
compared to larger ones. Just 29 percent
of organizations with fewer than 35,000
employees feel change fatigue is highly
prevalent, compared to 49 percent of
those at companies with more than
35,000 employees.
See no change
fatigue, hear
no change
fatigue,
speak no
change
fatigue
6

7. 7
95
%
Leaders seem to suffer change fatigue blindness
Percent of leaders who believe change fatigue is highly
prevalent in their companies
Smaller companies seem less impacted by change fatigue...
Just 29 percent of organizations with fewer
than 35,000 employees feel change fatigue
is highly prevalent, compared to 49 percent
of those at companies with more than
35,000 employees in my company
of respondents
report that managing
change effectively is critical
to business success BUT
the view from the top may
look a little different and
seem to vary based on the
size of the company...
C-Suite Executives & Partners
vs.
SVPs, VPs & Directors
28Agreed
%
Agreed
42%
29%
49%
vs.
SMALLLARGE

8. Companies that rated themselves strong
business performers with great futures
are ones that embrace the four attributes
Ketchum Change identifies as essential to
success in changing environments:
• Transparent - Communicate with
clarity and authenticity across borders,
and employ the Ketchum Leadership
Communication Monitor’s proven formula
of open communication, decisive action
and personal presence.
• Pioneering - Promote curiosity and
experimentation, and support risk-taking
to break through and innovate.
• Dialed-in - Create strong connections
with internal and external stakeholders,
embrace fearless listening and foster co-
creation.
• Agile - Drive forward through passion and
resiliency to seize and act on opportunities
in real time.
In fact, Liquid Change behaviors such as
transparency and agility were viewed as the
most effective to get leaders to believe in and
actively lead through change.
Looking at the results of the study overall,
it becomes clear that companies that
manage change effectively have a more
positive outlook on their future and good
communication is key.
Conversely lack of transparency is one of
the top internal barriers to thriving through
change. It appears that companies the least
hopeful about the future of their businesses
are much less likely to communicate about
change on an on-going basis or engage
employees in a dialogue around changes.
Business leaders and employees have
never before had to deal with change at the
unrelenting pace we see today. As a result,
leadership behaviors, corporate cultures and
organizations’ operating systems must adapt
and become more liquid to address the new
reality and seize competitive advantage.
The
Liquid Change
sm
Solution
8

9. 9
How can leaders energize their
people and build the organizational
muscle to thrive through
constant change?
Pioneering
72% Change to stay ahead
of the market
67% View mistakes as
learning opportunities
Transparent
73% Communicate in a human way
70% Act authentically
Dialed-in
72% Engage employees in
dialogue around changes
69% Rapidly share ideas for
enhanced decision-making
Agile
70% Be energized when
approaching change
69% Seize upon new ideas
By Being Liquid…
respondents say organizations and
leaders need to be:

10. Are YOU ready to lead in today’s liquid environment? Visit
https://www.ketchum.com/special-report/liquid-change-study
or contact maud.broda@ketchum.com
© 2015 Ketchum. All Rights Reserved
About Ketchum Change:
Ketchum Change, part of Ketchum,
is a boutique change management
and communications consultancy.
We help organizations through
complex and continuous change
by driving growth, transformation
and communication, and create
breakthrough engagement
strategies that inspire human
behavior change and deliver results.
About the study:
Ketchum Global Research &
Analytics surveyed 513 people
in total across the United States,
United Kingdom, Germany, Italy,
France, Spain and the Netherlands.
Those surveyed are at the director
level or higher in organizational
development, human resources,
communications or general
management who make most
or some budgetary decisions.
These individuals are employed
full or part time at companies with
more than 10,000 employees or
that generated $500 million or
more in revenue in their most
recent fiscal year.