Unsuccessful Examples of Change Management Companies

Many large organizations failed in their attempt to adopt and execute the change management strategy. Tech and digital transformation could sometimes wipe out the entire specific business industry. There are multiple reasons for the failure of change management projects of different. Usually, it fails due to employee resistance, not complying with the customer’s requirements, and implementing the improper change strategy. Today, we’ll discuss unsuccessful examples of change management companies; Tarsus Distribution, Convert Kit, Border Group, Wistia, and Kodak; and key lessons learned from the change management failure examples of companies.

Unsuccessful Examples of Change Management Companies

Let’s discuss the unsuccessful examples of change management companies that failed in their change strategy execution attempt; they’re as follows;

Tarsus Distribution

Tarsus Distribution is an IT service distribution firm from South Africa; the company launched an RPA (Robotic Process Automation) system to decrease the manual process of data entry. The change communication plan received a lot of internal resistance and opposition. However, Tarsus Distribution employed robotic software to assist the manual data entry process. The objective was to decrease the workload from the employees of the manual data entry work. The change communication plan gave the impression that the robotic software would replace human beings.

Employees and team members shared their concerns and resisted the change project of Tarsus Distribution Company. Instead of getting the employee’s support and confidence first, the company launched the change project. The RPA change project could achieve the desired goals and objectives due to the limited involvement and participation of employees.

Lessons Learned from Tarsus Distribution Failed Change Attempt

• Change managers wrongly and improperly communicated the change project;
• They needed to comprehend the significance of the change project, give them the reason impacted by the change
• Tarsus Distribution failed to highlight the benefits of the change projects for employees, and it caused a lot of unnecessary confusion
• Explaining the reasons for the change project to get support from inside the organization like managers, employees, supervisors, and stakeholders; they failed to do so

Convert Kit

ConvertKit is an email marketing software company. The brand invested a lot of resources and 2 years of time in planning and developing a rebranding strategy by the name of Seva. The flaw in the research and data collection process caused the company to lose approximately 500,000 USD.

ConvertKit planned to rebrand itself by the name of “Seva” as its new brand name derived from the Sanskrit language meaning “selfless service.” However, the company failed to research the meaning and affiliation of the new brand name in the Sikh religion. It has sacred meaning and connotation in the Sikh religion meaning giving anything and worshipping without expecting anything in return.

Seva is not a good rebranding strategic name for the profiteer company; because it contradicts the company’s mission and objectives.

Lessons Learned from ConvertKit Failed Change Attempt

• Failed to conduct thorough research and only analyzed the business and human side of the change initiative
• Avoiding the cultural and religious implications of the terms
• Wasted half a million dollars and jeopardized the trust and confidence of customers
• Failed to envision those people impacted by the change project

Borders Group

Borders Group is the 2nd largest retail chain bookstore brand in the USA. The bookstore brand made a technical mistake and it led the company to bankruptcy. The change management strategy of the company focused on developing a partnership with Amazon to target the online customers market. However, Borders Group outsourced all the online books, movies, videos, and DVDs to Amazon back in 2001; but the partnership had a devastating impact on the sale of its physical bookstores.

Customers were stopping and coming at Borders, but they were shopping from Amazon. It greatly impacted the revenue and profitability of the company till 2006; the company filed for bankruptcy and liquidated its assets.

Lessons Learned from Borders Group’s Failed Change Attempt

• Borders didn’t perform the risk analysis while partnership with Amazon
• Failed to consider the long-term outcomes of the alliance

Wistia

Wistia is a video marketing software company. The company’s executives focused on the rapid expansion, the tunnel vision shifted them away from the company’s corporate values and it resulted in the form of employee burnout and high stress. However, the change strategy shifted the company’s focus away from internal efficiency towards business growth.

When the company achieved its targets of profitability from the long-term creative project; the change leaders changed their strategy. Instead of investing in the company’s already constructed success, the rapid growth took over the management and they started launching advertisement campaigns and ate all of their profit. Wistia went under a debt of 17 million USD to save the company.

Lessons Learned from Wistia’s Failed Change Attempt

• Wistia focused on the McKinsey 7S elements of change management
• 7S elements allowed the company to achieve and maintain balance
• Shifting away from the company’s core values was a mistake
• Invested millions of dollars to rebuild the trust and confidence of customers

Kodak

Kodak was the world’s leading cartridge film and camera brand; the company earned billions of dollars from the sale of analog cameras and film cartridges. The company failed to invest in the digital camera industry. However, smartphones and social media platforms changed the way how people view and share their photos; the company stubbornly stuck to its old strategy and filed for bankruptcy in 2012.

Lessons Learned from Kodak’s Failed Change Attempt

• Failed to take any actions on business disruptions and the changing market trends
• Denying and refusing the digital transformational trends
• Perceived the changing trends but failed to take any actions

Conclusion: Unsuccessful Change Management Companies Examples | Change Management Strategy Failure Examples of Companies

After an in-depth study of the unsuccessful examples of change management companies; we have realized that a change project comes with a lot of risk. If you are learning about the change management strategy failure examples of companies; then you should keep in mind the abovementioned examples and lessons learned from the company’s failure.