Why transformations stall—and where only CEOs make the difference
Transformations stall less from weak plans than from five predictable collective-action problems (the negotiated settlement, hoarding habit, lure of the local, trustworthy few and finite program) that arise from rational individual incentives, and the CEO's nondelegable job is to align those incentives with enterprise goals.
Summary
Strovink and Lee argue that individually rational behaviors add up to five collective-action problems: teams negotiating targets down, hoarding information, optimizing locally, relying on a trusted few, and treating transformation as a finite program. Early signals show before results slip, such as targets anchored to prior-year numbers or 'my goals, my budget' language. Remedies include pairing bottom-up goals with a top-down full-potential view, radical transparency, and linking incentives to enterprise financial goals (50+ organizations studied). Transformations take off once 20-25% of the organization is engaged, versus 5-7%.
Editor's opinion
The CEO real transformation job is not storytelling, it is personally breaking the specific coordination failures no one below them can resolve alone. Asserted, not tested.
Key concepts
Collective-action problems · Negotiated settlement · Hoarding habit · Lure of the local · Trustworthy few · Finite program