The cost of absorbing change
Most organizations do not fail because of change. They struggle because they underestimate the cost of absorbing it.
- A new leader arrives.
- An acquisition is integrated.
- A reorganization takes place.
- A platform is migrated.
- Compensation plans are redesigned.
- Territories are adjusted.
None of these are inherently bad decisions. Many are necessary. The challenge is that every change creates both benefits and consequences.
Organizations tend to spend significant time evaluating the upside of a change. Far fewer spend enough time thinking about what else that change might touch.
You may achieve 80% of the outcome you were hoping for, but there is almost always some level of disruption.
- New handoffs emerge.
- Relationships change.
- Processes break.
- Knowledge gets lost.
- Teams spend time relearning instead of executing.
That is why when performance starts to slip, the question often becomes, “What broke?”
A more useful question is, “What changed?”
Because the issue is often not the change itself. It is an unintended consequence that showed up somewhere else in the business.
I learned most of this integrating two demand organizations after an acquisition.
The obvious work was the visible work. Two demand platforms. Two marketing automation systems. Two analytics stacks. Two definitions of a qualified lead. That work was difficult, but it was scopeable, and we did it.
The part that was not scopeable was everything that had been true informally. Who a regional seller called when a campaign underperformed. Which analyst a business unit leader trusted to check a number before taking it to a board review. The unwritten understanding about who could approve an exception without escalating it. None of that appeared on any integration plan, and all of it had to be rebuilt, mostly by people discovering in real time that the old path no longer worked.
We also made a coverage decision I would make again, and it still cost something. The combined team did not have enough marketers to dedicate coverage across every European market. So we moved to cross-business-unit country coverage, which meant some units would receive less dedicated attention while senior leaders engaged directly with their sales counterparts to close the gap. It took roughly six months to settle.
The decision was right. The absorption cost was real. Saying so openly mattered, because the teams living it already knew, and pretending otherwise would only have cost me the credibility I needed to ask them to stay with it.
One lesson I have learned is that organizations can survive almost any individual change. What they struggle with is absorbing several at the same time. The effects compound, which makes it difficult to isolate root causes and understand which change created the conditions for the problem.
The leaders who navigate transformation best do not avoid change. They anticipate the ripple effects. They understand that every change creates both value and friction, and they plan for both.
Every change solves a problem. The best leaders spend equal time thinking about the new problems it might create.