The Cost of Getting Change Wrong: What Business Leaders Must Learn from Famous Failures
By Friska Wirya
Change is no longer a choice—it’s a challenge.
A 2021 Fortune study reported that 85% of companies are accelerating their transformations. Yet despite this, the failure rate for change initiatives has stubbornly remained around 80% for decades.
Why do organisations continue to get it wrong?
As a Change Management Consultant working with some of the world’s biggest brands, I’ve observed that the root causes often remain unchanged: lack of strategy, poor leadership alignment, weak communication, and failure to truly engage people in the process. To understand how dangerous poor change management can be, we only need to look at some of the most costly corporate missteps in recent history.
I’ll be diving deeper into this at the upcoming IRM UK conference in London at 17 June 2025, where I’ll share how to make your organisation truly Future Fit—a concept I developed to help leaders lead lasting transformation with clarity, courage, and confidence.
But first, let’s examine a few high-profile failures that still hold powerful lessons.
Lesson 1: AOL and Time Warner’s $165 Billion Mismatch
In 2000, America Online (AOL) acquired Time Warner in what was hailed as a revolutionary media merger. It turned out to be one of the biggest disasters in corporate history. The failure wasn’t due to lack of funding, innovation, or intent—it stemmed from a clash of cultures that leadership failed to manage.
The Lesson: Culture doesn’t just eat strategy for breakfast—it can kill change too.
When two very different cultures collide without intentional integration, no amount of strategic planning can save the outcome.
Lesson 2: Snapchat’s Interface Redesign Backlash
In 2018, Snapchat redesigned its interface in an effort to simplify and modernise the experience. However, users revolted. The redesign disrupted their familiar habits, making it harder to find content and connect with friends. The result? A drop in user engagement and advertising revenue.
The Lesson: Involve end users early and often.
Successful change is rarely top-down. Testing ideas with users, gathering feedback, and iterating are non-negotiables—especially when your customers are the ones being asked to change.
Lesson 3: Coca-Cola’s “New Coke” Misstep
Back in 1985, Coca-Cola launched a new formula for its iconic soft drink. Research and taste tests backed the decision, but it spectacularly failed. Why? Coca-Cola underestimated the emotional attachment customers had to the original product. They had the data, but not the empathy.
The Lesson: Data only tells one side of the story.
Change leaders must also account for sentiment, emotion, and memory. Not all resistance is logical—sometimes, it’s deeply human.
Meta’s Pivot to the Metaverse
In 2021, Facebook rebranded to Meta and shifted focus to the metaverse. Billions were invested, but uptake has been slow. While the vision was ambitious, many employees and users struggled to connect with the direction. Internally, morale dropped as teams were reorganised, priorities shifted rapidly, and strategy felt out of sync with day-to-day reality.
Even visionary change will fail without shared understanding and belief. Future Fit organisations ensure that purpose is not just communicated—it’s owned at every level.
Why Organisations Still Struggle With Change
In my experience, many organisations treat change management as an afterthought—something to do when there’s leftover budget or when a crisis forces their hand. This leads to poor planning, unclear roles, lack of accountability, and ultimately, resistance that goes unmanaged.
But resistance doesn’t have to be the enemy.
Resistance is normal. It’s a survival mechanism that helped us avoid danger in the prehistoric era. Today, it surfaces as fear, frustration, or disengagement during change. Most companies try to suppress resistance or bulldoze through it. Few try to understand and transform it into resilience.
Becoming Future Fit: What It Really Takes
To beat the 80% failure rate, organisations must evolve beyond reactive change. Here’s what being Future Fit really looks like:
● Change becomes a core competency, not an afterthought
● Leaders are equipped to model and coach new behaviours
● People at all levels feel seen, heard, and involved
● Communication is consistent, strategic, and human
● There’s long-term thinking—even in the face of short-term pressure
At the Enterprise & Business Architecture Conference Europe 2025, co-located with the Business Change & Transformation and Service Design Conferences in London, I’ll be sharing practical ways to build this capability—so your next transformation doesn’t just “go live,” but sticks, scales, and succeeds.
The velocity of disruption isn’t slowing down. If anything, it’s intensifying. Whether through AI, sustainability demands, or workforce expectations—change is constant. Companies that treat change as a strategic advantage will thrive. Those who don’t will fall behind, regardless of size, reputation, or history.
If we want unconventional results, we can’t keep walking the conventional path. Change demands more than checklists—it demands courage, clarity, and commitment.
About the Author
Friska Wirya is the multiple award-winning powerhouse behind Fresh by Friska, a boutique change management consultancy serving global leaders and Fortune 500 companies. A TEDx speaker and Top 50 Global Change Management Thought Leader, Friska is the author of “The Future Fit Organisation,” helping leaders lead lasting transformation.
Don’t miss Friska Live at The Enterprise & Business Architecture Conference Europe 2025, co-located with the Business Change & Transformation and Service Design Conferences
🗓 Tuesday, 17 June 2025
🕒 2:50 PM – 3:30 PM
Get ready for a keynote that will challenge your assumptions, reframe your leadership approach, and provide a practical toolkit for shaping a resilient, future-fit organisation.
👉 Explore the full agenda and secure your ticket today: https://irmuk.co.uk/business-change-and-transformation-conference-europe/
