At the heart of the problem - failure to realize that change is neither free nor easy. If not properly budgeted and resourced, a change program can grind to a halt. Furthermore, turning breakthrough ideas into action requires difficult decisions, which leadership teams may be unprepared to confront. Finally, the one-size-fits-all approach companies often take rarely yields the expected results. To succeed, change management efforts must be targeted to only the most valuable strategies and tactics.

But companies that under-invest in change management are turning their backs on the impressive rewards that result from stellar execution. Based on our experience, change management done right can yield a remarkably high return on investment. The $10 million a year it might take to drive superior results instead of average results can be worth hundreds of millions to the bottom line of a large corporation.

Bain & Company has developed a four-step formula for navigating large-scale change. We call it PLOT^TM. The steps are plan, lead, operate, and track. They sound simple, but they're not.

• Planning requires a robust self-assessment, a review of customers and products, and rigorous analysis of the value, risk and investments associated with the change program.
• Leading starts by finding and directing the right change team, and engaging the broader staff along the way.
• Operating means treating the change itself like a business, with its own plan and decisions.
• Tracking requires finding the two or three key indicators that show change results in increased production, bigger market share or fatter profits.

Bain & Company's work with over 700 change management clients in all industries and sectors has helped deliver breakthrough value by using this PLOT approach. Financial performance has increased by 20% to 200%. Companies are able to sustain improvements, develop new growth opportunities, and identify future leaders of change within the company. We link our change programs to a client's strategy by applying a pragmatic, analytic, data-driven approach. And, we're collaborative, teaming with our clients at every step to help them implement their vision.

To find out more about Bain's work in this capability area, please contact the practice.