Gartner: Survey shows that 76% of logistics transformations never succeed

According to a Gartner survey, 76% of logistics transformations never fully succeed. As logistics leaders regularly launch new transformation initiatives, effectively addressing team resistance and incorporating feedback will increase the chances of transformation success by 62%.

Gartner surveyed 306 logistics professionals from companies with annual revenue of more than $500 million. The global survey was conducted from November to December 2023. The survey found that more than 80% of respondents have attempted four transformations in less than five years, an average of once a year. Compared with external pressure, internal resistance to change played a greater role in hindering the success of their transformation plans.

​Survey results show that 81% of logistics leaders believe transformation is critical, but only 20% adopt an approach that uses resistance as a resource to leverage the collective wisdom of the team to improve transformation outcomes. Adopting this less common approach significantly increases the chances of transformation success by 62%.

The prevalent emergent approach characterized by directive leadership, limited stakeholder involvement, and a “go-with-the-plan” mentality results in a 47% lower chance of transformation success. The chance of transformation success is determined by regression analysis of the actions and messaging an organization takes during logistics transformation to its teams and its subsequent impact on success metrics.

Three key drivers behind this leadership approach include:

Leaders demonstrate listening: Leaders know the goals but are also open to change or evolution based on what they learn along the way.

Engage Resistant Stakeholders: Leadership engages the most resistant team members to better understand obstacles in the way forward or to explain the broader team’s appetite for change.

Leaders maintain an adaptive mindset: Leaders recognize that transformations will encounter many setbacks and therefore typically focus on only a few areas that are mission critical. Failure can be seen as an indicator of a lack of current focus.