New data confirms: communication quality and leadership visibility are top differentiators in transformation outcomes
In a period of extraordinary transformation driven by AI, technology innovation, and unrelenting disruption, new research shows that organizations are at a tipping point and on the cusp of facing more change than employees can absorb. A national study by The Grossman Group, a leading internal change communications consultancy, conducted online by The Harris Poll, identifies the key drivers behind successful change, and the hidden costs of getting it wrong.
Two surveys were conducted to capture both employee and leadership perspectives on enterprise change. The first, fielded June 2025, polled 905 full-time employees (18+) in U.S. for-profit organizations. The second, conducted in two waves over June and July 2025, surveyed 256 business leaders (VP level and above) who manage teams in for-profit organizations.
Drawing on insights from these two studies, it becomes apparent that while business leaders overwhelmingly agree that communication is critical to change success, many organizations are falling short in execution, leaving employees burned out, confused, and disengaged.
“We’re at a tipping point where the pace of change risks outstripping what employees can absorb, yet this level of change is often necessary for organizations to win. The ones that succeed will be those whose leaders and communicators move in lockstep, thoughtfully sequencing change and communicating in ways that connect with people and earn their commitment,” said Kyle Dierking, Head of Client Service at The Grossman Group.
Key Findings from The Grossman Group and The Harris Poll’s 2025 Enterprise Change Study:
- Organizations are at the change tipping point.
Most employees can absorb 1-2 major changes per year, yet over 50% of business leaders expect to implement 3 or more in the next two years. - AI is the most frequent—and most difficult—change.
AI is driving a third of today’s strategic and operational transformations. 83% of leaders expect AI to play a major role in future change, and 1 in 4 say it’s the hardest change to implement. - 1 in 4 major change efforts fail—at great cost.
Failure leads to burnout, dissatisfaction, workload spikes, and turnover, especially when employees lack communication and feedback loops. - Effective communication triples change success.
Organizations are 3x more likely to succeed in major change when employees are fully bought in. Clear and credible communication doubles success rates. - Visible leadership makes or breaks change.
Organizations are 5.5x more likely to fail without visible leadership and without effective communication. Yet, 1 in 4 employees don’t believe their leaders communicate change well, revealing a major perception gap. - Culture change and layoffs are especially at risk.
These change types are the least likely to succeed, particularly when leaders aren’t trained to communicate them well.
“Looking ahead, the organizations that thrive will be those that treat change as a disciplined capability. By planning deliberately, managing proactively, and engaging employees meaningfully, they’ll not only reduce risk, but they’ll unlock stronger performance, deeper engagement, and sustained business success,” says Dierking.
The full Enterprise Change Study report, “The Change Tipping Point: How to win at managing increasing change in the face of extraordinary technology, transformation, and turbulence,” is available now and is designed to equip executive-level leaders and communicators with actionable insights and data-backed guidance for leading major change more effectively.
