Why transformations stall—and where only CEOs make the difference

Organizational transformation hinges on the CEO’s unique ability to resolve collective-action problems—predictable, human-driven obstacles that arise when individual incentives misalign with enterprise-wide goals. These challenges, including the "hoarding habit" and the "lure of the local," require leaders to move beyond merely superintending programs toward actively setting conditions for success. By demanding radical transparency, fostering a culture of stewardship over ownership, and democratizing change to include more than just a "trustworthy few," CEOs can unlock full potential. McKinsey senior partners Kurt Strovink and Matt Lee emphasize that these interventions are undelegatable responsibilities. Rather than treating transformation as a finite initiative, leaders must integrate it into core business performance, ensuring that the organization continuously evolves through shared, fact-based problem-solving and a commitment to long-term, enterprise-wide outcomes.