Why Corporate Transformation Is Hard: The Role of Political Centers and the Need for Error Tolerance

Drawing on a quote from Henry Mintzberg, the author notes that CEOs repeatedly claim we live in an era of great change, yet most corporate transformations fail.

The core reason identified is the proximity of the transformation effort to the organization’s "political center"—the senior decision‑making layer—where strong control, fear of error, entrenched values, rigid processes, and scarce resources impede change.

Two practical approaches are suggested: first, cultivate a culture that permits mistakes, allowing ideas to be tested without punitive backlash; second, distance the transformation team from the political center, giving them autonomy and resources similar to how Shenzhen grew after moving away from central control.

Examples illustrate the point: a tech company stifles innovation through relentless questioning, while the fashion retailer Han Du Yi She reorganized its design, production, and e‑commerce units into small, empowered teams that could act independently, leading to successful innovation.

The concluding message urges leaders to step back, loosen control, and let transformation happen at the organizational margins, where fresh ideas can emerge without the weight of political centralization.