As important as it is to make great change decisions, equally important is to consider what happens after the decision to act is made. It is well documented that on average just 60% of planned value is realized. To what can be attributed the “lost” 40%?

Analyzing project teams tasked with change initiatives in 257 firms globally, after controlling for decision viability and talent capability, I found that four factors help to explain the gap between the intentions expressed in an action plan and the value created from its effective implementation. Think of them as: ACE the memo, master the means, amplify with mechanisms, and measure to account.

ACE the Memo

Initial communication sets the tone for how change is perceived. A clear and compelling message influences execution in three ways. First, it provides shared understanding about expectations and a specific vision of the path to meet those expectations. Amazon founder Jeff Bezos famously required narrative memos “with real sentences, verbs, and nouns” when outlining important updates because this is how the brain processes information.  Effective memos reduce ambiguity and help groups develop a shared objective. They are especially effective when they lay out what needs to happen in the foreseeable future. A good way to do this is to use three subheads in the memo: Now, next, and then.

Second, a great launch message inspires confidence that the direction has a strong rationale behind it. There are three types of implementation actions — enhance the current path, reimagine the activities to achieve the current path, or shift to a different path. Describing what is needed should be supported by a clear explanation of how the decision was derived and why it is needed. Rather than leaning on the privilege of authority, effective change communication embraces the burden of proof and shares a compelling story anchored in the best available facts.

Finally, it is harder to do something different than nothing at all, so outlining incentives provides motivation to turn words into actions. People reserve their best effort for what they find important (“this needs to be done”) and meaningful (“I want to be the one to do it”). When incentives are clearly communicated, trusted, and related to practices viewed to be worthwhile they positively influence effort.

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