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At a time when virtually every organisation talks about transformation, the difference between changing and evolving has never been so important. Digital, cultural, sustainable and organisational transformation are different sides of the same coin, but there is one question that continues to separate the organisations that thrive from those that merely survive: are we truly transforming ourselves, or are we merely changing? The difference may seem small, but it is quite profound. To change is to react. To evolve is to grow with intention.

Image: Mary Taylor & Associates

According to McKinsey, around 70% of transformation initiatives fail to fully or partially achieve the objectives set. The problem rarely lies in a lack of technology, investment or resources. In most cases, the challenge lies in the absence of a clear direction, consistent leadership and the ability to mobilise people around a common purpose. Interestingly, this conclusion is close to the ideas presented by Jim Collins more than twenty years ago in the classic Good to Great. After analysing more than 1,400 companies, Collins concluded that excellence is not a consequence of luck or circumstances, but rather the result of conscious choices, discipline and consistency over time. Perhaps that is why his lessons remain so relevant in a world marked by artificial intelligence, disruption and constant change.

The Mistake of Confusing Transformation with Movement

Many organisations remain busy, launch initiatives, create projects, implement systems and announce changes, but in reality they do not always produce impact. Jim Collins drew attention to a reality that is often ignored: excellent companies did not seek constant changes of direction. On the contrary, they built momentum through a combination of focus, discipline and consistency. This process became known as the Flywheel, a heavy wheel that requires continuous effort until it gains momentum of its own. McKinsey uses different language but reaches a similar conclusion: the most successful transformations are those that have a True North, a clear direction that guides decisions, priorities and behaviours. Without a strategic compass, organisations risk entering the so-called Doom Loop: jumping from initiative to initiative, from trend to trend, without creating sustainable results. Transforming with impact does not mean doing more. It means moving in the right direction.

Image: Deloitte 2025 Chief Transformation Officer Study

Leadership and People

In a world that values visibility, notoriety and prominence, one of Collins’ most surprising conclusions continues to be the concept of Level 5 Leadership. According to Collins, the leaders of the companies that made the leap to excellence were not necessarily the most high-profile, they were leaders who combined two apparently contradictory characteristics: personal humility and professional ambition, not seeking recognition for themselves, but rather results for the organisation.

Today, this idea becomes even more relevant, current challenges require leaders capable of creating trust, developing people, building learning cultures and navigating environments of high uncertainty, employees are not looking for perfect leaders, they are looking for authentic leaders, who provide direction when the path is not evident and who place purpose above ego.

One of Collins’ best-known phrases continues to challenge many managers: First Who, Then What. Before deciding where to go, it is necessary to ensure that the right people are on the bus, especially at a time when artificial intelligence is redefining professions and the World Economic Forum predicts significant changes in around 40% of current skills, this idea gains new relevance. The most competitive organisations of the future will not necessarily be those that possess more technology, but rather those that are able to develop more talent, based on values and purpose, because no strategy survives without people capable of executing it and no transformation is sustained without a culture capable of learning continuously.

Reality, Focus and Discipline

Another of Collins’ still-current lessons is the ability to Confront the Brutal Facts. Excellent organisations did not ignore problems, did not hide mistakes, nor did they live in denial, they created environments where the truth could be told and where facts were valued above opinions. But there is an important detail: confronting reality does not mean losing hope, but rather combining realism with confidence, recognising the challenges without giving up ambition.

In a world of excess information, permanent distractions and infinite opportunities, focus has become a competitive advantage, and Collins called it Hedgehog Concept. Extraordinary organisations and managers know how to answer three fundamental questions: what can they be the best in the world at? what drives their economic engine? what are they truly passionate about? The intersection of these three elements creates clarity, generating impact.

In a world of excess information, permanent distractions and infinite opportunities, focus has become a competitive advantage, and Collins called it Hedgehog Concept. Extraordinary organisations and managers know how to answer three fundamental questions: what can they be the best in the world at? what drives their economic engine? what are they truly passionate about? The intersection of these three elements creates clarity, generating impact.

Conclusion: Transforming to Create Impact

Twenty-five years after the publication of Good to Great, some companies from the original study have disappeared, others have lost relevance and several conclusions had to be adapted to the digital reality. But the fundamental principles remain alive: leadership with humility, talent before strategy, truth above vanity.

Focus. Discipline. Purpose. Perhaps that is why Jim Collins’ main message continues to be so current: transformation does not happen because we change systems, or because we launch a new initiative or adopt a new technology. Transformation happens when we manage to align leadership, culture, talent and purpose around a common vision, while it is certain that change is inevitable, it is also true that evolving continues to be a choice. The organisations that will be able to prosper in the coming years will be those that understand that true impact is not born from the speed of change but rather from the clarity of direction.

Article by Sérgio Almeida, in partnership with Vida Económica.