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THE FINANCEBASE List yours

Guide

What to Do When Teams Resist a New Growth Strategy

By TheFinanceBase Team 10 min read

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When a team resists a growth strategy, do not start by demanding enthusiasm. Start by finding out what the resistance means. People may lack information, distrust the assumptions, lack the skills or tools to change their work, face conflicting incentives, have no capacity, or see a genuine risk that leaders have missed.

The practical response is a disciplined sequence: diagnose the cause, involve the people who must execute the plan, explain why it matters in terms that are honest for different stakeholders, convert the strategy into clear work and support, align leadership behavior and rewards, then test uncertain elements through bounded experiments. Resistance is a signal to investigate, not proof of disloyalty.

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First, distinguish resistance from a diagnosis

A strategy can be analytically attractive and still fail in execution. Ron Ashkenas summarized the risk in a Harvard Business Review article published February 29, 2024: “The smartest growth strategy in the world will fail if the people who are central to its execution don’t have the motivation, skills, and resources to get it done.”

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Translate a complaint such as “this will not work” into specific questions. Ask what people:

  • Do not understand about the market evidence, customer need, economics, or trade-offs.
  • Do not believe, such as an assumption about demand, timing, operational capacity, or leadership follow-through.
  • Do not know how to do, including new selling motions, technology, analysis, or collaboration.
  • Do not have time, staffing, budget, authority, or tools to do.
  • Will not be rewarded for doing because performance measures still favor the old behavior.
  • Fear they will lose, such as income, status, autonomy, job security, or valued customer relationships.

Use interviews, small-group discussions, customer evidence, workflow observation, and an anonymous channel. Record the concern, the evidence behind it, who is affected, and what would resolve it. Avoid labeling a whole department as resistant when different people have different reasons.

Bring affected teams into strategy development

Participation should begin before the rollout calendar and targets are fixed. Frontline employees often know which customers will object, which process will become a bottleneck, and which data is unreliable. Involve representatives from sales, service, product, operations, finance, compliance, and regional teams as appropriate.

Run a structured discovery cycle

  1. Share the case. Present the customer problem, market evidence, financial logic, alternatives considered, and known uncertainties. Distinguish facts from hypotheses.
  2. Collect frontline information. Ask where the proposed motion conflicts with customer behavior, existing contracts, capacity, systems, or local requirements.
  3. Map execution risks. Have teams identify new tasks, dependencies, decision points, failure modes, and skills they will need.
  4. Generate options. Invite teams to propose changes to sequencing, segmentation, offers, processes, and support rather than asking only for approval.
  5. Test limited elements. Use pilots or simulations to learn before committing the entire organization.
  6. Publish decisions. Explain what changed because of input, what did not change, why, and who owns unresolved questions.

Ashkenas describes Payoneer using a multi-month discovery process that engaged more than 200 employees through data, workshops, and limited experiments before the strategy shaped budgets and resource allocation. The value of that example is not the headcount target; it is the sequence of learning with the people responsible for execution.

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Make the growth case relevant without overselling it

One message rarely motivates every audience. Connect the strategy to five levels when the connection is real:

Customers

Show which customer problem improves, for whom, and how you know. Use customer research, retention data, service complaints, or win-loss evidence rather than slogans.

The organization

Explain the economic mechanism: new revenue, retention, margin, risk reduction, or a capability that supports future options. State the trade-offs, including work that will stop or receive less funding.

The team

Describe changes to priorities, workload, decision rights, collaboration, and success measures. Teams need to know how the plan affects their actual week.

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The individual

Be candid about role changes, learning expectations, career opportunities, and possible downsides. Do not assume that an executive’s growth ambition is automatically an employee’s motivation.

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Purpose and standards

Where appropriate, connect the strategy to the organization’s purpose, customer promise, or professional standards. Do not use purpose language to conceal an unrealistic target or an unresolved resource gap.

Invite challenge in the same forum as communication. A credible case includes the assumptions that could be wrong, the indicators that would reveal a problem, and the conditions under which leaders will change course.

Turn strategic intent into workable jobs

Resistance often rises when leaders announce an outcome but leave the operating model unchanged. Convert the strategy into explicit changes to work.

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Clarify roles and decision rights

For each critical activity, name the accountable owner, contributors, approval authority, handoffs, and escalation path. Define which decisions teams can make locally and which require central approval. Ambiguity creates delay that can look like opposition.

Build capability before measuring the result

List the new skills required, such as consultative selling, pricing, data interpretation, partner management, or customer onboarding. Provide practice, coaching, job aids, and time to learn. A presentation about a new process is not the same as demonstrated competence.

Provide tools and usable processes

Check whether systems contain the required fields, integrations, permissions, and reporting. Remove duplicate entry and unnecessary approvals. If a new customer promise requires service capacity, schedule that capacity before announcing the promise.

Rebalance workload and resources

Identify work that will stop, simplify, or move elsewhere. Allocate budget, staffing, implementation support, and management attention. Asking a team to add prospecting, a new product, new relationship practices, new tracking, and a delayed compensation change at once can exceed its capacity.

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Align incentives and performance management

Review commissions, bonuses, targets, promotion criteria, dashboards, and recognition. If the strategy requires a behavior that reduces a short-term metric, explain the transition and adjust the measure. Payoneer’s case, as described by Ashkenas, illustrates how adding unfamiliar demands while changing compensation can leave sales representatives without adequate readiness; revenue declined after six months and the company reconsidered its plan.

Make leadership behavior and systems consistent

Employees watch what leaders fund, inspect, praise, and tolerate. A compelling presentation cannot overcome contradictory signals.

  • Role-model the behavior. Executives should use the new customer process, attend learning sessions, and make decisions using the stated priorities.
  • Reinforce the behavior. Update goals, meeting agendas, dashboards, hiring profiles, promotion standards, and recognition so they reward the new way of working.
  • Protect candor. Thank people for surfacing risks and separate a good-faith warning from refusal to perform an agreed responsibility.
  • Resolve cross-functional conflicts. A team cannot execute a growth promise if another function controls a required resource but retains an incompatible target.
  • Keep the message stable. Explain changes in assumptions promptly; frequent unexplained shifts destroy credibility.

McKinsey’s change framework groups these needs as a compelling story, role modeling, reinforcing mechanisms, and capability building. Its elements are complementary: training without reinforcement fades, and incentives without capability create frustration.

Use bounded experiments for uncertain parts

Do not demand organization-wide commitment to an untested assumption when a smaller test can produce evidence. A bounded experiment has a defined hypothesis, audience, duration, owner, resources, guardrails, and decision rule.

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Design the test

  1. State the hypothesis in measurable terms, such as a customer segment adopting an offer at an acceptable margin.
  2. Select a limited geography, channel, product line, or cohort that can provide learning without exposing the whole business.
  3. Specify what must remain constant and what may vary.
  4. Set safety limits for customer experience, compliance, spending, workload, and brand risk.
  5. Choose leading indicators and an end-of-test decision: expand, adapt, pause, or stop.

Ashkenas reports that Payoneer piloted localized customer-care vendors in one country before considering wider expansion. The lesson is to make uncertainty visible and reversible where possible, not to treat every pilot as proof that the full strategy will work.

Close the learning loop

Publish what the test showed, including negative results. Explain which assumption changed, what the next version will do differently, and whether resources or targets move. If employees see pilots used only to justify a predetermined decision, participation will collapse.

Measure readiness as well as business results

Lagging outcomes such as revenue and margin matter, but they cannot tell you early whether teams are able to execute. Use a small dashboard that combines adoption, capability, operating health, and customer or financial outcomes.

Measurement area Examples Decision it informs
Understanding Percentage of affected employees who can explain the customer problem, their role, and the first priority Whether communication or manager coaching is needed
Capability Training completion paired with observed proficiency, certification, or quality review Whether teams can perform the new work
Adoption Use of the new process, tool, offer, or customer practice in eligible cases Whether behavior is changing in real work
Operating health Workload, cycle time, error rates, staffing gaps, and unresolved dependencies Whether capacity or process changes are required
Customer and business outcomes Conversion, retention, revenue, margin, service quality, and complaints compared with the defined baseline Whether the hypothesis is producing value without unacceptable harm

Set a review cadence and assign an owner for each measure. Avoid turning every indicator into an individual quota before the process is stable; early learning metrics should help managers remove obstacles.

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Compare response approaches before choosing one

No single change model has been established as universally superior through head-to-head trials in the evidence available here. Compare your options on the dimensions that affect execution.

Approach Participation in design Case clarity and credibility Skill and resource readiness Leadership, systems, and incentive alignment Feedback and outcome measures
Directive rollout Low; teams are mainly informed Can be fast, but depends heavily on trust in senior leaders Often added after launch Usually requires rapid central changes May emphasize compliance before learning
Co-designed rollout High; affected teams shape assumptions and execution details Improves through frontline evidence and explicit trade-offs Identified and funded during design Dependencies are surfaced before launch Feedback is built into decisions and pilots
Pilot-first rollout Focused participation from test teams and stakeholders Uses observed evidence to refine the case Prepared for a bounded context before scaling Guardrails and decision rights are explicit Strong learning signals if the hypothesis and stop rules are clear

A practical choice can combine them: co-design the direction, pilot uncertain elements, and use clear executive decisions when the evidence and trade-offs are understood.

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Respond to common failure patterns

Calling skepticism a culture problem

Symptom: Leaders punish questions or replace discussion with motivational messaging.

Correction: Ask for the specific assumption, evidence, or constraint behind the objection. Assign someone to investigate and report back.

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Communicating once and declaring buy-in

Symptom: A town hall is followed by little change in daily behavior.

Correction: Equip managers with talking points, FAQs, escalation routes, and time for team-level conversations. Check understanding and observe work rather than counting attendance.

Adding work without removing work

Symptom: Teams agree publicly but miss service levels, quality, or deadlines.

Correction: Reprioritize the work queue, fund capacity, simplify processes, or reduce the scope of the first release.

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Keeping old rewards

Symptom: Employees follow the behavior that maximizes their current scorecard, not the announced strategy.

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Correction: Map each desired behavior to targets, compensation, promotion, and recognition. Provide transition rules where results take time to appear.

Scaling before learning

Symptom: A weak pilot is treated as proof that the entire strategy is failing, or a favorable anecdote triggers a full rollout.

Correction: Define the test population, baseline, decision rule, and limits in advance. Examine results by segment and document what remains uncertain.

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A practical 90-day response plan

Days 1–15: diagnose and stabilize

  • Map stakeholders and the work each group must change.
  • Collect concerns through interviews, workshops, workflow observation, and an anonymous channel.
  • List assumptions, dependencies, resource gaps, and conflicting incentives.
  • Pause irreversible commitments that depend on unresolved evidence.

Days 16–45: redesign the execution conditions

  • Bring representatives of affected teams into option design.
  • Rewrite role expectations, decision rights, processes, and measures.
  • Fund training, tools, staffing, and manager coaching.
  • Choose one or more bounded experiments and publish their guardrails.

Days 46–90: test, learn, and decide

  • Run the pilots while tracking readiness, adoption, operating health, and outcomes.
  • Hold regular feedback reviews with decision-makers and frontline participants.
  • Adapt the strategy, expand it, pause it, or stop it according to the stated rules.
  • Communicate the decision, the evidence, and the next responsibilities.

What the published figures do and do not show

McKinsey’s 2002 study of change programs at 40 organizations reported that 58 percent missed their targets and 42 percent captured expected returns or exceeded them. The authors reported a strong association between average change-management capability scores and the percentage of expected value captured. This is an organizational study, not randomized proof that any one intervention causes success.

A separate McKinsey Global Survey on organizational redesign found that 21 percent of respondents personally involved in redesign said their effort was successful. Among respondents describing completed failed redesigns, 52 percent cited active employee resistance, compared with 19 percent among respondents describing successful redesigns. Those are survey comparisons about redesign, not a universal failure rate for growth strategies and not proof that resistance alone caused the outcome.

Together, the figures support a cautious conclusion: execution conditions and employee response deserve early attention, but leaders should not use a broad percentage as a prediction for their own strategy. Diagnose the specific organization, test uncertain assumptions, and change the conditions that make the desired work possible.

Frequently Asked Questions

Should leaders ever proceed when a team still disagrees with the strategy?

Yes, when leaders have heard the objection, tested material assumptions, explained the decision and trade-offs, and provided the capability, resources, and authority required for execution. Agreement with the direction is different from clarity about responsibilities and a fair opportunity to raise evidence.

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How can employees challenge a strategy without becoming labeled as blockers?

Ask them to state the assumption, evidence, potential impact, and proposed test or alternative. Leaders should respond to the substance, document decisions, and distinguish constructive challenge from refusal to perform an agreed responsibility.

When should a growth strategy be stopped rather than pushed harder?

Stop or redesign it when bounded tests repeatedly miss the defined decision criteria, customer or compliance harm exceeds guardrails, required resources are unavailable, or the economic assumptions no longer hold. Record the evidence and communicate the decision clearly.

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