The critical challenge of change capability

The pace of change has accelerated to unprecedented levels, placing extreme pressure on organizations to evolve. Yet, despite significant investments, a staggering 60 to 70 percent of transformation initiatives fail to achieve their objectives. In this volatile environment, the ability to change is no longer a competitive advantage; it is a strategic imperative for survival and success.

Digia’s research report gives leadership teams a clear, data-driven perspective on how Finnish organizations are responding to change. It outlines the current state of change capability across industries, identifying key strengths and development gaps at both organizational and societal levels. The final two parts of the report introduce a practical blueprint for building an adaptive, change-capable organization, completed with concrete recommendations based on research insights and real-world experience.

The study is based on in-depth interviews with 38 senior leaders from large Finnish organizations, complemented by a comprehensive quantitative survey of 1,500 employees and managers. This dual approach and coverage of the study are unique in Finland.

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What’s inside the report

This 134-page research report explores the current state of organizational change capability in Finland. It introduces a clear framework, "Digia Change Diamond", for understanding change capability.

Furthermore, it outlines a practical blueprint for building a modern, adaptive organization and recommendations for further development. The report provides concrete perspectives to help leadership teams assess and strengthen their own organization’s readiness for change.

The report is divided into four parts:

The strategic importance of change capability – Outlines the growing strategic relevance of change capability, the key drivers behind it, and the six core dimensions that define it.
The current state of change capability in Finland – Provides an in-depth look at what supports and hinders change, and a revealing gap between how leaders and employees perceive change capability.
A blueprint for building change capability – Introduces a model for a modern, adaptive organization and practical recommendations for strengthening change capability across key areas.
A new leadership mandate – Presents three critical roles leaders and managers must adopt to operate effectively in a modern, change-capable organization.

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Who is the report for?

This report is especially valuable for:

Senior executives. Strategic-level insights to assess your organization's current change capability, benchmark it against national data, and identify key development areas to support long-term renewal.
Transformation and change program leaders. Practical insights to strengthen execution, improve coordination, and deliver better results from change initiatives.
People leaders. Clear guidance on the evolving roles of managers in a change-capable organization. Understand what’s expected in leading change, and what kind of support structures are needed to succeed.

Research participants

The study is based on a comprehensive dual-research effort combining both organization and employee perspectives. In-depth, semi-structured interviews were conducted with 38 senior executives from large Finnish organizations including:

ABB, Alko, Alma News Media, Business Finland, City of Espoo, DNA, Elisa Corporation, Elo Mutual Pension Insurance Company, Emergency Response Centre Agency, Fennia, Finnish Defence Forces, Finnish Olympic Committee, Finnish Tax Administration, Finnish Transport and Communications Agency, Fintraffic, Helsinki Deaconess Institute Foundation sr, Helsinki Expo and Convention Centre Messukeskus, Helsinki Regional Transport, HKFoods Plc, HUS, Ilmarinen, Kemppi Oy, Kesko Corporation, KONE Corporation, Konstsamfundet, Kotipizza Group Oy, Lindström Group, National Police Board of Finland, Neste Corporation, SOK, Sponda, SRV Group Plc, The Finnish Government (Shared Services Centre for Finance and HR), UPM, Valmet, Varma, Wellbeing Services County of Kanta-Häme, Wellbeing Services County of South Ostrobothnia.

In addition, a nationally representative survey gathered insights from 1,500 employees, of whom 250 held leadership/managerial roles.

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The study summarizes challenges and opportunities

The findings make one thing clear: Traditional leadership models and top-down change are no longer effective.

Hierarchical decision-making and annual strategy cycles do not meet the demands of today’s fast-changing environment. A new approach is needed—one where change originates at all levels of the organization and where critical information flows rapidly in all directions to support timely, informed decisions.

Building a modern, change-capable organization requires more than cultural shifts. It calls for updated leadership practices, agile structures, smarter use of digital tools, and stronger employee engagement.

The study highlights clear opportunities to strengthen change capability in key sectors such as industry, services, and public administration. These are not just organizational priorities, but also vital to Finland’s economic renewal and societal well-being.

"An organization’s ability to change largely depends on the strategic choices it makes and how it succeeds in execution," says Henna Ahtola, Director of Business and Change Consulting at Digia, who led the study. "Change is no longer just the responsibility of senior leadership. Knowledge about change needs and opportunities exists across the organization."

Towards a change-capable organization! Download the free report and learn how your organization can thrive in an increasingly fast-changing world.