Business transformations today are the rule, not the exception. However, according to the newly published pan-European report involving over 650 leaders from 30 countries, only one in four transformations ends successfully. The PROI Worldwide Transformation Readiness Index 2025 shows that timely, transparent, and two-way communication, which clearly recognizes the different needs of those leaders of change are addressing, is key to success. Despite this, in practice only 26% of companies communicate effectively during major changes. For the others, this results in loss of trust, delays in implementation, and missed business opportunities.
Today’s business environment is shaped by constant and profound changes – from artificial intelligence and tectonic shifts in ways of working influenced by technology, to global crises such as pandemics, conflicts, wars, and geopolitical tensions, and to new generations of employees who find it difficult to connect with older generations. Under such conditions, change is not a matter of choice but of survival. Organizations that want to remain relevant must adapt faster, make responsible decisions, and lead with a clear purpose. In all this, the role of good communication is crucial, it builds trust, connects stakeholders, and enables strategy to come to life in practice.
“Experience gained through nearly thirty years of work on the largest transformation projects in Croatia and the region, from restructuring large companies, stock market listings and ownership changes, to mergers of huge organizations and particularly traumatic crisis situations such as business closures, layoffs, and strikes, fully confirms the most important finding of the PROI report: communication truly makes the key difference between success and failure. This is why communication in transformation must not be improvisation,” said Kristina Laco, Director of Komunikacijski ured Colić, Laco i partneri, at the global presentation of the PROI Transformation Readiness Index 2025.
Key findings of the PROI research show that without clear and consistent communication, even the best-designed changes risk failure. In practice:
- Only 1 in 4 leaders believes their organization communicates effectively during transformation.
- 1 in 3 transformations begins without a clear communication strategy.
- Trust has proven to be crucial for success – yet it is often undermined by poor or inconsistent communication.
- Transformations that include communication from the very start achieve greater success and higher employee engagement.
- Middle management is recognized as the weakest link – 75% of top management believes middle management communicates transformation goals effectively, while only 50% of communications professionals agree.
- A paradox: transformations aimed externally (e.g., customer satisfaction) achieve better employee engagement results than internal ones (focused on employees and culture).
One of the most valuable insights of the research confirms the central role of leaders in transformation success – their involvement is extremely important. Transformation requires more than a well-written strategy and smart plan; it requires leaders who communicate clearly, listen with understanding, and provide support. However, the study also reveals a weak point – middle management remains an underutilized communication resource. Without proper support from top management and clear tools, their effectiveness in communicating transformation remains limited, as does the potential of the transformation itself.
“The role of middle management in transformation processes is extremely important, yet in practice often overlooked. They connect strategy with everyday practice and, together with employees, enable implementation. If changes are not clearly communicated to them, and if they cannot effectively convey what, why, and how change is happening to their teams, the success of the entire project is at risk. It is precisely at this level that the strength of transformation is often lost – and that is why empowering and actively involving middle management is crucial,” emphasized Violeta Colić, Director of Komunikacijski ured Colić, Laco i partneri.
The results also reveal a major gap in the perception of employee involvement: nearly two-thirds of top managers believe employees are included early enough, while only 44% of communications professionals agree. Where employees had the opportunity to participate in shaping processes, their sense of belonging and readiness for change grew significantly.
This research confirms that transformations succeed only when they clearly and convincingly answer the key question, why they are being carried out. Without this, the vision remains unrealized, and instead of employee engagement, resistance and disappointment emerge, concludes the report.
