How Miscommunication Derails the Execution of Organizational Change

The Captain, played by the late Strother Martin, conveyed this memorable line in the 1967 movie Cool Hand Luke:

What we have here is a failure to communicate...

The quote is often used in leadership, and rightfully so. Communication - or the failure to do so - almost single-handedly determines the success of organizational outcomes, especially during systemic change.

I have sat on management teams and nonprofit boards for 40 years, and can recall the significant time and resources invested into strategic planning and organizational transformation. I also have too often witnessed and experienced the failure of otherwise well-planned and essential change. Invariably, it happens for one mitigable reason - miscommunication.

Today, shifting markets and rapid technological advances are forcing change. Leaders have to adapt quickly and effectively, or their organizations die. But executing their plan too often fails miserably because they underestimate this human reality about change: People interpret messages differently; they fill information gaps with assumptions; and they respond to uncertainty in ways that can unintentionally derail implementation.

It happens because the leadership team failed to communicate clearly, consistently and completely.

The Hidden Cost of Miscommunication

Miscommunication creates more than confusion. It creates friction. Organizations and businesses crawl when friction thrives.

When employees receive mixed messages about priorities, responsibilities or expectations, productivity slows. Teams begin operating from different assumptions. I have coached leaders who believe they have communicated effectively, yet their team feels uninformed or disconnected - and everything (operations, culture) plods.

The result is often:

• Reduced trust in leadership
• Resistance to change initiatives
• Duplication of effort
• Delayed decision-making
• Increased workplace conflict
• Lower employee engagement

And... do you want to know what that means to the bottom line?

According to the Harris Poll:

• Poor communication during change costs U.S. businesses approximately $1.2 trillion annually.

• Employees lose 7.47 hours per week because of ineffective communication—nearly a full workday.

• Large organizations can lose tens of millions annually through project delays, duplicated effort, turnover and customer dissatisfaction tied to communication failures. 

In times of organizational change, poor communication amplifies that uncertainty and can quickly undermine momentum.

The Main Culprit: The Gap Between Message Sent and Message Received

The most significant challenge in organizational communication is the assumption that delivery is the absolute endgame.

Telling your team to "Read the memo..." isn't communicating. It's dismissive. It's disruptive. It's arrogant.

Here's what happens:

• Leaders focus on what was said.

• Employees focus on what they understood.

• Those are not always the same thing.

A leadership team may announce a restructuring intended to improve efficiency. Employees may hear concerns about job security. A strategic initiative designed to create innovation may be interpreted as criticism of current performance.

Without opportunities for clarification and dialogue, people create their own narratives to explain what they do not understand.

In many organizations, the stories employees tell each other become more influential than the messages leaders intended to communicate.

The Main Culprit No. 2: The Gap Between Perspectives

Periods of change create heightened sensitivity to information. Leaders initiating change have their perspective on what needs to happen. Team members have another.

When they hear of change, employees naturally ask:

• What does this mean for me?
• Will my role change?
• How will success be measured?
• What happens if the initiative fails?
• Why is this change happening now?

Leaders also need to understand that silence isn't golden. More often, it is interpreted as uncertainty, avoidance or lack of transparency. Effective change communication recognizes that people need more than information. They need context and reassurance. They need to feel heard.

Four Communication Mistakes During Change

1. Communicating Too Late

Organizations sometimes wait until plans are finalized before sharing information. While leaders may believe they are preventing confusion, employees often experience delayed communication as secrecy. Early communication helps build trust, even when all answers are not yet available.

2. Assuming One Message Is Enough

People rarely absorb critical information after hearing it once. Successful change communication requires repetition through multiple channels and formats. Consistent messaging helps reinforce priorities and reduce misunderstanding.

3. Focusing on Processes Instead of Purpose

Employees are more likely to support change when they understand why it matters. Organizations frequently communicate what is changing without explaining the purpose behind the change. When people cannot connect the initiative to the organization's mission, values, or long-term vision, engagement declines.

4. Ignoring Feedback

Communication is not a one-way activity.

When employees raise concerns, ask questions or express skepticism, leaders must view those responses as valuable information rather than resistance. Feedback often reveals misunderstandings that can be addressed before they become larger obstacles.

How to Better Communicate Change

Organizations that navigate change successfully tend to prioritize communication as an ongoing process rather than a single event. Effective communication during change includes:

Clarity

Messages should be simple, direct, and free from unnecessary jargon. Employees should clearly understand what is changing, why it is changing, and what actions are expected.

Consistency

Leaders at all levels should communicate aligned messages. Inconsistent communication creates confusion and weakens trust.

Transparency

Not every question will have an immediate answer. Honest communication about uncertainties is often more effective than avoiding difficult conversations.

Dialogue

Employees need opportunities to ask questions, share concerns, and contribute ideas. Two-way communication builds ownership and strengthens commitment.

Reinforcement

Change messages should be repeated throughout the implementation process. Communication must continue long after the initial announcement.

The Leadership Responsibility

Organizational change succeeds or fails through people. Leaders play a critical role in shaping how change is understood, accepted and implemented. Communication is not simply a support function — it is a leadership function.

If you are leading change, you need to create trust. Trust reduces uncertainty. Reduced uncertainty increases engagement. And engaged employees are far more likely to support successful execution.

Remember, communication during change is not merely to inform people. You are trying to have a shared understanding and collective commitment.

When communication breaks down, execution suffers. But when communication succeeds, change becomes possible.

Jeff Owen is a partner with Arête Purpose and owns Clever Dogs Media, both in Franklin, Indiana. He is a former newspaper publisher and board president of numerous nonprofit organizations. He holds a certificate in Organizational Change and Leadership from e-Cornell University.