The IKEA Effect: Why Your Brilliant Change Plan Falls Apart During ‘Assembly’—and How to Fix It

• Diagnosis of Failure: Why the “Instructions” Don’t Work
• The Missing Tool: Character and Psychological Safety
• Technology as a Catalyst for Change: From Theory to Practice
• The ROI of a Well-Assembled Team: The Final Numbers
• Conclusion: From a Flat-Pack Box to a Working System

Introduction: The “IKEA Effect” in Change Management

Imagine a classic scenario. Leadership develops a perfect strategy—as beautiful as a picture in an IKEA catalog. The team is then handed a “flat-pack box”: a presentation with a plan, new KPIs, and clear instructions. But the end result, instead of an elegant table, is a wobbly structure with mismatched parts and leftover screws.

This metaphor is painfully familiar to any leader. And it’s backed by data: according to a McKinsey report, nearly 72% of organizational transformations fail. The problem isn’t the “catalog” (the strategy), but the “assembly” process—the human factor we systematically ignore.

Diagnosis of Failure: Why the “Instructions” Don’t Work

Why does the “assembly” fail? Because the “instructions” (the strategic plan) don’t account for the real needs of the “assemblers” (the employees). As the “The State of Organizations 2023” report from McKinsey shows, there’s a fundamental disconnect: leadership focuses on transactional aspects (new processes), while employees seek relational ones—caring leaders, a sense of belonging, and meaningful work. Without these, any new “instruction” is perceived as a threat and extra work, not an inspiring task.

The Missing Tool: Character and Psychological Safety

A successful “assembly” requires a foundation of trust. Research from the Ivey Business School, published in the “Leader to Leader” journal, proves that this foundation is leader character. It’s not an abstract concept but a measurable system of qualities like Humanity, Courage, and Integrity.

It is strong leader character that creates the real conditions for change. The study shows that its development directly leads to:

• +16% in psychological safety.
• +18% in employee voice (the willingness to speak up).
• +14% in overall leader effectiveness.

Without psychological safety, employees won’t report that the “instructions are unclear” or the “parts don’t fit.” They will silently sabotage the process, and you will only learn of the problem when the structure collapses.

Technology as a Catalyst for Change: From Theory to Practice

To make the new habits required for change stick, organizations need a system that makes desired behavior visible and rewarding. Technology platforms focused on mutual recognition and encouraging initiatives become the “reinforcement engine” that most change plans lack.

For example, platforms such as AlbiCoins allow you to turn abstract goals into concrete actions:

• The goal of “More Collaboration” is achieved by rewarding employees for real help to colleagues (Peer-to-peer Recognition).
• The goal of “Becoming More Innovative” is supported by rewarding bold ideas (Internal Startups).

The ROI of a Well-Assembled Team: The Final Numbers

Companies that invest in the right “assembly” process gain a colossal advantage. This is proven by financial metrics:

• Total Shareholder Return (TSR) is 3 times higher for companies with top-quartile organizational health (according to McKinsey research).
• The productivity of knowledge workers is 20-25% higher with the implementation of the right social technologies (McKinsey, “The Social Economy”).
• Talent retention is 25% higher in teams where friendships and mutual support are developed (SHRM).

Conclusion: From a Flat-Pack Box to a Working System

Stop just handing out beautiful but complex “instructions” for change. Invest in the tools and culture that will help your team successfully navigate the entire “assembly” process. The success of a transformation depends not on the perfection of the plan, but on the quality of the tools you give your people to execute it.

Learn how modern technology can become the key tool in your next organizational transformation:
https://albimarketing.com/employee-tech/

References:

1. Heide, M., & Simonsson, C. (2019). “Internal Crisis Communication: A Swedish Study” Corporate Communications: An International Journal, 24(4), 633-648.
2. Schein, E. H. (2010). “Organizational Culture and Leadership” John Wiley & Sons.
3. Edmondson, A. C., & Lei, Z. (2014). “Psychological Safety: The History, Renaissance, and Future of an Interpersonal Construct” Annual Review of Organizational Psychology and Organizational Behavior, 1, 23-43.
4. Kuvaas, B., Buch, R., Weibel, A., Dysvik, A., & Nerstad, C. G. (2017). “Do Intrinsic and Extrinsic Motivation Relate Differently to Employee Outcomes?” Journal of Management Studies, 54(3), 244-265.
5. Seijts, G., Crossan, M., & Carleton, E. (2017). “Embedding Leader Character into HR practices to Produce a Character-Based Culture” Organizational Dynamics, 46(2), 70-79.