Why identity matters: The key to successful transformation

The urgent need for transformation

In today’s rapidly evolving world, organisations face an unprecedented need for transformation. Technological advancements, market shifts, and changing societal expectations demand agility, adaptability, and innovation. However, navigating transformation is complex, and many organisations struggle to implement meaningful change.

The primary difficulties organisations face include:

• • Resistance to change – Employees and leaders alike often resist transformation due to fear of the unknown or a perceived threat to their established roles and expertise.
  • Lack of alignment – Many transformation efforts fail because they are not clearly connected to the identity and purpose of the individuals within the organisation.
  • Short-term focus – Organisations frequently prioritise quick wins over long-term, sustainable change, leading to superficial adoption rather than deep, systemic transformation.
  • Silo thinking – Departments and teams operate in isolation, making it difficult to achieve organisation-wide buy-in and cooperation.
  • Failure to address the human factor – Change is often framed as a structural or strategic shift rather than a human journey, leaving employees disengaged and disconnected.

Without addressing these fundamental issues, transformation efforts risk failure, leading to wasted resources, decreased morale, and stalled progress. To succeed, organisations must shift their approach—rooting change in identity and aligning transformation with the values and realities of their people.

Understanding identity and its importance

Identity is more than just a personal or organisational brand—it is the fundamental understanding of who we are, what we stand for, and how we perceive our role in the world. Identity is shaped by experiences, values, beliefs, and aspirations. It influences how individuals and organisations respond to external changes and challenges.

Identity matters because it provides:

• • A sense of purpose – When people and organisations understand their identity, they have a clearer sense of direction and purpose.
  • Consistency and stability – Identity acts as an anchor during periods of transformation, helping individuals and teams navigate uncertainty with confidence.
  • Engagement and commitment – When identity is acknowledged and respected, individuals feel more connected and committed to an organisation’s goals.
  • A framework for decision-making – Identity influences choices and actions, ensuring alignment between values and strategic objectives.
  • Resilience and adaptability – Organisations with a well-defined and adaptable identity are better equipped to embrace change and turn challenges into opportunities.

Why people join companies: The real motivations

Many assume that people join companies primarily for salary, benefits, or career progression. However, research and real-world experience show that people often choose a company because of its identity and purpose. Employees want to feel that they are part of something meaningful, where their values align with the organisation’s mission and culture.

The key reasons why identity plays a role in attracting and retaining talent include:

• • Alignment with personal Values – Employees seek workplaces that reflect their own beliefs and aspirations. A sustainability-driven professional, for example, is more likely to be drawn to a company that champions environmental responsibility.
  • Belonging and cultural fit – People thrive in environments where they feel understood, valued, and part of a larger community that shares their identity.
  • Opportunities for self-expression – Companies that allow employees to bring their authentic selves to work foster stronger engagement and loyalty.
  • A sense of purpose – Employees want to know that their work contributes to something bigger than themselves. A healthcare worker, for instance, is motivated by improving patient outcomes, not just receiving a salary.
  • Consistency between words and actions – When an organisation’s identity is not just a marketing slogan but truly reflected in its decisions and culture, employees feel a stronger sense of trust and belonging.

Identity as a stabiliser in change

One of the fundamental roles of identity is providing stability. When individuals or organisations face uncertainty, their identity acts as an anchor, preserving a sense of continuity. This explains why professionals who strongly associate themselves with a particular role or expertise find motivation in maintaining their established self-concept.

Examples Across Industries

• • Automotive Industry: Volvo, known for safety, reassured employees and customers that its shift to electric vehicles aligned with its core mission of protecting lives.
  • Financial Sector: Investment banks introduce AI as a way to enhance—not replace—the expertise of relationship-driven advisors, preserving the firm’s identity.
  • Retail: Luxury fashion brands maintain exclusivity by integrating digital experiences that enhance their identity rather than dilute it.

Identity as a barrier to change

While identity can provide stability, it can also create barriers. Change that challenges deep-seated beliefs or values often triggers resistance. A leader accustomed to hierarchical decision-making may struggle to adapt to a more collaborative environment, as this shift threatens their identity as an authoritative figure. Employees who identify with long-established processes may push back against innovation if it disrupts their familiar ways of working.

Identity as a catalyst for growth

Transformation does not have to be at odds with identity. When managed effectively, change can strengthen and expand an individual’s or an organisation’s sense of self. Leaders who help teams see how new strategies align with their existing values and aspirations can foster greater buy-in and commitment.

For instance, a healthcare leader implementing a new patient-care model can frame it as an enhancement rather than a disruption:

“We are not changing who we are; we are becoming an even better version of ourselves.”

This approach helps individuals embrace transformation as a natural evolution rather than a forced departure from what they know.

Leveraging identity in organisational change

A transformation strategy rooted in identity can significantly improve engagement and effectiveness. Leaders must adopt a multi-level approach:

Understanding individual identities

• • Conduct self-reflection exercises to help employees articulate their core values and motivations.
  • Use frameworks like the Transformative Value Framework to understand how different individuals perceive change.

Aligning identity with organisational goals

• • Ensure that new strategies resonate with employees’ existing values and sense of purpose.
  • Communicate how transformation enhances, rather than threatens, the organisation’s identity.

Building psychological safety

• • Foster an environment where individuals feel safe to express concerns and integrate change into their identity.
  • Encourage leaders to engage in open dialogue, acknowledging fears and aspirations.

Creating sustainable change through identity-based commitment

• • Ensure transformation is not just a directive but embedded in the realities of all stakeholders.
  • Develop continuous feedback loops where employees can assess how changes impact their identity.

Conclusion

Identity is not static; it evolves with time, experiences, and societal changes. Organisations and individuals who embrace this dynamic nature can navigate transformation more successfully. By acknowledging and integrating identity into change processes, leaders can foster greater commitment, reduce resistance, and build an adaptable, resilient culture.

Identity matters because it shapes how people perceive, react to, and ultimately embrace change. When transformation aligns with identity, it is not just implemented—it is lived.