Just half of the 200 UK board members polled from the FTSE 250, multinationals and public sector organisations could claim a better than 70 percent success rate in their transformation programmes, according to the study by consultants Moorhouse.
The survey found that many transformation programmes fail to respond to market changes, establish robust foundations, secure employee buy-in or measure benefits.
Less than a quarter of the board members polled quantified the benefits once the project was completed, equating to some £850 million in lost investment, or the equivalent of £2.5 billion invested without proper evaluation, Moorhouse's 'Barometer on Change' said.
Cost cutting was found to be the main reason for implementing a change programme, followed closely by IT consolidation and organisational redesign.
The majority of board members said that the pressure to restructure had been growing over the past two to three years with over two-thirds expecting the pressure to continue to increase over the next year or so.
One important finding for boards to consider was there was perceived to be a gap between what boards expected and that of their direct reports. The study found that boards thought their organisations were better at coping with change than those working more closely on the programme.
"This indicates a communication gulf between those running the projects and those overseeing them; honest collaboration is needed to ensure success, and this needs to be driven from the board," the study said.
"What's concerning about these results is the risks organisations are taking with projects that are often perceived as critical to the success of the business, and cost significant amounts of financial investment," Stephen Vinall, Moorhouse managing director, said.