That's according to an Economist Intelligence Unit (EIU) survey conducted earlier this year which drew responses from about 600 senior executives in the United States and western Europe. To be sure, reducing costs remained top of mind as well, with 47% of respondents identifying it as among the top three issues on their agenda. However, 57% of the executives identified improving operational flexibility as among their top three priorities.

Interestingly, 58% of the executives surveyed say that over the past five years, half or fewer of their change management initiatives have been successful. For U.S. executives, fully three-quarters say half or fewer of their change initiatives have succeeded. Why is that?

It's because people are a tricky element, suggests EIU editorial director Robin Bew. "Too often, managers think if they get the process and technology right, the people will follow. Our survey shows that this is rarely the case. Successful agents of change are those who understand the art of persuasion," Bew says.

Indeed, few executives blame money, or a lack of it, for the success or failure of a change initiative. Leading the reasons for failure are "lack of clearly defined or achievable milestones," which was cited by 24% of the respondents, and "lack of commitment by senior management" and "poor communication," both of which nabbed a 19% share.

On the other hand, just over half (51%) said "winning the hearts and mind around required changes" was the most difficult element of the change management initiative. "In other words, companies are struggling with very basic people issues, in particular motivating them to abandon old ways of working for something new," reported the EIU report A Change for the Better: Steps for successful business transformation.

The report points out that "simple intransigence" is not the problem. "Change brings risks for the organization and the individual. Existing strategies, processes, and practices came into being for a reason, and often contributed to previous corporate success. The value of revising or dropping them might not be clear, and the danger might be all too visible. No guarantee exists that any new process or technology, however beneficial to the company as a whole, will leave those affected by the change personally better off too," the report states.

That may help explain one of the key elements of a successful change program: the right leadership. The best leaders bring vision, "inspire people with a sense of urgency;" and help people bring their own creativity to the initiative, the EIU states.