A successful transformation is a fundamental shift in the way an organization does business that spans departments, functions, and business units, and delivers significant company-wide improvements.
Embarking on a journey of business transformation presents numerous challenges for organizations striving to stay competitive in today's dynamic market. At KPMG, we understand the complexity of these challenges and offer specialized services to address them head-on.
From navigating the complexities of digital transformation to managing organizational change effectively, our strategic consulting provides tailored solutions to meet your unique needs. We specialize in guiding clients through the complexity of change management and innovation, ensuring seamless process optimization and technology integration.
With a focus on enterprise agility and transformational leadership, we help clients tackle the hurdles of business process reengineering and performance improvement. Our expertise in organizational development and strategy execution equips clients with the tools needed to overcome obstacles and drive business innovation.
Unlocking insights: addressing market trends and challenges
The top objective for business transformation is to create value: Improve business performance (ROI) and grow market share.
But what are the hurdles in the process? KPMG surveyed both top leaders and middle managers to get their insights on the opportunities and challenges on business transformation today.
The top three challenges when implementing transformation in an organization are the following:
Increased complexity and intensity
By definition, a transformation involves a significant change — the digitization of a critical process, adopting a new go-to-market model, or modernizing a support function. Today, large corporations typically undertake multiple transformations simultaneously.
In our executive survey, two thirds of respondents said that there are typically three or more transformation programs running simultaneously in their organizations. Sixty percent say that transformation has become continuous or nearly so.
Technological capability gaps
Across industries, top leaders in the survey said that proper alignment of people and capabilities is the most important factor in a successful transformation. However, they also acknowledge the challenges of getting the right people and the right technology in place.
In our recent survey on how executives expect to adopt generative AI — a technology that is bound to play leading role in future transformations — only 22 percent of executives said that they were confident that their company has the right technology and data infrastructure for generative AI, and 15 percent felt their company has the right people in place to integrate generative AI into the business.
Managing execution risks
Executives and middle managers agree that execution risk is growing in transformations. Loss of momentum remains a top threat.
The focus of top leaders is diverted from the transformation by other priorities, especially when there is turnover at the top. When focus shifts away, leaders lose credibility with managers and staff. That adds to the people and culture challenges that undermine transformation.
Leaders need to be steadfast and stay visibly committed through their actions and words to the change. Get more insights in the new transformation agenda.
