Business Transformation

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.

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.

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.