Deliver real value from enterprise transformation

Why large-scale transformation initiatives fail and how a new core capability—orchestration—can produce meaningful results

Reframing how enterprises execute, scale and sustain change

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Key takeaways

While transformation activity is at an all-time high, companies only see real performance gains when they redesign their underlying operating models before attempting to scale new technologies like AI.
The average organization juggles 3.5 concurrent transformation initiatives, yet only 14 percent consider themselves top performers relative to their peers.
Leading organizations break from the pack by being nine times more likely to possess mature enterprise orchestration capabilities and proactively embedding risk management to move faster.
Organizations achieve sustainable growth when transformation evolves from a series of temporary, disconnected projects into a permanent, always-on enterprise capability.

There’s a yawning gap between transformational activity and actual performance results, according to our latest survey of 1,750 senior transformation leaders across 20 countries. Only 14 percent of organizations think they are top performers in their transformation efforts.*

But company leaders don’t have to accept less-than-satisfactory results. The urgency to course correct is mounting: As AI accelerates change and unveils unprecedented opportunities, it is exposing the limitations of traditional, siloed structures. Layering new, powerful technology onto outdated operating models just creates organizational friction, leaving significant value unrealized.

To overcome this, Transforming the enterprise identifies what sets leading organizations apart: They redesign their underlying operating models before attempting to scale change.

Our report reframes the transformation conversation around enterprise orchestration, highlighting five strategic priorities crucial for navigating transformation today. It details the specific leadership decisions and distinct pathways that separate high-performing organizations from the rest, including how they learned to align priorities, integrate execution, and maintain control across an increasingly complex web of functions, technologies, and operating models.

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*Source: KPMG International Limited, "Transforming the enterprise" (June 2026)

Transformation challenges

3.5

concurrent transformations is the global average

Leaders are juggling a high volume of change with complexity and potentially competing priorities.

Just 12%

are agile enough to launch a strategic initiative in under three months.

Despite efforts to improve speed and adaptability, the internal operating models of most companies are too slow and rigid to efficiently translate strategy into action.

Only 14%

see themselves as top performers relative to peers

Despite massive investment and activity, most companies are not seeing results from their transformation efforts.

< 20%

report their workforce is “highly proficient” in using AI tools.

Organizations are deploying AI rapidly, but the barrier to value isn't a lack of technology, it’s failure to redesign roles and workflows for effective human-AI collaboration.

What leaders do differently

Prioritize adaptability over efficiency

39% of leading organizations prioritize process optimization compared to 55% of other organizations. Leaders recognize that building an adaptable workforce is more valuable than trying to squeeze incremental gains out of outdated, rigid processes.

Organizations that act decisively significantly outperform those that hesitate. Read more in our report, Winners don't wait: Transforming with confidence and clarity in volatile times.

Prioritize enterprise alignment over transformation volume

Leaders are 9x more likely to be mature in their enterprise orchestration, highlighting the difference between companies that focus on building capabilities that enable the organization to transform more efficiently and effectively and those that respond to pressure by simply increasing the volume of transformation activity.

Align the enterprise before scaling AI

While most organizations try to scale AI technology within fragmented structures, leading organizations integrate the enterprise operating model first before scaling technology across a connected system.

Design trust and risk as foundations to enable speed

70% of leading organizations view trust as a competitive differentiation, compared to 31% of other organizations, and are more likely to proactively embed AI risk management across strategy and the technology lifecycle.

Read The trust advantage: Transforming at speed and scale.

Leverage external partners to accelerate progress

Leading organizations are 2x as likely to leverage managed services, and they use partner ecosystems, alliances, and platforms to move quickly and evolve capabilities as conditions change.

Gather insights on how effective partner ecosystems help unlock business potential and gain a competitive edge in our report, Accelerate growth and innovation with partner ecosystems.

Transformation challenges

3.5

concurrent transformations is the global average

Leaders are juggling a high volume of change with complexity and potentially competing priorities.

Just 12%

are agile enough to launch a strategic initiative in under three months.

Despite efforts to improve speed and adaptability, the internal operating models of most companies are too slow and rigid to efficiently translate strategy into action.

Only 14%

see themselves as top performers relative to peers

Despite massive investment and activity, most companies are not seeing results from their transformation efforts.

< 20%

report their workforce is “highly proficient” in using AI tools.

Organizations are deploying AI rapidly, but the barrier to value isn't a lack of technology, it’s failure to redesign roles and workflows for effective human-AI collaboration.

What leaders do differently

Prioritize adaptability over efficiency

Organizations that act decisively significantly outperform those that hesitate. Read more in our report, Winners don't wait: Transforming with confidence and clarity in volatile times.

Prioritize enterprise alignment over transformation volume

Align the enterprise before scaling AI

Design trust and risk as foundations to enable speed

Read The trust advantage: Transforming at speed and scale.

Leverage external partners to accelerate progress

Leading organizations are 2x as likely to leverage managed services, and they use partner ecosystems, alliances, and platforms to move quickly and evolve capabilities as conditions change.

Gather insights on how effective partner ecosystems help unlock business potential and gain a competitive edge in our report, Accelerate growth and innovation with partner ecosystems.

Source: KPMG International, "Transforming the enterprise" (June 2026)

Orchestration is not about alignment alone—it’s about making the right calls: where to scale, where to stop, and how to turn AI into better customer outcomes.

Jeanne Johnson

Business Transformation, Customer & Operations Leader, Principal, Advisory, KPMG LLP

Learn how to ready your business for new technology so every function transforms together.

Download the report

Transformations fail when there is a breakdown in execution and complexity outpaces performance. AI accelerates change but often adds to this complexity as organizations layer technology onto outdated operating models. Leading organizations overcome this by mastering enterprise orchestration, a core transformation capability that turns fragmented activities into sustained, enterprise-wide value.

What is the central challenge in enterprise transformation today?

The central challenge is a breakdown in enterprise-wide execution. Organizations don’t suffer from a lack of ambition, investment, or technology, but complexity is outpacing performance as they launch more transformations than ever—3.5 concurrent initiatives, on average. This creates a structural mismatch between the pace of change and the organization's ability to absorb it, leading to:

Fragmented efforts that compete for resources instead of reinforcing each other
Inadequate operating discipline to align priorities and coordinate decisions
High activity but low enterprise-wide performance gains.

How does artificial intelligence impact transformation?

Artificial Intelligence (AI) is intensifying both the opportunity and the complexity in enterprise transformation. While AI adoption is widespread and accelerating activity, its impact remains limited:

Productivity gains are emerging but remain largely incremental: Gains from AI-driven initiatives are often confined to efficiency metrics like time savings and cost reduction. Far fewer organizations are measuring strategic outcomes like revenue growth or competitive advantage, indicating that AI is improving tasks but not yet transforming the enterprise.
Workforce design isn't keeping pace: Organizations are deploying AI tools, but only 19 percent report their workforce is “highly proficient” in using them. The problem is not a lack of technology, but the failure to redesign roles, workflows, and decision-making around human–AI collaboration.

What governance structure supports effective transformation?

Our research shows that leading organizations treat governance as an enabler of speed rather than a constraint. They embed trust, risk management, and security directly into their decision-making processes and technology design from the outset, creating a clear performance advantage:

Organizations that prioritize risk transformation report a 14 percent performance improvement.
70 percent of these leading organizations view trust as a source of competitive differentiation that allows them to move faster with confidence.

What is the difference between true transformation and incremental change?

Incremental change occurs when organizations optimize existing processes or layer new technology (like AI) onto legacy structures. This delivers localized efficiency but not transformation. A truly transformative initiative fundamentally redesigns the enterprise operating model. It focuses on adaptability over process optimization, redesigns end-to-end value streams to reduce handoffs, and aligns technology and workforce capabilities to drive compounding, enterprise-wide value.

How can transformation create consistent growth?

Consistent growth is achieved when transformation evolves from a series of temporary, disconnected projects into a permanent, “always-on” capability. The key is to master enterprise orchestration. Instead of launching isolated initiatives that compete for resources and lose momentum, this approach treats the enterprise as a single, integrated system. By establishing this level of orchestration, organizations can adapt to market shifts in real time and continuously compound value, turning transformation into a sustainable growth engine.

How KPMG can support your transformation goals

KPMG supports enterprise transformation by helping organizations masterfully orchestrate change across strategy, technology, and talent. Powered by KPMG Velocity, these tailored services help leaders accelerate change, manage complex execution, and translate investments into measurable business outcomes.

A successful transformation requires more than disconnected initiatives—it demands masterful orchestration. Our transformation services help you align leadership, sequence complex initiatives, and embed value realization from day one.

We tailor our approach to your specific industry and operational needs, driven by our defining strength: the ability to orchestrate change across strategy, technology, AI modernization, and talent. And we use KPMG Velocity, our extensive methodology that brings together our methods, assets, insights, and alliances, to help organizations transform with speed, direction, discipline, and trust.

In a world of continuous change, the ability to both orchestrate and operate change is what enables value to scale. Move faster with greater clarity. Transform with KPMG Velocity.