Winners Don’t Wait: AI-First Transformation in Volatile Times

Organizations that act decisively outperform peers by persevering through uncertainty.

Transformation in volatile times demands clarity of purpose and confidence in action. AI‑enabled insights help leaders focus on what matters most, simulate outcomes, accelerate decisions, and adapt business, operating, and technology models—so organizations sustain momentum and move forward with confidence.

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In the face of volatility, most organizations aren’t pausing—they’re accelerating change. Yet many companies think their competitors are taking a step back.
That hesitation creates a transformation divide between organizations that move forward despite uncertainty and those that stay stuck.
Historical outcomes bear out the impact of action or stagnation: Proactive companies that persevered through pandemic volatility outperformed post-COVID versus passive peers.
Four distinct transformation mindsets explain why some leaders act while others stall.
Organizations close the transformation execution gap by adhering to four pillars of transformation.
KPMG Velocity is the transformation accelerant that empowers organizations to act decisively, adapt to change, and unlock sustainable value in today’s environment. Discover how our AI-first approach can help you fast-track change and build a resilient, future-ready enterprise.

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The transformation execution gap between companies that act decisively and those that wait is widening, and the consequences are measurable. The companies pulling ahead are the ones who treat volatility not as a threat but as a catalyst. Their leaders recognize that transformation can’t pause for clarity or perfect conditions. Instead, they move with purpose, anchoring decisions in customer value, accelerating delivery, and adapting their business and operating models to keep pace with continuous change.

But acting quickly isn’t enough; true advantage comes from executing well. Confident leaders who use the building blocks of successful transformation can translate intent into meaningful progress with practical actions that enable companies to move faster, build resilience, and create sustainable value in an environment where advantage goes to those who don’t wait.

The transformation execution gap is the widening divide between organizations that act decisively during volatility and those that hesitate—creating measurable differences in speed and performance.

False assumption and reality check:

1 in 3

executives believe their peers are slowing down transformation efforts during volatility;¹ however...

65%

of executives are advancing transformation—not pausing¹

Proactive companies achieved:

4.4x

higher total shareholder returns²

higher revenue CAGR post-COVID relative to peers²

60%

of leaders say they struggle more with transformation execution than ideas¹

Sources and methodology

Sources

¹Based on a survey of 400 respondents from US companies across various industries in June 2025

²Based on analysis of US public company financial performance and digitalization trends across two timeframes, prepandemic and postpandemic

Survey methodology

KPMG LLP (KPMG) surveyed 400 respondents at US companies across various industries in June 2025 regarding transformation including digital/technology, enterprise, and performance initiatives. Participants represent a diverse range of organizational types and sizes with annual revenues from $1 billion to more than $100 billion, including a substantial proportion of publicly traded companies. Most respondents are in C-suite and other high-level positions typically involved in transformation efforts, with significant representation from technology/IT and operations.

Measuring response and recovery methodology

This analysis aimed to understand how companies responded to and recovered from periods of high volatility, specifically focusing on the COVID-19 pandemic. We began by selecting all US public companies listed on major exchanges such as the NYSE and Nasdaq, provided they had financial data dating back to 2016. Initially, the dataset comprised 1,831 companies, and we measured their financial performance across two distinct periods: pre-COVID-19 (2016–2020) and post-COVID-19 (2020–2024).

To refine our analysis, we ran evaluations based on total shareholder return (TSR) and revenue, comparing the performance of these companies during the specified periods. This process helped us categorize the 1,831 companies into four distinct groups. From these groups, we shortlisted 10 companies per sector, ultimately selecting a subset of 173 companies for focused analysis, covering the timeframe from the fourth quarter of 2019 through the fourth quarter of 2021.

We assessed financial performance using the same two metrics: TSR and revenue. To enhance these quantitative measures, we reviewed earnings transcripts, conducting a keyword analysis with Python on 24 digitalization-related keywords. This analysis resulted in 33,477 keyword hits across all transcripts. By monitoring the frequency of these keywords quarter-over-quarter, we evaluated which companies demonstrated faster adoption of digital transformation initiatives compared to their peers.

By comparing financial performance and digitalization trends across the two timeframes—prepandemic and postpandemic—the methodology provides insights into how organizations responded to and adapted to rapid change.

Learn what separates the leaders from the rest

Winners don’t wait: Transforming with confidence and clarity in volatile times

Discover how leading organizations act decisively, close the transformation execution gap, and create lasting value in times of change.

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What is your organization’s transformation mindset?

An organization’s transformation mindset is a reflection of how leaders perceive uncertainty, risk, and change, shaping whether they accelerate transformation or remain stalled during volatility.

Companies that outperformed during volatility didn’t just accelerate, they transformed with a different playbook. To better understand these differences, we segmented survey respondents by their outlook for their own business performance, and their appetite for transformation in the current market environment. Each mindset explains why a company chooses to act—or remains immobilized—in the face of volatility.

Click on the different mindsets below to learn more about each.

Four pillars of effective transformation

Regardless of your company’s transformation mindset, the four pillars of effective transformation—value, orchestration, technology, and culture—are the foundational capabilities organizations need to convert strategic intent into sustained results without waiting for ideal conditions.

Center on business value

Put customer value at the core
Assign a single owner per initiative
Stand up a transformation value office so data calls the shots
Measure what matters—beyond finance—to include customer, speed, capability, and resilience

Take a portfolio (not program) approach

Coordinate change as one connected portfolio mapped to strategic objectives and customer outcomes
Rebalance quarterly, surface dependencies, and run workstreams in parallel where possible

Accelerate and scale with emerging technology

Execute AI-enabled transformation, which uses AI tools to compress discovery, develop prototypes and documentation, and automate low-value work to speed progress
Establish guardrails early, reuse relentlessly, and leverage partner ecosystems to inject scarce skills

Foster a culture of continuous innovation

Cultivate a bias toward action, cross‑functional ownership, and learning
Pace change with people in mind—sequence upskilling alongside delivery and make reinvention a repeatable habit

	After three attempts at transformation, a Fortune 50 health solutions company took a fundamentally different approach, boosting customer satisfaction and operational efficiency.
	A nationwide private lender finally established a front-end portal and loan origination system that both customers and employees cheered after years of inferior solutions.

How did these two companies find the success they sought through transformation? Download Winners don’t wait: Transforming with confidence and clarity in volatile times.

KPMG has a clear and differentiated vision, backed by an ambitious innovation roadmap. It’s investing heavily in its Velocity platform, which supports clients in building digital foundations while driving AI adoption and resiliency.

The Forrester Wave™: Digital Transformation Services, Q3 2025

Today’s leaders face rising complexity—from rapid AI advances and regulatory change to shifting customer expectations and operational pressure. Many know they need to act but struggle to scale transformation, prove ROI, and build long-term resilience.

That’s where KPMG Velocity comes in. Its five core outcomes—Evolve, Grow, Operate, Innovate, and Trust—represent the business results organizations can achieve when transformation is orchestrated across data, technology, and people.

Service

Achieve transformation and make the difference

KPMG applies an AI-enabled approach to change, helping organizations digitize processes, optimize operations, and realize measurable value.

Through Velocity, we integrate AI capabilities with our sector-specific insights, methods, experience, capabilities, and data to help organizations:

Accelerate outcomes and reduce costs by compressing project timelines and streamlining delivery with embedded AI tools and automation
Unify transformation efforts across functions, geographies, and business units, creating a connected ecosystem for change
Access advanced capabilities through our alliance partnerships and sector-specific solutions, tailored for your industry and strategic objectives
Innovate with confidence by blending robust risk management, security, and compliance controls with advanced technology and responsible AI practices.

Insight

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Unlock your business potential and gain a competitive edge by strategically designing and managing your partner ecosystem.

Insight

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A framework for sustainable growth in an era of compound volatility

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Unlock the full potential of your organization with key insights from the KPMG 2024 Global Transformation Survey.

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Jeanne Johnson

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

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Manish Shah

Managing Director, Customer Advisory, KPMG US

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Julie Midgley

Managing Director, Advisory Line of Business, Financial Services, KPMG US

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Shane Hendricks

Principal, Advisory, KPMG US

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Jeanne Johnson

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

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Manish Shah

Managing Director, Customer Advisory, KPMG US

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Julie Midgley

Managing Director, Advisory Line of Business, Financial Services, KPMG US

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Shane Hendricks

Principal, Advisory, KPMG US

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Relevant Results

Winners don’t wait: Transforming with confidence and clarity in volatile times

Inside the report

Turn volatility into advantage

Proactive companies achieved:

Sources and methodology

Learn what separates the leaders from the rest

Four pillars of effective transformation

Center on business value

Take a portfolio (not program) approach

Accelerate and scale with emerging technology

Foster a culture of continuous innovation

Transformations in action

How KPMG can help accelerate transformation with Velocity

KPMG Velocity is an AI-first way of working that’s specifically designed to transform, operate, and build an intelligent, agile, and resilient enterprise.

Related transformation insights

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