Key takeaways

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An always-on capability

Disruption is constant—companies face ongoing technological, economic, and geopolitical shifts. Executives must recognize the need for continuous transformation and incorporate it into their corporate DNA.

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Execution as a success measure

The ultimate measure of success is the ability to execute. Companies are demonstrating the ability to learn and mature through experience.

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Technology and process upgrades aren’t enough

True transformation requires structural changes that effectively align leadership, engage stakeholders, and integrate functions to drive enterprise outcomes and impact.

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Organizational stamina

Sustaining success requires the ability to change reliably and repeatedly—the transformation muscle is built and conditioned over time. Looking ahead, companies must anticipate disruption, not just respond to it.

Digital transformation road

Six things to know about transformations today

Read the full report to discover what’s happening in transformations today

1. Investing more financial capital

In the last two years, executives have reported up to a 2.5x increase in transformation budgets. This growing financial commitment conveys the importance of transformational change in the eyes of executives and investors alike.

2. Dedicating more human capital

Companies are increasingly dedicating internal resources, rather than temporary workers from external partners, to deliver transformation programs. Additionally, over half of team resources are dedicated full-time to transformation, furthering the view that transformation is becoming a priority for executives and leaders.

3. Appointing more experienced and full-time leaders

Companies are appointing more experienced leaders to lead transformations—90% of leaders have led three or more transformation programs. Moreover, programs are increasingly led by CTrOs who are singularly dedicated to the transformation program rather than balancing the responsibilities of a dual role.

4. Embracing change management as an ongoing need

Today’s organizations value but underprioritize the importance of managing change and motivating talent. Prioritizing talent and change management—cited by executives as the top budget allocation gap—is critical leading up to and throughout the duration of the program.

5. Focusing on execution-related challenges

Companies experience the most significant challenges during execution, relative to design and planning phases. Three of the top five challenges cited are about “getting things done” and closely related to managing people and change.

6. Prioritizing measurement & accountability

Counter to the long-standing narrative that “transformation often fails,” companies are increasingly investing in transformation capabilities and achieving greater success—more than 80% of programs are on track to meet or exceed performance targets.