Why Some Business Transformations Fall Flat

Why Some Business Transformations Fall Flat

United UndertakingUnited Undertaking

98% of surveyed executives said their organizations are in a state of transformation, up from 93% last year.

Missed TargetMissed Target

25% of those surveyed said prior transformation programs have failed to achieve intended business benefits.

Top Transformation Drivers for the Next Three YearsTop Transformation Drivers for the Next Three Years

Customer demand: 32%, Changing/expanding global environment: 28%, Industry consolidation: 24%, Government compliance: 23%, Disruptive tech: 23%

Biggest Barriers to a Successful Business TransformationBiggest Barriers to a Successful Business Transformation

Existing corporate culture: 38%, Underestimation of the significance of operational model change: 38%, Inadequate or legacy tech: 32%

Correction Required: Missing MetricsCorrection Required: Missing Metrics

Only 14% of those surveyed define metrics and align them with strategic vision and desired business outcomes before launching a transformation effort.

Correction Required: Missing TemplateCorrection Required: Missing Template

Just 29% said their organization is highly capable of developing business and operating models to pursue transformation.

Correction Required: Action ItemCorrection Required: Action Item

Only 32% said their companies are highly capable of executing on a transformation implementation plan, while just 36% said their organizations are highly capable of continuously improving the implementation model.

Starting PointStarting Point

57% said their organization is likely to approach transformation by beginning with a strategic plan to address a defined set of high-impact issues, while 35% said their company is most likely to focus on transforming a specific function.

Outcomes AssessmentOutcomes Assessment

27% of those at organizations likely to address high-impact issues during a transformation yield less value than expected, compared to 22% of those which transform a specific function and 19% which transform a particular technology.

Competitive EdgeCompetitive Edge

90% of transformations triggered by new or emerging competitors achieve the anticipated value or more, compared to 70% of transformations driven by existing competitors.

Dennis McCafferty
Dennis McCafferty
Dennis McCafferty is a contributor to CIO Insight. He covers topics such as IT leadership, IT strategy, collaboration, and IT for businesses.

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