Why Some Business Transformations Fall Flat
98% of surveyed executives said their organizations are in a state of transformation, up from 93% last year.
25% of those surveyed said prior transformation programs have failed to achieve intended business benefits.
Customer demand: 32%, Changing/expanding global environment: 28%, Industry consolidation: 24%, Government compliance: 23%, Disruptive tech: 23%
Existing corporate culture: 38%, Underestimation of the significance of operational model change: 38%, Inadequate or legacy tech: 32%
Only 14% of those surveyed define metrics and align them with strategic vision and desired business outcomes before launching a transformation effort.
Just 29% said their organization is highly capable of developing business and operating models to pursue transformation.
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.
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.
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.
90% of transformations triggered by new or emerging competitors achieve the anticipated value or more, compared to 70% of transformations driven by existing competitors.