Six Proven Ways to Accelerate Business Transformation

Organisations are making larger investments in transformation to keep up with growing disruption. However, efforts that centre too heavily on technology upgrades may fall short of delivering long-term results. A significant amount of resources is now being directed into broad change initiatives, with strategic leadership and shifting priorities driving momentum. Still, the challenge of balancing talent development and strong execution remains.

More companies are beginning to view transformation as a continuous discipline rather than a one-time fix. A recent study of chief transformation officers (CTrOs) found that the main triggers for large-scale change include economic pressure, rapid technological advancement and evolving market competition. Most transformation efforts span the entire organisation and often target updates to digital infrastructure as well as day-to-day business operations.

Budgets for transformation have grown significantly, reaching up to 2.5 times higher than they were two years ago. These funds are largely directed towards digital capabilities and improvements in business processes. At the same time, there is a growing focus on strategic hiring and leadership development. Many companies are shifting away from external consultants and moving towards using in-house experts who are familiar with the company’s culture and goals. Nearly half of CTrOs now focus full-time on transformation, a sharp increase compared to just 2% in the previous study.

The human side of transformation still requires more attention. Although many leaders recognise the value of change management and workforce engagement, those areas often receive limited investment. Upon reflection, executives say they would have placed more emphasis on talent, communication and employee buy-in. Companies that engage their workforce early and take measured risks are far more likely to achieve successful outcomes.

Execution is now a leading priority. While strategy and planning are typically more straightforward, organisations face practical hurdles during implementation. Among the five biggest challenges, three relate to maintaining momentum. Ensuring teams have sufficient time, tools and support is vital to avoid roadblocks. Businesses that resolve early issues are better positioned to prevent major delays down the line.

Organisations are also shifting how they measure success. More than 80% of businesses believe they are on track to meet their transformation goals. However, shortcomings in revenue or market share growth suggest that many are relying too heavily on backward-facing metrics. Leading companies are beginning to rethink their performance indicators to focus not only on current outcomes but also on future-informed decision-making.

Transformation is not becoming easier. Yet organisations that keep learning, adjust their approach and prioritise leadership and readiness appear to outperform the competition. Staying ahead will require more than reactive processes. It demands the ability to proactively adapt in a fast-changing environment.

Source: The Australian, BIE Executive, IMD