We surveyed over 250 senior leaders across industries to reveal the four characteristics of organizational transformations that can boost EBITDA by 10 to 30 percent.
As the changes keep coming, business leaders have been relentlessly adapting to challenges. The pandemic has raised a whirlwind of spiraling issues such as shutdowns disrupting business as usual that have led to an economic threat. Then came remote work, labor shortages, surging demand, supply chain shortages, changes in customer behavior, new forms of collaboration, the list goes on and on. One thing is clear through all of this – every company needs to transform to adapt to the changing environment.
In 2021, we surveyed over 250 senior leaders across 140 companies in different industries undergoing business transformations or had recently completed them. We published1 a study about what made transformations succeed – and the pitfalls that cause most transformations fall short. In research dating back two decades, we found that 73 percent of transformations failed to deliver both growth and improved profitability.
Setting the winning transformations apart, we noticed that they share four characteristics:
- They are ambitious but based on a dispassionate view of what’s possible
- They are proactive – launched before a company is in a crisis
- They have broad organizational support, including highly visible senior sponsorship
- They focus on both growth and profitability
In the study we released, we used research that showed how specific targeted actions could considerably increase the chances of a successful business transformation. You can know more about it by reading our full paper on Transforming Transformation here - Transforming Transformation: Keys to major, sustainable change.
This paper offers insights into the common issues in transformations and provides tested, practical steps to help companies succeed, including a framework for setting up an effective transformation program.
Looking forward, our research shows that more changes are yet to come, and being able to transform and adapt on the go is becoming the need of the hour. And so, we are pleased to introduce our Elevate C-Suite Perspectives Series. KPMG Performance Transformation solution, Elevate is designed to help our clients navigate today’s business transformation issues.
We help leading organizations capture value by:
- Improving business performance
- Turning risk and compliance into opportunities
- Developing strategies to improve future growth
Dive in and read powerful stories about turning challenges into transformative opportunities in our Elevate C-Suite Perspectives series.
- Source: KPMG transformation survey, fielded 9/26-10/1