Deloitte’s “2025 Chief Transformation Officer Study” reveals key insights into successful transformation programs, highlighting the importance of financial and human capital, experienced leadership, and continuous change management. The findings underscore the growing prominence of transformation programs in executive agendas and their critical role in driving organizational success.
“Disruption is the new normal, and as a result, transformation programs are increasingly becoming a central focus for executives,” said Anne Kwan, principal, US Monitor Deloitte, Deloitte Consulting LLP. “Our study shows that companies are taking a more deliberate approach to transformation, dedicating more resources and appointing experienced leaders to ensure these programs meet or exceed their goals.”
As the influence and intensity of global disruptions increase, meaningful change requires companies to respond through more frequent and better-managed transformation. While many organizations focus on technology and operational upgrades, true transformation requires deeper structural shifts. To navigate disruption effectively, businesses must strengthen their transformation capabilities.
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Six key insights on transformation
The “2025 Chief Transformation Officer Study” outlines six key insights gleaned from transformation programs that were CXO-sponsored, enterprise-wide, and business-driven:
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.
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4. 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 and 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.
The study also includes several case studies illustrating successful transformation strategies across various industries, from technology to life sciences. These examples highlight the importance of strategic planning, stakeholder engagement, and a relentless focus on metrics to drive sustained organizational change.
For more information about Deloitte’s strategy practice and the CTrO study, please visit our website.
About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters for our people, clients, and communities. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing 180 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 460,000 people worldwide connect for impact at www.deloitte.com.
SOURCE: Deloitte
