Why Business Transformations Fail
While most organizations are undergoing some kind of business transformation, relatively few global executives think they're getting sustainable value from these initiatives, according to a recent survey from KPMG. The resulting "KPMG Transformational Survey" series of reports indicate that legacy technology creates a significant roadblock. In fact, transformation efforts that begin with a specific technology are far more likely to fail than those that initially focus on strategy. The findings reveal other transformation barriers: Companies struggle to capture information related to marketplace and customer preference changes. They face difficulties in pursuing innovation as a formal process. And the prevailing corporate culture often presents resistance to change. "Business transformation can no longer be a 'one and done' initiative," said Stephen Hasty, Jr., who is a global transformation leader at KPMG. "Senior executives realize that their organizations must create mechanisms to continuously evolve and respond to the dynamic market environment. Unfortunately, these business leaders are up against serious barriers to reaching goals, as well as massive disruptions in technology and customer preferences and demand." More than 1,600 global senior executives took part in the research.