Businesses Scale Transformation to Meet Regulatory, Technology and Customer Challenges, Finds Arthur D. Little Global Research

Transformation is now a way of life for global companies, with two-thirds (65%) undergoing wide-reaching or expanding organization-wide transformation initiatives. This is driven by regulatory change (including tariffs), technological disruption, and shifting customer needs, all of which are rated at 4.1/5 in importance. Confidence levels are high, with 95% expecting initiatives to deliver success, according to the inaugural Arthur D. Little (ADL) Global Transformation Study.

Time frames vary significantly between regions. 71% have a four-to-six-year window for transformation, with 32% focused on five years. However, average timelines range from 3.2 years in North America to 4.9 years in the Middle East and 5.5 years in Asia-Pacific.

There are also significant differences between who leads transformation efforts globally. While a third (32%) of companies have a Chief Transformation Officer (CTrO), adoption varies considerably by region. 53% of European companies have a CTrO, compared with just 5% in Asia-Pacific.

Resourcing, people engagement, and technology adoption are seen as the top transformation challenges, with each rated as highly/very important by more than 85% of respondents. Demonstrating this need to focus on people, 89% of respondents are upskilling their organization. However, despite this, only 5% see their learning organization and culture as very effective, with 35% viewing it as slightly effective.

Francesco Marsella, Managing Partner and Global Leader of the Transformation Practice at Arthur D. Little, comments: “Our study shows that transformation is no longer a choice – organizations see it as a strategic imperative. However, while embarking on ambitious initiatives it is vital that they focus on their people, going beyond structural change to embed cultures that support transformation and agility.”

The Arthur D. Little Global Transformation Study interviewed 400 senior managers responsible for transformation in six regions, across 10 key sectors. The study combines analysis of the findings with insights and best-practice recommendations based on ADL’s experience.

The full report can be downloaded here.

For further information, please visit www.adlittle.com.

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