Chief transformation officer survey: six ways to keep up with rapid change
As the influence and intensity of global disruptions increase, meaningful change calls for carefully managed transformation, surveyed executives say.
Disruption is the new normal. Many organisations today are responding and finding success through a more deliberate approach to transformation.
External forces such as the evolving competitive landscape, the rise of new technologies, and continuing macroeconomic pressures are among the top transformation triggers named by chief transformation officer (CTrO) executives across industries, according to Monitor Deloitte’s 2025 Chief Transformation Officer Study. Focusing on a range of CXO-sponsored, enterprise wide, and business-driven transformation programs, the survey found that most emphasise technology modernisation and operational process improvement.
As transformation programs become a more prominent and central part of the executive agenda, companies undertaking such mission-critical efforts should consider six key insights, according to the report:
Allocating more financial capital. Transformation efforts require significant investments that compete with other capital allocation decisions across the enterprise. Investment choices are subject to increasing scrutiny by internal and external stakeholders, including senior leadership, the board of directors, and capital market participants.
Despite these challenges, the report found a meaningful uptick in the budget allocated to transformations. Compared with the previous version of the study, released in 2022, executives today report an increase of up to 2.5x in transformation budgets. Spending is allocated across several areas, with the largest share of the wallet addressing technology, process, and business capability changes.
Today’s organisations value but often underprioritise the importance of managing change and motivating talent.
Dedicating more human capital. How management deploys its human capital — where people engage, when they get involved, and how much time they spend — can be instrumental to transformation success.
Companies are increasingly dedicating internal resources to deliver their transformation programs, the study found, rather than temporary workers from external partners. There has also been a substantial increase in full-time resource dedication to these programs. In addition, many companies now ensure that team composition is more comprehensive, and stakeholder engagement is more consistent across transformation stages. In fact, involving workstream leads in earlier phases can increase the probability of success by 10 per cent, the study found.
Appointing more experienced and full-time leaders. Successful transformations are guided by seasoned leaders capable of navigating and accelerating change at the highest levels, and companies today are appointing more experienced leaders for that role, the report suggests. Further, the CTrO position is occupied by individuals of higher executive rank and who bring more diverse experience. While backgrounds in strategy and technology are most prominent, CTrO resumes span various front- and back-office functions, reflecting the fact that the scope of transformation varies considerably. Programs are also increasingly led by CTrOs who are solely dedicated to the transformation program rather than balancing the responsibilities of a dual role. Today, 48 per cent of CTrOs are fully focused on transformation efforts, according to the report, representing a sharp jump from 2 per cent in the previous study.
Embracing change management as an ongoing need. Today’s organisations value but often under-prioritise the importance of managing change and motivating talent. If allowed to hypothetically “rebalance the budget” for a transformation effort in hindsight, most CTrOs would allocate their funds differently, the report found: 42 per cent said they would increase investment in the talent category, and 33 per cent would increase investment in change management and communications. From among more than two dozen analysed variables, the study found that two talent and change management-related attributes ranked among the top three best predictors of transformation success: CTrOs who secured support for mobilisation and gained buy-in from the workforce increased their chances of success by up to 10 per cent, while those who could overcome a lack of appetite for risk-taking and avoid an “incrementalism” mindset increased the likelihood of success by another 6 per cent.
Maintaining momentum beyond design and planning. All change journeys present unique challenges; the hurdles companies choose to prioritise typically affect the pace and quality of transformation outcomes. Most survey respondents had successfully delivered prior transformations, allowing them to retrospectively compare the importance of challenges across program phases. Their responses suggest that companies experience the most significant challenges during execution compared with design and planning.
Three of the top five challenges cited are about “getting things done” — securing the right resources with the proper bandwidth and emphasising change management and communications. In addition, proactively addressing challenges in earlier phases can alleviate downstream impact, the report suggests.
Prioritising measurement and accountability. More than 80 per cent of transformation programs are on track to meet or exceed their performance targets, the study found, up from 75 per cent in 2022. While many companies exceed their goals for efficiency, margin growth, and customer satisfaction, they often need to catch up on those for market share and revenue growth. This highlights a potential overreliance on lagging indicators, which measure past performance, rather than leading indicators that can predict future success. Better and smarter key performance indicators (KPIs) lead to better and more innovative digital transformation. Leading organisations treat KPIs not as reporting and accounting mechanisms but as strategic decision drivers; in other words, they don’t keep score — they change the game.
Transformation has not become any more straightforward or less consequential in recent years, but many companies are demonstrating the ability to learn and mature through experience, often creating new value along the way. Continuing this trajectory will require anticipating and preparing for disruption, not just responding to it. The transformation muscle isn’t built once — it’s conditioned over time.
Read Monitor Deloitte’s full 2025 Chief Transformation Officer Study.
Anne Kwan, Cristina Stefanita and Rohan Gupta are principals, U.S. Monitor Deloitte, Deloitte Consulting LLP.
As published by the Deloitte US Chief Financial Officer Program in the 23 May 2025 edition of The CFO Journal in WSJ.
Disclaimer
This publication contains general information only and Deloitte is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional adviser.
Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
Copyright © 2025 Deloitte Development LLC. All rights reserved.
More Coverage
Why CFOs need a capital allocation framework
CFOs are the linchpin of any good capital allocation strategy and will have the most influence over its design. But how do they help ensure the development of a strategy that’s fit-for-purpose?
What these three job market trends mean for employers
Non-market employment – public sector jobs and roles in health, education, and social assistance – will drive most job growth. This sector accounted for 80 per cent of employment gains last year.