Toronto, Canada, May 13, 2024 (GLOBE NEWSWIRE) -- TORONTO, CANADA, May 13, 2024 (Globenewswire) -- Sensei Labs today shared the results from their first State of Transformation Survey, reaching more than 150 business transformation leaders in large enterprises globally. The survey was conducted in partnership with in partnership with the Process Excellence Network’s OPEX Week Business Transformation World Summit event.
Enterprise transformation is one of the critical disciplines that will drive the growth and success of large businesses globally. IDC forecasts spending on the digital transformation subsegment alone will reach nearly $3.9 trillion in 2027 with a five-year compound annual growth rate (CAGR) of 16.1%1. A recent HBR article2 highlighted the extraordinary failure rate of these programs, showing that only 22% of companies in their analysis successfully transformed themselves. McKinsey’s research supports that conclusion, finding that the more transformation actions a company takes, the greater its chances for success, but less than one-third of companies they've studied say their transformations have been successful at both improving organizational performance and sustaining those improvements over time3.
In our current era of rapid technological advancements and significant market volatility, understanding the dynamics of business transformation is critical. The State of Transformation 2024 survey explores the demographics of participating companies, the scale of their transformation teams and efforts, the types of programs they’re executing, and the people, platforms, and processes that enable them. Some critical findings:
- Over 85% of surveyed organizations have started using AI in their transformation strategies, with over 50% already having a policy in place and 2% achieving measurable results.
- Over 60% of our respondents occupy VP-level positions or higher, reflecting the critical role of top-tier leaders in driving transformative changes, and nearly 70% of programs have direct oversight by CEOs.
- Nearly 30% of respondents are managing ten or more initiatives concurrently, with many of these programs in the early stages
- More than half of the programs covered by the survey are achieving less than 25% of their financial targets, reflecting that overall transformation success rates remain in effect.
- About 25% of Transformation Management Offices’ time is dedicated to low-value, status-tracking activities, costing enterprises millions of dollars that could be better spent on higher-value work and driving results.
- The majority of surveyed organizations rely on traditional platforms like Microsoft Excel, PowerPoint, and Power BI to orchestrate their program execution and KPI/Benefits tracking and have yet to make the move to modern, purpose-built transformation platforms like Conductor by Sensei Labs.
A late-2022 report from Constellation Research, How a Transformation Platform Reimagines Success: A Look at the Traits, Data and New Practices Behind High Success Business and IT Change4, found that those modern, purpose-built transformation platforms can drive 3x the results of traditional solutions. “New approaches have recently arrived that bring together the people, processes, and data within a transformation effort in a way that holds the promise of dramatically lowering risk and improving results,” explained Dion Hinchcliffe, Constellation Research Vice President, Principal Analyst, and author of the report. “The data is promising and indicates a clear path forward for significantly improving results and lowering risks. These results, along with lower risk, appear to be readily accessible to most enlightened organizations that look at the common reasons transformation is held back, and then more comprehensively embody them, such as in a tool or platform.” Conductor by Sensei Labs is the only platform named in Constellation Research’s report.
“The ever-increasing rate of volatility, uncertainty, complexity, and ambiguity in today’s enterprise environments means transformation skills and maturity are critical predictors for long-term success,” said Jay Goldman, Co-founder and CEO of Sensei Labs. “Benchmarking your transformation efforts against other large enterprises enables transformation leaders and management offices to understand how they should adapt their spending, focus areas, and teams. These survey results are an indispensable tool and source of reliable data to understand the current state of enterprise and business transformation.”
A complimentary copy of the full report, including more than 30 questions and analysis, is available from https://www.senseilabs.com/state-of-transformation/.
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ABOUT SENSEI LABS INC.
Conductor® by Sensei Labs® brings clarity to complexity at every stage of your transformation journey to accelerate benefits and de-risk execution. Conductor is an enterprise-grade, AI-powered transformation platform that creates harmony from strategy through execution, delivering KPI/benefits tracking, accountability, and governance on your terms. Conductor empowers transformation journeys for the world’s largest companies, government agencies, professional service firms, and private equity funds. Learn more at https://www.senseilabs.com.
Sensei Labs and Conductor are registered international trademarks of Sensei Labs, Inc. and cannot be used without expressed permission.
1 https://www.idc.com/getdoc.jsp?containerId=prUS51352323
2 https://hbr.org/2021/09/the-secret-behind-successful-corporate-transformations
3 https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/successful-transformations
4 https://www.constellationr.com/research/how-transformation-platform-reimagines-success
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