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.

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.

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.

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.

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.

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.