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For many organisations, transformation is still proving difficult to deliver.
In brief
- According to the recent EY Transformation Leaders Survey, 44% felt their organisation was not set up to deliver transformation at speed
- Only 12% of organisations are harnessing AI for transformation
- 61% of transformation leaders cited funding as an obstacle to driving sustainability transformation
Business transformations are difficult to deliver, requiring alignment across people, processes, technology, data, and governance. In many cases, the full benefits are not realised by organisations. To achieve this, business leaders need to adopt a transformation mindset, placing people at the heart of the process. This will allow for innovation at scale and delivery of technology at speed.
The 2022 EY Transformation Leaders Survey focused on four key themes around transformation delivery and programme management:
- Scale of transformation
- Emerging technologies
- Sustainability
- Transformation delivery
Scale of Transformation
The survey highlights the importance of a structured PMO (Project Management Office) within organisations to deliver transformation effectively. 56% of respondents suggested that the transformation agenda within their organisation had accelerated in 2022, particularly in the areas of digital innovation. However, some of the key challenges in an organisation’s transformation were:
As is the case across all projects and programmes, the senior leadership is responsible for leading by example and ensuring focus within the team. A lack of support when delivering transformation can lead to members of the team feeling isolated and unsure on direction.
Emerging Technology
With 46% of respondents emphasising a strong focus on data analytics to deliver transformation projects and programmes, it is expected to continue to grow over the coming years. The results of the survey showed a decline in the use of Artificial Intelligence (AI) as an aid to transformation, highlighting under-utilisation of this technology currently. Over time, however, this may change as AI begins to add value to various stages of the project lifecycle, steadily increasing the ability to deliver complex project management tasks.
Sustainability
As expected, sustainability will intertwine with organisations' core transformation strategies in the coming years, with over half of those surveyed believing that the organisation's corporate strategy will lead this change.
An acceptance of the importance of sustainability as a value driver for transformational programmes is now required. Of the organisations with an intent to mobilise a TMO (Transformation Management Office), we discovered 63% were likely to have sustainability as a value driver.
Transformation Delivery
The nature of business transformation is evolving rapidly and, as a result, we’re all being asked to adopt new behaviours—to be more innovative, agile, and collaborative. To do so, organisations must have adequate project management structures in place for them to be able to deliver this transformation at speed.
Our survey showed that
of respondents believed that the required project management structures were not currently in place to deliver transformation at speed in their organisation.
To resolve this, half of those surveyed advocated for the establishment of a Transformation Management Office (TMO)/ Project Management Office (PMO) which would provide end-to-end oversight and control of the project life cycle, while also serving as a centre of excellence for change in their organisation.
Summary
The need to initiate transformation within organisations is becoming increasingly urgent, as they might struggle to adapt to an ever-changing business landscape. Finding that balance between maintaining current performance while equally investing in skills, technologies and resources is key.
With speed and change being key elements, we work with clients to enable timely decision-making at all levels of the organisation helping them deliver successful transformations at speed.
For more key insights read our EY Transformation Leaders Survey here.
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