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Kearney's 2025 Transformation Study: Key Findings

On November 4, 2025, Kearney unveiled its 2025 Transformation Study, a comprehensive analysis highlighting the significant challenges faced by organizations in executing effective transformation strategies. The study reveals that an alarming 83% of transformation initiatives fall short of their goals, raising crucial questions about the effectiveness of current methods and the fundamental aspects necessary for success.

Understanding the Crisis

Conducted across various industries and company sizes, the study surveyed 76 senior transformation leaders. Contrary to common assumptions, the chief culprits behind failing transformation efforts are not just a lack of resources or inadequate tools. Instead, the predominant factor is alignment — specifically, alignment in purpose, leadership, and personnel.

Jennifer McGee, a partner at Kearney's Strategy, Growth, and Organizational Transformation practice, emphasizes, "The data confirms that most transformations fail because companies fail to gain sufficient internal buy-in. Resistance to change consistently stands out as the top challenge among executives, signaling that leadership, engagement, and transparency are vital components for successful transformations."

The Seven Imperatives for Success

Through extensive research, Kearney identified seven key imperatives that distinguish successful transformations:

1. Set a Bold Vision: Establishing a clear, captivating vision to inspire the organization.
2. Define and Measure Success: Creating quantifiable metrics for tracking progress.
3. Make People Central: Prioritizing employees as the heartbeat of transformation.
4. Celebrate Early Wins: Achieving and showcasing quick victories to maintain momentum.
5. Transform Growth Capacity: Focusing on enhancing capabilities rather than merely cutting costs.
6. Start with Talent, Scale with Technology: Leveraging human resources first before implementing tech solutions.
7. Manage as an Integrated Whole: Coordinating transformation efforts holistically, rather than viewing them as isolated projects.

Challenges in Execution

Kearney’s findings illustrate that merely having the right strategy or tools is insufficient. Even well-funded programs often underperform due to organizations underestimating the task of winning the hearts and minds of their people. Among the executives surveyed, two-thirds identified resistance to change as their greatest barrier, followed by issues stemming from leadership misalignment and organizational fatigue.

Bryan Arcati, another partner in Kearney, notes the importance of execution discipline: "While maintaining operational discipline is critical, the sequence of actions taken is equally important. Organizations that rapidly achieve visible operational wins, followed by scaling efforts through technology and data alignment, are the ones that secure ongoing success. Generative AI, in particular, is positioning itself as a transformative technology; however, ultimate success remains reliant on people. The most effective leaders approach transformation as a comprehensive system, not as an isolated project."

Cultivating Optimism in Transformation

Despite the myriad challenges identified, the report conveys a sense of optimism. Organizations that adopt these seven imperatives often see substantial benefits, including sustained growth, quicker decision-making, and enhanced employee engagement. Furthermore, McGee asserts, "Transformation fatigue does not have to be an unavoidable reality. When leaders thoughtfully sequence changes and invest in their workforce, transformation can morph into a source of energy and motivation rather than mere exhaustion."

Conclusion

The insights from Kearney’s 2025 Transformation Study are crucial in guiding organizations seeking to navigate the complexities of change in a landscape characterized by rapid disruption. By prioritizing alignment, focusing on people, and embracing a holistic methodology, companies can increase their chances of achieving successful and lasting transformation.

For further details, interviews, or to obtain a copy of the study, media professionals can reach out to Meir Kahtan in Public Relations.

For more about Kearney's approaches and insights, visit www.kearney.com.