The pandemic and unprecedented challenges of the past three years have tested CEOs and their leadership teams. Post-pandemic, most leadership teams of large companies are rising to the occasion, transforming more than ever before, faster than ever before—which we call “compressed transformation”—and accepting that all strategies lead to more technology. We call these companies the “Transformers.”
A handful of companies are quietly and systematically changing the game and their industries, driving a new imperative. These are the “Reinventors,” building on their experience as Transformers to embrace what we call “Total Enterprise Reinvention.”
Our research shows only 8% of companies are moving to adopt a strategy of Total Enterprise Reinvention. Most companies—86%—are Transformers. They focus on transforming parts of their business rather than the whole and tend to treat transformation as a finite program rather than a continuous process. Many, though, are beginning to recognize the importance of establishing a new performance frontier—just under half of Transformers (43%). In fact, this group says they aspire to set a new level of performance in their industry through their transformation programs. These “Aspirational Transformers” are best primed to become Reinventors. Six percent of organizations are what we call “Optimizers”, focused on functional transformations limited in scope and ambition. Technology is not a significant enabler of their transformations.